LOSING YOUR SHIRT WITH AAMCO: aamco transmssion franchise owners beware

Thursday, August 6, 2009

Penalties and Interest Charges BULLSH**

I've been disputing a charge from Amercian Driveline/AAMCO Transmissions Corp for about three months. We have exchanged emails and data files, etc. trying to understand the problem. Now I find that I am being charged penalties and interest for not being current on the account. What BULLSH** They tell me the charges must stand because I should have paid the mistaken bill and waited for a credit correction after they finish their investigation. But I've been in the franchise for 20 years and I know that once they have my money they'll NEVER give a credit or refund. What nonsense. This is not the same franchise I bought years ago. These new people are self-serving jerks. The investors just want to flip the business for a profit, and the only way they can do that is to squeeze more profits on the backs of owners like me. I would n0t buy from these guyse based on what I've experienced in the last three years.

AAMCO Franchise Owners and Future Owners

Welcome to AAMCOFranchiseOwners Blog! This is a site owned and supported by franchisees who operate AAMCO Transmission Centers. It is also available to people considering investing in owning and AAMCO Transmission Center franchise.

Owning an AAMCO Franchise has traditionally been a rewarding experience. Under the leadership of the founders - the Morgan family - the franchise group thrived throughout the 1960's and 1970's. There were some tough periods - such as the 1980's claims from state attorney generals who asserted that AAMCO centers - along with stores owned by Sears and other automotive repair shops - were selling unnecessary repairs. These image and operational issues were eventually overcome and the company continued to thrive under the leadershop of the founders.

In 2006 the Morgan family sold the company to American Driveline, a company owned by the investment banking firm American General. American Driveline already owned Cottman Transmissions, the number two nationa franchise network. Under American Driveline management, the franchisor began to convert all shops to the AAMCO brand. Unfortunately, this often meant converting center using the weaker Cottman brand into an AAMCO, even though and existing and successful AAMCO was in very close proximity.

So the new ownership has a big debt. And big loan payments. And lots of problems.

American Driveline has already fired their first "wonder kid" president - Todd Leff. But they have retained their cadre of agressive beligerant attorneys. One example is Jim Gonorea. His role is to find an opportunity to cite a franchisee for making a mistake - real or perceived - and then squeezing hte franchisee for every penny they have. And because you have provided your fiancial statement as required, he knows just how much to squeeze.

Then of course there is market development and franchsie development. The former identifies new territory opportunities; the latter recruits new franchise owners. Both are comissioned for delivering new franchisees. At present, both functions are in the same department and, in fact, are run by a father-son team. The only problem is they are not incented to protect the success, or even the survivability, of existing franchises. In fact, it is to their benefit to force current franchises into weak financial positions so that they can help save the franchise owner by "reselling" the franchise. Who manages re-sales? You guessed right - the franchise sales department. Remember, they are driven to sell or re-sell franchises (and pop $30K franchise fees plus equipment sales plus software sales plus plus plus) into the corporate coffers).

Speaking of add-one sales. Take the corporate software "Focus." It is not a coded application. Rather it is a database management application developed around FileMaker. Talk about idiocy. It was developed by a franchisee (because the then-available operating software from AAMCO was so terrible) as an in-house customized application. Being persuasive, the franchisee sold the software application to AAMCO, along with the man who developed the application, Jon Kincher. Since then, the application has rattled along with release after release after release; two to four per year. And each release typically comes with a new set of horrific bugs that will be fixed in the next release. And each release contains increasing levels of "controls and safeguards" that make it harder and harder to run an AAMCO shop, but more importantly and ever increasing level of sub-applications that monitor what the center is doing and reports back to "big brother." For example, if you make a mistake on a ticket - let's say you charged tax to a tax exempt account - you'll have to call corporate and go through a special process to fix the ticket. Franchisees don't even know what all is being reported or why...but you can bet it will be explained to you when the Legal Department calls.

LOSING YOUR SHIRT WITH AAMCO

Thursday, August 6, 2009

Penalties and Interest Charges BULLSH**

AAMCO Franchise Owners and Future Owners

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