MAACO Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Maaco is an automotive franchise specializing in collision repair and affordable auto painting and bodywork. Franchisees run body shops managing technicians, customer intake, insurance work, and quality control.
FranchiseVerdict summary · 2026
A Maaco franchise requires a total initial investment of $196K – $644K, including a $45K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.6M[2]. SBA 7(a) loans show a 17.4% charge-off rate across 612 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $196K – $644K
- 28th pct Automotive
- Avg gross sales
- $1.6M
- Outlet subset14th pct Automotive
- Royalty
- 8.0%
- 36th pct Automotive
- Units
- 363
- 44th pct Automotive
- SBA charge-off
- 17.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $196K – $644K including a $45K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year (median $1.3M) (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 51/100 (higher is better). SBA loan charge-off rate of 17.4% across 612 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Maaco Franchisor SPV LLC
- Parent company
- Driven Systems LLC
- Ultimate parent
- Driven Brands Holdings Inc.
- Predecessor
- MAACO Franchising, LLC (MAA); Maaco Enterprises, Inc.
- Prior franchisor entity
- CEO title
- Manager and Chief Executive Officer
- Daniel Rivera
- Incorporated in
- DE
- HQ
- 440 South Church Street, Suite 700, Charlotte, North Carolina 28202
- Auditor
- Independent auditor (not named in text extract)
- Audited financials
- Franchisor revenue
- $290K
- vs $270K prior year
Affiliated brands
- Driven Brands Shared Services
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Daniel Rivera
- Headquarters
- NC
- Founded
- 1972
- FDD year
- 2025
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 55% below the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Auto Body Conversion Center)not refundable | $45K | $45K | |
| Initial Training and Opening Fee (Auto Body Conversion Center)not refundable | $10K | $10K | |
| Initial Advertising Contribution (Auto Body Conversion Center)not refundable | $15K | $15K | |
| Living Expenses During Training (Auto Body Conversion Center)not refundable | $4K | $5K | |
| Equipment, Signage and Initial Computer Hardware (Auto Body Conversion Center)not refundable | $33K | $307K | |
| Opening Inventory and Supplies (Auto Body Conversion Center)not refundable | $15K | $37K | |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs (Auto Body Conversion Center)not refundable | $25K | $150K | |
| Additional Funds - 3 Months (Auto Body Conversion Center)not refundable | $50K | $75K | |
| Initial Franchise Fee (Ground Up Center or Non-Auto Retrofit Center)not refundable | $45K | $45K | |
| Initial Training and Opening Fee (Ground Up Center or Non-Auto Retrofit Center)not refundable | $10K | $10K | |
| Initial Advertising Contribution (Ground Up Center or Non-Auto Retrofit Center)not refundable | $15K | $15K | |
| Living Expenses During Training (Ground Up Center or Non-Auto Retrofit Center)not refundable | $4K | $5K | |
| Equipment, Signage and Initial Computer Hardware (Ground Up Center or Non-Auto Retrofit Center)not refundable | $240K | $307K | |
| Opening Inventory and Supplies (Ground Up Center or Non-Auto Retrofit Center)not refundable | $15K | $37K | |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs (Ground Up Center or Non-Auto Retrofit Center)not refundable | $350K | $3.5M | |
| Additional Funds - 3 Months (Ground Up Center or Non-Auto Retrofit Center)not refundable | $50K | $75K | |
| Total initial investment | $925K | $4.6M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $196K – $644K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $75K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 8.0%
- percentage · typical 6–8%
- Ad fund
- $1,200 per week minimum (flat weekly marketing fee; may b…
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Technology fee | $0 |
| Training fee | $10K |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Inventory (initial) | $15K – $37K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 11% above the automotive norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
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
$226K
14.0% margin
Unlevered ROIC
47%
EBITDA / total invested capital
Payback
26 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Maaco unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
47%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Maaco units return on equity?
