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MAACO

I am considering a MAACO franchise in Florida, all I can find on them so far has been relatively  positive. does anyone have recent experience either positive or negative with starting a new MAACO franchise?

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Numbers do not add up.

Maaco sells 40-60 franchises per year and has been doing so steadily for 15 years. The current numbers for United States, Canada, and Puerto Rico are about 440 shops total "worldwide". They no longer have any corporate stores. Where have all these franchises sold gone?

Maaco Auto Painting & Bodyworks Franchise History
When did the first Maaco Auto Painting & Bodyworks open? 1972
When did Maaco Auto Painting & Bodyworks start Franchising? 1972

Year U.S.A. Canada International Corporate
2005 443 39 0 1
2004 443 39 0 1
2003 458 38 6 2
2002 464 41 6 2
2001 486 39 6 0

"Nearly 500 MAACO shops are currently in operation worldwide and as the automotive service market continues to expand, our franchisees continue to increase this number." source Maaco Franchising website.
http://www.maacofranchise.com/why-maaco-franchise-best-opportunities.php
Further from the website.
"MAACO dominates the automotive cosmetic paint market share at more than 45 percent."

How do you take a 45% share of a 50billion dollar industry with gross revenue of all 440 Maaco shops garnering less than .5% share of revenues?

More stats fewer and fewer shops

Franchise Units: Year* U.S.* Canadian* International* Company Owned*

2013: 416* 30* 0* 0*

2012: 427* 30* 0* 2*

2011: 425* 32* 0* 6*

2010: 438* 31* 0* 6*

source: http://www.entrepreneur.com/franchises/maacofranchisinginc/282545-0.html#

Horrible Company Do Not Buy

Driven Brands / Maaco is a Horrible Company. Be sure and have a Bank, an Accountant and an Attorney talk you out of buying this Franchise. Make sure the Attorney reviews the Franchise agreement and forms Your future lawsuit against this Company when they do not deliver on what Maaco Corporate is supposed to. If you are foolish enough to buy, like I was, make sure you have a war chest and lawsuit prepared. Maaco has been stagnant at 420-440 shops for Fifteen Years. All they need is 50-60 suckers like me to keep their corporate doors open. 50-60 new shops a year 50-60 failed shops a year. All you need to do is work harder than the other guy. Wrong, what you need to do is have working capital of 300-400thousand in addition to what they are selling you and 50-80thousand in reserve for your pending lawsuit. Maaco huge mistake.

Former Maaco Owner

So you have an entire team of executives?? who could not achieve growth at a company whose annual revenues are $8.59 billion, which grew for the first time in three years by 2.9% after their absence, running Maaco? They were so succesful and proud of their former brand that none of them decided to own a Burger King Franchise.

Instead they all decided that their poor performance for Burger King would be great for the Maaco brand of 430 world wide franchisees. 8.59 billion to 450 million?? These managers did a bad job for Burger King and got kicked to the curb. Now they are running a body shop business.

Be forwarned, do not buy a business, Body Shop run by Burger flippers, with no experience. Do not go into business where the executives bailed after failing in their former Burger King business.

Finally but foremost never buy into a franchise business where none of their executives or operational personell become franchise owners.

Maaco is a Scam!

Maaco Insanity

In 2011 the Maaco propaganda machine published articles using this shop as a testimonial to how great it was to convert an existing collision repair facility to a Maaco franchise and all the benefits the Maaco "sytem"??? would bring.

http://www.hawaiibusiness.com/SmallBiz/July-2011/Lessons-Learned-Franchising-Lessons/

Now this shop is just one of the many shop brought to ruin by Maaco.

Maaco Franchising, Inc v Kaloko Auto Body, Inc et al
Filed: March 12, 2013 as 3:2013cv00156
Plaintiff: Maaco Franchising, Inc
Defendants: Kaloko Auto Body, Inc and David L. Lelm
Cause Of Action: Breach of Contract
Court: Fourth Circuit > North Carolina > Western District Court
Type: Contract > Franchise

Are lawsuits the only part of the Maaco "system"??? franchisees can count on?

Will someone please do a follow-up article on this unfortunate shop.

Maaco has two year plan where

Maaco has two year plan where in with in two years if the franchise owner is doing good they will continue to work with him. If they are behind payment they will try to shut him down and sue him for monies . They resell it so that they can more money on franchise it is a scam . They have done that several times. So be aware of that.

