About Maaco Franchisor SPV- Initial Franchise
Maaco is a leading auto body repair and painting franchise that has been franchising since 1972, backed by Driven Systems LLC.
This South Dakota initial registration extends Maaco's franchise operations into the state.
Maaco is known for providing affordable, high quality collision repair and paint services to car owners, truck owners, and fleet operators.
Maaco Franchisor SPV- Initial Franchise Cost & Fees
Minimum Investment
$276K
Average Investment
$646K
Maximum Investment
$1.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 9% of gross receipts of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $1,000 weekly marketing fee | National brand fund |
| Total Investment Range | $276,000 – $1,015,500 | Includes build-out, inventory, working capital |
The investment range of $276K–$1.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (9% of gross receipts) and marketing fee ($1,000 weekly marketing fee) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $45,000 | $45,000 |
| Initial Training and Opening Fee (2) | $7,000 | $7,000 |
| Initial Advertising Contribution (3) | $20,000 | $20,000 |
| Living Expenses During Training (2) | $2,500 | $3,500 |
| Equipment, Signage and Initial Computer Hardware (4) | $61,500 | $240,000 |
| Opening Inventory and Supplies (4) | $15,000 | $25,000 |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs (5) | $75,000 | $600,000 |
| Additional Funds – 3 Months (6) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $3,000 |
| Renewal Fee | $2,500 |
| Technology Fee | Currently, $0 (reserves right to charge weekly technology fee) |
| Audit Fee | Cost of audit, including charges of independent accountant/third-party vendor, attorneys' fees, per diem fees and costs of employees, related travel and lodging, and other out-of-pocket costs, plus interest |
| Management System Software License Fee (Multi Shop Operator) | $539 per month, plus taxes |
| Management System Software License Fee (Single Shop Operator) | $599 per month, plus taxes |
| Commingled Funds Fee | $2,500, plus $250 for each subsequent month until you separately account for the funds |
| 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 (mark-up generally not to exceed 10% of rent and other charges) |
| Supplemental or Refresher Training Fee | Currently, 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 | 3 weeks of intensive training |
| Classroom Training | 125 |
| On-the-Job Training | 0 |
| Training Location | Charlotte, North Carolina |
| Additional Training | Maaco may require you to attend additional training programs, sales meetings, operations meetings, advertising meetings and conventions periodically. Franchisee is responsible for all expenses incurred in connection with these programs, including travel, room, board, and wages for attendees, and travel/room/board for instructors for onsite training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Core Based Statistical Area (CBSA) with a restriction of no more than one Maaco Center for each 50,000 persons in the CBSA. |
| Description | Under the Franchise Agreement, you may operate only at the approved location. Maaco and its affiliates retain the right to establish and operate, and to allow franchisees and licensees to establish and operate, anywhere, businesses offering similar products and services under any trademarks and service marks, including the Proprietary Marks, that may compete with you for customers, subject to the restriction of no more than one Maaco Center per 50,000 persons in the CBSA. Under the Development Agreement, the right to develop Maaco Centers is non-exclusive, and Maaco and its affiliates retain absolute rights to develop and operate competing businesses in the Development Area. However, if you commit to developing 4 or more Maaco Centers, a Limited Exclusivity Addendum grants certain limited exclusive rights, preventing Maaco or its affiliates from granting new franchises in the Development Area, subject to compliance with the Development Schedule. |
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, provide current lease, provide assignment of leasehold interest upon termination or expiration of any 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 to Franchise Agreement containing modifications necessary to conform the terms of the new franchise agreement to the terms of your Franchise Agreement, as applicable. 'Renewal' means signing our then-current franchise agreement, which could contain materially different terms (including fees). |
| Transfer Fee | $3,000 |
| Transfer Conditions | Transferee must meet franchisor's qualifications/standards, not be a competitor, agree to comply with obligations, pay all sums owed, complete training, pay resale initial franchise fee ($15,000), assume warranty work, complete Center refurbishing tasks, and have required inventory ($3,000 minimum). Franchisor has right of first refusal. |
