About Maaco Franchise
Maaco is one of North America's largest auto body repair and painting franchise brands, with franchise operations dating back to 1972.
The brand is part of Driven Systems LLC and offers affordable collision repair, paint services, and auto body work for cars, trucks, and fleet vehicles.
Maaco locations serve both individual vehicle owners and commercial fleet customers who need reliable, cost effective body and paint services.
Maaco Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 8% of gross receipts of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $1,200 weekly, or an amount equal to the weekly marketing budget of franchisees operating in your designated market area, whichever is greater | National brand fund |
| Total Investment Range | $172,500 – $1,275,500 | Includes build-out, inventory, working capital |
The investment range of $173K–$1.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of gross receipts) and marketing fee ($1,200 weekly, or an amount equal to the weekly marketing budget of franchisees operating in your designated market area, whichever is greater) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (2) | $45,000 | $45,000 |
| Initial Training and Opening Fee (3) | $10,000 | $10,000 |
| Initial Advertising Contribution (4) | $10,000 | $10,000 |
| Living Expenses During Training (3) | $2,500 | $3,500 |
| Equipment, Signage and Initial Computer Hardware (5) | $240,000 | $307,000 |
| Opening Inventory and Supplies (5) | $15,000 | $25,000 |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs (6) | $250,000 | $800,000 |
| Additional Funds – 3 Months (7) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $3,000 |
| Renewal Fee | $2,500 |
| Technology Fee | $0 (currently) |
| Audit Fee | Cost of audit, including charges of independent accountant/third-party vendor, attorneys’ fees, per diem fees and costs of our employees, plus monthly interest |
| Management System Software License Fee | $599 to $973, plus taxes (monthly) |
| Commingled Funds Fee | $2,500, plus $250 for each subsequent month until funds are separately accounted for |
| Sales Commission | 10% of the gross sales price of the Center or $30,000, whichever is greater |
| Interest on Late Payments | Maximum rate permitted by law or 1.5% per month |
| Insurance Reimbursement | Policy cost plus reasonable fee for our expenses |
| Indemnification | Will vary under circumstances |
| Costs of Enforcement | Will vary under circumstances |
| Sublease Payments | Will vary under circumstances |
| Supplemental or Refresher Training Fee | Up to $400 per person, per day for headquarters training; up to $500 per person, per day for onsite training |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | three weeks |
| Classroom Training | 110.9 |
| On-the-Job Training | 0 |
| Training Location | Charlotte, North Carolina or another training site we choose |
| Additional Training | We may require you to attend additional training programs, workshops, and educational seminars, sales meetings, operations meetings, and conventions. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies by county boundaries, no minimum size |
| Description | You may operate the Center only at the approved location. You are not restricted as to the area into which you may solicit business or customers. We retain the right to develop and operate, and license third parties to develop and operate, any business under any name, including Maaco Centers, in any geographic area, regardless of proximity or effect on your Centers. However, we will not grant a license for another Maaco Center in your Core Based Statistical Area (CBSA) if it results in more than one Maaco Center for each 50,000 persons in the CBSA, provided you are in compliance with the Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15-year renewal |
| Renewal Fee | $2,500 |
| Renewal Conditions | Written notice, not in default, paid all amounts owed, current lease for premises, assignment of leasehold interest upon termination/expiration of renewal term, refurbish Center, sign a release (if state law allows), pay renewal fee and sign our then-current form of franchise agreement and Renewal Addendum. |
| Transfer Fee | $3,000 |
| Transfer Conditions | All accrued monetary obligations satisfied, general release executed, transferee signs new franchise agreement (terms may differ), transferee completes training and pays resale initial franchise fee, transferee meets educational/managerial/business standards, good moral character, business reputation, credit rating, aptitude, ability, adequate financial resources, transferee not in Competitive Business, initial advertising deposit paid, sales commission paid (if applicable), transfer fee paid, updated lease documents provided, Center refurbishing tasks completed, required inventory at premises. |
| Termination for Cause | We can terminate the Franchise Agreement or the Development Agreement if you commit any one of several violations. Non-curable defaults include bankruptcy, abandonment, felony arrest/conviction, unauthorized transfer, failure to comply with in-term covenants, unauthorized use of Confidential Information or Playbook, improper transfer upon death/disability, violation of health/safety laws, material misrepresentation, repeated customer complaints, misrepresentation/intentional underreporting of business figures/reports, failure to successfully complete training program, repeated violations, failure to open Center on time. Curable defaults have 7, 15, or 30-day cure periods depending on the nature of the default. |
| Non-Compete Period | During the term of the franchise: no diversion of business/customers to Competitive Business, no ownership/employment/interest in Competitive Business. After termination/expiration: 1 year from later of expiration, termination, transfer, ceasing operation, or final arbitration/court order. |
| Non-Compete Details | During the term of the franchise, you will not divert business to a Competitive Business or own/maintain/engage in/be employed by/finance/have interest in any Competitive Business. After termination/expiration, for 1 year, you will not divert business/customers to any Competitive Business, or own/maintain/engage in/be employed by/finance/have any interest in any Competitive Business at the Center, within 10 miles of the Center or within 10 miles of any existing or proposed Maaco Center (including retail stores) that is then operating or under development or construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Except as otherwise approved in writing, you (or if the franchisee is more than one person, the person approved by us as the Center’s principal operator) must devote full time, energy and efforts to the management and operation of the Center. The Center must at all times be managed and operated by you (or if the franchisee is more than one person, the person approved by us as the Center’s principal operator). You (or your majority investor) and the individual conducting the day-to-day management and operation of the Center as the principal operator (if not you or your majority investor) must attend and complete to our satisfaction the initial training program. |
| Required Suppliers | You must follow the standards and specifications we periodically establish for the inventory and supplies, equipment, computer hardware and Center image (including indoor and outdoor signs) required for the Center. We have the right to require you to purchase or lease goods, services, supplies, fixtures, equipment, and inventory relating to the establishment or operation of the Center only from suppliers we approve, which may include us, our affiliates or our designees, through any manner or method we designate. Driven Product Sourcing and Spire Supply are currently approved suppliers. |
| Supply Restrictions | We have the right to require you to purchase or lease goods, services, supplies, fixtures, equipment, and inventory relating to the establishment or operation of the Center only from suppliers we approve, which may include us, our affiliates or our designees, through any manner or method we designate. You must purchase from suppliers we approve, which suppliers may include us and/or our affiliates, paint and other products as we may specify periodically to ensure the integrity of certain marketing programs, and, among other things, facilitate and support purchasing programs and arrangements we negotiate for the franchise system. |
| Franchisor Revenue from Suppliers | $40,562,075 from sales to franchisees; $3,429,168 from rebates and other payments from suppliers |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Maaco Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Maaco Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Maaco System Growth
Maaco currently operates 377 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 6 | 21 | 411 |
| 2022 | 6 | 19 | 398 |
| 2023 | 6 | 27 | 377 |
Transfers: 16 | Closures: 27
State Registrations
Registered in 14 states: CA, IL, MI, NY, MD, MN, ND, RI, SD, VA, WA, WI, HI, IN
Franchisor Financials (Item 21)
Audited by PricewaterhouseCoopers LLP for year ending December 30, 2023.
Maaco Franchise — FAQ
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