Franchise News Release: (Jan-7-2005)

Shift Smoothly and Carry a Big Name

AAMCO is the world's largest transmission specialist, with 720 centers in the U.S. and Canada . AAMCO is consistently rated #1 in the category by Entrepreneur Magazine, holding that title again for 2005. Part of the reason for this success and market dominance is familiar signage and effective advertising. In fact, the AAMCO logo has never been changed in over 40 years. "People who come in to talk about Buying a Franchise always refer to 'Double A, beep, beep, M-C-O," says Brian O'Donnell, Senior Vice President. "This year alone, over $25 million will be spent on radio, TV and Yellow Page advertising."

AAMCO's brand of market recognition has taken years to build. In fact, O'Donnell says that Bob Morgan, founder of AAMCO, pioneered celebrity advertising, linking the company name over the years with such notables as Leo Durocher, Wilt Chamberlain, Claude Akins and many more. Currently, there are many high profile radio personalities associated with AAMCO as well.

Market dominance delivers other benefits to the system, too. For one thing, AAMCO's clout enables the company to enter in favorable deals with suppliers. Recently, the company struck a deal with one of the nations largest transmission automotive aftermarket suppliers - that will deliver just about everything AAMCO owners need in order to run a profitable business.

In another trend-setting maneuver, AAMCO licensed its brand name to Exxon, a company with no small amount of brand recognition itself. "Exxon approached AAMCO with the thought of putting their transmission fluid into our bottles in the automotive aftermarket and automotive parts stores," says O'Donnell. "They had their own transmission fluid called Superflo. They conducted a focus group study and found out that the buying public associates transmission fluids with AAMCO. A licensing agreement was signed nearly 2 years ago."

With 720 stores open now, AAMCO would like to have at least 100 more in operation by the end of 2006. O'Donnell isn't worried about market saturation. "We see huge growth opportunities going forward in states like Michigan and Ohio , two markets that offer us plenty opportunity for growth. We've thought about International and we're currently evaluating the business opportunities that exist."

Who's buying AAMCO franchises? "The typical candidate is coming out of mid or upper-level management in their early or mid-forties. Usually that candidate has either accumulated wealth or taken bonuses or stock options. In the last few years we're attracting the kind of candidate that wants to have multiple stores. This is outstanding."

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AAMCO Transmissions
AAMCO has consistently been voted the #1 automotive franchise by Entrepreneur Magazine since it began publishing the Franchise 500 twenty years ago.

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