AAMCOFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A AAMCO franchise requires a total initial investment of $235K – $353K, including a $40K franchise fee and an ongoing 7.5% royalty[2]. Per the 2023 FDD, average unit revenue was $937K[2]. SBA 7(a) loans show a 28.5% charge-off rate across 586 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $235K – $353K
- 26th pct Automotive
- Avg gross sales
- $937K
- 10th pct Automotive
- Royalty
- 7.5%
- 22nd pct Automotive
- Units
- 560
- 36th pct Automotive
- SBA default
- 28.5%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.2x in gross revenue, well above the typical 1.5-2.5x range.
28.5% of SBA loans charged off across 586 loans, above the 16% franchise average.
Franchising since 1963. Systems this mature have refined operations and brand recognition.
Franchised units fell from 560 to 547 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $235K – $353K including a $40K franchise fee, 7.5% ongoing royalty.
- Average unit revenue of $937K/year (median $888K).
- Verdict F (Bottom Quintile) with a risk score of 95/100. SBA loan charge-off rate of 28.5% across 586 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- AAMCO Transmissions, LLC
- Parent company
- Icahn Automotive Service Partners LLC
- Incorporated in
- PA
- HQ
- 410 Horsham Road, Suite 105, Horsham, Pennsylvania 19044
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $32.3M
- vs $36.4M prior year
Affiliated brands
- Cottman
- of IAS
- ADC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
AAMCO franchisees operate automotive transmission repair and service centers, diagnosing and repairing transmission systems, performing fluid services, and handling related drivetrain work. Day-to-day operations involve customer intake, mechanical diagnostics, parts replacement, quality testing, and warranty management while managing technician staff and shop inventory across a 15-year lease or ownership term.
- CEO
- Bruce Chidsey
- Headquarters
- PA
- Founded
- 1963
- FDD year
- 2023
- States available
- 47
FDD Item 7 · 2023 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Fee | $40K | $40K | |
| Business Coach Training | $10K | $10K | |
| Grand Opening Advertising Expenses | $3K | $3K | |
| AAMCO Security Deposit | $5K | $5K | |
| Travel Expenses for Training Programnot refundable | $2K | $4K | |
| Real Estate & Utility Deposits | $14K | $43K | |
| Leasehold Improvementsnot refundable | $10K | $14K | |
| Signsnot refundable | $8K | $30K | |
| Shop Equipment, Supplies, Lifts & Installationnot refundable | $78K | $98K | |
| POS System - Acquisitionnot refundable | $3K | $3K | |
| POS System - 3 months Access/Supportnot refundable | $500 | $500 | |
| Computers and Phone System - Hardwarenot refundable | $7K | $10K | |
| Office Furniturenot refundable | $6K | $7K | |
| Sales Materialsnot refundable | $500 | $1K | |
| Miscellaneous Costs & Professional Feesnot refundable | $4K | $10K | |
| Insurancenot refundable | $2K | $3K | |
| Advertising Costsnot refundable | $5K | $14K | |
| Additional Fundsnot refundable | $40K | $60K | |
| Total initial investment | $235K | $353K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$136K
14.5% margin
Unlevered ROIC
40%
EBITDA / total invested capital
Payback
30 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $235K – $353K
- Better than avg vs category
- Liquid capital req'd
- $40K – $60K
- Better than avg vs category
- Franchise fee
- $18K – $40K
- Better than avg vs category
- Royalty
- 7.5%
- Gross Receipts · typical 6–8%
- Ad fund
- $150 per month
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Technology fee | $149 |
| Transfer fee | $6K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $937K
- Per unit, per year
- Median gross sales
- $888K
- Item 19 type
- gross_sales
- Sample size
- 536 units
- vs category median 70 · large
- Range (low → high)
- $22K→$3.3M
- Cohort dispersion (min → max)
- Quartile band
- $466K→$1.5M
- Bottom 25% → top 25%
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
vs Automotive averages
How AAMCO Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 560
- Opened
- 9
- Last reporting year
- Closed
- 17
- Turnover rate
- 3.0%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -1.4%
- Net unit change last year
- 3-yr CAGR
- -2.3%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 22
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 37
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 3.4%
- Franchisor-initiated terminations
- Ceased ops
- 75.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 586
- Loan volume
- $155.9M
- Median loan
- $175K
- 50th percentile
- Charge-off rate
- 28.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 69.1%
- 5-yr charge-off
- 5.6%
- Loans approved 2021+
- Active lenders
- 160
- Defaults
- 116
Vintage analysis
AAMCO charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into AAMCO's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 34-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 28.5% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AAMCO presents HIGH RISK due to a contracting franchise system, pervasive litigation involving consumer fraud and franchisee disputes, absent profitability disclosure, unprotected territory, and false going concern status—indicating franchisor instability and deteriorating unit economics.
Litigation (Item 3)
9 case reference(s): 1 pending, 2 settled.
Largest disclosed settlement: $960,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code. In the course of the Chapter 11 cases, Auto Plus has commenced a process to sell substantially all of its assets pursuant to Section 363 of the Bankrupt
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 95 / 100 rating
- 01MEDSystem contracting at -1.4% YoY with 560 units suggests market saturation or operational challenges in core transmission repair business
- 02HIGHSignificant litigation history including two pending consumer fraud allegations, concluded franchisee disputes over misrepresentation, and 10 franchisor enforcement actions in 2022-2023 indicate systemic relationship issues
- 03MINORNo Item 19 (average net income) disclosure despite $937K average revenue prevents ROI validation; 7.5% royalty on gross receipts with unknown profitability creates opaque financial picture
- 04HIGHGoing Concern status is FALSE, which is concerning for a 560-unit franchise and suggests potential franchisor financial instability or operational distress
- 05MINORNo protected territory with declining unit count increases cannibalization risk and competitive pressure on unit-level economics
- 06MEDHigh cumulative investment ($234.8K-$353.2K) relative to undisclosed net income creates unfavorable risk-reward asymmetry
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Statistical Area |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 23 |
View Item 3 litigation summary
9 case reference(s): 1 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 145 hrs
- On-the-job training
- 240 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- AAMCO POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AAMCO POS
Item 20 · call current owners
Franchisee Contacts
559 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
AAMCO · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a AAMCO franchise?
The total investment to open a AAMCO franchise ranges from $235K – $353K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do AAMCO franchise owners earn?
According to Item 19 of the AAMCO FDD, the average gross sales per unit is $937K. The median is $888K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is AAMCO's franchise failure rate?
Based on SBA 7(a) loan data, AAMCO has a charge-off rate of 28.5% across 586 loans, meaning 28.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many AAMCO franchise locations are there?
As of their most recent FDD filing, AAMCO has 560 total units in the United States, including 560 franchised units and 13 company-owned units. 9 new units were opened in the latest reporting year.
Is AAMCO a good franchise to buy?
FranchiseVerdict rates AAMCO as a F-grade franchise with a risk score of 95 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.