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MAACO Franchise Cost & Fees

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: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. Maaco franchisees are eligible for expedited SBA loan processing through SBA's Franchise Registry Program.

Training and Assistance: The initial training program customarily includes 3 weeks of intensive training in the operation and management of the Center. The franchisor reserves the right to shorten the length of any training class with less than 4 attendees. The training is in management methods and techniques rather than in mechanical skills. As part of the Initial Training and Opening Fee, the franchisor will provide franchisees (or if they are an entity, one of the owners) with round trip transportation to and from the training site and with lodging for the initial training program. Additional people may attend the initial training program if franchisees pay their transportation and lodging expenses. Franchisees must also attend, at the franchisor’s request, supplemental and refresher training programs, sales meetings, operations meetings, advertising meetings and conventions which may be offered periodically at various locations determined by the franchisor during the term of the Franchise Agreement.

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, provided the franchisee is in compliance with the Franchise Agreement, the franchisor will not place a franchised or company Center for each 50,000 persons based on the Core Based Statistical Area in which the Center is located.

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 (or if the franchisee is more than one person, the person approved by Maaco) 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 the franchisor 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. Franchisees may not offer or sell any products or services that do not meet the franchisor’s standards and specifications. Franchisees may not use the Center’s premises for any purpose other than the operation of a Maaco Center.

Estimated Number of Units: 470

Investment Tables:
Initial Investment for a Traditional Maaco Center
Name of Fee Low High
Initial Franchise Fee $40,000 $40,000
Initial Training and Opening Fee (1 person) $5,000 $5,000
Initial Advertising Contribution $20,000 $20,000
Equipment $182,797 $182,797
Opening Inventory and Supplies $19,582 $19,582
Stationery and Promotional Materials $505 $505
Signage $4,000 $14,000
Miscellaneous Opening Costs $45,000 $45,000
Initial Software License Fee $0 $5,000
Initial Computer Hardware $5,168 $5,168
Additional Funds - 3 months $43,000 $150,000
TOTAL ESTIMATED INITIAL INVESTMENT (PRE-OPENING AND FIRST 3 MONTHS OF OPERATION) $375,052 $487,052
Other Fees
Type of Fee Amount
Royalty Fees 4% of gross receipts of the Center for the first 6 months the franchisee operates the Center; 9% of Gross Receipts of the Center for the remainder of the term of the Franchise Agreement.
Weekly 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. Under the Satellite Store Program the weekly advertising contribution is $425, or an amount equal to half of the weekly advertising budget of franchisees operating in the franchisee’s designated market area, whichever is greater.
Weekly National Marketing Fee $70 for all Maaco centers.
Weekly Digital Marketing Fee $70 for all Maaco centers.
Telephone Fee $5 for all Maaco centers.
Software License Fee $409 per month.
Audit Expenses Cost of audit including the charges of any independent accountant and the travel expenses, room and board and compensation of the franchisor’s employees.
Sales Commission 10% of the gross sales price of the Center or $25,000, whichever is greater.
Transfer Fee $2,500
Renewal Fee $2,500
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 Will vary under circumstances.
Costs of Enforcement Will vary under circumstances.
Premises of Center Will vary under circumstances.
Technology Fee Currently $0.

The above information has been taken from the FDD of Maaco. Year of FDD: 2016

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