Maaco Bowl lasted for three years. However, the additional $70 weekly advertising contribution (designated as a national advertising fund) each shop contributed to pay for it has kept on being charged?
Frank Costello, there is a piece of work. After leaving Corporate Maaco Costello acquired three existing viable shops. He has since shuttered Maaco Aston PA no re-sale just closed. He rarely reports earning for Lawnside, NJ or Wimington, DE. Generally meaning he cannot afford the weekly royalties. It looks like he may have even shuttered the Wilmington shop. Could not have happened to a more deserving fellow. It also begs the question why hasn’t Maaco Corporate swooped in and saved these shops? Wait we know the answer to this one, Maaco can’t, won’t, doesn’t, save shops. They just do not have the expertise or manpower. Better to sell a new franchise.
“800-1,000 centers by 2018” Everyone is miss quoting this. What Maaco / Driven Brands means is, they will have to sell 800-1,000 franchises by 2018 in order to maintain the 450 +/- centers they have. In our market area, in order to maintain 12-16 shops over the past ten years there is only one shop continuously owned and operated by the same person. In that ten years or less 6 shops have been opened and closed without resale. 8 others have opened, some of which have already been resold and all the others have been resold at least once.
Incentive Compensation for Driven Brands and Maaco Corporate is based on their ability to resell Driven Brands as a whole for a profit, not for their performance in growing the business units or the profitability of the companies, just selling Driven Brands for a profit within a five year timeframe.
See court case.
They have resold twice so far and are looking to sell a third time by an Initial Public Offering.
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