Midas Franchise Costs, Fees & FDD

Year Business Began: 1954

Franchising Since: 1956

Headquarters: White Plains, New York

Estimated Number of Units: 1,970

Franchise Description: The franchisor is Midas International, LLC. The franchise is to operate an automotive maintenance and service center called a Midas shop, which sells and installs, in a retail environment, motor vehicle exhaust systems, brake components, suspension parts, heating and cooling system parts, tires and batteries and other motor vehicle parts, performs services in connection with these sales, and performs general and scheduled vehicle maintenance services.
Training Overview: Franchisees (or if they are a corporation, partnership, or limited liability company, their designated owner), and any other management or supervisory personnel of theirs the franchisee designates must complete one of the initial operations training programs. The operations training program is conducted in three parts. Part 1 of the operations training program consists of a minimum of two meetings with the regional sales manager or another individual the franchisor designates, a week of in-shop observation at an operating Midas shop of the franchisor’s choosing as determined by the regional sales manager or another representative that the franchisor designates, the completion of an initial business plan and an analysis of the local competition. Part 2 of the operations training program is an instructional program held at the franchisor’s training center in Palm Beach Gardens, Florida, which lasts a minimum of four days, with an additional 24 hours over four days for shops that are operating on the R.O. Writer point-of-sale system. In addition, at the franchisor’s option, franchisees may also be required to spend a minimum of five additional business days to practice and demonstrate competence on necessary skills (which is Part 3 of the operations training program). This additional training, as applicable, will be at an operating Midas shop or at a different regional location, as determined by the regional sales manager or another individual the franchisor designates. At the franchisor’s option, franchisees and/or any of managers or employees the franchisor designates may be required to successfully complete additional training program(s) or course(s) after the opening of the franchised unit. The franchisor may also offer supplemental training sessions for franchisees and managers and employees to be held at various locations after the franchised unit opens.

Territory Granted: The Franchise Agreement grants franchisees the right to operate their franchised unit at a specific location only, that the franchisor approves, and does not in any way grant, confer or imply any geographic area, market or exclusive territorial right to franchisees. Franchisees will not receive an exclusive territory. They may face competition from other franchisees, from outlets that the franchisor or its affiliates franchise or own, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: Unless agreed otherwise in writing by the franchisor, franchisees must personally participate and devote full time and effort to the direct on-premises management and operation of their franchised unit. If franchisees are a corporation, limited liability company or partnership, they must designate at least one individual as the designated owner to have managerial responsibility of the franchised unit. Franchisees must offer and sell only the products and services that the franchisor authorizes and/or requires as described in the Franchise Agreement, the manual or in other communications.

Term of Agreement and Renewal: The initial length of the franchise term is 20 years. The franchisor may extend the term for one or more consecutive five-year extension periods if franchisees sign the then current form of amendment.

Financial Assistance: The franchisor may refer franchisees to a lending institution or leasing company under which credit-qualified franchisees may be granted loans and/or leases for certain equipment for use in their franchised unit. With limited exceptions (mostly for existing franchisees), the franchisor does not offer direct or indirect financing from other sources, nor does it guarantee a franchisee’s note, lease or other obligations. Except for certain situations, franchisees are not required to lease the property where their franchised unit is located from Midas Realty or Midas Property. In the event Midas Realty or Midas Property acquires a site for a Midas shop, either through purchase or lease, and constructs a new building or converts an existing one, franchisees will be required to lease or sublease the franchised unit from Midas Realty or Midas Property, as applicable. The franchisor will waive the initial franchise fee for franchisees that are U.S. military veterans and first responders (as established in accordance with policies as the franchisor may adopt periodically) and for franchisees that are corporations, limited liability companies or other entities for which a U.S. military veteran or first responder owns a majority of the equity interest.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee, Minimum Site Payment, or Deposit	$10,000	$35,000
Marketing Support Program or Other Grand Opening Advertising	$20,000	$25,000
Travel & Living Expenses while Training	$1,000	$7,800
Security Deposit, Licenses & Permits	$0	$50,000
Rent and Real Estate Taxes (3 months)	$15,000	$75,000
Equipment & Tools	$175,000	$375,000
Shipping and Installation Costs - Equipment	$15,000	$40,000
Computer, Hardware & Telephone System	$10,000	$30,000
Office & Waiting Room Furniture & Point of Purchase Materials	$10,000	$30,000
Branding	$10,000	$40,000
Shipping and Installation Costs - Signage	$5,000	$25,000
Initial Inventory & Supplies	$25,000	$100,000
R.O. Writer Software and Installation and Training Fees	$0	$10,500
R.O. Writer Software Maintenance Fee (3 months)	$0	$1,200
Smart eCat Epicor Parts & Labor Guide Subscription (3 months)	$0	$390
Insurance (3 months)	$1,500	$4,500
Legal & Accounting	$1,000	$3,500
Additional Funds (3 months)	$40,150	$67,000
Miscellaneous	$3,000	$5,000
ESTIMATED TOTAL (for a new 8-bay Midas shop)	$341,650	$924,890

 
Other Fees

Type of Fee	Amount
Royalty	2-10% of net revenue.
Marketing/Advertising	See FDD.
Warranty Registration Fee	Brake pads or shoes: $2.43 per axle. Mufflers: $4.80 each. Shocks and Struts: $1.04 each. Missing/Unknown Parts: $2.43 each.
Midas Limited Lifetime Tire Guarantee Fees	$1.60 per qualifying tire sold, paid to the administrator.
Rent, Taxes & Insurance	If the property is leased from Midas Realty or Midas Property: the greater of fixed minimum rent ($5,000-$20,000 per month) or 7% of gross sales, plus real estate taxes ($1,000 - $4,000 per month) and insurance.
Transfer Fee	The greater of: (a) $5,000 or (b) 15% of the initial franchise fee charged to new franchisees who own no other Midas shops.
New Franchisee Support Fee (on Transfer)	An amount equal to the initial franchise fee that would be payable by the transferee for acquiring its first Midas shop, based on the franchisor then-current initial franchise fee and applicable incentives, less the transfer fee paid.
Resale Assistance Fee	Up to $10,000.
Relocation Fee	$1,000
Renewal Fee	One-half of the initial franchise fee charged to franchisees who own three or more Midas shops at the time of renewal. The current renewal fee is $5,000.
Audit Fee	Cost of audit plus actual additional royalties found to be due by the audit.
Interest Charge on Late Royalty Payments	Lesser of 18% per year or maximum rate of interest allowed by law.
Late Charge on Electronic Submission of Monthly Sales Report	$20 per month.
Fee for Manually Completing Monthly Sales Report	Currently $100.
Promotional Material and Supplies	Will vary based upon what the franchisee purchases; may be provided free of charge in conjunction with advertising promotions.
Costs and Attorneys' Fees	Will vary under circumstances.
Fleet Program Processing Fee	1.25% of sales transaction to national fleet customers plus $0.95 per transaction.
Liquidated Damages	$300/day.
Indemnification	Will vary under the circumstances.
Insurance	Will vary under the circumstances.
Deferred Maintenance	Will vary under the circumstances.

The above information has been compiled from the FDD of Midas. Year of FDD: 2025.
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