Independent Owners Looking to Compete in Consolidator Dominated Market Find
MAACO Offers Buying Power, Revenue Opportunities and Support.
September 16, 2020 // Franchising.com // CHARLOTTE - As consolidation and multi-shop organizations (MSO) continue to grow in the collision repair market, many independent owners are faced with a decision on how to compete. The recent pandemic has only made that situation more complex. Franchising is one way an independent collision repair center owner maintain their independence while benefiting from the power of Maaco Collision Repair and Auto Painting’s nationwide system and nationally known brand.
Support You Need in Challenging Times
During the pandemic, independent business owners were faced with a situation like nothing ever seen before, and one that no one had experience addressing.
“When the pandemic hit, the world stopped spinning for a lot of people,” said Tim Wright, owner of a Maaco center in Farmington, MI. “But being part of an organization like Maaco provided us, as franchisees, the support and information when it was needed the most. The Maaco management team acted quickly to help franchisees navigate the COVID-19 situation, providing training, advice, and best practices. They provided help with the new Paycheck Protection Program (PPP) that the government made available, provided training and advice on topics such as maintaining social distancing on the production line, implementing a touchless intake process, proper disinfecting procedures and proper use of personal protective equipment (PPE). All the help we needed to keep both customers and employees safe and keep the business running.”
Multiple Revenue Streams Help Make Maaco Recession Resistant
Unlike the average independent collision repair shop, the Maaco business model has a diverse customer base, bringing revenue opportunities from consumer-paid work for cosmetic painting and collision repair, insurance-paid collision repair, and revenue from national fleet contract work. These three revenue streams provide a consistent flow of business for Maaco franchisees and help to make their business model recession resistant.
As part of the Driven Brands family of automotive brands, Maaco utilizes fleet business opportunities in its three-pronged business model to drive traffic to its franchise locations. The National Fleet program utilizes more than 25,000 fleet maintenance partnerships with car rental, fleet management, government, ride share, and last-mile delivery companies nationwide to provide painting, repair, and maintenance through its national footprint. With more than 400 locations across North America, fleet partners are never far from a Maaco location. This added source of revenue, along with the unique Maaco business model, provides a big benefit to Maaco franchisees.
Purchasing Power Means Better Profit Picture for Franchisees
Supply and equipment costs can eat into profits for an independent body shop, and an independent owner can spend a great deal of time negotiating and monitoring the pricing from their suppliers. Corey Higginbotham, production manager at the Maaco in Rome, GA has seen things from both sides. He owned his own independent shop for seven years before running the Maaco center for franchisee Jon Griffin. (Pictured Left to Right -Jon Griffin and Corey Higginbotham)
“Maaco has negotiated the best possible pricing for paint, materials and equipment, and that purchasing power helps our profitability and enables us to compete with anyone,” said Higginbotham. “This allows us to offer customers a quality paint job at an affordable price. It’s nice when you can see customers react to the finished product.”
Brand Recognition Helps Drive Traffic
“We have been open just under three months,” said Higginbotham. “On the second day that we were open, we had 32 cars on the lot staged for work. Some customers followed me from my shop, but many of them brought their cars here because they knew the Maaco name. Brand recognition has been a big factor in keeping the shop full of work.”
Maaco Collision Repair and Auto Painting, a member of the Driven Brands™ portfolio, is North America’s #1 Bodyshop. Maaco provides automotive paint and cosmetic repair services for nearly 500,000 drivers annually. With more than 400 independently owned and operated franchises across the United States and Canada, Maaco has restored the safety and appearance of more than 20 million vehicles over 48 years. Maaco has been named a top automotive franchise numerous times by Entrepreneur Magazine in its Annual Franchise 500 ranking. In addition to other honors, Maaco has been included on Franchise Times’ list of Top 200 franchises. For more information about Maaco, visit their website.
About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Automotive Training Institute™, Maaco®, CARSTAR®, ABRA®, Uniban™, 1-800-Radiator & A/C® and PH Vitres d’Autos™, and the International Car Wash Group. Driven Brands has more than 4,000 centers across 15 countries, and combined United States and Canada, and combined, all businesses generate approximately $3.8 billion in system-wide sales and service over 50 million vehicles annually. For more information, visit the Driven Brands website.
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