Franchising since
1963, AAMCO has been a recognized leader in the transmission business for over
forty years and in the past three years has expanded its services into the $200
billion general automotive repair market. With brand recognition amongst more
than 90% of the U.S. population, almost 900 locations nationwide and the most
highly skilled technicians in the industry, AAMCO is well positioned to become
the market leader in brakes, tune-ups, air conditioning and other aftermarket
services. Entrepreneur magazine has
rated AAMCO the #1 franchise in the transmission repair industry 28 out of the
last 30 years.
Currently, industry
growth is pegged at about 4% annually. The average age of cars on the road (9.8
years) has never been higher and is continuing to grow. The number of vehicles
per service bay has increased to 194 and is predicted to increase as more new
car dealers close their doors. This means more potential customers for AAMCO
franchisees.
Operating Units
12/31/2006
12/31/2007
12/31/2008
Franchised
770
836
873
% Change
--
8.6%
4.4%
Company-Owned
0
0
0
% Change
--
0.0%
0.0%
Total
770
836
873
% Change
--
8.6%
4.4%
Franchised as % of
Total
100.00%
100.00%
100.00%
Investment
Required
The
fee for an AAMCO franchise is $39,500.
AAMCO provides the following range of investments required to open your
initial franchise. The range assumes that all items are paid for in cash. To
the extent that you choose to finance any of these expense items, your front-end
investment could be substantially reduced.
Item
Established Low
Range
Established High
Range
Franchise
Fee
$39,500
$39,500
GOOD Training
$10,000
$10,000
Training
Expenses
$2,100
$4,000
Real Estate Deposit
$3,500
$8,000
Leasehold
Improvements
$8,500
$15,900
Signage/Exterior
Design Package
$4,000
$10,000
Office/Interior
Package
$3,169
$3,594
Shop
Equipment, Tools, Supplies and Installation
$68,714
$78,714
Technical Reference Materials
$5,703
$5,703
Required Office and Shop
Material, Posters, Computer System and Software
$7,219
$7,219
Miscellaneous Opening Costs
$9,000
$12,900
Initial Parts and Inventory
$2,000
$2,000
Security Deposit
$5,000
$5,000
Opening Advertising (optional)
$2,000
$2,000
Advertising Costs (3 months)
$4,436
$15,831
Additional Funds (3 months)
$30,000
$40,000
Total Investment
$204,841
$260,361
On-going
Expenses
AAMCO franchisees pay a weekly royalty fee equal to 7 ½% of total gross
sales, a national creative advertising fee equal to $150 per month and local
advertising fees which vary by local advertising pool and average approximately
$505 per week.Other fees payable by the
franchisee include monthly yellow pages advertising fees and software license
and maintenance fees.
What You Get—Training
and Support
AAMCO’s
operations team offers three weeks of in-classroom training conducted by AAMCO’s
expert training team. The Operator’s Training School includes intensive
training in the operation of an AAMCO Center, including management skills and
methods. After the store is opened, franchisees are provided with a five-week Grand
Opening Operations Development (GOOD) Training program to ensure a seamless
transition from classroom to fully functional store. This training takes place
during regular business hours so franchisees are able to continue running their
business with little interference.
AAMCO
provides franchisees with business information and materials to assist in
improving center operations as well as technical consulting services via
telephone, online and media, including print, electronic and DVD. Franchisees
also receive assistance in designing advertising to promote AAMCO services.
AAMCO offers additional training opportunities for franchisees and other
employees if needed.
Territory
AAMCO does not grant exclusive territories, however, AAMCO agrees to
limit the number of AAMCO Centers to a maximum of one Center per 100,000 motor
vehicle registrations within a specific metropolitan statistical area.
