Midas

Date of Incorporation: 1954

Franchising Since: 1956

Headquarters: Palm Beach Gardens, Florida

 

Business Description: The Franchised System consists of a distinctive business system for the operation of automotive repair and maintenance service centers. A Midas Shop sells and installs automotive parts, including: brake shoes, pads, drums, rotors, calipers, wheel cylinders and other brake system parts, tires, mufflers, catalytic converters, exhaust pipes, tail pipes, exhaust system hardware, shock absorbers and struts, suspension and steering, batteries, filters, belts, wiper blades and hoses, and renders the following services: brake system repair and replacement, tire mounting, balancing, installation and repair and other tire related services, scheduled and general maintenance services, exhaust system services, suspension services, wheel alignment services, installation of batteries, starting and charging services, heating and cooling system services, and CV joints and drive shaft services as specified in the Midas Policy Manual.

 

Franchise Offer: The franchisee will operate a Midas Shop which sells and installs at retail 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. However, the franchisor may periodically add or eliminate additional products and services. The franchisee may not offer any goods or services that have not been approved by the franchisor.

 

Financial Assistance: Midas 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. Midas does not offer direct or indirect financing from other sources, nor does it guarantee franchisees’ note, lease or other obligations. Franchisees are not required to lease the property where their Franchised Unit is located from MRC or MPI. In the event MRC or MPI 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 MRC or MPI, as applicable.

 

Training and Assistance: The franchisee and shop manager must complete the mandatory Operations Training Program to the franchisor’s satisfaction, before the opening of the unit. The Operations Training Program is conducted in two parts. Part 1 of the Operations Training Program consists of two meetings with the Franchise Business Manager or another individual Midas designates, a minimum of five business days of in-shop observation at an operating Midas Shop, 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 Midas training center in Itasca, Illinois, which lasts a minimum of 10 business days. In addition, at Midas’ option, the franchisee may also be required to spend a minimum of five additional business days to practice and demonstrate competence on necessary skills. This additional training, as applicable, will be at an operating Midas Shop or at a different regional location, as determined by the Franchise Business Manager or another individual Midas designates. At Midas’ option, the franchisee and/or any of managers or employees designated by Midas may be required to successfully complete additional training program(s) or course(s) after the opening of the Franchised Unit. Midas may also offer supplemental training sessions for the franchisee and managers and employees to be held at various locations after the Franchised Unit opens.

 

Territory: The franchisee will not receive an exclusive territory. They may face competition from other franchisees, from outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor.

 

Term of Agreement and Renewal: The initial length of the franchise term is 20 years. Midas may renew the term for 20 years if the franchisee agrees to sign the then current form of the franchise agreement and pay the renewal fee.

 

Obligations and Restrictions: Unless agreed otherwise in writing by the franchisor, the franchisee must personally participate and devote full time and effort in the direct on-premises management and operation of the franchised unit. The franchisee must offer and sell only the products and services that Midas authorizes and/or requires as described in the Franchise Agreement, the Manual or in other communications that are sent by Midas.

 

Estimated Number of Units: 2,310

 

Investment Tables:

Initial Investment

New 8 Bay Midas Shop

Name of Fee Low High
Initial Franchise Fee $10,000 $30,000
Site Selection Fee $1,000 $2,500
Marketing Support Program $5,000 $5,000
Travel & Living Expenses while Training $1,500 $4,500
Security Deposit, Licenses & Permits $10,500 $10,500
Rent and Real Estate Taxes (3 months) $12,000 $31,500
Warranty Registration Fee (3 months) $150 $2,000
Equipment & Tools $50,000 $28,000
Shipping and Installation Costs - Equipment $11,000 $11,000
Computer, Hardware & Telephone System $6,000 $6,000
Office & Waiting Room Furniture & Point of Purchase Materials $16,000 $16,000
Signage $20,000 $20,000
Shipping and Installation Costs - Signage $6,000 $9,000
Initial Inventory & Supplies $25,000 $50,000
Grand Opening Promotion $0 $5,000
R.O. Writer Software Installation $0 $1,800
R.O. Writer Software Maintenance Fee (3 months) $0 $330
R.O. Writer Express Software Maintenance Fee (3 months) $0 $90
Technical Information Systems (3 months) $480 $1,000
Insurance (3 months) $1,500 $4,500
Legal & Accounting $1,000 $3,500
Additional Funds (3 months) $40,000 $65,000
Miscellaneous $3,000 $5,000
TOTAL ESTIMATED INITIAL INVESTMENT $220,130 $412,220


Conversion of an Operating or Previously Operated Automotive Repair Facility To A Midas Shop

Name of Fee Low High
Initial Franchise Fee $10,000 $30,000
Site Selection Fee $0 $2,500
Marketing Support Program $0 $5,000
Travel & Living Expenses while Training $1,500 $4,500
Security Deposit, Licenses & Permits $0 $10,500
Rent and Real Estate Taxes (3 months) $12,000 $31,500
Warranty Registration Fee (3 months) $150 $2,000
Equipment & Tools $2,000 $128,000
Shipping and Installation Costs - Equipment $0 $11,000
Computer, Hardware & Telephone System $2,000 $6,000
Office & Waiting Room Furniture & Point of Purchase Materials $2,000 $16,000
Signage $0 $20,000
Shipping and Installation Costs - Signage $0 $9,000
Initial Inventory & Supplies $0 $50,000
Grand Opening Promotion $0 $20,000
R.O. Writer Software Installation $0 $1,800
R.O. Writer Software Maintenance Fee (3 months) $0 $330
R.O. Writer Express Software Maintenance Fee (3 months) $0 $90
Technical Information Systems (3 months) $480 $1,000
Insurance (3 months) $1,500 $4,500
Legal & Accounting $1,000 $3,500
Additional Funds (3 months) $40,000 $65,000
Miscellaneous $3,000 $5,000
TOTAL ESTIMATED INITIAL INVESTMENT $75,630 $412,220

 

Other Fees

Type of Fee Amount
Royalty 2-10% of Net Revenue.
Marketing/Advertising See FDD.
Warranty Registration Fee For warranty registration:
Brake pads or shoes: $2.65 per axle
Mufflers: $6.25 each
Shocks and Struts: $0.75 each
Rent, Taxes & Insurance If the property is leased from MRC or MPI: the greater of fixed minimum rent ($3,500-$8,500 per month) or 7% of Gross Sales, plus real estate taxes ($500 - $2,000 per month) and insurance.
Transfer Fee For Franchise Agreements dated April 1, 2010 or after, the greater of; (a) $5,000 or (b) 15% of the initial franchise fee charged to new franchisees who own no other Midas Shops. For Franchise Agreements dated before April 1, 2010, 0.5% of the sales price of the business (excluding real estate).
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 $10,000.
Audit Fee Cost of audit plus actual additional royalties found to be due by the audit.
Interest Charge on Late Royalty, Payments 3% above the prime rate at JP Morgan Chase Bank.
Late Charge on Electronic Submission of Monthly Sales Report $20 per month.
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 Maximum of 2% of sales transaction to National Fleet Customers.
R.O. Writer Software Maintenance Fee $110 per month.
R.O. Writer Express Maintenance Fee $30 per month.
Technical Information Systems - Epicor (-Activant) Parts Catalog $90 per month.
Relocation Expenses $1,000 application fee plus the cost of relocation.
Liquidated Damages $100/day.
Indemnification Will vary under circumstances.
Insurance Will vary under the circumstances.
Deferred Maintenance Will vary under the circumstances.

Year of FDD: 2013

The above information has been compiled from the FDD of Midas.
Franchise Direct's Disclaimer


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