How to Finance a Maaco Franchise: Conversions, Builds and SBA
By Marc Cornella
A Maaco franchise loan finances an auto paint and collision repair center, a business with spray booths, prep stations, frame equipment and a steady flow of retail, insurance and fleet work. How much you borrow, and which loan program fits, depends largely on one decision: whether you convert an existing body shop to the Maaco brand or build or retrofit a building that has never housed one.
This article explains what Maaco’s 2025 Franchise Disclosure Document says about the investment for each path, how the brand’s development incentives and fleet program affect your cash flow, what the SBA Franchise Directory notes for Maaco mean in plain English, and how buyers of new and existing centers typically put their financing together.
US Professional Funding is not affiliated with, sponsored by or endorsed by Maaco; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current disclosure document and franchise agreement with a qualified franchise attorney and accountant before you commit.
Maaco Franchise Loan at a Glance
- Concept: auto painting and collision repair centers serving retail customers, insurance-paid repairs and commercial fleets.
- History: founded in 1972 by Anthony A. Martino; the brand’s predecessor began offering Maaco Center franchises in February 1972.
- System size: 370 franchised Maaco locations as of December 27, 2025, according to its parent company’s annual report.
- Estimated initial investment (2025 FDD): $196,000 to $644,000 for an auto body conversion, and $728,500 to $3,994,000 for a ground-up build or non-auto retrofit.
- Paid to the franchisor or its affiliates: $45,000 to $414,000 across those center types, according to the same FDD cover page.
- Area development: a minimum of three centers, with a development fee equal to 100% of the initial franchise fee for each center in the schedule.
- Ongoing fees: a weekly royalty and a weekly marketing fee, with reduced rates available under the development incentive and fleet programs described in Item 6.
- SBA Franchise Directory: listed as Maaco (code S1063), with notes covering lease documents, purchase options and lien position.
What Is Maaco?
Maaco was founded in 1972 by Anthony A. Martino, who led the business for more than 30 years. According to the 2025 FDD, its predecessor began offering Maaco Center franchises in February 1972, so the brand has been franchised for its entire history. The current franchisor, Maaco Franchisor SPV LLC, is a Delaware company formed in 2015 and based in Charlotte, North Carolina.
The brand’s consumer website says Maaco has serviced more than 20 million cars since 1972. Its parent company’s annual report describes 370 franchised locations as of December 27, 2025, offering paint, surface preparation and refinishing services, and says Maaco primarily serves retail customers and commercial fleet operators at a lower average price point than most collision centers.
Three revenue streams. Maaco’s franchising materials describe three sources of work: consumer-paid cosmetic painting and collision repair, insurance-paid collision repair and national fleet contract work. A retail customer pays at pickup, an insurance job may wait on approvals and supplements, and fleet accounts can be billed on terms. That mix matters to a lender because it shapes receivables and working capital needs.
Center formats. The FDD separates new centers into two broad types: auto body conversions, where an existing body shop adopts the Maaco brand and systems, and ground-up or non-auto retrofit centers, where a building is constructed or a non-automotive building is converted into a paint and collision facility. Maaco’s franchise FAQ describes an average footprint of about 7,000 square feet and says the brand looks for markets with at least 50,000 registered vehicles.
Fleet Solutions Centers. The FDD also describes an option to operate a center as a Fleet Solutions Center that focuses mainly on fleet and commercial accounts. Franchisees who meet the then-current requirements sign a Fleet Addendum and pay a reduced weekly marketing fee, subject to conditions in Item 6.
Why lenders view Maaco the way they do. Lenders see a long-established brand with national recognition, a defined operating system and a repair category with steady demand. They also see the factors that apply to any body shop: equipment-heavy facilities, environmental and paint-booth permitting, technician staffing and insurance receivables. A conversion with an operating history is usually the easiest Maaco deal to underwrite; a ground-up project relies more heavily on the borrower’s strength and the site.
