AAMCO Deep Dive
AAMCO Transmissions & Total Car Care: In-Depth Franchise Overview
Based on Interview with Tom Shoolbraid, Director of Franchise Development
Hosted by Josh Emison, Franchise Broker at Tracer Franchising
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By the numbers
AAMCO 2023 Average Revenue per Unit: $1M+
Franchised Units: 560
First Unit Franchised: 1963
Liquid Cash Investment: $90,000
Total Investment: $236,800 - $361,200
Minimum Net Worth: $250,000
Franchise Fee: $39,500
Average Number of Employees: 4-5
1. Brand History & Legacy
Founded in 1963, AAMCO is one of the longest-standing names in automotive repair. The brand has more than 500 franchised locations and is known primarily for its specialization in complex vehicle repairs, especially transmissions and engines.
Tom Shoolbraid, who has been with the brand on and off for over three decades, emphasized the enduring reputation of AAMCO as the go-to for high-ticket, under-the-hood repairs — work that most other chains shy away from. The company is 100% franchisee-owned (no corporate stores) and maintains a collaborative, franchisee-driven culture.
2. Business Model Overview
Core Revenue:
~70% of revenue comes from complex repairs (engines, transmissions, transfer cases, etc.).
~30% from general automotive work (oil changes, brakes, exhausts, etc.).
These two segments are flipped in terms of customer volume — the high-revenue work comes from a smaller number of customers, which allows centers to serve 20–30 customers per week, not per day.
Customer Acquisition:
Most customers call first, driven by urgent mechanical issues.
AAMCO’s long-running “AA Beep Beep MCO” jingle still carries brand recognition — recently featured on Jeopardy and Curb Your Enthusiasm.
Franchises operate in advertising pools, guided but not dictated by corporate, and vote democratically on spend and strategy.
3. Franchise Operations
Customer Journey:
Customers typically call first due to serious car trouble.
Frontline staff (CSMs) play a key role in diagnostics, parts ordering, estimates, scheduling, and delivery.
Vehicle delivery is a structured, customer-oriented process — especially for high-cost repairs ($4,000–$6,000). Goal: satisfaction, not happiness.
Staffing Structure:
Franchisees are encouraged to hire full-time staff, including a Customer Service Manager and technicians.
AAMCO provides ongoing support in recruiting, including resume screening and initial interviews.
Franchise Owner Day to Day:
Work-Life Balance can be between 10-40 hours per week depending on the individual franchisee and how many locations they own and operate.
The AAMCO model allows franchisees flexibility in managing their staff and overall businesses.
4. Ideal Franchisee Profile
No automotive experience is required or expected.
The most successful owners are those with strong business and operational acumen — people management, scheduling, margin control, and growth mindset.
Owners should be able to delegate daily operations and focus on fleet sales and local relationship building.
Traits that help:
Comfort with managing P&Ls
Willingness to build relationships with local businesses
Ability to manage and retain a team over time
5. Training & Support
AAMCO offers a best-in-class training system, including:
AAMCO University in Georgia — hands-on technician and franchisee training in a mock shop environment
1,100+ online modules that can take a new tech from entry-level to master-certified
Continued support in recruiting, marketing, technical training, and operations — not just at launch but throughout the franchisee's tenure.
Site Selection Assistance: Yes
Lease Negotiation Assistance: Yes
Recruiting Assistance: Yes
Co-Operative Advertising: Yes
Award winning training curriculum conducted at AAMCO University located outside of Atlanta, Georgia
New Dealer Training
New Manager Training through Seasoned Manager Training
Entry level technician through Master Certified Technician on the job Training inside our mock AAMCO center located at AAMCO University
Five weeks of Personal Business Coaching when your center opens
Over 1100 online training modules, available in our Learning Management System (LMS)
Note: Training also available via weekly webinars as well as in-store throughout the year.
6. National Account Revenue Streams
Franchisees can access a powerful mix of national account programs:
Fleet Management Companies (FMCs): AAMCO is a preferred vendor for nearly every major FMC, giving access to work from companies like FedEx, J&J, Comcast, and many more.
Local Fleets: HVAC, landscaping, plumbing businesses — each might only have 5–10 vehicles, but multiple accounts build recurring volume.
Extended Warranty Providers: AAMCO services vehicles under policies from CarShield, Endurance, and others — providing regular referrals and billable work.
These accounts provide recurring, pre-approved, and often higher-margin work, augmenting traditional retail business.
7. Financials & Investment
Startup Costs (Item 7):
Total investment: $250,000–$400,000, including buildout, equipment, and ~$70k in working capital.
Cost varies based on building type (e.g., converting a former drugstore vs. an existing auto shop).
Lease, not purchase — though real estate ownership is optional.
Performance (Item 19):
Average annual revenue: ~$1,000,000+
Average EBITDA: ~17%, which assumes a full-time manager is in place.
This sets AAMCO apart from many franchises whose earnings are based on owner-operators working full-time in-store.
8. Territory Availability & Market Viability
Over 300 open territories in the U.S., with availability in nearly every major metro.
Territory planning is based on vehicles registered, not just population, offering a more relevant metric for automotive businesses.
AAMCO works with a third-party analytics partner to evaluate market viability and avoid cannibalizing existing franchisees.
9. Competition & Differentiation
Unlike national competitors (e.g., Firestone, Midas, Monroe), AAMCO is the only national retail chain that focuses on everything under the hood.
Others avoid transmissions and engines — AAMCO embraces them and trains specifically for them.
The labor-intensive nature of these jobs results in higher margins and less customer volume pressure.
10. EV & Hybrid Readiness
AAMCO is already servicing EVs and hybrids and requires all centers to be equipped with necessary tools (e.g., lifting pucks).
Contrary to perception, EVs still need brake, tire, suspension, and cooling system work — and they’re heavier, meaning faster wear on key components.
AAMCO believes EVs will grow, but slowly. Even optimistic forecasts don’t predict full parity with gas vehicles until 2050 or beyond.
11. Culture, Longevity & Exit Options
AAMCO’s average franchisee tenure is 19.5 years — rare in franchising.
Many locations are second- or third-generation family-run businesses.
Internal resales are common — e.g., long-time techs or managers buying out retiring franchisees.
AAMCO emphasizes diversity, collaboration, and ownership opportunity across all demographics.
Final Thoughts
AMCO represents a high-margin, low-customer-volume, operationally-focused opportunity in a massive, steady-growth market. Franchisees don’t need auto experience — they need leadership and discipline.
For investors seeking multi-unit potential, recurring fleet business, and the backing of a legacy brand — without being stuck in the day-to-day — AAMCO may be an ideal fit.
This is a proven concept in a needed space. The average age of a car on an American road is almost 13 years and they continue to get older. Furthermore, a repair is usually less expensive than buying a new car. With the franchise's name, proven history, and training program that keeps employees around for the long haul, AAMCO is an impressive opportunity. You need to be ready to work with blue collar workers and training everyone on staff to drive sales.
This isn't about being sleazy, it's about being able to clearly explain to owners that an ounce of maintenance is worth a pound of cure. There are many multi-unit owners proving the scalability of the opportunity.
Overall, this is an A+ opportunity in the franchise world for the right owner.
🛠️ Interested in learning more?
Go to TracerFranchising.com or reach out to Josh Emison to see if AAMCO is available in your area — and to explore other top-performing, research-backed franchise options.
