Maaco Announces 2018 Franchise Growth Plan
Feb. 6, 2018—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 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,” says 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.
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.
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.
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.