Maaco Franchise Costs
The 2025 FDD, issued June 20, 2025 and amended September 18, 2025 and December 15, 2025, gives separate investment ranges for each path into the system. Here is how the major cost categories fit together.
Initial franchise fee. The initial franchise fee is part of what the FDD cover page groups as amounts paid to the franchisor or its affiliates, which total $45,000 to $414,000 depending on the center type. That figure can include more than the franchise fee itself, such as equipment, signage packages or opening supplies purchased through the franchisor or an affiliate. Item 5 lists the exact fee and any discounts, so read it before you size your loan.
Real estate and build-out. This is the single biggest driver of the range. A conversion reuses an existing body shop, so build-out is usually limited to image updates, booth and equipment upgrades and compliance work. A ground-up center may include land, site work and construction, and a non-auto retrofit can require major mechanical, electrical, ventilation and fire-protection work before a paint booth can operate. That is why the ground-up and retrofit range reaches $3,994,000.
Equipment. Paint booths, mixing rooms, compressors, frame and measuring equipment, welders, prep stations and shop tools are core to the business. Conversions may already have some of this equipment in place, which can lower the cost but requires an inspection to confirm what can stay.
Opening costs and working capital. Opening paint and materials, training, grand-opening marketing and additional funds for the first months of operation are part of the Item 7 total. Insurance-paid jobs can take time to collect, so a cash cushion during ramp-up is more important than it might be for a cash-at-pickup business.
Total investment. According to Maaco’s 2025 FDD cover page, the estimated initial investment is:
- Auto body conversion: $196,000 to $644,000
- Ground-up or non-auto retrofit: $728,500 to $3,994,000
- Area development agreement (minimum of three centers): $87,500
- Amount paid to the franchisor or its affiliates (for the center types above): $45,000 to $414,000
The full Item 7 table breaks each range into line items. Use those line items, not just the totals, when you build a sources-and-uses schedule for a lender.
Ongoing Fees and How They Affect Your Loan
Weekly royalty. Maaco franchisees pay a royalty weekly, calculated on sales as described in Item 6. Weekly payment means the fee comes out of cash flow continuously, which should be built into any monthly budget.
Development incentive. The FDD describes a Development Incentive Addendum that provides a reduced weekly royalty fee percentage during the first three years of a center’s operation, subject to conditions in Item 6. For a borrower, a lower royalty in the early years can ease debt service during ramp-up, but projections should show the step-up to the standard rate once the incentive period ends.
Weekly marketing fee. Franchisees also pay a weekly marketing fee. Fleet Solutions Centers that sign the Fleet Addendum pay a reduced weekly marketing fee under Item 6 conditions.
Other fees and reinvestment. Item 6 also covers items such as technology fees, transfer and renewal fees and any required upgrades. Paint and collision technology changes over time, and Maaco offers a certification program to keep centers prepared for newer vehicles, so budget for equipment and training updates over the life of the loan.
How lenders factor these costs in. Lenders deduct royalty and marketing fees from projected sales before calculating whether the center can cover its loan payments. They will also look at paint and materials costs, technician payroll and the timing of insurance receivables. If you plan to rely on a reduced royalty in the early years, show both the incentive period and the standard rate in your projections so the lender can see the center still works after the incentive ends.
Franchisor Requirements for New Owners
Maaco publishes minimum net worth and liquid asset requirements on its franchising website, and the thresholds can vary by the type of center and development commitment. Confirm the current figures with Maaco before applying for financing, since a lender will compare your personal financial statement against both the franchisor’s requirements and its own.
Other points from Maaco’s franchising materials:
- Automotive experience: Maaco says automotive experience is not required, although management and sales experience strengthen an application.
- Market: the brand looks for areas with at least 50,000 registered vehicles.
- Site selection: Maaco works with new owners to identify approvable locations early in the process.
- Multi-unit development: multi-unit growth opportunities require a commitment of at least three units to start.
