Mr. Transmission Franchise FDD, Profits & Costs (2025)
Mr. Transmission is a well-established franchise specializing in transmission repair and drivetrain component services. Founded in 1956 and beginning its franchising operations in 1976, Mr. Transmission has grown to become the second-largest transmission franchise in the United States.
The company is part of the Moran Family of Brands and is known for its significant industry presence and expertise in the automotive repair sector.
Headquartered in Midlothian, Illinois, Mr. Transmission has built a reputation for providing high-quality service, which has been recognized through various industry awards and consistent rankings among the top automotive repair franchises by Entrepreneur Magazine and others.
The franchise offers a comprehensive range of services that extend beyond transmission repair to include clutch repair, drivetrain maintenance, and more. This broad service offering allows franchisees to cater to a wide range of customer needs, enhancing business potential.
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Initial Investment
How much does it cost to start a Mr. Transmission franchise? It costs on average between $267,000 – $363,000 to start a Mr. Transmission franchised center.
This includes costs for construction, equipment, initial inventory, and operating expenses. The exact amount varies based on several factors, including the type of automotive repair facility, its location, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Amount (Single Unit) | Amount (Co-Brand) |
|---|---|---|
| Franchise Fee | $45,000 | $55,000 |
| Computer Software and Hardware Systems | $4,600 – $5,700 | $5,700 – $6,200 |
| VOIP Telephone Equipment Package | $900 | $1,200 |
| Initial Parts and Inventory | $3,800 – $4,500 | $4,800 – $5,600 |
| Furniture and Fixtures | $5,500 – $6,000 | $5,500 – $6,000 |
| Equipment | $65,000 – $79,000 | $78,000 – $88,000 |
| Shop Tools and Supplies | $3,000 – $4,000 | $4,000 – $5,000 |
| Signs | $8,000 – $17,200 | $8,000 – $17,200 |
| Initial Marketing Campaigns (First 6 months) | $30,000 | $30,000 |
| Displays and Marketing Materials | $5,000 | $5,000 |
| Warranty Fund Security Deposit | $5,000 | $5,000 |
| Leasehold Improvements / Miscellaneous | $20,000 – $40,000 | $20,000 – $40,000 |
| Rental/Utility Deposits | $12,000 – $18,000 | $12,000 – $18,000 |
| Training Fee | $5,000 | $5,000 |
| Training Expenses | $1,500 – $2,500 | $1,500 – $2,500 |
| Mandatory Outside Sales Community Development Program | $3,000 | $3,000 |
| Additional Funds (6 months) | $50,000 – $70,000 | $50,000 – $70,000 |
| Total | $267,300 – $340,800 | $293,700 – $362,700 |
Average Revenue (AUV)
How much revenue can you make with a Mr. Transmission franchise? A Mr. Transmission franchised facility makes on average $844,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,149,000 yearly revenue for similar auto repair franchises. Below are a few of Mr. Transmission’s competitors as a comparison:
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Mr. Transmission Franchise Disclosure Document
Frequently Asked Questions
How many Mr. Transmission locations are there?
As of the latest data, Mr. Transmission operates a total of 111 locations. Of these, 106 are franchised units, while the remaining 5 are company-owned. This distribution highlights the brand’s focus on franchising as the primary model for expansion.
What is the total investment required to open a Mr. Transmission franchise?
The total investment required to open a Mr. Transmission franchise ranges from $267,000 to $363,000.
What are the ongoing fees for a Mr. Transmission franchise?
Franchisees of Mr. Transmission are required to pay an ongoing royalty fee of 7% of their weekly gross sales, with a minimum payment of $250 per week, whichever is greater.
Additionally, franchisees must allocate 3.5% of their gross sales, or a minimum of $1,500 per month, towards marketing and advertising efforts, whichever amount is higher.
What are the financial requirements to become a Mr. Transmission franchisee?
To qualify as a Mr. Transmission franchisee, candidates should have a minimum net worth of $250,000 and at least $60,000 in liquid assets. These financial prerequisites ensure that franchisees possess the necessary resources to establish and operate a successful Mr. Transmission service center.
How much can a Mr. Transmission franchise owner expect to earn?
The average gross sales for a Mr. Transmission franchise are approximately $0.84 million per location. Assuming a 15% operating profit margin, $0.84 million yearly revenue can result in $126,000 EBITDA annually.
Who owns Mr. Transmission?
Mr. Transmission franchise is owned by Moran Family of Brands, a franchisor specializing in automotive repair and maintenance services.
The company oversees several brands, including Milex Complete Auto Care and Alta Mere Automotive Outfitters, offering a diversified range of automotive solutions under its umbrella.
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