Why AAMCO Auto Repair Franchise is a Best-Bet Investment - AAMCO Transmissions

Why AAMCO Auto Repair Franchise is a Best-Bet Investment

Iconic AAMCO auto repair franchise is cruising into the future with a long-term plan to maximize profitability

For five decades, AAMCO has been the largest, top-rated worldwide leader in transmission repairs. Since 1962, we have serviced more than 45 million vehicles at more than 700 franchised locations in North America. As an iconic brand that people know and trust, we are positioned for continued growth in the auto repair market.

As more and more Americans opt to keep their vehicles rather than purchase new ones, the auto repair industry is booming. With 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 because each is different in terms of support, strategies, values, and ROI. Here’s what you should know about AAMCO, an established brand that is rapidly growing across the country.

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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.

AAMCO’s position as a household name and fundamental part of American car culture has its advantages. This is evident in the success we are already experiencing with our Total Car Care offering: While transmission repair remains 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 that overall automobile repair market, and we plan to use that 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.

“Now is a very exciting time to invest in an AAMCO auto repair franchise,” says Jim Gregory, 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 significant increases in our Total Car Care category.”

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Our proven 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,” Jim 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

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.

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 limited territories available. With AAMCO, however, there are opportunities to secure prime locations across the country.

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Learn more about auto repair 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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