Maaco said it expects its 2018 growth strategy to increase the number of franchise licenses by more than 50 percent over 2017, when the company issued 45 new licenses.
“We’ve injected an innovative collection of tech-forward business processes and systems into the Maaco business model,” said Dennis Elliott, vice president of development and franchising for Maaco. “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. In fact, intrigue is strong on two levels for our brand – individuals and teams 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. Maaco is becoming a critical part of the business lifecycle for our industry.”
More than 30 percent of the brand’s growth in 2017 came from acquiring and rebranding independent body and paint shops, versus just 10 percent the year prior, according to Maaco.
“Updated to Maaco’s brand standards, the converted locations often have the benefit of cash flow from the get-go,” the company said. “With consolidation continuing to gain steam, Maaco anticipates an even larger percentage of new store growth coming from this non-traditional avenue.”
Maaco asserted that its appeal extends to sophisticated investors with marketing and sales experience suited to invest in and grow the brand. “The franchise is set up to run with simple operations, high margins and impressive profitability – $200,000 take-home income on a $400,000 initial investment and average unit volume of $1.3 million,” according to Maaco.
On average, franchisees are earning 15 percent profit margins, Maaco noted.
“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,” Elliott said. “And, most importantly, the business is able to take advantage of the most beneficial of conditions. Same-center revenues are growing consistently year over year and have been positive for more nearly a decade. Through our support systems, we’re committed to removing uncertainty.”
Maaco’s franchise offering includes opportunities for single and multi-unit investors for agreements of up to five units, the company noted. Targeted growth territories for franchise agreements include: Denver, Birmingham, Alabama, Cleveland, the Bay Area, Las Vegas, Los Angeles, Louisville, Phoenix, Boston and Pittsburgh. Maaco said it anticipates several openings in these markets in the first quarter of 2018.
Maaco, which is part of Charlotte-based Driven Brands, also noted that its fleet and industrial services is the fastest-growing segment of sales. Maaco offers sales and marketing programs that directly target national and local fleets.