Sparkling like it just rolled out of one its own paint services, Maaco has mapped out a course to expand its business model across America.
The nation’s largest paint and collision repair franchise announced today a growth strategy that stands to significantly increase the number of franchise licenses it plans to sign in 2018 – increasing its total by more than 50 percent over what was an already impressive 2017 that resulted in 45 new licenses.
“We’ve invested heavily into our network support over the last year, with a heavy emphasis on continuous improvement in our franchisees’ bottom line. That’s what is driving an immense amount of interest in the franchise opportunity and why we are bold about expectations for our franchising initiative,” said Dennis Elliott, Vice President of Development and Franchising for Maaco. “In fact, intrigue is strong on two levels for our brand – individuals looking to build a business with strong ROI and growth potential; and sophisticated investors looking to grow rapidly through the consolidation and acquisition of mom-and-pop shops.”
More than 30 percent of the brand’s growth in 2017 came from acquiring and re-branding independent paint and collision repair shops, versus just 10 percent the year prior. Updated to Maaco’s brand standards, the converted locations often have the benefit of cash flow from the get go. With consolidation continuing to gain steam, Maaco anticipates an even larger percentage of new store growth coming from this non-traditional avenue.
Likewise, franchise momentum is building with franchisees seeking to take command of the paint and collision repair sector in undeveloped Maaco markets. With a proven model in place, the franchise is set up to run with simple operations, high margins and impressive profitability – the average Certified Center generates $199,000 take home income on an initial investment $400,000* initial investment and average unit gross sales of $1.3 million. On average, franchisees are earning 15 percent profit margins.**
“Our business model has weathered every economic storm, coming out stronger and stronger and showing each and every time that it is truly resilient to every scenario. And, most importantly, the business is able to take advantage of the most beneficial of conditions,” added Elliott. “Same center revenues are growing consistently year over year and have been positive for more nearly a decade.”
A significant aspect driving unit economics is the brand’s fleet services. Intended for both national and local fleets, Maaco supports franchisees with sales and marketing programs that directly target this segment. It has become the fastest-growing portion of sales system wide, with over $110 million in 2017.
Maaco’s franchise offering includes opportunities for single and multi-unit investors. Targeted growth territories currently for franchise agreements, include: Denver, Birmingham, Ala., Cleveland, Bay Area, Las Vegas, Los Angeles, Louisville, Phoenix, Boston and Pittsburgh. These markets, as well as several others throughout the country, will play host to several openings in 2018, beginning in the first quarter of the year.
Given the attractiveness of the business model, Maaco’s corporate, in-house marketing team provides franchisees with a full suite of local marketing support programs so franchisees can focus on managing their teams, networking and on sales opportunities. The Maaco corporate field operations support team works closely with franchisees to help them become profitable as quickly and consistently as possible. Franchisees and their location managers are assigned an area Maaco coach who supports the location with ongoing assistance in operations and marketing.
The ideal Maaco franchisee is someone who has strong sales and marketing capabilities and has a commitment to following a proven game plan – they are process oriented and at once strong business developers and adept at managing a team of technicians. Franchisees should be community focused with a desire to ingratiate the business among local residents and organizations.
Individuals and teams interested in franchising with Maaco can learn more about the steps to ownership on the company’s website. And, to inquire about available territories, fill out a short information request form for details to be shared.
Maaco Auto Painting & Collision Repair – a part of the Driven Brands, Inc. family of automotive aftermarket franchise brands based in Charlotte, NC – is America’s #1 body shop. Maaco provides automotive paint and cosmetic repair services for nearly 500,000 drivers annually. With more than 500 independently owned and operated franchises across the United States and Canada, Maaco has restored the safety and appearance of more than 20 million vehicles over 45 years. Maaco has been named a top automotive franchise numerous times by Entrepreneur Magazine in its Annual Franchise 500 ranking. In addition to other honors, Maaco has been included on Franchise Times’ list of Top 200 franchises. For more information about Maaco, visit www.Maaco.com. For more information about franchising opportunities, visit www.Maaco.com/franchise-opportunities.
*See Item 7 of the 2017 MAACO FDD. Estimated initial investment for a traditional MAACO Center ranges from $313,338 to $478,338.
**See Item 19 of the 2017 MAACO FDD. Average income and average gross sales based on 193 Certified Centers reporting expense information for the 52-233k period beginning 12/27/15 and ending 12/24/16