The approval process. Maaco’s franchising site lays out an eight-step process that begins with a concept overview and ends with onboarding and signing documents. Start conversations with a financing specialist while you are still in discovery so your loan structure matches the center type you choose.
Ways to Own a Maaco
Converting an existing body shop. An independent collision or paint shop can join Maaco as an auto body conversion, which the FDD estimates at $196,000 to $644,000. Because the shop already has customers, equipment and staff, a Maaco franchise loan for a conversion can be underwritten on its historical tax returns and financial statements. Financing often covers image updates, equipment upgrades and working capital, and may refinance existing shop debt.
Building or retrofitting a new center. A ground-up center or a retrofit of a non-automotive building falls in the $728,500 to $3,994,000 range. These projects are underwritten on projections, the borrower’s liquidity and the site, and may combine real estate, construction and equipment financing. See our automotive care start-up financing options.
Buying an existing Maaco center. Resales let a buyer acquire a center with a track record, trained staff and existing insurance and fleet relationships. Maaco must approve the transfer, and the buyer typically signs the then-current franchise agreement. Lenders can underwrite actual results. Learn more about auto service business acquisition loans.
Area development. An area development agreement requires a minimum of three centers, and committing to four or more adds a Limited Exclusivity Addendum with limited exclusive rights described in Item 12. Development fees equal 100% of the initial franchise fee for each center in the schedule and are paid up front, so they are an early cash need.
Financing Options for a Maaco Franchise
SBA 7(a) loans. Because Maaco is listed on the SBA Franchise Directory, an SBA 7(a) loan is often a practical fit for conversions, resales and new centers. A single 7(a) loan can combine the franchise fee, equipment, leasehold improvements, working capital and, in some cases, real estate. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA 504 loans. When a project includes buying land and a building or constructing a center, an SBA 504 loan can finance the real estate and long-lived equipment such as paint booths. The business must occupy the property. A 504 loan is usually paired with a separate loan or cash for the franchise fee and working capital.
Conventional term loans. Owners with strong credit, solid collateral and operating history, especially multi-unit operators or owners converting an established shop, may use conventional business loans. Terms and structure vary by lender and every request is subject to underwriting.
Equipment financing. Paint booths, prep decks, frame machines, measuring systems, welders, compressors and mixing systems can be financed separately, often secured by the equipment itself. This can preserve cash for working capital or allow a conversion to upgrade one system at a time. Explore automotive care equipment financing and leasing.
Working capital and lines of credit. Insurance-paid repairs and fleet invoices can take weeks to collect, while paint, materials and payroll are paid right away. A line of credit can bridge those gaps and support a new center through ramp-up. Learn more about working capital lines for auto service businesses.
Seller financing on resales. In the sale of an existing Maaco center, a seller may agree to carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA and other programs may limit how a seller note is structured or counted toward equity.
SBA Loans for Maaco Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any borrower, but it allows an SBA lender to evaluate a loan to the brand’s franchisee without a separate review of the franchise documents.
Maaco’s directory listing. For an SBA-backed Maaco franchise loan, the starting point is the listing itself. Maaco appears on the directory as Maaco under code S1063. The listing carries three notes.
What the notes mean in plain English.
- Lease documents when real estate is collateral: when the real estate where the center operates will secure the SBA-guaranteed loan, the Collateral Assignment of Lease and the Consent and Agreement of Lessor may not be executed. Those documents are designed for a franchisee who leases its site; when the borrower or an affiliate owns the property and pledges it to the SBA lender, they should not be signed.
- No purchase option on pledged real estate: the franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate and taken as collateral for the SBA loan. That protects the lender’s ability to rely on the property.
- Lien position: the lender or CDC must obtain the correct lien position on all collateral as required by SBA rules. Expect your lender to review equipment, real estate and any other filings to make sure its liens are in the right order.
