Meineke Franchise Costs, Fees & FDD

Year Business Began: 1972

Franchising Since: 1972

Headquarters: Charlotte, North Carolina

Estimated Number of Units: 900

Franchise Description: The franchisor is Meineke Franchisor SPV LLC, a direct, wholly-owned subsidiary of Driven Systems LLC. The franchise offered is for the operation of a Meineke automotive maintenance and repair center, specializing in servicing exhaust system components, brake system components and providing certain other automotive maintenance and repair services. From time to time, the franchisor may enter into a conversion agreement with owners of independent automotive repair facilities.
Training Overview: The franchisor or its affiliates will provide an initial training program on the operation of a Meineke center for franchisees (or, if the franchisee is a business entity, the operating partner and one other person, who has signed the Franchise Agreement or guaranteed the obligations under the Franchise Agreement). The length of the training will depend upon the function(s) the trainee will perform at the center. The training will last up to a maximum of 13 days. Training will take place at the Meineke University training center the franchisor and its affiliates operate in Charlotte, North Carolina, at a designated Meineke Center and/or virtually through the franchisor’s current learning management system. Franchisees may receive individual instruction at their center by the franchisor’s franchise business consultants who periodically visit the center. In addition, periodically, the franchisor may require franchisees to attend field training at a company-owned or an approved franchised Meineke center, prior to opening their center. If the franchisor determines that there are significant deficiencies in the operations of the center, it may require franchisees (or their operating partner) and their managers and key employees to attend and successfully complete periodic or additional training programs for which it may charge reasonable training fees.

Territory Granted: The Franchise Agreement grants franchisees the right to operate the center at a specific location. Franchisees will be granted a protected area. 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 to the territorial protection described, the franchisor and its predecessors have developed certain policies to determine the potential loss of sales existing Meineke centers incur as a result of the addition of new Meineke centers in a local market area.

Obligations and Restrictions: Franchisees must designate a manager who has satisfactorily completed (as determined by the franchisor in its sole discretion) the Internet training program to serve as the center’s manager. The center’s manager must devote substantially all of his or her business time and attention to the on-premises management and operation of the center. 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. Franchisees will offer and sell only those automotive maintenance and repair products and services that the franchisor authorizes Meineke centers to offer and sell to the public periodically, as described in the Operations Manual and the Franchise Agreement. Franchisees must comply with the discount price program.

Term of Agreement and Renewal: The length of the franchise term is 15 years. If conditions are met, franchisees may be granted renewal under a Successor Franchise Agreement for a term of 15, eight or five years at the franchisee’s choice.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$45,000	$45,000
Living Expenses During Training	$7,500	$10,000
Real Estate Rent & Security Deposit	$5,585	$12,600
Opening Inventory	$10,000	$15,000
Equipment, Signs, Small Tools, Installations	$33,000	$220,000
Freight	$3,500	$7,500
Point of Sale Software and Computer Hardware	$4,995	$10,000
Center Supplies	$4,318	$6,318
Insurance	$10,000	$17,000
Initial Marketing	$20,000	$20,000
Legal & Accounting Expenses	$1,000	$12,400
Building Improvements and Building Design	$30,000	$750,000
Additional Funds – 3 months	$50,000	$75,000
ESTMATED TOTAL (leased location)	$224,898	$1,200,818

Other Fees

Name of Fee	Amount
Royalty Fees	Franchisees are 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 for 1.5% of gross revenues from the sale of tires, towing services, state inspections & emissions inspections.
Successor Franchise Fee	$5,000, subject to any increase in the Consumer Price Index (CPI).
Relocation Fee	$1,000
Intershop Late Fee	$20
Service Fee	$34
Transfer Fee	$7,500 subject to increase in the CPI, or, at the franchisor’s option, the then current initial franchise fee for Meineke centers if the transferee signs the then current form of the franchise agreement.
Initial Advertising Contribution Upon Transfer	$20,000
Resale Assistance Fee	$15,000
M. Key Software Transfer Fee	$1,000
Technology Administrative Fee	$100 per month.
Franchisee Profitability Program Software Fees	Currently, $14.95 per month.
M. Key Maintenance Fee	$375 basic maintenance fee (or, if franchisees purchase AutoVitals, $275). There are additional options. See FDD for details.
AutoNet TV Fee	$30 to $50 per month, subject to periodic adjustment.
Attorneys’ Fees and Other Costs	Will vary under the circumstances.
Indemnification	Will vary under the circumstances.
Commingled Funds Fee	$2,500, plus $250 for each subsequent month until franchisees separately account for the funds.
Audit	Cost of audit including the charges of any independent accountant, attorneys’ fees and per diem fees and costs of the franchisor’s employees, related to travel and lodging and other out-of-pocket, plus interest.
Reimbursement of Repair & Maintenance Costs	Will vary under the circumstances.
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 under the circumstances, but will not exceed $500 per supplier.
Training Fees	The franchisor may charge a fee to cover its out of pocket costs of supplemental training, which will not exceed $1,000 per person per day.
Upgrade of Center	Up to $20,000 per occurrence.
Sublease Rent	110% of the rent payable by the sublessor, plus an amount equal to 1.25% of the contribution made by the sublessor to fund construction and improvement of the premises.

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