Franchise publication praises iconic transmission franchise as a best-bet investment for 2017
We’re rapidly approaching the end of 2017, though that hasn’t stopped the industry from praising AAMCO’s iconic business model. After being lauded in September by Franchise Times, the same publication has now named AAMCO to its prestigious annual Top 200+ list of the best franchise systems to invest in.
The overall ranking is based largely by annual sales during the previous year of 2016, and AAMCO had an impressive year with $426 million reported, and as a result AAMCO jumped two spots up to 163 from last year’s list. AAMCO’s strong sales numbers, puts the brand in the Top 3 performing automotive repair companies. Franchise Times notes that last year was an especially healthy year for the auto repair industry overall:
“All but three of the automotive companies in the Top 200+ boosted sales throughout 2016, while the largest, Midas, with 2,098 units, saw flat sales compared to 2015,” Franchise Times reports. “It’s a time of massive change in the U.S. automotive industry, with near record sales, an accelerating transition towards fully electric vehicles and continued consolidation where big name brands gobble up mom-and-pop shops amid rising barriers to entry and education requirements.”
Emphasis on training and education puts AAMCO in a class of its own
In September’s profile on AAMCO, Franchise Times noted how the iconic brand has been quick to adapt to the rapidly changing industry. This is one of AAMCO’s continued strengths, leveraging new technologies and the brand’s 50 year reputation as the worldwide leader in transmission repair. To actualize this goal, AAMCO has invested significantly in both initial and ongoing training, establishing AAMCO University in 2015, a state-of-the-art training facility at the brand’s headquarters in Newnan, Georgia.
“We set out to find better consumer financing options to help our franchise owners convert more jobs into profit and sales, while at the same time serve their customers in a much better way,” says Jim Gregory, President & CEO of AAMCO.
This emphasis on training helps AAMCO combat the shortage of qualified technicians currently in the workforce, and thus makes AAMCO more competitive while continuing to advance its storied reputation as being the only brand capable of fixing the hardest part of the cars: the transmission.
“To build its own bench of technicians, the company started auditorium-style education courses at its AAMCO University in early 2015 to provide initial and ongoing training,” Franchise Times reported in September. “By tracking sales throughout the network, Brian O’Donnell, senior vice president of franchise development, said centers training at the highest levels are seeing 15 to 20 percent sales increases, proving the benefits of its approach. The company also offers online training, which includes more than 325 courses aimed at technicians, franchisees and managers.”
AAMCO continues to make investments in new technology to make the business easier to run than ever before
In recent years, AAMCO has become one of the most forward thinking automotive repair franchise systems on the market.
AAMCO is currently in the process of rolling out a new comprehensive Point of Sale (POS) system, which will improve AAMCO’s business model by providing the ability to create estimates and invoices for customers much more quickly and easily, driving revenue for franchisees in their centers. The cloud-based system is accessible from anywhere in the world, and it provides a suite of tools designed to provide executive-class analytics on business performance, making it easier for franchisees to truly know their businesses and to take the steps they need to make their businesses grow.
In addition to the POS system, AAMCO has also launched a comprehensive suite of financing options for its customers. Transmission repair is traditionally one of the most expensive purchases, and now customers don’t have to be saddled with the immediate burden of paying thousands of dollars outright, and instead, they can fit this necessary purchase into the budgets. In turn, this is helping AAMCO franchisees increase the level of profitability they experience in their stores.
“We set out to find better consumer financing options to help our franchise owners convert more jobs into profit and sales, while at the same time serve their customers in a much better way,” says Jim Gregory, President & CEO of AAMCO. “The platforms we have launched nationally have improved the number of credit approvals to our customers and have also increased the average approval amounts significantly. We are very pleased with these consumer financing options, as they help our franchise owners increase their level of profitability.”
Bring the iconic auto repair franchise to your community
With nearly 650 centers across North America, 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 site selected, franchisees can expect the total investment to be approximately $226,300 – $333,500, with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans.