Item 7. Initial Investment
As a candidate, you should have a minimum of $90,000 in liquid capital and a net worth of at least $350,000 to get started. The total cost to open a new AAMCO Center can range from $234,800 to $353,200.
Type of Expenditure2
Type of Expenditure2
Amount3
Method of Payment
When Due
To Whom Payment is to be Made
Initial License Fee3, 4 (including credit of Initial Deposit received under Deposit Agreement)
Type of Expenditure2
Initial License Fee3, 4 (including credit of Initial Deposit received under Deposit Agreement)
Amount3
$39,500
Method of Payment
Installments
When Due
Upon Signing Franchise Agreement
To Whom Payment is to be Made
AAMCO
Business Coach Training3
Type of Expenditure2
Business Coach Training3
Amount3
$10,000
Method of Payment
Lump Sum
When Due
Upon Signing Franchise Agreement
To Whom Payment is to be Made
AAMCO
Grand Opening Advertising Expenses3
Type of Expenditure2
Grand Opening Advertising Expenses3
Amount3
$3,000
Method of Payment
Lump Sum
When Due
Upon Signing Franchise Agreement
To Whom Payment is to be Made
AAMCO
AAMCO Security Deposit3
Type of Expenditure2
AAMCO Security Deposit3
Amount3
$5,000
Method of Payment
Lump Sum
When Due
Upon Signing Franchise Agreement
To Whom Payment is to be Made
AAMCO
Travel Expenses for Training Program4
Type of Expenditure2
Travel Expenses for Training Program4
Amount3
$2,000 – $4,000
Method of Payment
As incurred
When Due
Before opening
To Whom Payment is to be Made
Third Parties
Real Estate & Utility Deposits5
Type of Expenditure2
Real Estate & Utility Deposits5
Amount3
$14,000 – $43,000
Method of Payment
As incurred
When Due
Before opening
To Whom Payment is to be Made
Landlord, Utility Companies, other Third Parties
Leasehold Improvements6
Type of Expenditure2
Leasehold Improvements6
Amount3
$9,700 – $13,700
Method of Payment
As arranged
When Due
As arranged
To Whom Payment is to be Made
Landlord, other third parties
Signs7(included in Center Opening Package, See Item 5)
Type of Expenditure2
Signs7(included in Center Opening Package, See Item 5)
Amount3
$7,500 – $30,000
Method of Payment
As arranged
When Due
Before opening
To Whom Payment is to be Made
AAMCO
Shop Equipment, Supplies, Lifts & Installation (included in Center Opening Package, See Item 5), plus freight & taxes8
Type of Expenditure2
Shop Equipment, Supplies, Lifts & Installation (included in Center Opening Package, See Item 5), plus freight & taxes8
Amount3
$78,400 – $98,000
Method of Payment
As arranged
When Due
As arranged
To Whom Payment is to be Made
AAMCO and third parties (see Item 5)
POS System – Acquisition9
Type of Expenditure2
POS System – Acquisition9
Amount3
$2,500
Method of Payment
Lump Sum
When Due
Before opening
To Whom Payment is to be Made
AAMCO
POS System – 3 months Access/Support9
Type of Expenditure2
POS System – 3 months Access/Support9
Amount3
$500
Method of Payment
Installments
When Due
Monthly
To Whom Payment is to be Made
AAMCO or Supplier we designate (see Item 6)
Computers and Phone System – Hardware10
Type of Expenditure2
Computers and Phone System – Hardware10
Amount3
$6,500 – $10,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers you choose (may include AAMCO)
Office Furniture11
Type of Expenditure2
Office Furniture11
Amount3
$5,500 – $7,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers you choose (may include AAMCO)
Sales Materials11
Type of Expenditure2
Sales Materials11
Amount3
$500 – $1,000
Method of Payment
Lump Sum
When Due
Before opening
To Whom Payment is to be Made
AAMCO
Miscellaneous Costs & Professional Fees 12(Legal and Accounting Advice, Personnel recruitment, etc.)
Type of Expenditure2
Miscellaneous Costs & Professional Fees 12(Legal and Accounting Advice, Personnel recruitment, etc.)
Amount3
$4,000 – $10,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Third Parties
Insurance
Type of Expenditure2
Insurance
Amount3
$1,500 – $2,500
Method of Payment
As incurred
When Due
Before opening
To Whom Payment is to be Made
Third Parties
Advertising Costs13(13 weeks)
Type of Expenditure2
Advertising Costs13(13 weeks)
Amount3
$4,700 – $13,500
Method of Payment
As agreed
When Due
Periodically (weekly or monthly) and as arranged
To Whom Payment is to be Made
AAMCO, Ad Pool, regional monthly internet search program (or national program if applicable), and Yellow Page agency
Additional Funds14
Type of Expenditure2
Additional Funds14
Amount3
$40,000 – $60,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers and other Third Parties
Considering an AAMCO Franchise?
Your Blueprint for Franchise Success
Get Your AAMCO Franchise Guide
- Insights from AAMCO franchisees
- AAMCO’s market strengths
- Startup costs
- AAMCO’s management team
