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I am iterested ion buying an AAMCO franchise Looking for info on what the typical potential monthly income tha

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Jul 29, 2014
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Los Angeles County, CA

The answer to your question involves many factors. The best I can do is provide you with some figures of an independent transmission shop operation. After review, then take consideration of the Franchise fees and contractual agreements. Here are some margins to consider. Cost of parts are no more than 12 percent of the total sale of a job. Overhead consist of the following. Monthly rent, employee salary, utilities, annual hazard waste fee, etc. Which will total around 32 to 40% margin. The rule of thumb is that for every dollar of profit, a owner who rebuilds for the business will keep more than half. Typically 52 cents on the dollar. Example: a job sale of 1500, you keep at least 700 dollars for yourself. Annual salaries range from 60,000 to 300,000. For the following set up and sales volume, here's how much an owner can make. 1 rebuilder weekly pay $1000, r and r weekly pay $600, assistant rebuilder/ r and r weekly pay $600. owner and or sales manager pay will vary. But min is $8000 monthly. But there will be months where an owner can make $12000 to $18000 a month. Sample monthly lease of $3000, utilities of $900/monthly, monthly cost of parts $4000, and sales tax of $300 per month at least. The following is an example of a typical shop operation with a high sales volume of 28 to 37 invoice jobs per month. Total gross sales for the above sample is $28,000 to $40,000 a month. Net profit are at least $10,000 per month. Typical positive cash flow will be around $3000 to $8000. Now that I have given you a sample figure for a typical transmission business, now it will be the decision to go franchise. By going the route of franchising a transmission business, through the trade mark of AAMCO, you immediately reduce all potential profits. First, you must obey to payroll guidelines. You may be required to obtain insurance. Your gross profit will be cut with royalty fees, and other fees. This can be $3000 a month easily. Along with an annual fee. The rest of limitations will need to be examined in your franchise agreement. So taking the above as an example, by guess your profit will be reduced by at least 20%-40%. Also, there will be no opportunity of growth or exansion. if you are planning to hire a sales manager, and not be present on a daily basis, this will be very challenging to perform. I hope this information will help you in determining if franching a transmission business is the best choice than going independent.

Nov 16, 2011
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Don Barrick statement from February,2010 referencing the lack of CASH FLOW in my opinion is 100% correct....No proveable cash flow means no interest on my part when it comes to being your broker. A broker, IN MOST CASES , finds it next to impossible to sell any business that's not showing a good profit nence positive cash flow. Sellers making money but hiding it to avoid tax's have to change their ways when it comes time to getting out; about two years in advance of listing their business for sale.

Gentlemen, sorry but you can't have it both ways. However on the up side if you've got a transmission repair business for sale with a positive cash flow list it with me. Why? Simple, I have over 35 years in the transmission business with an outstanding accomplishment record; which means i'm the best in this business).
Art Eastman/AAMCO Class of 1972 (714) 325-7777

Sep 25, 2011
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The BAF Group LLC
MD

Does anyone care that the original question was posted 18 months ago?

Sep 19, 2011
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NH

Mike is correct with finding a good manager, ran a independent trans shop a few years ago and they can be good business's.Things have changed with the big three now covering drive trains for 100k (I made thousands on those 35K warranty Caravans !)
Can be good money makers but you need a strong manager to get the tow to come to your shop,a good builder and minimal CB's.

Sep 19, 2011
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AAMCO has gone from mainly transmission to a full service auto shop in order to maintain business. Talk to several owners and I think you will find what the current trend is. There are plenty of them for sale. I think Art's 75k to 140k is reasonable based on minimal debt and rent. The biggest key to your income (among many things) is a good center manager. Trust me when I tell you that the center manager can make or break you. I've seen business easily increase 50% with JUST changing the center manager. He's your sales guy that can sell ice to an eskimo for TOP dollar. They usually work for a straight commision (10%).

Sep 19, 2011
robert edwards
Franchiseconsultant.ca
CEO

Income depends on many factors including location, local economy, franchisee abilities and much more. If you are the right personality type with experience and willingness to work hard you can do very well. If you would like to look at the pros and cons of an AAMCO or similar franchises feel free to contact us.

Sep 19, 2011
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Self employed Trans Shop Consultant
Owner
CA

If you want a super AAMCO with a super cash flow in Atlantia, Ga email me. Art Eastman

Jun 23, 2010
Terri Bollman-Wyzkoski
MainStreet Bank
Sr. Commercial Lender
Fairfax County, VA

See if you can't identify another AAMCO owner in your area. Set up a meeting and talk with him/her about what you're doing. Ask him if you can pick his brain if you take him to lunch. I find that franchise owners tend to work together, especially when it comes to sharing marketing expenses, etc.

Once you've identified a franchise, let me know and we'll see if we can help you obtain the necessary financing. Hope that helps,

Terri Bollman-Wyzkoski
Twyzkoski@BusinessLendingSolutionsLLC.com

Jun 4, 2010
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Self employed Trans Shop Consultant
Owner
CA

Potential yearly income 75 to 140k. If you want more info contact me at my website below...35 + years with AAMCO.

Jun 4, 2010
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FranOption
Gwinnett County, GA

i can help you aamco maybe the way but I can show you some other option that might can help for free.

www.franoption.com

http://www.benetrends.com/track/deshawn@franoption.com

http://www.franchiseopportunityfinder.com/?feref=dmarks

Mar 10, 2010
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FranOption
Gwinnett County, GA

i can help you aamco maybe the way but I can show you some other option that might can help for free.

www.franoption.com

http://www.benetrends.com/track/deshawn@franoption.com

http://www.franchiseopportunityfinder.com/?feref=dmarks

Mar 10, 2010
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Hello Thomas, If you have mechanical experience and love to work with people, you might want to check something different in a franchise. We don't disclose Item 19, $$$ because we want you to get the straight scoop from our franchisees. Some are doing great, others are working on doing great. Wide open potential in a new franchise. If you like the looks of it you will do well especially being the first in your state. You can expand when you are ready and build your income depending on the amount you want to work. No real estate to buy, no employees to start, you earn it you keep it. Well, except for the part your Uncle wants you to give him. However, being in business for yourself you can write off an awful lot of things you spend for. Good luck, Jon at Edgemaster Mobile Sharpening.

Feb 15, 2010
Kevin Blank
........................................
PA
Premium Broker

Thomas,

AAMCO, like almost all franchises, probably does not provide earnings claims. If it is an existing business you are looking at then you really only want to base your value off from the tax returns and calculating the owner's discretionary cashflow.

If you are looking at starting a new franchise, you probably won't get earning claims but if you go through the process, they will provide you with the FDD. The FDD will provide you with contact information of current franchisee's. You can call them and ask them what you want. Some will discuss earnings if you call. Usually, they are very honest and will tell you whether they feel like they got ripped off or not.

My firm can help you obtain the FDD by going through our simple process and getting you to the front of the line with AAMCO. All at no cost to you. Please contact us at 724-427-6242 to talk about it

Feb 15, 2010
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The BAF Group LLC
MD

We have been asked to represent three different AAMCO franchises over the past several years. In each case, we have politely refused the listing; the reason for doing was was simple: There was not sufficient Cash Flow to make it worthwhile for either Buyer or Seller. We have heard several, similar comments from other Brokers.

We are not necessarily saying AAMCO is a bad investment; however, we are saying that you should be extremely careful!

Feb 13, 2010

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