3 Reasons to Invest in an AAMCO Franchise in 2019

Iconic transmission franchise is poised to become the dominant brand for complex car repair

AAMCO building - South Western Oklahoma City

For more than 50 years, the AAMCO franchise has been the worldwide leader in transmission repair. In that time, AAMCO has helped hundreds of entrepreneurs realize their dreams of opening car repair businesses that become a dynamic part of communities nationwide.

In 2019, AAMCO is one of the most forward-looking franchise systems in the nation. In recent years, AAMCO has invested substantially in new technology and training platforms to help make the business model easier to run than ever before. Just as importantly, AAMCO has outlined a clear path to becoming the dominant brand in complex car repair, with a special emphasis on capturing the growing demand for electric and hybrid vehicle repair. The results have been extraordinary. Not only have entrepreneurs without any experience in auto repair opened AAMCO centers in record numbers, but existing AAMCO franchisees are scaling up to multi-unit ownership in record numbers.

The industry is taking notice. In January, Entrepreneur magazine named AAMCO to its prestigious annual “Franchise 500” list, ranking AAMCO 86 spots higher than in 2018. Even more tellingly, AAMCO outranked the competition, including brands such as Midas, Meineke, Milex and Mr. Transmissions, providing strong validation for the AAMCO business model going forward.

Here are three reasons AAMCO is a best-bet investment for 2019:

AAMCO owners benefit from a state-of-the-art industry
and training platform

In 2014, we launched AAMCO University, a state-of-the-art training facility in Newnan, Georgia, that offers more than 300 hours of classes for franchisees and their technicians, as well a high-tech garage where technicians can learn how to repair electric and hybrid vehicles.

To make the business easier to run and more profitable, AAMCO recently launched a new Point of Sale system that provides franchisees with executive-class analytics, helping to make scaling to multi-unit ownership easier than ever. AAMCO also invested in new CRM software, which gives franchise owners access to the entire support network.

“It could not be a more exciting time to be an AAMCO franchisee,” says Jim Gregory, President of AAMCO. “We’re lucky to be a part of an incredibly large industry that’s profitable and recession-resistant, and our ability to become the dominant brand for complex car repair positions us to make the future brighter. Our main goal is to help our franchisees thrive and prosper, and we have made significant investments on our franchisees’ behalf to increase profitability over the long term. AAMCO is going to continue to grow, and we cannot wait to help more entrepreneurs realize their dreams of owning a business that has the potential to be financially and personally rewarding.”

AAMCO owners enjoy high margins and little competition

For more than 50 years, AAMCO has been the worldwide leader in repairing transmissions, one of the most complicated and most expensive parts of a car. Today, it costs between $2,000 to $3,800 for a rebuilt transmission and AAMCO franchise owners enjoy the luxury of high tickets and the ability to thrive on a much lower car count than traditional auto repair shops.

AAMCO will continue to dominate the transmission segment, plus we are doing the exact opposite of what our competition is doing: taking action to become the dominant brand for complex car repair.

“One of the benefits of being a leader in the auto repair aftermarket is that we have lead time to prepare for the cars on the road,” Gregory says. “We service cars that are 10 or 11 years old. We know that while hybrid and electric vehicles make up only 2 percent of the cars on the road now, in five years there’s going to be explosive growth in hybrid and electric vehicles. As the industry leader in technical complexity and hard-to-fix repairs, we’re perfectly positioned to take advantage of that opportunity.”

AAMCO is building for a brighter future

While most legacy brands are sentimental about the past, AAMCO is excited about the future. Led by a visionary executive team passionately devoted to driving revenues to franchise owners, AAMCO is taking bold steps to become the dominant player in complex car repair.

The cars of today are much different than the ones AAMCO serviced decades ago. As the auto industry moves toward hybrids and electric vehicles, AAMCO’s legacy as the brand that specializes in complex repairs positions us to become the go-to brand for fixing this new generation of vehicles.

“We’ve laid down the foundational technology that will allow us to grow well into the future,” says Mary Shetzline, Chief Financial Officer of AAMCO. “Not only are we going to become the leader in complex car repair, but we also are making owning and operating an AAMCO center easier. This means that our franchise owners have the opportunity to scale up to multi-unit ownership and maximize their level of profitability in their centers.”

Bring an AAMCO franchise to your community

With over 600 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 $223,600 to $333,500, with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans.

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

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