Potential Income

Successful AAMCO franchisees earn far more than the average mechanic shop owner’s salary

Your potential income and individual earnings will, of course, vary depending on your market, the mix of services you offer, and other factors. However, AAMCO franchise owners have been known to take in $713,092 annualized average gross sales per center.

AAMCO: A Proven, Top-Rated Brand. A Clear Path to a Profitable Future.

Partnering with a nationally known brand with 60+ years of expertise and customer trust means that the groundwork already is laid. Our franchisees benefit from the AAMCO legacy the day they open their doors. AAMCO enjoys overwhelming brand recognition in the lucrative transmission repair sector. We’ve won the nation’s trust to fix the most complicated part of the car. This ability is a huge boon to our franchisees, as transmission repair is one of the most expensive parts to fix. AAMCO franchise owners enjoy much higher margins than traditional auto repair shops that specialize in oil changes. AAMCO, as the industry specialist in transmission repair, requires a lower volume of customers to drive significant revenue.

The cost of repairing hybrid and electric vehicles is one of the most promising revenue streams for AAMCO franchise owners. AAMCO invested in hybrid and electric vehicles for technicians to receive hands-on training at our state-of-the-art training facility, AAMCO University. Since launching the program, we already have trained hundreds of technicians and are introducing marketing campaigns to get the word out that AAMCO is positioning itself to be ready, qualified, and competent in hybrid and electric vehicle repair.

Beyond the profit margins of complex car repair and the extensive training at AAMCO University, the investments AAMCO made in new technologies extend directly to our franchisees, who now have industry-leading tools to help manage their businesses and increase profitability. Our point-of-sale system provides AAMCO franchisees with executive-class analytics that are updated to the minute and are accessible from anywhere in the world. AAMCO also launched a consumer financing platform, which allows franchise owners
to make more high-ticket sales without burdening their customers. View the numbers for yourself.

A look at how AAMCO locations are performing, taken from Item 19 of our 2021 FDD*

Average Gross Sales of Franchised Centers – 2020

REVENUE BY QUARTILE: The average annual gross sales of the Operating Centers were $713,092, and the median annual gross sales of the Operating Centers per year were $665,791. The following table shows average annual and median gross sales of the Operating Centers by quartile, the count of Operating Centers within each quartile that exceeded the quartile’s average gross sales, and the percentage of those Operating Centers within each quartile that exceeded the quartile’s average gross sales during the fiscal year:

Quartile# of Operating Centers% of Operating Centers2020 Average Total Sales2020 Median Total Sales# of Centers that attained or exceeded Average% of Centers that attained or exceeded Average
1st13525%$1,139,538$1,078,9785239%
2nd13425%$764,818$763,4286649%
3rd13425%$577,450$578,1876851%
4th13425%$367,379$390,6317455%
Total537100%$713,092$665,79123243%

Average Gross Sales of Quadrant Centers – 2020

REVENUE BY QUADRANT: AAAMCO also groups franchisees into quadrants, using a mix of performance data as well as franchisee evaluations, which result in operations being designated part of an A, B, C or D group. Our internal formula for assigning centers to quadrants is a systematic approach based on a center’s sales, years of operation, multiple center ownership, the franchisee’s ability to expand and operate additional centers, the form of management, the level of day-to-day involvement in center operations, customer satisfaction history, and history of remaining in good standing as a franchisee, including payment and accounts receivable history and compliance with franchise obligations. The quadrants help us craft franchise support appropriate to each location.

Here’s a look at the performance of centers in each quadrant:

Quadrant# of Operating Centers% Of Operating Centers2020 Average Total Sales2020 Median Total Sales# of Centers that attained or exceeded Average% of Centers that attained or exceeded Average
1(A)10019%$1,052,722$986,2664545%
2(B)17733%$774,169$756,8168447%
3(C)19436%$573,471$554,9038644%
4(D)6612%$445,104$442,4573147%
Total537100%$713,092$665,79123243%

2020 AAMCO CENTER GROSS SALES VS. 2019 GENERAL REPAIR SHOPS AVERAGE

REVENUE BY QUARTILE: The average annual gross sales of the Operating Centers were $713,092, and the median annual gross sales of the Operating Centers per year were $665,791. The following table shows average annual and median gross sales of the Operating Centers by quartile, the count of Operating Centers within each quartile that exceeded the quartile’s average gross sales, and the percentage of those Operating Centers within each quartile that exceeded the quartile’s average gross sales during the fiscal year:

AVERAGE CENTER PERFORMANCE DATA – 2017

HOW DOES IT TRANSLATE INTO PROFITABILITY?: This financial performance representation is based on the average weekly gross sales and expense information of 166 total franchised AAMCO Centers (the “P&L Centers”) that operated continuously and reported revenue data throughout the 2017 fiscal year. We provide franchisees’ 2017-reported information in this section because we have not received a sufficient volume of profit-and-loss reports from franchisees since that time in order to be able to synthesize and present such information (including their operating costs) for a more recent fiscal year.

In the normal course of business, 242 among 595 franchised AAMCO Centers that operated continuously throughout fiscal year 2017 provided us actual, detailed profit and loss statements (“P&L’s”) covering at least one week of their individualized center operations during that year. For consistency and accuracy, we then excluded from the sample any franchisee whose center P&L’s for the reported timeframe showed average weekly gross sales that varied more than 10%, whether higher or lower, from that specific center’s weekly average gross sales across the entire 2017 year (76 total centers excluded, including 39 centers with P&L’s showing revenue +10% or more above the center’s 2017 weekly average, and 37 centers with P&L’s showing revenue -10% or lower than the center’s 2017 weekly average), to arrive at the cohort of 166 P&L Centers for 2017.

The 166 P&L Centers, each of which reflected actual weekly gross sales on its P&L’s within 10% of that center’s weekly average for the year, were dispersed across our internal quadrants for that 2017 year as follows: 27 centers in quadrant 1(A); 46 in quadrant 2(B); 65 in quadrant 3(C); and 28 in quadrant 4(D). Among the P&L Centers, 19 centers had actual annual gross sales of $1 million or more for the 2017 year (the “Million Dollar Centers”). The average 2017 weekly gross sales of the P&L Centers for the actual weeks reported were $12,515, or $650,788 annualized average gross sales per center over 52 weekly periods. The median 2017 weekly gross sales of the P&L Centers for the actual weeks reported were $11,198, or $582,295 annualized median gross sales per center over 52 weekly periods.

Ready to learn more about the potential income that comes with AAMCO franchise ownership? Fill out the form to download our franchise report and start a conversation with us.

*Please see FDD for complete details.

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