Midas
Date of Incorporation: 1954
Franchising Since: 1956
Address: Illinois
Country: U.S.
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 Offered: 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: The franchisor does not offer direct or indirect financing from other sources, nor do they guarantee the franchisee’s note, lease or other obligations. They may refer the franchisee to a lending institution or leasing company under which credit-qualified franchisees are granted loans and/or leases for certain equipment for use in the Franchised Unit.
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 2 parts. Part 1 of the Operations Training Program consists of two meetings with the district manager, a minimum of 5 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 training center in Itasca, Illinois, which lasts a minimum of 9 business days. In addition, the franchisee may also be required to spend a minimum of 5 additional business days to practice and demonstrate competence on necessary skills. This additional training, as applicable, will be at an operating Midas Shop.
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, with additional renewal periods of 20 years
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.
Total Number of Units: Over 2,600 units worldwide
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $30,000 |
| Site Selection Fee | $1,000 | $2,500 |
| Marketing Support Program | $0 | $5,000 |
| Travel & Living Expenses while Training | $1,500 | $4,500 |
| Security Deposit, Licenses & Permits | $4,000 | $10,500 |
| Rent and Real Estate Taxes (3 months) | $12,000 | $31,500 |
| Warranty Registration Fee (3 months) | $500 | $3,000 |
| Equipment & Tools | $144,000 | |
| Shipping and Installation Costs -Equipment | $11,000 | |
| Computer, Software & Telephone System | $9,000 | |
| Office & Waiting Room Furniture | $15,750 | |
| Signage | $20,000 | |
| Shipping and Installation Costs - Signage |
$8,000 | $12,000 |
| Initial Inventory & Supplies | $25,000 | |
| Grand Opening Promotion | $3,000 | $5,000 |
| R.O. Writer Software Set-Up Fee | $0 | $1,800 |
| R.O. Writer Software Support Fee (3 months) | $0 | $330 |
| Technical Information Systems (3 months) | $750 | $1,000 |
| Insurance (3 months) | $1,500 | $4,500 |
| Telephone Directory Expense (3 months) | $2,000 | $9,000 |
| Legal & Accounting | $1,000 | $3,500 |
| Additional Funds (3 months) | $40,000 | $65,000 |
| Miscellaneous | $3,000 | $5,000 |
| Total Estimated Initial Investment | $318,000 | $418,880 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | Maximum of 10% of Net Revenue |
| Warranty Registration Fee | For warranty registration in 2009: Brake pads or shoes: $2.50 per axle Mufflers: $4.40 each Shocks and Struts: $0.85 each |
| Rent, Taxes & Insurance | If the property is leased from MRC or MPI: the greater of $4,000 - $10,500 per month or 7% of Gross Sales, plus real estate taxes and insurance. |
| Transfer Fee | 0.5% of sales price |
| Renewal Fee | One-half of the initial franchise fee charged to franchisees who own three or more Midas Shops at the time of renewal |
| Audit Fee | Cost of audit plus actual additional royalties found to be due by the audit |
| Interest Charge on Late Payments | 3% above the prime rate at JP Morgan Chase Bank |
| Promotional Material and Supplies | Will vary based upon what you purchase; 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 Set-Up Fee | $1,800 |
| R.O. Writer Software Support Fee | $110 per month |
| Technical Information Systems-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 circumstances |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of MIDAS.
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