AAMCO Transmission Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$39,500
Investment required
$235,000 - $353,000
Royalty fee
7.50%

AAMCO Transmission: A Trusted Name in Car Care

AAMCO Transmission is a renowned American network of transmission repair shops, now operating under the ownership of the Icahn Automotive Group. The company's main office is located in Horsham, Pennsylvania.

The chain's roots date back to 1962 when founders Anthony A. Martino and Robert Morgan established the first shop in Philadelphia. Since then, AAMCO Transmission has specialized in transmission services and a wide range of car care solutions, catering to both retail and wholesale customers.

Their offerings include oil and filter changes, brake services, heating and cooling system maintenance, tune-ups, steering and suspension work, factory-recommended maintenance, and other related services.

Beginning its franchising operations in 1963, AAMCO Transmission has grown to nearly 600 locations across the United States. With a history of servicing over 45 million vehicles, it remains a trusted leader in the automotive sector.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Expenditure Type Cost Range Paid To
Initial License Fee $7,500 - $30,000 AAMCO
Shop Equipment, Supplies, Lifts & Installation $78,400 - $98,000 AAMCO and Third Parties
POS System – Acquisition $2,500 AAMCO
POS System – 3 months Access/Support $500 AAMCO or Supplier
Computers and Phone System – Hardware $6,500 - $10,000 Suppliers (may include AAMCO)
Office Furniture $5,500 - $7,000 Suppliers (may include AAMCO)
Sales Materials $500 - $1,000 AAMCO
Miscellaneous Costs & Professional Fees $4,000 - $10,000 Third Parties
Insurance $1,500 - $2,500 Third Parties
Signs $4,700 - $13,500 AAMCO, Ad Pool, and others
Additional Funds (3 months) $40,000 - $60,000 Suppliers and other Third Parties
TOTAL ESTIMATED INITIAL INVESTMENT $234,800 - $353,200

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Number of units

2024
Franchised units

549

549

549

Company-owned units

13

13

13

Total units

562

562

562

Franchise Disclosure Document

Training 

The AAMCO family Provides its franchisees a comprehensive training and support.  Here's an overview:

Initial Training: Before opening an AAMCO service center, franchisees must attend AAMCO’s "Operator’s Training School" at AAMCO University. This training includes both classroom instruction and hands-on experience, designed to ensure franchisees fully understand how to efficiently run their service centers. It’s important to note that franchisees are responsible for all expenses related to travel, lodging, meals, and other associated costs during this training period.

Business Coach Training: For individuals who are not current franchise owners of an operational AAMCO center or are not signing the agreement due to purchasing an existing AAMCO center directly from another franchisee, there is a "Business Coach" on-site training program. This program lasts five weeks and takes place on-site, ensuring that the franchisee and their staff are well-prepared within the first thirteen weeks of the center becoming operational. This training comes with a fee of $10,000.

Ongoing Training and Meetings: AAMCO is committed to the continuous growth and development of its franchisees. Franchisees may be required to attend additional training sessions or meetings at various locations as deemed necessary by AAMCO.

Territory Protection

Territory Protection: The AAMCO franchise does not provide exclusive or protected territories to its franchisees. According to the Franchise Disclosure Document (FDD):

Non-Exclusive Territory: Franchisees do not receive exclusive or protected territories. They may encounter competition from other AAMCO franchisees, AAMCO-owned outlets, or other distribution channels and competitive brands controlled by AAMCO or its affiliates.

Relocation Approval: While franchisees own their center's location and, if applicable, its real estate lease, any relocation requires advance written approval from AAMCO. The franchisor is not obligated to consent to such requests.

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