How Much Does a AAMCO Franchise Cost?
Data from the 2023 Franchise Disclosure Document
Investment Summary
Total Investment
$235K – $353K
Franchise Fee
$40K
Royalty
7.5%
Ad Fund
$150 per month
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for AAMCO is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a AAMCO franchise requires a total investment of $235K – $353K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $40K to $60K.
Ongoing Costs
Beyond the initial investment, AAMCO franchisees pay ongoing fees. The royalty fee is 7.5% of gross sales (Gross Receipts). The ad fund contribution is: $150 per month. There is also a technology fee of $149.
Net Worth & Liquid Capital Requirements
AAMCO requires working capital of $40K – $60K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to AAMCO's Item 19 financial performance representation:
Median gross sales: $888K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View AAMCO?
SBA Loans Issued
456
Default Rate
30.9%
The SBA (Small Business Administration) tracks loan performance for franchise brands. AAMCO has 456 SBA-backed loans on record. The default rate is 30.9%, which is above the franchise industry average, suggesting higher lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current AAMCO franchise owners
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