| Termination for Cause | Non-curable defaults include bankruptcy; abandonment; felony arrest and/or conviction; unauthorized transfer; failure to comply with in-term covenants; unauthorized use of Confidential Information or the Playbook; improper transfer upon death or disability; violation of health or safety laws; material misrepresentation; repeated customer complaints; misrepresentation or intentional underreporting of business figures or reports; failure to successfully complete training program; repeated violations; and failure to open Center on time. Curable defaults include 7 days for improper use of Proprietary Marks, 15 days for failure to pay amounts owed, and 30 days for all other defaults. |
| Non-Compete Period | During the term of the franchise; For a period of 1 year from the later of expiration, termination, transfer, your ceasing to operate the Center, or your compliance with these restrictions |
| Non-Compete Details | During the term, you will not divert business to a Competitive Business or own, maintain, engage in, be employed by, finance or have any interest in any Competitive Business. After termination/expiration, for 1 year, you will not divert business to a Competitive Business or own, maintain, engage in, be employed by, finance, or 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. Under the Development Agreement, these restrictions apply to a Competitive Business located: (1) in the Development Area; (2) within 10 miles of the border of the Development Area; or (3) within a 10-mile radius of any Center (including any Maaco retail store) 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 as the Center’s principal operator) must devote full time, energy and efforts to the management and supervision 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 | Franchisee must purchase and use Maaco’s designated shop management system and all required hardware from a designated supplier (which may be Maaco or its affiliates). Franchisee must license the Management System software from a designated supplier. An affiliate of Maaco will be a supplier of paint and certain other inventory items. Franchisee must purchase from suppliers approved by Maaco, which may include Maaco and/or its affiliates, paint and other products as Maaco may specify. |
| Supply Restrictions | Franchisee must follow the standards and specifications established for inventory, supplies, equipment, computer hardware, and Center image. Maaco has the right to designate a single source for the Management System, software, hardware components, and associated services. Currently, franchisees may purchase hardware from any supplier meeting standards. For paint and other products, franchisees must purchase from approved suppliers. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2022, our affiliates’ revenue from the sale of all equipment, inventory, supplies and signs to Maaco franchisees was approximately $39,287,834. We and our affiliates received $3,021,346 in rebates and other payments from suppliers because of their transactions with our franchisees. |
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 Franchisor SPV- Initial Franchise Earnings — Item 19
Average Revenue
$1.4M
Median Revenue
$1.3M
Revenue Range
$270K – $6.6M
Sample Size
354 units
Past financial performance does not guarantee future results. Individual results will vary.
Maaco Franchisor SPV- Initial Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
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 Franchisor SPV- Initial System Growth
Total Units
398
Franchised
398
Company-Owned
0
Maaco Franchisor SPV- Initial currently operates 398 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 |
|---|---|---|---|
| 2020 | 6 | 37 | 426 |
| 2021 | 6 | 19 | 411 |
| 2022 | 6 | 18 | 398 |
Transfers: 19 | Closures: 18
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$261.3M
Net Income
$176.6M
Total Assets
$516.5M
Audited by PricewaterhouseCoopers LLP for year ending December 31, 2022.
Maaco Franchisor SPV- Initial Franchise — FAQ
The total investment to open a Maaco Franchisor SPV- Initial franchise ranges from $276,000 to $1,015,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Maaco Franchisor SPV- Initial charges a royalty fee of 9% of gross receipts of gross sales, plus a $1,000 weekly marketing fee contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Maaco Franchisor SPV- Initial Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Maaco Franchisor SPV- Initial to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Maaco Franchisor SPV- Initial franchise owners report average revenue of $1.4M and median revenue of $1.3M. This is based on a sample of 354 units. Past performance does not guarantee future results.
Maaco Franchisor SPV- Initial has been franchising since 1972. The FDD shows an investment range of $276,000-$1,015,500, a 9% of gross receipts royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 and the total investment ranges from $276,000 to $1,015,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Maaco Franchisor SPV- Initial and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Maaco Franchisor SPV- Initial or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com