MAACO Franchise Cost & Fees

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Description

Year Business Began: 1972Franchising Since: 1972Headquarters: Charlotte, North CarolinaEstimated Number of Units: 495Franchise Description: 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.”Training Overview: 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 the majority investor) with round trip transportation to and from the training site and with lodging for the initial training program. In addition, the franchisor will provide 2 to 4 weeks of on-site assistance and training upon or after the franchisee opens the new Center. 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 Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets owned by Maaco or from other channels of distribution or competitive brands Maaco controls. However, if franchisees are in compliance with the Franchise Agreement, the franchisor will not place a franchised or company-owned Maaco Center for each 50,000 persons based on the Core Based Statistical Area in which the Center is located. If franchisees operate a Satellite Store under the Satellite Store Program, the franchisor will not place a franchised or company-owned Satellite Store or Express Store within a one-mile radius of the Satellite or Express Store location, provided they are in compliance with the Franchise Agreement.Obligations and Restrictions: Franchisees (or if the franchisee is more than one person, the person approved by the franchisor) 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 the franchisor). If franchisees are married, the franchisor requires both franchisees and their 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.Term of Agreement and Renewal: The length of the franchise term is 15 years. The renewal term is for an additional 15 years, if certain requirements are met.Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. Investment Tables: Estimated Initial Investment 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, 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. Other Fees Type of Fee Amount 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 Advertising 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. Weekly National Marketing Fee $70 for all Maaco centers. Estimate Recycling Program $25 for all Maaco Centers Telephone Fee $8 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 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: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
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 Advertising 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.
Weekly National Marketing Fee $70 for all Maaco centers.
Estimate Recycling Program $25 for all Maaco Centers
Telephone Fee $8 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 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.