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Log In / Register | Nov 19, 2017

Maaco financially ruined me. I have lost $750,000

I finally was able to sell my Maaco and get out after nine years of losing big money. A company is buying up Maacos for dimes on the dollar because so many are in really bad financial shape. I have never made a penny in nine years of ownership. I had to turn mine over to my son and go back to work full time just to keep pumping more money into it. When I started my Maaco I had five house, two of them fully paid off, A retirement plan, and three 401Ks. I also had about $350,000 in the bank.
Now after nine years I still have the five houses (I couldn't sell because of the liens for the SBA loan) but they all have 80%+ mortgages on them, my bank account is zero and all but one of my 401Ks are gone. The one 401K I still have is from a job I took in 2011, and I have had to hit it several times too,
I now am finally free of the Maaco nightmare but as a parting gift I now have $80,000 in credit card debt to pay off, all went to Maaco. So now that I can sell my houses I am doing so and even after selling all of them, and using the proceeds to pay off Maaco credit card debt, I will still have about $20K in CC debt.
So anyone who is even remotely considering a Maaco as an individual owner should first, get a psychiatric evaluation. If you pass that then you need to be 100% committed to losing everything you have ever worked for and contemplating suicide and or bankruptcy many times.
Oh and corporate cannot care less if you are making or losing money. You pay your 8% franchise fee no matter what. They absolutely will not even reduce this by even a dollar to help you out.

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