Meineke Car Care Center
Date of Incorporation: 1972
Franchising Since: 1972
Headquarters: Charlotte, North Carolina
Business Description: Meineke Car Care Centers offer to the general public automotive repair and maintenance services that the franchisor authorizes from time to time. These services currently include repair and replacement of exhaust system components, brake system components, steering and suspension components, belts, cooling system service, CV joints and boots, wiper blades, universal joints, lift supports, motor and transmission mounts, trailer hitches, air conditioning state inspections, tire sales, tune-ups and related services, transmission fluid changes and batteries.
Franchise Offer: Meineke offers qualified persons the right to own and operate a Meineke Center at an agreed upon location. From time-to-time Meineke will enter into Area Development Agreements where the franchisee is granted the right to develop a specific geographic area to place and operate Meineke Centers. Meineke may also from time-to-time enter into conversion agreements with owners of independent automotive repair centers.
Financial Assistance: Meineke periodically makes arrangements with lending institutions and leasing companies under which loans and/or leases may be granted to credit-worthy franchisees to provide financing for certain center equipment. Meineke does not guarantee any note, lease or other agreement or document the franchisee executes.
Training and Assistance: Meineke will provide an initial training program on the operation of a Meineke Center for the Center's Operating Partner and one other person. The length of the training will depend upon the function(s) the trainee will perform at the Center. The training will last 25 days maximum, and will take place at the Meineke University in Charlotte, North Carolina. Training consists of approximately 116 hours of classroom training and 56.5 hours of on-the-job training.
Territory: The franchisee will be granted a protected territory. Once the Premises of the Center has been determined, Meineke will not grant others the right to operate (1) a Meineke Center within a two-mile radius from the Premises; (2) a Meineke Center outside the Protected Area but within a radius of three miles without offering the franchisee a right of first refusal; or (3) more than one Meineke Center for every 50,000 motor vehicles registered in the particular Metropolitan Statistical Area that the Center is to operate. In addition, Meineke has developed (with input from its franchisees) an "encroachment policy" that requires Meineke compensate the franchisee for any material impact that a new Center might have that Meineke has allowed to open within six miles of the franchisee's Center.
Term of Agreement and Renewal: The length of the franchise term is 15 years. If conditions are met, the franchisee may be granted renewal under a Successor Franchise Agreement for a term of 15, eight or five years at the franchisee's choice.
Obligations and Restrictions: The day-to-day operations of the Center must be managed at all times by the franchisee (or Operating Partner, if the franchisee is a business corporation, partnership, limited liability company or other legal entity) or a manager who has completed the training program satisfactorily. The Center must be staffed at all times with a sufficient number of competent and properly trained employees. At least one employee of the Center must obtain and maintain certification by Automotive Service Excellence (ASE) for each of the areas of service comprising Authorized Products and Services performed at the Center for which certification is provided. The franchisee may not recruit or hire any person who is then (or was within the immediately preceding 30 days) employed by any Meineke Center operated by the franchisor, an affiliate or another Meineke Center without obtaining the employer's consent.
Total Number of Units: 928 units
Investment Tables:
Initial Investment:
Estimate for a Four-Bay Location (Five-Bay & Six-Bay Estimates Available in FDD):
| Name Of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $30,000 |
| Living Expenses During Training | $1,875 | $2,700 |
| Real Estate Rent & Security Deposit | $3,000 | $3,000 |
| Opening Inventory | $12,000 | $12,000 |
| Equipment, Signs, Small Tools, Installations | $84,315.80 | $85,899.95 |
| Freight | $1,500 | $2,500 |
| Point of Sale Software | $4,995 | $7,764.17 |
| Center Supplies | $10,853.72 | $10,853.72 |
| Insurance | $550 | $550 |
| Initial Marketing | $7,500 | $10,000 |
| Legal & Accounting Expenses | $10,000 | $10,000 |
| Pre-Paid Expenses | $6,000 | $6,000 |
| TOTAL PRE-OPENING EXPENSES | $157,589.50 | $181,267.80 |
| Additional Funds – 3 months | $30,000 | $60,000 |
| TOTAL COST PROJECTION, LEASED LOCATION | $187,589.50 | $247,267.80 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | The franchisee is required to pay the greater of an annual minimum royalty in the amount of $20,800 or a calculated royalty based on the percentages of Gross Revenues on the identified categories of Authorized Products and Services. |
| Meineke Advertising Fund Contributions | 8% of Gross Revenues except 1.5% of Gross Revenues from the sale of tires, towing services, state inspections & emissions inspections |
| Renewal Fee | $2,500, subject to any increase in the CPI |
| Intershop Late Fee | $20 |
| Resale Assistance Fee | $6,000 |
| M. Key Software License Fee | $4,995 (new center) |
| M. Key Software Transfer Fee | $500, subject to any increase in the CPI |
| M. Key Maintenance Fee | $215 basic maintenance fee, additional $10 for phone date express service, $89.50 per month for Mitchell on Demand 5.0 ($99.50 per month for Mitchell on Demand 5.0 plus Estimator). All fees subject to adjustment. |
| Attorneys’ Fees and Other Costs | Will vary |
| Indemnification | Will vary |
| Audit | Cost of audit |
| Reimbursement of Repair & Maintenance Costs | Will vary |
| Interest on Late Payments & Other Related Charges | Interest rate on late payments is 3% above the prime rate, not to exceed the highest rate allowable by law. $35 charge for each NSF occurrence. |
| Fascia & Sign Update | $3,000 |
| Alternative Supplier Evaluation Fees | Will vary |
| Training Fees | No charge associated with initial training, but Meineke may charge a fee to cover the out of pocket costs of supplemental training |
| Upgrade of Center | Up to $10,000 per occurrence, but not more often than every five years of the franchise agreement |
| Center Opening Marketing | Between $7,500 to $10,000 |
| Operations Manual | $500 |
Date of FDD: 2010
The above information has been taken from the UFOC/FDD and online sources of Meineke.
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Meineke Car Care Center
Drive your ambition! Invest in your future with this trusted brand name within the automotive industry.
Minimum Cash Required: $190,883.
Express Oil Change & Service Center
An automotive franchise with the leader in the quick oil change industry. Outstanding support from an experienced...
Minimum Cash Required: $230,000.
Your Request List