Maaco franchise startup costs run $300K–$575K — the largest auto painting and collision repair franchise in North America, with an insurance-claim revenue mix that creates non-discretionary demand.
Maaco is the largest auto painting and collision repair franchise in North America, operating under the Driven Brands umbrella alongside Meineke, Take 5 Oil Change, and other automotive service brands. Founded in 1972, Maaco has more than 500 locations across the US and Canada and holds strong brand recognition in the auto body and paint segment. The business model combines two revenue streams: retail paint jobs (consumer-initiated) and insurance-claim collision repair (insurance-funded). The insurance-claim component creates demand that is largely independent of consumer discretionary spending cycles. This guide is for prospective Maaco franchisees at the capital planning stage.
Per Maaco's current FDD, total estimated initial investment runs approximately $300K–$575K. The auto body shop format requires a commercial building with a spray booth, which is either built out or converted from existing automotive space. Spray booth installation and paint equipment represent the largest single equipment investment. Major cost categories include:
Maaco charges an 8% royalty on gross sales and a 4% advertising fee — the 8% royalty is on the higher end for automotive service franchises and reflects the Driven Brands network's marketing power and insurance direct-repair program (DRP) relationships, which channel insurance-funded collision repair work to participating shops. Maaco's DRP relationships with major insurers are a significant franchisee benefit.
Maaco requires a minimum net worth of $300K and liquid capital of $80K. Prior automotive or body shop experience is not required — Maaco provides comprehensive technical and business operations training. However, candidates with prior automotive business management experience tend to ramp to profitability more quickly.
Maaco is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. At $300K–$575K, SBA 7(a) is the primary path; the FTC Franchise Rule requires a complete FDD before you sign anything. Key financing options include:
Maaco is on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. At $300K–$575K, SBA 7(a) is the primary financing path. Here is what underwriters evaluate:
Most Maaco loans are SBA 7(a) term loans at 10-year terms covering franchise fee + leasehold improvements + spray booth + paint equipment + working capital. After 10–20% equity injection at the $300K–$575K range, loan amounts run $240K–$460K. Spray booth and major equipment items are sometimes financed on standalone equipment notes to reduce the SBA loan amount. See SBA 7(a) vs. equipment financing for the structural tradeoff.
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Per the current FDD, total estimated initial investment runs $300K–$575K. Spray booth installation and build-out scope are the primary cost variables.
Maaco charges an 8% royalty on gross sales and a 4% advertising fee. The 8% royalty is on the higher end for automotive service franchises but is offset by Maaco's insurance direct-repair program relationships, which channel insurance-funded work to franchisee shops.
Maaco has direct-repair program (DRP) relationships with major auto insurers, which channel insurance-funded collision repair work to participating shops. This creates a demand stream that is largely non-discretionary — when insurance covers the repair, the consumer proceeds regardless of their out-of-pocket budget constraints.
Maaco is owned by Driven Brands, a publicly traded automotive franchise holding company (NASDAQ: DRVN) that also owns Meineke, Take 5 Oil Change, MAACO, Speedco, and other automotive service brands.
Yes. Maaco is on the SBA Franchise Directory. SBA 7(a) is the standard path for the $300K–$575K investment range, with equipment financing for spray booth and major automotive equipment as a common supplement.
SBA SOP 50 10 7 sets the minimum global DSCR at 1.15× — projected net cash flow must cover all debt obligations at 1.15× or better. Most SBA participating lenders require 1.25×–1.35× for franchise startups. For Maaco, lenders build the DSCR from FDD Item 19 gross sales data for comparable shops, adjusting for the 12% combined fee load (8% royalty + 4% ad), lease, labor, materials, and insurance. Shops with established insurance DRP (direct repair program) relationships support stronger DSCR projections because DRP revenue is predictable and non-discretionary. Source: SBA SOP 50 10 7.
Borrowers must inject equity from personal funds — not borrowed for this purpose — per SBA SOP 50 10 7. For Maaco's $300K–$575K range, equity injection runs $30K–$115K (10–20% of project cost). Spray booth and equipment-intensive builds near the top of the range typically require 20%; leasehold conversion projects at the lower end may qualify at 10%. Equity is documented at closing with bank statements showing funds seasoned in the account for 60+ days.