Class Action

Why isn't there a class action lawsuit against this unscrupulous horde? It seems enough franchisees have been fleeced. Why hasn't our government pursued bad franchisors like MAACO? Who was is that prosecuted Bernie Madoff anyway?

If you do a search of legal

If you do a search of legal cases on the link below in the last 10 years Maaco has filed about 48 law suits against its franchisees. Driven Brands / Meineke has filed about 65 and Econo Lube 12.

http://dockets.justia.com/search?query=maaco&search=Search&stateorcourt=&judge=&lawsuittype=&documentfilter=allcases&after=&before=

It looks like Maaco is filing suits every other month or so.

All together that means Driven Brands / Maaco / Meineke has filed suit against 10% of its franchise base in the past ten years. Is this amount of litigation excessive or commonplace? All of the suits seem to be contract disputes.

Should anyone be buying into anything with a 10% chance of a Federal law suit?

Why would a Franchisor feel the need to sue so many of its franchisees?

the only thing growing is their legal department

This organization is shrinking--the number of active stores is getting smaller. Search on the internet and find a copy of Meinke's FDD and you will be shocked how many franchisee operators they have sued over the last three years. The FDD also shows the number of stores decreasing-what message does this send? It's a broken business model with an over priced royalty structure. I was a Meineke franchise owner for ten years. They made tons of money and I earned no more than if I worked 60-70 hrs a week for somebody else. If you are considering any of the Driven Brand franchise programs-do your homework-call some of the existing shop owners that are listed in the FDD--if they are being honest most of them will admit they wish they were independent shops putting the extra 15% in their own pocket. Most consumers do not even understand what services Meineke offers. Ask ten of your friends what does Meineke do? 8-9 will answer mufflers and cheap oil changes. Is there any value in paying 15% for that? The CEO last year cashed in his chips and retired-he could see the writing on the wall for the future of this organization.

THESE MAACO STORES EAT UP

THESE MAACO STORES EAT UP MONEY IF YOU WANT TO DO A GOOD JOB ON A VEHICLE THE MATERIALS PAINT AND DRY GOODS WILL COST YOU 10 TO 13 THOUSAND A MONTH ON TOP OF RENT, FEES THEY WANT, AND ADVERTISING NEARLY 52 THOUSAND NOT TO MENTION LABOR COSTS AND YOU WILL ASK YOURSELF WHAT HAVE I GOT MY FAMILY INTO…….. I HAVE LASTED OVER TEN YEARS BECAUSE I HAVE BORROWED OVER 150K TO HELP MYSELF STAY IN BUSINESS CANT BREAK THE AGREEMENT THEY COULD SUE YOU FOR BREACH OF CONTRACT………… PRETTY SOON I GET PAROLED FROM THE MAACO PRISION

IF YOU DONT OWN PROPERTY YOU

IF YOU DONT OWN PROPERTY YOU JUST MAKE MONEY FOR THE LANDLORD AND MAACO AND PAINT COMPANY.......... WHAT A SHAME......... TRY AND GET ZONING FOR A BODY SHOP.... YOU HAVE A BETTER CHANCE OF GETTING APPROVED FOR A BOMB FACTORY

WE ALL NEED TO GET TOGETHER

WE ALL NEED TO GET TOGETHER

association

Hello - sorry for the informality of this - i was just perusing through info on Maaco online and came across your post - Maaco owners have an Association that just started a few years back - we do need to stick together and assert that what we have invested is valuable and that franchisee owners should be profitable too - association's phone number is (866)809-6060 - My name is Stephanie - please call when you get a chance.

THIS GUY IS GOING THROUGH

THIS GUY IS GOING THROUGH WHAT I WENT THROUGH 15 YEARS LATER NEARLY 300K IN DEBT
WHAT DID WE GET INTO..... MATERIALS COST RIGHT ON THE MONEY / THIS GUY WANTS TO DO A GOOD JOB AND TO DO SO IT COST MONEY... THE SHOP THAT CUT COSTS STAY IN BUSINESS AND DONT CARE WHAT PEOPLE CARE

Great Business

Brings in A ton of money! As long as you are on top of things. with any business you need hard workers, and people who are smart. As long as you provide great service, your customers will keep coming back.

WHERE ARE YOU OPERATING SIR?

WHERE ARE YOU OPERATING SIR? A TON OF MONEY MAYBE YOU GET FREE RENT OR HAVE A SLAVE LABOR? 15 YEARS IN THIS THING CALLED MAACO..........

