Whether you are a would-be entrepreneur eager to run your own repair shop or an existing parts & materials wholesaler seeking new business, making the grade at Maaco can lead to significant success.
Preferred suppliers already on the chain’s roster include AutoZone, 3M, LKQ, Grainger, Medco, Team Safety, Office Depot, AsTech, Source 4, Garmat, GFS, 300 Advantage, ITW, Cintas, Group 1, PPG, Sherwin Williams, Axalta, Enterprise, Audatex, Saint Gobain and Symphon.
“Having the relationship we have with our approved partners, we can strategically manage things such as supply chain disruptions and industry consolidation,” he says.
Being able to provide training pertaining your products, services and equipment for all of the respective owners, managers and frontline personnel within the repair center network is another priority.
Precise marketing requirements for potential suppliers are proprietary, but reaching the right quality, availability levels and logistical expertise must additionally be accompanied by the ability to maintain reasonable cost figures when providing these services to the network of shop owners, according to Miano.
“Price competitiveness comes with Maaco and parent company Driven Brand’s scale and buying power across multiple brands and product categories,” says Miano. “It is one of the benefits a franchisee receives from being a part of the Maaco family.”
If you’re a franchisee, “Our purchasing power means higher margins for you.”
The result is “one less thing our franchise owners have to worry about,” he says. “Maaco has established relationships with national paint and equipment suppliers and negotiated the best prices to drive more profit.”
More than 90 percent of the purchases by the respective shops are made through the approved affiliated vendors.
“For an independent shop owner who is trying to compete with the big consolidators, Maaco offers an opportunity to remain an owner yet take advantage of the buying power and other support — training, advertising, brand, etc. — that Maaco has to offer,” Miano elaborates. “It can be the best of both worlds: They preserve their independence yet benefit from the many things that Driven Brands’ 2,800-plus overall network of repair centers can offer.”
At the Maaco outlet in Antioch, Tenn., “We do great work and have a very good reputation in our market, but I have to say that we would not be where we are if it wasn’t for being part of the Maaco franchise system,” observes owner Derek Jameson.
“Being a Maaco center helps open doors with fleet customers, helps us get the best pricing on paint and materials, and provides continuing education and support,” he says. “A big advantage of being a part of the Maaco network is that we get much better pricing then we would as an independent shop.”
Following the playbook
Maaco was established in 1972 by the late Anthony A. Martino (who died in 2008, with the company then being purchased by Driven Brands) along with Daniel I. Rhode. A decade prior Martino had founded AAMCO Transmissions -- both firms utilizing Martino’s initials in their monikers.
Attendees were able to take advantage of educational workshops, general sessions and networking events designed to continue their professional learning, allow them to share their experiences and further nurture enhanced relationships with their fellow owners.
“We launched our ‘Go Forward Plan’ at the 2018 Maaco Convention, and we’ve spent the past year visiting our Maaco store centers, launching our center certification program, improving our operations and driving our franchisees’ financial performance,” Benjamin recounts. “The strategic foundation is in place, and our capability to win in this segment has never been stronger.”
A key component of the plan is “the revitalization of the Maaco shop image” and a certification program in which individual outlets meet specified requirements to earn gold, platinum or diamond certification.
The initiatives have been driving same-center sales increases throughout the year, and the figures doubled during November as more shops were awarded coveted certificates of achievement.
Benjamin cites five main factors aimed at accelerating positive results:
- The “Go Forward Plan” and the roadmap it provides to success
- An Operations Playbook that provides franchisees with the fundamentals for managing their shops
- Scale of Purchasing, “fueled by Driven Brands’ industry leading buying power representing more than 4,000 retail locations”
- An innovative marketing approach and a team-focus on marketing to customers “where and how they want to be reached”
- A National Fleet Program that will continue to drive increased car count
“We have reinvented Maaco over the past year to drive operational improvements, expand our insurance relationships and enhance our profitability model -- all behind a renewed focus on the customer experience,” says Benjamin.
