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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: Mount Pleasant Capital LLC (MPC), as Managing Agent for the Franchise Credit LLC franchise lending platform, offers financing for equipment, fixtures, furniture, computers signs, and franchise fee. At its sole discretion, MPC may offer franchisees financing for other items associated with their franchise. Maaco guarantees a portion of the aggregate principal balance outstanding from time-to-time on all MPC guaranteed loans. Except for the MPC Limited Guaranty, neither the franchisor nor any agent of affiliate or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees. Franchisees are eligible for expedited SBA loan processing through SBA's Franchise Registry Program.

Training and Assistance: The initial training program customarily includes three 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. The franchisee 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.

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 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. The franchisee may not offer or sell any products or services that do not meet the franchisor’s standards and specifications.

Estimated Number of Units: 470

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $15,000 $35,000
Initial Training and Opening Fee $0 $5,000
Initial Advertising Contribution $15,000 $30,000
Equipment $2,071 $177,797
Opening Inventory and Supplies $7,124 $19,582
Stationery and Promotional Materials/td> $338 $505
Signage $3,510 $13,660
Miscellaneous Opening Costs $20,000 $45,000
Initial Software License Fee $0 $5,000
Initial Computer Hardware $1,400 $5,168
Additional Funds - 3 months (includes items such as leasehold improvements, rent and advertising contributions and more) $8,600 $150,000
TOTAL ESTIMATED INITIAL INVESTMENT (PREOPENING AND FIRST 3 MONTHS OF OPERATION) $73,043 $486,712
Other Fees
Type of Fee Amount
Royalty Fees 9% of Gross Receipts of the Center.
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
Weekly National Marketing Fee $70 for all centers.
Weekly Digital Marketing Fee $70 for all centers.
Telephone Fee $5 for all centers.
Software License Fee $439 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.
Resale Initial Franchise Fee $15,000
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: 2015

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