Not for me

I had a maaco shop for several years, IT WAS THE WORST EXPERIENCE OF MY LIFE!!! I had my shop longer than the other guys I went to training with, one lost everything in less than 8 months. I walked away losing just my investment and owing maaco some fees. They sued me for the outstanding fees. maaco is a lose lose situation. After a couple of years you find the dirty little secret that only a handful of maaco franchisees make any money, even shops that are generating more than a million in sales have very little profit and many owners rely on other sources or their spouse's income for support. maaco's operations support is a study in absolute incompetence. Once you are in there is no accountability throughout management of the franchisor. I had a bad feeling in my gut several times as I went into maaco. I really wished I had trusted my instincts.

worst experience ever!

Franchisor bled us dry with weekly advertising and royalities. They offer absolutely no support and their Operations team is a joke. A teenager could have created their data base and computer applications. We have lost everything and had to declare bankruptcy. I have also watched numerous Maaco franchisees close their doors over the past 6 years with the owners either losing all they had or just coming out with the skin of their teeth. It is true that a handful of franchisees actually succeed, but their success has absolutely nothing to do with Maaco or Driven Brands. These few shops usually do their own thing and ignore what the franchisor promotes as their "Blueprint to success". Maaco destroyed my life and I will be working long past retirement age to recoup my losses.
Whatever you do - DO NOT BUY A MAACO FRANCHISE!!!!!!!!!!!!

YOU CAN REACH ME AT

YOU CAN REACH ME AT [email protected]

IN THE SAME BOAT WE ALL NEED

IN THE SAME BOAT WE ALL NEED TO GET TOGETHER

Previous franchise owner

Previous franchise owner here. Though I take the majority of the responsibility for the less than desirable outcome; I believe in part as I look back, MANY false claims of post-opening support where misrepresented. I would support any majority efforts to bring this to light.

maaco is horrible

maaco bases everything on that i've been in business 20yrs crap. the problem is for folks buying now. their system fails and maaco's poor operations support just points at the 20yr guy and says it works for them so any problems must be the newbie's fault. do this 20yr man don't just give sonny boy your shop, sell it to him at fair market value if he even qualifies as a buyer, pay maaco their 30% premium, rent him the building at fair market value and really retire. even then he has a leg up because of your reputation but if you did the math as an actual sale today you would see it doesn't work.

maaco currently has active lawsuits against 3percent of its franchisees. add to that all the meineke lawsuits and it is an astronomical number compared to good franchisors. maaco's failure rate is also huge. the argument "the only problem with maaco's system is they are really bad at choosing who owns their franchises" is pathetic.

I've owned a Maaco shop for

I've owned a Maaco shop for 20 years. I am getting ready to retire and my son is taking
over the shop. I left the corporate world and did not know anything about the body shop
business. Maaco is the greatest thing I have done in my life for my family.
The business is what you make it. You cannot go home at noon or be an absentee owner.
You have to work it. Maaco is hard work and worth it.
Wow there sure is a ton of cry babies in this world.

MY FRIEND MAYBE YOUR RENT IS

MY FRIEND MAYBE YOUR RENT IS $5000 A MONTH AND MAYBE PEOPLE WORK FOR YOU FOR $9.00 AN HOUR BUT HERE THE AVERAGE RENT IS OVER $8000 AND LABOR IS MUCH HIGHER AND I WORK IN THIS BUSINESS 65 HOURS WEEKLY.......... THE PEOPLE THAT COMPLAIN ARE RIGHT THE MODEL HAS FEW STORIES LIKE YOURS.......... I HAVE ALWAYS BEEN SUCCESSFUL IN MY PAST ....... THE COST TO OPERATE IS JUST TO GREAT.........

I am an owner of Maaco. If

I am an owner of Maaco. If you work for your self in the front office , Do good work and have exceptional customer service.If will make money as self employed. It all depends on what is your break evens are and the location of the shop if you have lot of trade and retail customers yes you are for sure going to make money.It takes two years to turn around the bad reputation of an existing run Maaco.
Should be willing to invest in high end equipment which derives quality.

YOUR RIGHT BREAK

YOUR RIGHT BREAK EVEN......... I HAVE A FLAWLESS REPUTATION WITH MY CUSTOMERS THATS WHAT KEPT ME GOING......... BUT THE FEES, RENT, ADVERT, LABOR, SUPPLIES IT DOESNT WORK BELIEVE ME IN 15 YEARS I HAVE TRIED VERY HARD TO MAKE IT WORK...........

