AAMCO Franchise FDD, Profits & Costs (2025)
AAMCO Transmissions, founded in 1957 by Robert Morgan and Anthony A. Martino, is a leading auto repair franchise specializing in transmission repair and other complex car repairs. Headquartered in Horsham, Pennsylvania, AAMCO began franchising in 1962, quickly establishing a nationwide presence.
Today, AAMCO operates over 550 franchise locations across the United States and Canada, making it the world’s largest transmission repair franchise.
AAMCO stands out in the competitive automotive repair industry through its focus on transmission repairs, which require specialized skills and expertise. This niche specialization sets AAMCO apart from general auto repair shops, offering higher average repair orders due to the complexity and cost of transmission work.
Additionally, AAMCO franchisees benefit from comprehensive training and support through AAMCO University, which provides ongoing education and skill development for technicians and managers. This ensures that franchisees can maintain high service standards and attract top talent.
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Initial Investment
How much does it cost to start a AAMCO Transmission franchise? It costs on average between $237,000 – $361,000 to start a AAMCO Transmission franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial License Fee | $39,500 |
| Business Coach Training | $10,000 |
| Grand Opening Advertising Expenses | $5,000 |
| AAMCO Security Deposit | $5,000 |
| Travel Expenses for Training Program | $2,000 – $4,000 |
| Real Estate & Utility Deposits | $14,000 – $43,000 |
| Leasehold Improvements | $9,700 – $16,700 |
| Signs (included in Center Opening Package) | $7,500 – $33,000 |
| Shop Equipment, Supplies, Lifts & Installation (included in Center Opening Package), plus freight & taxes | $78,400 – $98,000 |
| POS System – Acquisition | $2,500 |
| POS System – 3 months Access/Support | $500 |
| Computers and Phone System – Hardware | $6,500 – $10,000 |
| Office Furniture | $5,500 – $7,000 |
| Sales Materials | $500 – $1,000 |
| Miscellaneous Costs & Professional Fees | $4,000 – $10,000 |
| Insurance | $1,500 – $2,500 |
| Advertising Costs (13 weeks) | $4,700 – $13,500 |
| Additional Funds | $40,000 – $60,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $236,800 – $361,200 |
Average Revenue (AUV)
How much revenue can you make with a AAMCO Transmission franchise? A AAMCO Transmission franchised business makes on average $888,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,033,000 yearly revenue for similar oil change franchises.
Below are 10 AAMCO Transmission competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
AAMCO Transmission Franchise Disclosure Document
Frequently Asked Questions
How many AAMCO Transmission locations are there?
As of the latest data, AAMCO Transmissions operates approximately 500 to 600 locations across the United States and Canada. The majority of these centers are independently owned and operated franchises, with a smaller number being company-owned.
What is the total investment required to open a AAMCO Transmission franchise?
The total investment required to open a AAMCO Transmission franchise ranges from $237,000 to $361,000.
What are the ongoing fees for a AAMCO Transmission franchise?
An AAMCO Transmission franchise requires a 7.5% royalty fee on gross receipts. Franchisees also pay a $150 monthly national advertising fee and a local advertising fee, either 4% or $400 weekly (whichever is higher). In top markets, this local fee rises to 5% or $500 per week.
What are the financial requirements to become a AAMCO Transmission franchisee?
To qualify as an AAMCO Transmission franchisee, prospective franchisees are required to have a minimum net worth of $350,000 and at least $90,000 in liquid capital. These financial thresholds ensure that franchisees possess the necessary resources to establish and operate an AAMCO center effectively.
How much can a AAMCO Transmission franchise owner expect to earn?
The average gross sales for a AAMCO Transmission franchise are approximately $0.89 million per location. Assuming a 15% operating profit margin, $0.89 million yearly revenue can result in $134,000 EBITDA annually.
Who owns AAMCO Transmission?
AAMCO Transmissions is owned by Icahn Enterprises L.P., a diversified holding company led by Carl Icahn. In October 2017, Icahn Enterprises acquired American Driveline Systems, the parent company of AAMCO, through a wholly-owned subsidiary.
This acquisition expanded Icahn Enterprises’ presence in the automotive service industry, complementing its existing portfolio of automotive-related businesses.
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