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AAMCO Franchise Rolls into Fall with Six New Centers Open Across the Country

Posted Dec 14th, 2016

The nation’s premier transmission franchise is rapidly expanding as the iconic AAMCO business model becomes easier to run and easier to scale than ever before

AAMCO is riding a wave of momentum of rapid growth and expansion as America’s premier transmission franchise finishes a strong 3rd quarter. The nation’s largest transmission franchise opened six new franchise locations in California, Louisiana, Pennsylvania, Texas, Washington and Virginia in spring and summer, and in that same timeframe, seven entrepreneurs have signed on to open new AAMCO centers across the country.

With nearly 650 auto repair franchise locations across the country, AAMCO has remained a dynamic part of American car culture — as well as a vibrant part of hundreds of local economies — since the brand began franchising in 1963. Led by CEO and President Brett Ponton, formerly the President and CEO of the largest franchise company within Jiffy Lube which operated nearly 575 units across America, the AAMCO business model is easier to operate and easier to scale than ever before.

“In the summer of 2016, we already had more deposits for new AAMCO centers than we did for the whole of 2015,” says Brian O’Donnell, Senior VP of Franchise Support with AAMCO. “The real positive of that is that more than 50% of the deposits for new AAMCO centers comes from existing franchise owners. They have experienced the simplified business model and initiatives designed to drive profitable growth in their centers. AAMCO centers have never been easier to run, and existing franchise owners are opening their second, third or even fourth stores. We’re thrilled that our investments into simplifying our business model continue to make a positive impact for our franchise owners and help them scale their businesses.”

What makes AAMCO easier to operate and easier to scale than ever before?

AAMCO is halfway through a five-year strategic plan, which has reinvigorated the 50-year-old-plus franchise system by creating a franchisee-focused performance culture and pushing up average unit profitability across the country.

The many new initiatives that are ushering in the bright new era for AAMCO are intended to simplify the iconic brand’s proven business model and drive revenue to franchise owners in their centers. AAMCO created Global Powertrain Systems, a transmission remanufacturing facility in Newnan GA, to help deliver high quality, low cost transmissions for their franchisees.  AAMCO also made significant investments to build a state-of-the-art training facility to keep franchise owners and their technicians at the level of expertise the brand is known for.  Most recently, AAMCO has delivered technology directly to the franchise centers. AAMCO rolled out a new CRM system to deliver executive class analytics to help improve financial performance and will introduce a new point-of-sale system to improve the in-store experience. AAMCO is currently in the process of rolling out a national consumer financing platform to help franchise owners win more sales and provide the customer more options to pay for auto care.

The industry has taken notice. In 2016, Franchise Rankings named AAMCO as the best overall automotive franchise in the United States, as well as the No. 5 best franchise to buy in any industry, period. Entrepreneur included AAMCO on its prestigious “Franchise 500” list for the third year in a row. Most recently, AAMCO was named to Franchise Times magazine’s “Top 200” for the second consecutive year.

“We create value for franchisees primarily by doing two things: helping them improve bottom-line results and helping them create long-term enterprise value in their businesses and the investment they’ve made in our brand,” Brett says. “We wrap ourselves around the franchisees. We’re talking about operational support, marketing support, administrative support, recruitment help — because our mission is pretty clear. We need to support the people on the front lines of our business — the auto repair franchise owners who are operating the business every day, who have the pleasure and the fortune of serving the millions of consumers AAMCO takes care of year in and year out.”

Bring the iconic auto repair franchise to your community

AAMCO is actively seeking single- and multi-unit operators who are passionate about the brand and committed to providing the highest-quality service. Interested candidates should have a minimum net worth of $250,000 and liquid assets of at least $65,000 per unit. Depending on the real estate selected, franchisees can expect the total investment to be approximately $227,400-$333,000, with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans. Since the auto repair franchise began offering a discounted pathway to veterans through its VetFran program in 2012, seven US veterans have joined the AAMCO franchise owner network.

For in-depth details about the AAMCO franchise opportunity, download our free franchise report. You can also learn more by visiting our research pages.

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