Merlin Complete Auto Care Franchise Costs $265K – $534K (2024 Fees & Profits)
Merlin Complete Auto Care, initially known as Merlin Muffler & Brake, was founded in 1975 and has since evolved into a reputable franchise specializing in a comprehensive range of automotive repair and maintenance services.
The franchise is known for its unique approach to vehicle longevity, emphasizing preventive maintenance and aiming to help vehicles achieve and surpass the 200,000-mile mark with their “Drive for 200,000” program. This commitment to extending the life of vehicles sets Merlin apart in the automotive service industry.
The franchise’s significant milestone came in 2014, when it was acquired by Driven Brands, expanding its reach and service offerings. By 2020, Merlin solidified its comprehensive service model by becoming Merlin Complete Auto Care, promising a full spectrum of automotive services from A to Z.
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Initial investment
Here’s what you can expect to spend to start a Merlin Complete Auto Care franchise.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Leasehold Improvements | $20,000 – $150,000 |
| Furniture, Fixtures, Equipment and Signage | $142,445 – $203,395 |
| First 3 Months’ Rent | $15,000 – $25,000 |
| Security Deposit | $4,300 – $10,000 |
| Opening Inventory and Supplies | $12,000 – $20,000 |
| Training Expenses | $1,000 – $6,000 |
| Miscellaneous Opening Costs | $10,000 – $30,000 |
| Additional Funds – 3 Months | $30,000 – $60,000 |
| Total(excluding real estate costs) | $264,745 – $534,395 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The standard initial franchise fee is $30,000. Under certain conditions, this fee may be reduced.
Royalty Fee
The royalty fee is 6.9% of the Net Revenues.
Marketing Fund Contributions
Contributions to the Marketing Fund is 5% of the Net Revenues.
Transfer Fees
The transfer fee is Nine Thousand Dollars ($9,000), except for transfers to a corporation controlled by the franchisee, where the fee may not apply.
Service Charges on Late Payments
Service charges on late payments are at a rate of twenty-one percent (21%) per annum or the highest rate permitted by law, whichever is less.
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How to apply
Opening a Merlin Complete Auto Care franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Merlin Complete Auto Care franchise.
1: Understand the Merlin Complete Auto Care Franchise Model
- Merlin Complete Auto Care franchises specialize in vehicle longevity and preventive maintenance, along with repair and replacement of brake systems, motor vehicle muffler and exhaust systems, and other motor vehicle services.
- The franchise is part of Driven Brands, the largest family of automotive franchises in North America.
2: Meet the Initial Qualifications
- Ensure you meet the initial qualifications, which include a net worth of $250K+, a credit score of 675+, and liquid assets of $250K+.
3: Review Financial Requirements and Investment
- The cash investment required is approximately $110,000, with a total investment ranging from $298,000 to $400,000. The franchise fee is $30,000.
- An initial franchise term of 15 years with a renewal option for an additional 10 years, subject to compliance with the Franchise Agreement.
4: Training and Support
- Participate in an extensive 6-week training program, which includes 4 weeks of management training (both virtual and classroom) and 2 weeks of on-the-job training in an operating shop.
- Merlin provides site selection assistance, lease negotiation assistance, and state-of-the-art training, but does not offer financial assistance or recruiting assistance.
5: Territory and Operations
- Understand the territory rights, which allow you to operate a shop at a specific location once approved. Note that there is no exclusive territory, but the franchisor will not operate or grant another franchise within a two-mile radius of your shop.
- Be prepared to devote a minimum of 40 hours per week to the shop’s operation, with 90% of that time spent on-premises.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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