MAACO
Date of Incorporation: 1972
Franchising Since: 1972
Headquarters: Charlotte, North Carolina
Business Description: The services of a Maaco Collision Repair & Auto Painting Center are used primarily by the general public for body repair, repainting and refinishing of their personal automobiles.
Franchise Offer: The Maaco franchise offered is for the operation of a Maaco Collision Repair & Auto Painting Center using the franchisor’s trade names, trademarks, service marks and related logos.
Financial Assistance: Neither Maaco nor any agent of affiliate or affiliate offers direct or indirect financing, guarantees any note, lease or obligation, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing agreement of the franchisee. Maaco has engaged Siegel Capital, LLC to assist new franchisees with their business plans and advise them on the preparation of loan documents and other matters relating to financing their franchise. Maaco does compensate Siegel Capital for these services. Maaco franchisees are eligible for expedited SBA loan processing through the SBA's Franchise Registry Program.
Training and Assistance: The initial training program customarily includes four weeks of intensive training in the operation and management of the Center. Maaco reserves the right to shorten the length of any training class with less than four attendees. The training is in management methods and techniques rather than in mechanical skills. Maaco will provide a maximum of two individuals with round trip transportation to and from the training site and with lodging for the initial training program.
Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets owned by Maaco or from other channels of distribution or competitive brands Maaco controls. However, the number of Centers licensed by Maaco will not exceed a maximum of one Center for each 50,000 persons in the Core Based Statistical Area in which the Center is located, and Maaco will not place a franchised company within two miles from the franchisee's Center.
Term of Agreement and Renewal: The length of the franchise term is 15 years. The renewal term is for an additional 15 years, if requirements are met.
Obligations and Restrictions: The franchisee must devote full time, energy and efforts to the management and supervision of the Center. The Center must at all times be managed by the franchisee (or if the franchisee is more than one person, the person approved by Maaco), who has attended and successfully completed (in the sole opinion of Maaco) the initial training program. If the franchisee is a married individual, Maaco requires both the franchisee and his or her spouse to sign the Franchise Agreement and related agreements as individuals.
Total Number of Units: 475 units.
Investment Tables:
Initial Investment:
| Name Of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $40,000 |
| Initial Training and Opening Fee
|
$10,000 | $23,000 |
| Initial Advertising Contribution | $15,000 | $30,000 |
| Equipment | $9,298.37 | $122,600 (includes installation |
| Opening Inventory and Supplies | $7,123.52 | $17,000 |
| Stationery and Promotional Materials | $337.98 | $900 |
| Signage | $3,473.91 | $8,500 |
| Miscellaneous Opening Costs | $20,000 | $45,000 |
| Initial Software License Fee | $5,000 | $5,000 |
| Initial Computer Hardware | $1,444.25 | $4,500 |
| TOTAL ESTIMATED INITIAL INVESTMENT - PREOPENING | $91,678.03 | $296,500 |
| Additional Funds - 3 months (includes items such as leasehold improvements, rent and advertising contributions and more) | $18,500 to $48,322 | $88,680 to $175,974 |
| TOTAL ESTIMATED INITIAL INVESTMENT - PREOPENING AND FIRST 3 MONTHS OF OPERATION
|
$110,178.03 to $140,000.03 | $385,180 to $472,474 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 9% of Receipts |
| Advertising Contribution | $850, or an amount equal to the weekly advertising budget of franchisees operating in the franchisee's market area as of the date of the Franchise Agreement, whichever is greater |
| National Marketing Fee | $50 |
| Audit Expenses | Cost of the Audit |
| Resale Initial Franchise Fee | A pro-rata amount of the then-current initial franchise fee based upon the number of full years remaining on the transferor's franchise agreement |
| Sales Commission | 10% of the gross sales price of the Center or $25,000, whichever is greater |
| Interest on Late Payments | The maximum permitted by law or, in the absence of such rate, a rate equal to 1.5% per month |
| Insurance Reimbursement | Policy plus reasonable fee for franchisor's expenses |
| Indemnification | Varies |
| Costs of Enforcement | Varies |
| Premises of Center | Varies |
Date of FDD: 2010
The above information has been taken from the UFOC/FDD and online sources of Maaco.
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