MAACO
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Poised as a leader in the colossal automotive aftercare industry, MAACO offers considerable stable and profitable entrepreneurial opportunities. Since 1972, MAACO has served communities throughout the United States and abroad, providing reliable, superior auto paint and auto body repair services to over 16.5 million vehicles throughout its history. Today, MAACO operates nearly 500 franchises that service approximately 650,000 vehicles per year. Moreover, the automotive aftercare market is one of the fastest growing industries in the U.S., representing a nearly $290 billion industry in 2010. With new car sales declining and more people choosing to retain their vehicles for longer periods of time, the automotive collision and cosmetic repair industry possesses considerable potential for explosive growth in the next few years.
Franchisees benefit from unparalleled brand recognition and the stability of a company with an impressive 45% of the U.S. market share within the industry. MAACO offers a reliable business model, complete with an exceptional, comprehensive training program. Moreover, by working with MAACO, franchisees have the chance to build a family-oriented business with comfortable operating hours and a substantial, stable income potential.
| |
Operating Units |
12/31/2009 |
12/31/2010 |
12/31/2011 |
|---|
| | Franchised |
429 |
442 |
431 |
| | % Change | -- |
3.0% |
-2.5% |
| | Company-Owned | 6 | 6 |
2 |
| | % Change | -- |
-- |
-- |
| | Total |
435 |
448 |
433 |
| | % Change | -- |
3.0% |
-3.3% |
| | Franchised as % of Total | 98.6% |
98.7% |
99.5% |
Investment Required
The initial fee for a MAACO franchise is $40,000.
MAACO provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $20,000 | $40,000 |
| | Initial Training/Opening Fee | $10,000 | $23,000 |
| | Initial Advertising | $15,000 | $30,000 |
| | Equipment |
$2,071.43 |
$161,417 |
| | Opening Inventory/Supplies | $7,123.52 | $17,000 |
| | Stationary & Promotional Materials | $337.98 | $900 |
| | Signage |
$2,102.15 |
$16,765.59 |
| | Miscellaneous | $20,000 | $45,000 |
| | Initial Software License Fee | $5,000 | $5,000 |
| | Initial Computer Hardware | $1,444.25 | $4,500 |
| |
Additional Funds (3 Months) |
$8,600 |
$150,000 |
| |
Total Initial Investment |
$91,679.33 |
$493,585.59 |
Ongoing Expenses
MAACO franchisees pay royalty fees equal to 9% of gross sales, a minimum advertising contribution of $850 per week, and a national marketing fee of $50 per week.
What You Get—Training and Support
Prior to opening, MAACO assists franchisees by providing site standards for the general location, zoning, neighborhood, parking and layout. Franchisees further benefit from specifications for inventory, supplies, equipment and exterior/interior signage, as well as grand opening promotional materials and initial advertising provided by MAACO.
Franchisees attend a mandatory four-week intensive training program conducted at the MAACO headquarters in King of Prussia, Pennsylvania, or another designated training location. The training focuses on management methods and techniques, including local advertising, marketing, POS system, merchandising, paints/solvents/thinners, painting equipment and maintenance, safety regulations, personnel management customer relations, sales, national and local fleet accounts, accounting, budgeting, insurance and facilities maintenance. Following this initial training, MAACO offers additional on-site assistance for approximately four to five weeks throughout the grand opening process.
Continuing assistance and support includes marketing, with MAACO supplying advertising programs and promotional materials. MAACO conducts occasional inspections and evaluations of the franchise center regarding operational success and efficiency, and offers feedback and guidance accordingly. Franchisees further benefit from ongoing training programs, meetings and conventions concerning sales, operations and advertising.
Territory
MAACO does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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