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- 2022 Franchise 500 Rank
N/R Ranked #500 last year
- Initial investment
$281K - $496K
- Units as of 2022
425 10% over 3 years
Here’s what you need to know if you’re interested in opening a Maaco franchise.
Maaco offers auto painting and collision repairs services. The company was founded in 1972 by Anthony A. Martino, a co-founder of AAMCO Transmissions. Driven Brands later acquired the company in 2008. Maaco offers relief from dents, dings, and chips to individual vehicles and vehicle fleet operators.
Since it began, Maaco estimates that its franchisees have painted more than 16 million vehicles. Today, the franchisor has over 400 auto painting and collision repair shops in America and a handful in Canada.
Why You May Want to Start a Maaco Franchise
By opening a Maaco franchise, you can join a family of automotive painters with a dedication to the brand. Over the years, they have built a business model that maximizes their ability to help franchisees. The franchisor understands the importance of family and operates with family-oriented hours.
Maaco's proven operating systems may make opening a franchise an easier investment than you would think. The franchise is retail-oriented and doesn't necessarily require a background in the automotive industry. As you decide if opening a Maaco franchise is the best decision for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Maaco franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
What Might Make a Maaco Franchise a Good Choice?
This automotive service company is a leader in the automotive paint and collision repair industry. Their core value of striving for excellence at competitive Maaco prices creates opportunities to gain repeat customers.
To be part of the Maaco team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also be prepared for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How Do You Start a Maaco Franchise?
Before deciding to open a Maaco franchise, you may want to consider speaking with an attorney or money manager to ensure that you have the financial stability necessary to open a franchise.
If Maaco seems to be the right fit for you, fill out a franchise inquiry form. Then, the brand may put you in touch with the franchisor's representative to review the franchise concept and qualifications.
If you qualify, a franchise director will be assigned to you. The director will provide you with a Franchise Disclosure Document. After reviewing and submitting the document, you will attend a discovery day at company headquarters in Charlotte, North Carolina and meet the executives. If both parties wish to enter into an agreement, you will then receive a franchise trade agreement from the brand.
Once you receive your license, an in-house real estate team will help you secure an optimal location for both you and the franchise. A designated project coordinator will provide you with training, inventory, and equipment. After this, you can open your Maaco franchise.
- Franchising Since
- 1972 (50 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 425 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Maaco franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $281,000 - $495,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $900,000 - $1,000,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- Royalty fee reduced to 5% for first two years of operation
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 15 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Maaco has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 125 hours
- Additional Training
- Continual support
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Maaco? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Maaco landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Maaco ranked on other franchise lists? Find out below.
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