About Maaco Franchisor SPV- Large Franchisor Exemptions Franchise
Maaco is one of the most recognized names in automotive painting and collision repair, operating under the names "Maaco," "Maaco Collision Repair & Auto Painting," and "America's Bodyshop." The brand has been franchising since 1972, building more than five decades of experience in providing affordable body repair, repainting, and refinishing services to the general public.
The franchise fee is $45,000, and the brand operates under Driven Systems LLC.
Each center serves everyday vehicle owners who need quality paint jobs, dent repair, and collision restoration at competitive prices, competing with dealerships, regional automotive chains, and local body shops in their market.
Maaco Franchisor SPV- Large Franchisor Exemptions Franchise Cost & Fees
| 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, 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 | $281,000 – $495,500 | Includes build-out, inventory, working capital |
The investment range of $281K–$496K 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, 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 (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 | $185,000 |
| Opening Inventory and Supplies (4) | $25,000 | $35,000 |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs (5) | $70,000 | $125,000 |
| 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 a weekly 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) | $349 per month, plus taxes |
| Management System Software License Fee (Single Shop Operator) | $389 per month, plus taxes |
| Management System Software only | $259 per month, plus taxes |
| Commingled Funds Fee | $2,500, plus $250 for each month thereafter |
| 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 (mark-up generally not to exceed 10% of rent) |
| Supplemental or Refresher Training Fee | Up to $400 per person, per day (headquarters); up to $500 per person, per day (onsite) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 weeks |
| Classroom Training | 125 hours (3-week program); 40 hours (1-week intensive program) |
| On-the-Job Training | 0 hours (additional hours may be added) |
| Training Location | Franchisor's headquarters or another training site (Charlotte, North Carolina for most subjects) |
| Additional Training | Franchisor may require attendance at supplemental and refresher training programs, sales meetings, operations meetings, advertising meetings, and conventions. Franchisee is responsible for all associated expenses (travel, lodging, meal, wages) for attendees, plus franchisor's then-current fees for supplemental/refresher training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area (under Franchise Agreement), Non-exclusive (under Development Agreement), Limited Exclusive (with Limited Exclusivity Addendum for 4+ centers) |
| Exclusive Territory | No |
| Territory Size | For Franchise Agreement: for each 50,000 persons in the Core Based Statistical Area (“CBSA”). For Development Agreement: varies widely depending on factors like economic conditions, number of centers to develop, demographics, and site availability. |
| Description | Under the Franchise Agreement, a "Protected Area" is granted, defined as "for each 50,000 persons in the Core Based Statistical Area". The franchisor and its affiliates retain all rights to operate similar businesses inside or outside this area and may compete. Under the Development Agreement, the right to develop is non-exclusive, and the franchisor retains the right to develop and operate other businesses. A Limited Exclusivity Addendum (for 4+ centers) grants limited exclusive rights, preventing the franchisor from granting other Maaco franchises in the Development Area, subject to compliance with the development schedule and agreement terms. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years (Franchise Agreement); Development Agreement term expires on earlier of final opening deadline or date last center opens. |
| Renewal Term | 15 years |
| Renewal Fee | $2,500 |
| Renewal Conditions | Written notice (6-12 months prior), pay all amounts owed, no default, substantially complied with terms, execute then-current franchise agreement (may differ, including higher royalty fee and marketing fee), execute general release, complete refurbishing tasks (merchandising system, exterior signage, cleaning, equipment maintenance, replace non-repairable equipment), provide current lease (term equal to renewal term), provide assignment of leasehold interest. |
| Transfer Fee | $3,000 |
| Transfer Conditions | Provide prospective party FDD, pay all amounts due, sign general release, transferee signs new franchise agreement (may differ, including weekly royalty fee and advertising contributions), transferee completes training and pays resale initial franchise fee, transferee and owners not in Competitive Business, franchisee completes refurbishing tasks (merchandising system, exterior signage, cleaning, equipment maintenance, replace non-repairable equipment, purchase hardware/software for management system, have minimum $2,500 inventory), pay transfer fee. |
| Termination for Cause | Franchise Agreement: Insolvency/bankruptcy, abandonment, felony conviction, unauthorized transfer, failure to comply with in-term covenants, unauthorized use of confidential information/Playbook, improper transfer upon death/disability, violation of health/safety laws, material misrepresentation, repeated customer complaints, misrepresentation/underreporting of business figures, failure to complete training, repeated violations (2+ in 12 months). Development Agreement: Failure to execute purchase/lease/sublease by Secure Deadline, failure to develop/open center by Opening Deadline, failure to have cumulative number of new centers open, termination of any franchise agreement, insolvency/bankruptcy, felony conviction, dishonest/unethical/illegal conduct impacting goodwill, abandonment, violation of laws/regulations, unauthorized transfer, violation of non-compete/confidentiality restrictions. |
| Non-Compete Period | During term of franchise agreement; 1 year after expiration, termination, transfer, cessation of operation, or compliance with restrictions. |
| Non-Compete Details | During term: Cannot divert business to Competitive Business, or own/maintain/engage in/be employed by/finance/advise/assist/have interest in/relationship with any Competitive Business. A "Competitive Business" is any other business providing motor vehicle painting or body repair services/products, but other Driven Brands automotive businesses are not considered competitive. After term: Cannot divert business to Competitive Business, or own/maintain/engage in/be employed by/finance/advise/assist/have interest in/relationship with any Competitive Business at the Center premises or within a 10-mile radius of the Center or any other Maaco Center (including retail stores) operating/under development/construction. Under Development Agreement, restrictions apply to Development Area, within 10 miles of its border, or within 10-mile radius of any Center. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Except as otherwise approved in writing by Maaco, the franchisee (or the approved principal operator if the franchisee is more than one person) 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 this individual. |
| Required Suppliers | Franchisor has the right to require purchases from approved suppliers (including itself or affiliates). Currently, franchisees can purchase from any supplier meeting standards, but paint and certain other inventory items must be purchased from approved suppliers. Driven Product Sourcing is currently an approved supplier. |
| Supply Restrictions | Franchisees must follow franchisor's standards and specifications for inventory, supplies, equipment, computer hardware, and Center image (signs). Franchisor can designate a single supplier for the Management System, software, hardware, and associated services. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, affiliates' revenue from sales of equipment, inventory, supplies, and signs to Maaco franchisees was approximately $39,661,447. Franchisor and affiliates received $2,853,253 in rebates and other payments from suppliers due to transactions with 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- Large Franchisor Exemptions Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Maaco Franchisor SPV- Large Franchisor Exemptions 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 Franchisor SPV- Large Franchisor Exemptions System Growth
Maaco Franchisor SPV- Large Franchisor Exemptions currently operates 411 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 |
|---|---|---|---|
| 2019 | 12 | 24 | 459 |
| 2020 | 6 | 39 | 426 |
| 2021 | 6 | 21 | 411 |
Transfers: 19 | Closures: 21
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Grant Thornton LLP for year ending December 25, 2021.
Maaco Franchisor SPV- Large Franchisor Exemptions Franchise — FAQ
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