Right on Point

Again, and thank you for your comment. If maaco is a good franchisor then why is there a maaco franchise with a bad reputation? why would it take an individual two years to fix that bad reputation? why wouldn't that reputation be fixed by the franchisor prior to re-selling? why is an individual having to invest in additional equipment in order to fix a maaco? why wouldn't that franchise location have needed equipment included with the franchise package? where is the franchisor and the franchise support? there are many maaco's with bad reputations, would a good franchisor put out bad businesses and rely on individual owners to fix the problems?

Thank you for your comment

Thank you for your comment maaco franchise sales. The 1,200 franchisees you've churned through
in the past 20yrs, for net-zero growth, were just lazy cry-babies.

maaco = financial suicide

maaco = financial suicide

http://investing.businessweek

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=33331604

Business week 09/09/2011

Driven Brands Reportedly Mulls Sale
09/9/2011

"Driven Brands, Inc. has appointed Credit Suisse to manage a sale process, three industry bankers told mergermarket."

Less than 3 years into their "commitment" to ownership of Maaco their flagship company. Churn through a bunch of franchisees then sell. Is this company committed to building a successful brand? Their commitment is not to franchisees only their own bottom line.

Sale = more debt to parent company = new parent squeezing franchisees harder = even more franchisee failures.

Wait this one out before becoming involved with Driven Brands / Maaco / New ownership.

Why do franchisees pay maaco 100s of thousands?

Tom Monaghan, Maaco's Vice President of Operations, testified that Maaco believed its process of starting and running a franchise to be a trade secret. However, Monaghan and Maaco have not identified any aspect of the Maaco System that meets the requirement of substantial secrecy, since information was available to customers of Maaco and the public at large about the aspects of the Maaco System that Maaco claims to be proprietary.
"MAACO FRANCHISING, INC. v. PIERRE PHILIPPE AUGUSTIN, Dist. Court, ED Pennsylvania 2010
MAACO FRANCHISING, INC., Plaintiff, v. PIERRE PHILIPPE AUGUSTIN, et al., Defendants.
Civil Action No. 09-4548. United States District Court, E.D. Pennsylvania. April 20, 2010."

W. Michael Garner. “What was remarkable was the court’s denial of the motion to prevent the former franchisee from using Maaco’s confidential system. The court held that there was nothing in the system that was confidential— it was all in the public domain. Franchisors Frequently claim that their systems contain confidential and proprietary information, which franchisees rely on when deciding to purchase. If, in fact, there’s no confidential information in the system, then there is less of an incentive to become a franchisee.”
"Franchise Times — May 2011" - http://www.onlinedigitalpubs.com/display_article.php?id=716464

maaco / meineke / driven brands

these folks are absolute thieves do not buy a maaco franchise or any of the driven brands group

Darnelle White's picture

Drivel

these folks are absolute thieves - Guest

That's it? That's your complete reasoning and facts? You'll have to do much better. You need evidence of what kind of investment this is. Data. Anonymous writer, you'll need to provide hyperlinks to credible sources since you are an unknown guest and so no one can trust that what you write is true.

I assume that you are a competitor who is bored at your computer because franchise sales aren't pouring in. You want your competitors to feel the same misery that you are feeling. However, it doesn't work that way. The post above will have absolutely no impact.

At least you can feel like you've done something with your time.

I AM SITTING HERE ON SATURDAY

I AM SITTING HERE ON SATURDAY IN MY MAACO SHOP AND NO BUSINESS IS FLOCKING IN EVEN WITH THE MOST LOWEST PRICE IN THE INDUSTRY............

Ever consider poster is a

Ever consider poster is a current employee or current franchisee trying to provide good information without exposing themselves to reprisals? Is it possible poster is trying to give advice but is unable to give true guidance because of their current situation? Buyer be very aware of Driven Brands / Maaco they do not supply enough information to allow you to make an informed decision. Seek out the failures there are many of them.

could be a compeditor, disgruntled ex employee,

anti franchising pundit, or failed franchisee. What matters is the facts that ack up such a point. Anyone can say anything andfor a number of reasons.

no no no

Do not buy any franchise that does not grant an exclusive and defined area of operation. Maaco has no barriers to entry and no recourse for franchisees. That means any of the run down warehouses, garages, shops around you can get a little blue and white paint and a couple of signs and abracadabra there is another maaco 3 miles from the maaco you just opened. Your non-compete clause with maaco 10miles. maaco's non-compete clause with you - NONE!

