Do you want to open an auto painting business by buying Maaco franchise? If YES, here is how much it cost to open a Maaco Collision Repair franchise successfully. If you are looking towards opening a Maaco Collision Repair and Auto Painting Franchise, it will be nice for you to have a of what the company represents before enquiring about the total cost of opening the franchise in your location.
The franchisor is Maaco Franchisor SPV LLC, a direct, wholly-owned subsidiary of Driven Systems LLC. The franchise offered is to operate an automobile repair center specializing in automobile painting and body repair under the name “Maaco,” “Maaco Collision Repair & Auto Painting” or “Maaco Auto Painting & Bodyworks.” Maaco auto paint and collision repair provider, has serviced more than 20 million cars since 1972.
The company was founded in Wilmington, Delaware but they currently have their headquarters at Charlotte, North Carolina. They also provide franchise opportunities. They started franchising since 1972 and as of 2018, the company operates 490 franchises in the United States and 20 outside the country.
Maaco is North America’s number one automotive aftermarket franchise in terms of unit sales and is regarded as one of today’s best franchise opportunities. Maaco is the leader in the $43 billion automotive paint and collision industry. As a Maaco franchisee, you are in business for yourself, but you will never be by yourself. Maaco is with you every step of the way.
Maaco has the franchise fee of up to $40,000, with total initial investment range of $362,250 to $567,250. Here are areas where you are expected to spend money and the cost associated with it and please note that the information has been compiled from the FDD of Maaco. Year of FDD: 2019;
Financial Investment Required to Open a Maaco Collision Repair and Auto Painting Franchise
- 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, Signage and Initial Computer Hardware – $204,000 – $204,000
- Opening Inventory and Supplies – $18,250 – $18,250
- Miscellaneous Opening Costs, Including Tenant Improvements – $0 – $200,000
- Initial Software License Fee – $0 – $5,000
- Additional Funds – 3 months – $75,000 – $75,000
ESTIMATED TOTAL* – $362,250 – $567,250
*The estimated initial investment range is for a Traditional Maaco center, including preopening and first 3 months of operation.
Royalty Fees – 9% of gross receipts (except that if franchisees develop the center as a new Maaco center, they will pay 4% of gross receipts of the center for the first 6 months the center is open to the public as a Maaco center).
Weekly Marketing Contribution – $920, or an amount equal to the weekly advertising budget of franchisees operating in their designated market area as of the date of the Franchise Agreement, whichever is greater. Under the Satellite Store Program or the Express Store Program, the weekly media fee is $495, or an amount equal to half of the weekly advertising budget of franchisees operating in the franchisee’s designated market area, whichever is greater.
- Telephone Fee – $10 for all Maaco centers.
- Software License Fee – $389 per month for traditional Maaco Center; $400 per month for a traditional Maaco Center that also operates a Satellite Store or Express Store; $179 per month for a Satellite Store and Express Store.
- Audit Expenses – Cost of audit including the charges of any independent accountant and attorneys’ fees, and per diem fees and costs of the franchisor’s employees, related travel and lodging and other out-of-pocket costs, plus interest.
- Sales Commission – 10% of the gross sales price of the Center or $30,000, 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 cost plus reasonable fee for franchisor’s expenses.
- Indemnification – Please note that this will vary under circumstances.
- Costs of Enforcement – Please note that this will vary under circumstances.
- Premises of Center – Please note that this will vary under circumstances.
- Technology Fee – Currently, $0.
The Initial investments for buying a Maaco Collision Repair and Auto Painting Franchise is $362,250 – $567,250, Net-worth Requirement is $300,000 and the Liquid Cash Requirement is $140,000. While for Ongoing Fees; Initial Franchise Fee is $40,000, Ongoing Royalty Fee is 9 percent and Ad Royalty Fee is $70 per week.