“This makes Maaco an even better investment for someone who wants a community-based business that generates strong revenue, is backed by a well-known national brand, has deep corporate resources and experience in operations, purchasing and marketing, and a long history of success,” he adds.
An average shop can see sales volumes of more than $1.13 million, pulling in a net income approaching $200,000. “The power of the Maaco model is that no automotive experience is needed to own and manage a Maaco franchise – the Maaco team provides the guidance necessary to succeed in the Maaco network,” according to Benjamin.
Also, “Our friendly retail hours let you enjoy work/life balance; with regular store hours of 8 a.m. to 5 p.m. Monday through Friday -- and optional hours on Saturday -- your nights and weekends are yours to enjoy.”
Inaugurating new shops
“Maaco provides you the training and the benchmarks to guide your success” says Stan Piernick, the 2018 Maaco Rookie of the Year award winner with a shop in New Braunfels, Texas. He explains that “all I did was follow the playbook and embrace the online training Maaco University offers, not only operators but employees as well.”
“Through Maaco University, not only do Maaco franchisees have access to over 2,000 hours of online training and benefit from a Maaco franchise system that helps manage KPIs, inventory and payroll, but our employees receive training in repair procedures and best practices, too,” he says.
Training for new owners also consists of three weeks of hands-on instruction at the Charlotte, N.C. headquarters to enhance your skills in sales, management, production and customer service procedures, followed by three weeks of onsite training at your location.
For inaugurating new shops, the company targets markets containing at least 50,000 registered vehicles, an average available footprint of 7,000 feet and retail-friendly locations. Site selection assistance, lease negotiation assistance, digital advertising, construction assistance and equipment installation is provided by the company.
A net worth of at least $300,000 is desired along with the ability to make a $140,000 cash investment. The 15-year franchise term is renewable in five-year options.
Benjamin, a retired U.S. Army colonel who served for 30 years, encourages veterans to apply for a franchise. Qualified vets get a 75 percent discount on the initial franchise fee and a substantial reduction in royalty fees during the first two years of operating a new location.
“We are proud to offer a program that helps veterans transition into civilian life,” Benjamin says. “Here they can apply the skills they have learned in the military – like leadership, planning, task-oriented performance and team management – toward ownership of their own business.”
More than 40 veterans are Maaco owners or managers, and numerous others are employed as technicians.
Yinka Ogunsanya, a retired U.S. Army major, opened his Maaco center in San Antonio, Texas after previously leading platoons in Afghanistan and Iraq; he now leads a team of nine technicians.
“The things that you learn in the military: leadership, determination, process -- all help you to be successful in this business as well,” says Ogunsanya. “Your experience and skills not only help you become a successful owner, but they also help those who want to become technicians. We reach out to veterans through our local advertising and on social media as they make great employees for us.”
“Veterans have built-in standards and work ethic that help make them successful in endeavors such as business ownership,” according to Tim Ciri, who served in the U.S. Navy and now owns a Maaco in Vancouver, Wash. “They are also used to following procedures. Maaco provides owners a playbook to follow, and if you can follow it, you can be successful.”
Brian Greenley purchased his Littleton, Colo. outlet in 1990, and it has grown to become an $8-million business.
He joined the company at age 18 while making exterior improvements to his new Camaro. “Working as an employee at Maaco, I quickly recognized the shop wasn’t living up to its potential. Ditching any plans for college, I approached the current franchisee in hopes of landing some ownership in the business,” Greenley recalls.
“Financing was hard to come by as a 19-year-old kid with very little equity, so I leveraged my prized Camaro and sold it to a Maaco customer,” eventually reaching the ownership ranks.
“I’m proud to be building a livelihood for not only me and my family, but also my employees and their families,” says Greenley. “More than half of my workforce has been with me for more than 15 years.”
Concludes Jameson at the Antioch, Tenn. location: “For an independent shop owner who wants to remain the business owner but is looking to compete in today’s environment of consolidation, I would recommend they take a look at what Maaco has to offer them.”
