How Does The AAMCO Franchise Compare with Other Auto Repair Franchises?

When measured against the competition, the iconic AAMCO brand is a best-bet investment

As more and more Americans opt to keep their vehicles rather than purchase new ones, the auto repair industry is booming. Of the more than 253 million cars on the American roadways, the average age of the American vehicle is 11.4 years old, according to IHS Automotive. These aging vehicles need regular maintenance, which has created a lot of opportunity for entrepreneurs seeking to open an auto repair franchise. According to IBISWorld’s “Auto Mechanics in the US” market research report, the auto repair industry generates $62 billion in annual sales.

An opportunity as large and potentially lucrative as the general auto repair market has significant competition. How do you pick the right franchise system? As you research owning an auto repair franchise, it pays to do some brand comparisons — each is a little different in terms of support, strategies, values, and ROI. Here’s what you should know about AAMCO, one of the fastest-growing brands in the industry.

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The AAMCO auto repair franchise opportunity

For half a century, the American public has linked the word transmission to AAMCO, and for good reason. Our proven expertise in fixing the most technically challenging part of a car is heralded far and wide. As a result, we are the leading brand for transmission work. To help our franchise owners get a bigger slice of the $62 billion general automotive repair market, we recently launched our Trust campaign to expand the public’s perception of what we do. After all, if we are trusted to fix the most complicated part of a car, we can surely change our customers’ oil, fix their brakes, and rotate their tires.

“Now is a very exciting time to invest in an AAMCO auto repair franchise,” says Brett Ponton, President and CEO of AAMCO. “We are making significant investments in supporting our franchisees in both the short term and for the future. Our long-term plan allows us to leverage and build upon our 50-year heritage. We have a core brand positioning of expertise within the transmission business, and customers know that if you are highly skilled in repairing transmissions, you can fix and maintain anything that a vehicle needs. Our core category of transmission repair continues to grow, and we’ve seen huge increases in our Total Car Care category.”

The fact that the AAMCO brand is not only a household name, but a fundamental part of American car culture has its advantages. This is showing up in the success of our Total Car Care offering. While transmission repair still is our bread and butter, more than 60% of our customers visited us for Total Car Care in 2014. According to Automotive Digest, no brand owns more than a 10% share of the overall automobile repair market, and we plan to use that fragmented market to our benefit by leveraging our expertise in transmission repair to expand our Total Car Care platform. By 2018, we will be considered an industry specialist not just in transmissions, but just about any general vehicle repair.

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Our business model helps AAMCO franchisees maximize profitability

One of the biggest positives in partnering with a nationally known brand with a 50-year history of expertise and customer trust is that the groundwork is already laid. We have spent decades establishing ourselves as a preeminent brand, and franchisees benefit from that legacy the day they open their doors.

The American public’s trust in AAMCO is especially important when considering winning customers for life. We calculate that the average automobile customer will spend $54,036 on repair during the time they own and operate a car. If that customer has two vehicles — and most households have two vehicles or more — that amount doubles. Even though the average transmission rebuild costs a customer about $2,500, total spending on transmission work is a small fraction of car care spending. Most people only consider replacing a vehicle’s transmission once, but they get oil changes, brake work, and tune-ups for the life of their car. The bulk of that $54,000-per-customer lifetime spending goes toward other repair services.

“At AAMCO, we are very well positioned to win the automotive aftermarket,” Brett says. “Our brand is very well known for transmission expertise that typically has a large ticket value associated with it. Our goal going forward is to maintain our leadership position for transmissions, while focusing on building lifetime relationships with our customers through providing expert service for all automotive services. Providing an expert level of service on all automotive services allows us to build relationships with our customers for life. As a result, we will build long-term business value for our franchisees.”

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Bring the fastest-growing auto repair franchise to your community

Since our founding in 1962, we have serviced more than 45 million vehicles and have opened more than 700 auto repair franchises across North America. Customers love our services, and that’s not the only advantage we offer franchisees. We offer great systems for running your business. And, while they’re still available, we offer great locations! Other auto repair franchises have high saturation, which means they have very limited territories available. With AAMCO, there are opportunities to secure prime locations across the country.

Do I qualify for a franchise?

Having experience in the auto repair business is not required for franchisees, because AAMCO has excellent training and support. Entrepreneurs from all backgrounds have learned — and can learn — to operate our professional franchises. You bring the commitment, drive, focus, and desire to be your own boss. The investment required to start an AAMCO franchise ranges from $227,400 to $333,000. This figure includes a $39,500 franchising fee, a range of $78,400 to $98,000 for equipment and supplies, $10,000 for business coach training, and a range of $14,000 to $43,000 for real estate and utility deposits. We’re looking for people who have net worth of at least $250,000 and minimum liquidity of at least $65,000.

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Learn more about franchise opportunities

AAMCO is awarding prime territories across the nation to qualified franchise partners. If you’re curious, please fill out the form on our site. We’d love to schedule a visit to one of our area representative’s stores in your area. One tour of the store will confirm everything we have promised about the quality of the AAMCO brand, and our area representative can talk to you more in-depth about this franchise investment opportunity.

Fast facts about AAMCO

  • Franchising since 1962
  • Consistently ranked as a top choice in Entrepreneur magazine’s annual Franchise 500 rankings of franchising opportunities
  • 700+ locations
  • SBA approved
  • Total investment: $227,400 to $333,000

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