PEOPLE DOING THIS STUFF TO

PEOPLE DOING THIS STUFF TO OTHER PEOPLE //// HEAR ABOUT THE CRAZY THINGS THAT HAPPEN TO PEOPLE TODAY.......... THINK TWICE BEFORE RUINING PEOPLES LIVES

maaco do not buy

do not buy into maaco franchising. you will regret it.

Liars and Theives. maaco does

Liars and Theives. maaco does bad work and has a bad reputation because maaco corporate forces shops to cut corners. maaco's plan is far from industry standard and it is reflected in their reputation.

THATS WHY INSURANCE COMPANIES

THATS WHY INSURANCE COMPANIES "DON'T WANT MAACO DRP'S"

Before you give maaco a dime

ask maaco what the exit plan is should your maaco not perform. find maaco shop owners who have recently closed and ask them how maaco helped them get out of the business. what you will find is once you are in, maaco acts as though their franchise agreement has you enslaved for 15 years. they act as though they own you and any problems fall on the shoulders of the individual owners.

Maaco does not deliver

Read all the complaints about Maaco individual shops online. The only way to pay Maaco Corporate is to short-cut. Their process is flawed and folks who go into business to put out a quality product do not make enough to pay fees to Maaco - Good Maaco's go away. Bad Maaco's make money. If you are still considering buying visit as many Maaco's you can find that have gross revenue less than $1mil and who have been in business less than 5 years. Better yet find a couple of the many owners Maaco has put in failed businesses in the past few years. The percentages say you will fail. Buyer beware.

Do not buy

Your expenses will be double what they disclose to you in their UFOC. You fool yourself into thinking you can absorb the costs Maaco is in the business of helping people be successful right? Wrong! They are in the business of selling franchises and paying themselves. They no longer have good operations support. If you watch TV very little of the advertising is spent on advertising. If anything advertising is Maaco corporate advertising to get more people to buy Maaco's not to bring customers to shops. Do yourself a favor, do something else with your money.

Maaco out of business??

Here are some stats you won't get from Maaco when you consider buying a franchise from them.

In the past 5 years they have churned through about 300 people/shops.

They currently have fewer than 450 shops open.

They are at about a 70% turnover rate and they are losing ground.

Maaco Corporate makes their money by taking your life savings in up-front franchise fees. Then they take your advertising budget and put it to their bottom line.

Please do not buy. They are riding their success from 10+ years ago. They have the franchise sales people in their pockets for now. If you look at the franchising magazines the published statistics are from 2-3 years ago. If you wait 2-3 years Maaco will be with the other Driven Brands franchises as worst to buy.

If you are considering Maaco

If you are considering Maaco weigh your options. Plan A Maaco. Plan B quit your job take your life-savings and party it away gambling, drinking, family vacations whatever you enjoy, sell your home get divorced declare bankruptcy. Then go back to work. You will lose everything anyway at least with Plan B you will have some fun doing it.

WHAT A TRUE

WHAT A TRUE STATEMENT............ CURRENT OWNER

Go for Plan B

How I wish I had chosen Plan B!

you ain't joking

thats the truth

Should you buy Maaco?

Quotes from BodyShop Business Executive Interview: Maaco President Talks David Lapps President and COO 04/20/2010 - full article: http://www.bodyshopbusiness.com/Article/72965/executive_interview_maaco_president_talks_marketing_lean_and_drps.aspx

Lapps - "my daughter called me and asked, “Dad, do you guys do collision work?” She has been in and out of Maaco shops her whole life and didn’t know that we do collision repairs."

This quote is funny because you will be paying this company franchise fees and advertising every week, no matter how bad a job they do for you. Remember the above when you are losing your life savings, house, marriage etc. Funny anecdote by ineffective leadership. Oh, by the way Mr. Lapps' wife is in charge of advertising for Maaco.

Lapps - "We currently have over 20 shops that are fully certified DRP shops"

20 out of approximately 475 shops or about 4-5% preferred vendors for insurance companies - When you sign up for Maaco they will tell you about all the opportunities they bring but don't kid yourself, you will be so buried in fees you will not have the time or money for the outside training you will need to become successful.

Lapps - "One of the major issues we encountered concerned our contamination control"

Maaco has trash in their paint as acknowledged by the President of Maaco, and cited thousands of times by consumer complaints. This is not an industry standard but is acceptable for Maaco.

Go figure, Maaco is a marketing scheme and it will be up to you to do industry comparable work at hugely discounted prices if you want to survive. Good Luck, the math does not work and poor leadership and lacking advertising get paid every week by the franchisee no matter how poor a job Maaco does for you.

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