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Maaco announced that it has launched a new multi-store operator (MSO) program that includes incentives such as lower license fees and royalty reductions for additional locations.
The price of one Maaco license is $30,000 under the new program, with more discounts for each additional store. Two licenses are $45,000, three are $55,000, four are $60,000 and five are $65,000. After the fifth license, each additional license is $5,000. Opening multiple stores also comes with royalty reductions for the additional stores for the first three years. Royalties will be 2 percent for the first year, 4 percent for the second and 6 percent for the third.
“Multi-unit operators are an excellent way for franchise systems to grow, and we wanted to make sure we were offering incentives to entice these kinds of owners,” said Jason Barclay, vice president of franchise development for Maaco. “We want to build on the success our existing multi-unit operators have had by making it easier for new franchisees to get more than one license. We think there are a number of potential franchisees interested in expanding quickly that will appreciate these MSO incentives.”
Maaco has nearly 500 franchised locations across North America and systemwide sales of nearly $500 million. The company plans to continue to expand its presence in markets across the U.S., and growth projections call for approximately 60 new centers to be opened by July 2013. Markets targeted for expansion include Baltimore, Buffalo, Chicago, Cleveland, Dallas, Los Angeles, Miami, New York, Phoenix, Pittsburgh and Rochester, N.Y.
The estimated initial investment for a Maaco repair center ranges from $300,000 to $400,000, including a $30,000 franchise fee. Maaco provides veterans with a 25 percent discount off its franchise fee through VetFran.