Maaco FDD Item 6: Other Fees | Lopes Law LLC - Lopes Law LLC | National Franchise Law Firm

Maaco FDD Item 6: Other Fees | Lopes Law LLC

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Maaco FDD Item 6: Other Fees | What Franchisees Need to Know

Maaco FDD Item 6: Other Fees - Lopes Law LLC

Maaco is one of the largest auto painting and collision repair franchise systems in the United States, with 363 centers in operation as of the end of the 2024 fiscal year. The initial franchise fee is $45,000, and total investments range from $276,000 to $1,016,000. FDD Item 6 reveals the ongoing fee structure, including an 8% royalty and a weekly marketing fee starting at $1,200, that will affect your margins for the entire franchise term.

At Lopes Law LLC, we review Maaco FDDs for prospective franchisees. The fee structure in Item 6 is one of the most impactful sections because the combined royalty and marketing obligations are substantial for an automotive repair business. This guide breaks down every fee.

What Fees Does Maaco FDD Item 6 Disclose?

Fee CategoryAmountWhen Paid
Royalty Fee8% of gross receipts (4% first 6 months for new centers)Regular payments
Marketing Fee$1,200/week minimum (or local market rate)Weekly
Training/Opening Fee$10,000 (non-refundable)30 days before training
Technology FeesVariesMonthly
InsuranceRequired minimumsAnnually
Transfer FeeAs disclosedUpon transfer

How Do Maaco Fees Add Up Annually?

Maaco centers have reported average gross receipts of approximately $1.56 million for the top-performing half. Using this baseline:

FeeCalculationAnnual Cost
Royalty (8%)8% of $1,560,000$124,800
Marketing Fee$1,200 x 52 weeks$62,400
Technology/InsuranceEstimated$12,000 to $20,000
Total Item 6 Fees$199,200 to $207,200

That is approximately 12.8% to 13.3% of gross receipts going to Item 6 fees. For an automotive repair business with significant material costs, labor, and facility expenses, this fee burden requires strong revenue performance to generate adequate owner income.

Attorney’s note: Maaco’s fixed weekly marketing fee of $1,200 (minimum) is unusual in the franchise industry. Most franchisors charge marketing fees as a percentage of revenue. A fixed fee means you pay the same amount whether your center generates $500,000 or $2,000,000 in revenue. For lower-performing centers, the $62,400 annual marketing obligation represents a larger percentage of revenue and creates proportionally more pressure on margins. At Lopes Law LLC, we model this fixed fee against realistic revenue scenarios to assess viability.

Reviewing a Maaco FDD Right Now?

At Lopes Law LLC, our $3,000 flat-fee FDD validation review covers all 23 items. Free 20-minute consultation.

The First-Year Royalty Reduction

New Maaco centers receive a 4% royalty rate for the first 6 months. On projected revenue during ramp-up, this saves approximately $15,000 to $30,000 compared to the full 8% rate. While meaningful during the critical early months, the savings are temporary and should not be the primary factor in your investment analysis.

For related analysis, see Item 19 financial performance data, our FDD review guide, and our franchise exit audit service.

Important: Fee amounts are based on publicly available Maaco FDD information. Actual fees vary. Always review the current FDD with a qualified franchise attorney before investing.

Frequently Asked Questions About Maaco FDD Item 6

What fees does Maaco FDD Item 6 cover? +
Maaco FDD Item 6 covers all ongoing fees beyond the $45,000 initial franchise fee. This includes an 8% royalty on gross receipts (4% for the first 6 months of new centers), a weekly marketing fee of $1,200 or the local market rate (whichever is greater), a non-refundable $10,000 initial training and opening fee, technology fees, insurance requirements, and transfer fees.
How much is the Maaco royalty fee? +
Maaco charges an 8% royalty on gross receipts. For new centers, the royalty is reduced to 4% for the first 6 months of operation. After the introductory period, the full 8% applies. The 8% rate is at the higher end of the automotive franchise sector.
What is Maaco’s marketing fee structure? +
Maaco’s weekly marketing fee is $1,200 or the weekly marketing budget of franchisees in your designated market area, whichever is greater. This structure means your marketing fee could exceed $1,200/week if your market area has a higher baseline. Annually, the minimum marketing spend is $62,400.
What is the Maaco training and opening fee? +
Maaco charges a non-refundable Initial Training and Opening Fee of $10,000, due no later than 30 days before the initial training program. This fee covers expenses Maaco incurs in providing opening assistance and the initial training program and is separate from the franchise fee.
Does Maaco offer multi-unit fee discounts? +
Yes. Maaco reduces the initial franchise fee for multi-unit operators: $22,500 for the second center and $20,000 for the third and subsequent centers under a Development Agreement. These reduced fees incentivize multi-unit growth within the system.
Should I hire a franchise lawyer before investing in Maaco? +
Yes. With an 8% royalty and a $62,400+ annual minimum marketing fee, Maaco’s fee burden is substantial. Combined with the initial investment of $276,000 to $1,016,000, understanding the total cost is essential. At Lopes Law LLC, our flat-fee FDD validation review covers all 23 items for $3,000.

Reach out, we are friendly. Call now for a free consultation at (267) 777-9117 or schedule your free 20-minute consultation online.

Last updated: March 12, 2026

Understand Every Fee Before You Sign

At Lopes Law LLC, our flat-fee FDD validation review covers every fee in the Maaco FDD. Free 20-minute consultation.

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