Maaco Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$45,000
Investment required
$276,000 - $1,016,000
Royalty fee
4% to 9%

Maaco: Leading the Way in Auto Paint and Collision Repair Excellence

Maaco is a well-known American franchise specializing in auto painting and collision repair services. Owned by Driven Brands, the company's main office is located in Charlotte, North Carolina.

Founded in 1972 by Anthony A. Martino and Daniel Rhode, Maaco quickly became a leader in the automotive sector. The founders started Maaco after selling their interests in AAMCO Transmission Inc.

Maaco franchise locations provide a wide array of services designed to meet the needs of both individual vehicle owners and fleet operators. These services include fixing dents, dings, and chips, ensuring vehicles maintain a pristine appearance. Additionally, Maaco offers custom paint jobs, full-body painting, and repair services that restore vehicles to their original condition.

Maaco began its franchising operations in 1972 and has grown substantially since. Today, Maaco has a robust presence with 425 locations across the United States and Canada. The brand's commitment to quality service and customer satisfaction has helped it earn a reputation as a trusted name in the auto repair industry. With a focus on innovation and excellence, Maaco continues to expand its services and reach, catering to a diverse clientele.

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.

Type of Expenditure Amount
Initial Franchise Fee $45,000
Initial Training and Opening Fee $7,000 for 1 person ($2,500 for each additional attendee)
Initial Advertising Contribution $20,000
Living Expenses During Training $2,500 to $3,500
Equipment, Signage and Initial Computer Hardware $61,500 to $240,000
Opening Inventory and Supplies $15,000 to $25,000
Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs $75,000 to $600,000
Additional Funds – 3 Months $50,000 to $75,000
TOTAL $276,000 to $1,015,500

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Number of units

2023
Franchised units

426

411

398

Company-owned units

0

0

0

Total units

426

411

398

Franchise Disclosure Document

Training 

Here’s an overview of the training and support Maaco offers to its franchisees:

Initial Training: Maaco conducts an "Orientation/Training Program" several times a year. This comprehensive program combines classroom instruction with hands-on experience to ensure franchisees understand the operations of their service centers. Training sessions are held in various locations, including Charlotte, North Carolina, and are also available through online virtual classrooms. Although Maaco provides the training, franchisees are responsible for their own transportation, accommodation, meals, and other personal expenses during the training period.

Field Training: To reinforce classroom learning with practical application, Maaco offers the "New Franchisee Orientation (Field Training)." This program includes both pre-classroom and post-classroom segments, with the pre-classroom training lasting 40 hours and the post-classroom training extending to 160 hours. This training is conducted in-store to ensure that franchisees can effectively apply their knowledge in real-world scenarios.

Optional Training: Understanding the varied needs of its franchisees, Maaco provides optional training sessions on various topics such as financial management and software usage. The duration of these sessions can vary, with financial training currently set at 20 hours.

Fast Track Training: For franchisees or managers with prior experience, Maaco offers a "Fast Track" program. This specialized program is designed to meet the unique needs of experienced individuals, providing them with the specific training required to excel in their roles.

Territory Protection

Maaco franchisees do not receive an exclusive territory under the Franchise Agreement. This means they may face competition from other Maaco franchisees, company-owned outlets, or other distribution channels and competitive brands managed by Maaco.

However, franchisees are required to operate their Centers only at locations approved by Maaco. They have the freedom to solicit business and approach customers without territorial restrictions.

Although the franchise is nonexclusive, Maaco has implemented certain measures to protect franchisees. For example, if Maaco plans to license a third party to establish a new Maaco Center within the same Core Based Statistical Area (CBSA) as an existing franchisee, they will only grant the license if it does not result in more than one Maaco Center per 50,000 people in that CBSA.

This condition provides some protection against market oversaturation. Nevertheless, it is important to note that Maaco reserves the right to develop and operate any business under any name in any location, regardless of its proximity to or impact on existing franchisee Centers.

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