Equity IRR · 5-yr
43.0%
5.98× MOIC
Year-1 DSCR
2.03×
EBITDA ÷ debt service
Equity required
$2.9M
on $11.3M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross receipts
- Sample size
- 317
- vs category median 70 · large
- Range (low → high)
- $446K→$10.5M
- Cohort dispersion (min → max)
- Quartile band
- $1.0M→$2.2M
- Bottom 25% → top 25%
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.6M/year in gross sales. Median is $1.3M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 3.8x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Automotive average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -8.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 14% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive averages
How MAACO Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 363
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 19
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 18.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 13.6%
- Net growth (3-yr)
- -8.8%
- Net unit change over 3 years
- 3-yr CAGR
- -8.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 18
- Closed (3yr)
- 0
- Terminated (3yr)
- 65
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 51
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.4%
- Owners selling to other franchisees
- Continuity rate
- 95.0%
- Units that stayed open
- Termination rate
- 5.2%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 45 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
45
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 612
- Loan volume
- $226.5M
- Median loan
- $408K
- 50th percentile
- Charge-off rate
- 17.4%
- 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)
- 82.6%
- 5-yr charge-off
- 35.7%
- Loans approved 2021+
- Active lenders
- 140
- Defaults
- 76
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 17.2%
- brand above franchise avg ↑
- Jobs supported
- 1,187
- 2.2 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 45% went to startups / new businesses, 55% to established operators
Franchise vs independent — in automotive body, paint, and interior repair and , franchised businesses charge off at 17.2% vs 13.5% for independents — franchising is associated with 27% higher SBA default risk in this category.
Vintage analysis
MAACO charge-off rate by loan vintage
Top lenders financing MAACO franchisees
Showing 3 of 140 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into MAACO'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
- 11-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Maaco presents high-risk profile with a shrinking franchise system, absent profitability data, unresolved securities litigation, and unprotected territories that threaten franchisee sustainability.
Litigation (Item 3)
Two franchisor-initiated actions against former franchisees (both concluded/settled). Three pending shareholder derivative/securities class actions against parent Driven Brands Holdings. Three concluded franchisee actions against franchisor/affiliates (including settlement for $5.5M to Maaco from franchisee, $100K paid by MAA to franchisees, $675K paid by MAA). One Canada affiliate action (settled CAN$500K). One Arby's affiliate state AG settlement.
Largest disclosed settlement: $675,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Independent auditor (not named in text extract)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 51 / 100 verdict
- 01MINORDeclining unit count (-3.5% YoY) signals system contraction and market saturation concerns
- 02HIGHMultiple active litigations including shareholder derivative and securities class actions create franchisor stability uncertainty
- 03MINORNo protected territory combined with 363 competing units increases cannibalization risk
- 04MED8% royalty on $1.6M average revenue = $128k annual royalty burden with undisclosed profitability
- 05HIGHGoing concern status is FALSE but pending securities litigation suggests financial/operational stress at parent level
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 15 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Charlotte, North Carolina (litigation only, no arbitration) |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 10 |
View Item 3 litigation summary
Two franchisor-initiated actions against former franchisees (both concluded/settled). Three pending shareholder derivative/securities class actions against parent Driven Brands Holdings. Three concluded franchisee actions against franchisor/affiliates (including settlement for $5.5M to Maaco from franchisee, $100K paid by MAA to franchisees, $675K paid by MAA). One Canada affiliate action (settled CAN$500K). One Arby's affiliate state AG settlement.
Items 10, 11
Training & Operations
- Classroom training
- 127 hrs
- On-the-job training
- 0 hrs
- Training location
- Charlotte, North Carolina (and virtually for pre-work)
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- CCC One Base Package
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CCC One Base Package
Item 20 · call current owners
Franchisee Contacts
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Maaco · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Maaco franchise?
The total investment to open a Maaco franchise ranges from $196K – $644K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Maaco franchise owners earn?
According to Item 19 of the Maaco FDD, the average gross sales per unit is $1.6M. The median is $1.3M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Maaco FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Maaco FDD and qualifies whose outlets they describe.
What is Maaco's franchise failure rate?
Based on SBA 7(a) loan data, Maaco has a charge-off rate of 17.4% across 612 loans, meaning 17.4% 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 Maaco franchise locations are there?
As of their most recent FDD filing, Maaco has 363 total units in the United States, including 363 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Maaco a good franchise to buy?
FranchiseVerdict rates Maaco as a B-grade franchise with a verdict score of 51 out of 100 (higher is better), 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.
For franchisors
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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.