The vendor opportunity at Maaco Franchisor
Maaco Franchisor operates 398 franchised automotive-services centers, led by New Jersey, Florida, Michigan, South Carolina, and Texas, though franchised outlets fell 3.163% year over year. Item 19 of the FDD includes a financial performance representation: the Item 19 figure of $1,428,088 for franchised Maaco Centers meeting the filing's operational and reporting criteria. Maaco Franchisor is part of Driven Brands, alongside Meineke, 1-800-Radiator, Merlin, Econo Lube, and ABRA.
Who controls software purchasing
Maaco Franchisor's headquarters designates the supplier every center must license its Management System software from, under a signed license agreement, and reserves the right to designate a single supplier, which may be Maaco itself or an affiliate, for its hardware and associated services. Jonathan Fitzpatrick, Manager and Chief Executive Officer, is named in the filing.
Tech named in the FDD, and what is actually required
Item 11 mandates the designated Management System, a shop-management platform running on a desktop computer with Windows 11 Professional or above, and requires franchisees to install anti-virus software and keep it current on every computer used in the center.
Procurement, renewals, and timing
Item 8 currently permits franchisees to buy from any supplier meeting Maaco's specifications, though Maaco reserves the right to require purchases only from approved suppliers, currently Driven Product Sourcing and Spire Supply, in the future. Purchases from Maaco, its affiliates, or approved suppliers make up an estimated 78% of establishment costs and 95% of ongoing costs. The royalty runs 9% of gross receipts (4% for a new center's first 6 months) on a 15-year initial term.
How to read the Maaco Franchisor FDD
The embedded viewer below carries Maaco Franchisor's 2023 Franchise Disclosure Document in full, including the Item 8 and Item 11 language summarized above.
Talk to FranCloud for a ranked list of franchise systems like Maaco Franchisor where the technology mandate and center count line up with your product.