SBA application tips. Prepare a sources-and-uses schedule that mirrors the Item 7 line items for your center type, document your equity injection, and gather personal tax returns and a personal financial statement. For conversions and resales, provide several years of shop financials. For new builds, include contractor bids, equipment quotes and evidence of booth and environmental permitting. Our article on buying a collision repair shop covers insurance referral programs and receivables lenders ask about.
How Lenders Evaluate a Maaco Deal
Underwriting a Maaco franchise loan comes down to a handful of factors.
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and typically require personal guarantees from the owners.
Net worth and liquidity. Your personal financial statement must meet Maaco’s published requirements and show enough liquidity for the equity injection plus a reserve after closing.
Industry and management experience. Maaco says automotive experience is not required, but lenders still want to see management, sales or team leadership experience. Buyers without automotive backgrounds can strengthen a request by planning to hire an experienced shop manager or estimator.
Business plan and projections. Projections should break sales into retail, insurance and fleet work, show the weekly royalty and marketing fee (including any incentive period), model paint and materials costs and technician payroll, and account for the time it takes insurance and fleet receivables to collect.
The FDD and franchise agreement. Lenders focus on the term and renewal provisions in Item 17, transfer conditions, any development schedule and the fee structure in Items 5 and 6. Our guide on how lenders read a Franchise Disclosure Document explains which sections matter most.
Site, lease or real estate. For leased sites, lenders want a lease term that covers the loan term and allows a body shop use. For owned real estate, expect an appraisal and environmental review, because paint and solvent storage can raise questions on any automotive property.
Historical financials for existing centers. Expect to provide several years of profit and loss statements, tax returns, sales reports by revenue stream and accounts receivable aging, especially for insurance and fleet accounts.
Paint Booths, Equipment and Environmental Considerations
A Maaco center’s equipment package is its production line. Key items include downdraft or crossdraft paint booths, prep stations, paint mixing and storage rooms, air compressors and dryers, frame straightening and measuring systems, welders, sanders and shop tools.
Permitting and compliance. Paint booths are subject to ventilation, fire-protection and air-quality rules that vary by location. Lenders will want to see that permits are in place for a conversion or included in the construction budget for a new center.
Certification and newer vehicles. Maaco’s certification program is designed to help centers service the advanced technology in today’s vehicles. Calibration equipment and training added later can be financed as separate equipment purchases, or folded into the original Maaco franchise loan if they are planned from the start.
Multi-Unit Growth and Development Agreements
Maaco offers area development agreements with a minimum of three centers, and its franchising materials note that many owners operate multiple franchises. Committing to four or more centers adds limited exclusive rights described in Item 12.
Financing the second and third center. Once your first center has a track record, lenders can underwrite its cash flow alongside the projections for the next one. Many operators finance each center separately, then consolidate debt as the group grows. Development fees are paid when the agreement is signed, so include them in your first financing plan. Our article on financing an area development agreement explains how lenders view development schedules.
Development incentives. The reduced weekly royalty under the Development Incentive Addendum can help each new center during its early years, but missing a development deadline can affect your agreement. Build realistic opening dates into your financing plan.
Real-World Scenarios
An independent body shop owner converts. A shop owner with a steady insurance and retail book decides to join Maaco. The lender reviews the shop’s historical financials, funds booth upgrades, signage and Maaco’s fees through an SBA 7(a) loan and adds a working capital line to cover the transition.
A first-time owner retrofits a building. A buyer with management experience but no automotive background leases a former warehouse and retrofits it as a Maaco center. The project combines leasehold improvements, a new paint booth and opening working capital in one SBA loan, and the buyer hires an experienced shop manager to support the business plan.
An existing owner buys the building. A Maaco franchisee who has leased for years buys the property through an SBA 504 loan. Because the real estate secures the SBA loan, the lease-related collateral documents in the directory note are not executed.
