HORSHAM, Pa.—Transmission and total car care franchisor AAMCO Transmission Inc. has struck a deal with BoeFly L.L.C., an online marketplace for small business borrowers and lenders, to accelerate national franchise development of AAMCO's brand.
The Horsham-based automotive chain, established in 1962, said that through this strategic partnership, AAMCO “will be able to leverage BoeFly's nationwide network of lenders to help new and existing franchisees secure financing needed to open and run their businesses successfully.”
AAMCO President and CEO Brett Ponton said the company is “committed to the success of our franchisees and this partnership will position us for continued growth.
“With BoeFly's service, it allows our franchise partners to quickly and easily understand their financing options for opening new centers or enhancing their current location.”
BoeFly's loan experts will assist AAMCO franchisees, at no cost, in creating complete bank-ready financing requests and through a single post on BoeFly's Internet-based loan exchange, franchisees will have immediate access to banks and non-bank financing institutions that are interested in lending, according to AAMCO.
“Although small business lending has steadily increased over the last six months, franchise owners are still facing difficulties in accessing capital needed to grow their businesses,” said Mike Rozman, CEO of New York City-based BoeFly.
“Through BoeFly, AAMCO franchise owners will gain access to more than 5,000 lenders without having to worry about doing the legwork and negotiations. We look forward to working with AAMCO to ensure financing is more accessible to those franchisees seeking access to funding.”
AAMCO—which began as a transmission repair firm—has offered franchises to locally owned and independent service centers that have evolved into a chain of total car care outlets that provide services that include brake repairs, tune-ups, shocks and struts, routine maintenance and more.
The firm was recently named to Entrepreneur magazine's 2015 Franchise 500 and ranked at the top of the transmission repair category based on system size, growth rate and financial strength on Entrepreneur's “Best of the Best” list.
AAMCO, which operates nearly 700 repair centers across North America, said it is actively seeking single- and multi-unit operators “passionate about the brand and committed to providing the highest quality service.”
The company requires that interested candidates have a minimum net worth of $250,000 and liquid assets of at least $65,000 per unit. Depending on the real estate site selected, AAMCO said franchisees can expect the total investment to be approximately between $227,400 and $333,000, with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans.
Privately held BoeFly said it was founded by small business lending experts with extensive banking and secondary market experience.
The company claims to be “the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including all loan origination and sales” by “seamlessly connecting all parties—including lenders, borrowers, franchisors, investors, buyers and sellers—to a potential transaction and facilitating the efficient completion of these transactions.”