Common Mistakes to Avoid
- Budgeting from the conversion range when your project is really a retrofit or ground-up build
- Underestimating permitting, ventilation and fire-protection costs for a paint booth
- Projecting only the reduced royalty and forgetting the step-up to the standard rate
- Leaving too little working capital to cover slow-paying insurance and fleet receivables
- Signing a lease that is shorter than your loan term or does not allow body shop use
- Skipping a detailed equipment inspection before converting an existing shop
- Treating area development fees as a later cost instead of an up-front cash need
For more pitfalls that apply across the industry, read the auto repair shop loan mistakes that cost owners the most.
Next Steps to Finance Your Maaco Franchise
Step 1: Choose your path. Decide whether you are converting a shop, building or retrofitting a new center, buying an existing center or signing a development agreement.
Step 2: Confirm Maaco’s requirements. Review the franchisor’s current net worth and liquidity requirements and complete its discovery process.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 12 and 17 and the franchise agreement with a franchise attorney and accountant.
Step 4: Build your budget and projections. Use the Item 7 line items for your center type and model retail, insurance and fleet sales separately. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Secure your site. Negotiate a lease or purchase that allows body shop use, and confirm permitting for paint booths.
Step 6: Apply for financing. Submit your loan request with your personal financial statement, tax returns, projections, quotes and franchise documents.
Step 7: Close and open. Coordinate construction or conversion, equipment delivery, training and opening working capital.
Maaco Franchise Loan FAQs
How much does it cost to open a Maaco franchise?
According to Maaco’s 2025 FDD, the estimated initial investment is $196,000 to $644,000 for an auto body conversion and $728,500 to $3,994,000 for a ground-up or non-auto retrofit center.
What is the Maaco franchise fee?
The fee is disclosed in Item 5 of the current FDD. The FDD cover page groups it with other amounts paid to the franchisor or its affiliates, which total $45,000 to $414,000 depending on the center type.
What royalty does Maaco charge?
Maaco charges a weekly royalty and a weekly marketing fee, detailed in Item 6. Reduced royalty rates are available for the first three years under the Development Incentive Addendum, and Fleet Solutions Centers pay a reduced marketing fee, subject to conditions.
How much net worth or liquid capital do I need?
Maaco publishes minimum net worth and liquid asset requirements on its franchising website. Confirm the current figures with the franchisor, and plan for lenders to look for additional reserves after closing.
Can I get an SBA loan for a Maaco franchise?
Yes, Maaco is listed on the SBA Franchise Directory under code S1063, so SBA 7(a) and 504 loans may be available to qualified borrowers. Every loan is subject to approval.
Can I finance paint booths and equipment separately?
Yes. Paint booths, frame machines, compressors and other equipment can often be financed with equipment loans or leases, which can help preserve cash for working capital.
Can I convert my existing body shop to Maaco?
Yes, the FDD includes an auto body conversion option. Lenders can review your shop’s existing financials, which often makes the financing simpler than a new build.
Can I buy an existing Maaco center?
Yes, subject to Maaco’s approval of the transfer. Buyers can often use SBA or conventional acquisition financing based on the center’s historical results.
Does Maaco offer financing?
Review Item 10 of the current FDD for any financing the franchisor offers. Its parent company’s annual report states that it does not generally provide franchisees with direct financing, so most owners arrange their own loans.
How long is the Maaco franchise term?
The term and renewal rights are set out in Item 17 of the current FDD and in the franchise agreement. Lenders typically want the remaining term to cover the loan term.
Does the Maaco FDD include financial performance information?
Maaco’s franchising materials refer candidates to Item 19 of the FDD for financial performance information. Review it with your accountant and rely on actual financials when buying an existing center.
Final Thoughts
A Maaco franchise loan can look very different depending on whether you convert a shop, build a new center or buy an existing one. Choosing the right path, budgeting from the matching Item 7 range, planning for insurance and fleet receivables and using the brand’s SBA directory listing to your advantage can help you put together a stronger financing package.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and real estate. Learn more about our franchise financing and automotive care financing solutions.
