Midas Franchise FDD, Profits, Costs & Fees (2024)
Midas, a leading automotive service brand, was founded on April 20, 1956, by Nate H. Sherman. Initially known as Midas Muffler in Macon, Georgia, it gained a reputation for top-quality muffler replacements. Over time, Midas expanded its offerings to include brake repair, scheduled maintenance, oil changes, and tire services.
Headquartered in Palm Beach Gardens, Florida, Midas operates more than 2,100 locations across the U.S., Canada, and globally. The franchise model, with a mix of franchised and company-owned shops, helped Midas grow rapidly. It began franchising soon after its founding, capitalizing on its strong brand recognition.
Midas sets itself apart with a commitment to customer satisfaction and strong franchisee support. Its iconic slogan, “Trust the Midas Touch,” highlights the brand’s dedication to quality and reliability.
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Initial Investment
How much does it cost to start a Midas franchise? It costs on average between $104,000 – $1,043,000 to start a Midas franchised store.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property. Midas offers 3 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| New 8-bay Midas Shop | $209,150 – $884,890 |
| Convert an operating or previously operated automotive repair facility | $103,650 – $885,640 |
| Convert or begin operation of a Co-Branding Shop | $120,200 – $1,042,640 |
We are summarizing below the main costs associated with opening a new 8-bay Midas Shop franchise. For more information on the costs required to start a Midas franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Estimated Amount Range |
|---|---|
| Initial Franchise Fee, Minimum Site Payment, or Deposit | $10,000 – $35,000 |
| Marketing Support Program or Grand Opening Advertising | $20,000 – $25,000 |
| Travel & Living Expenses while Training | $1,000 – $7,800 |
| Security Deposit, Licenses & Permits | $0 – $40,000 |
| Rent and Real Estate Taxes (3 months) | $15,000 – $60,000 |
| Warranty Registration Fee (3 months) | $150 – $2,000 |
| Equipment & Tools | $52,500 – $375,000 |
| Shipping and Installation Costs – Equipment | $5,000 – $40,000 |
| Computer, Hardware & Telephone System | $10,000 – $13,000 |
| Office & Waiting Room Furniture & Point of Purchase Materials | $10,000 – $30,000 |
| Branding | $10,000 – $40,000 |
| Shipping and Installation Costs – Signage | $5,000 – $25,000 |
| Initial Inventory & Supplies | $25,000 – $100,000 |
| R.O. Writer Software, Installation, and Training Fees | $0 – $12,500 |
| Insurance (3 months) | $1,500 – $4,500 |
| Legal & Accounting | $1,000 – $3,500 |
| Additional Funds (3 months) | $40,000 – $65,000 |
| Miscellaneous | $3,000 – $5,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $209,150 – $884,890 |
Average Revenue (AUV)
How much revenue can you make with a Midas franchise? A Midas franchised center makes on average $1,080,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,010,000 yearly revenue for similar oil change franchises. Below are 10 Midas competitors as a comparison:
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Midas Franchise Disclosure Document
Frequently Asked Questions
How many Midas locations are there?
As of the latest data, Midas operates over 2,100 locations globally. This includes nearly 1,300 locations across the U.S. and Canada. Most of these shops are franchised, as Midas does not have company-owned stores. The franchise system operates primarily through a network of independently owned locations.
What is the total investment required to open a Midas franchise?
The total investment required to open a Midas franchise ranges from $104,000 to $1,043,000.
What are the ongoing fees for a Midas franchise?
The ongoing fees for a Midas franchise include a royalty fee of 10% of gross sales. Additionally, franchisees must contribute 3-5% of gross sales towards the national marketing fund.
These fees help support both operational costs and marketing efforts, ensuring consistent brand presence and promotional activities across all Midas locations.
What are the financial requirements to become a Midas franchisee?
To become a Midas franchisee, you need a minimum net worth of $250,000 and liquid assets of at least $75,000. These requirements help ensure that potential franchisees have the necessary financial stability and resources to handle both the initial investment and ongoing operational costs.
How much can a Midas franchise owner expect to earn?
The average gross sales for a Midas franchise are approximately $1.08 million per location. Assuming a 15% operating profit margin, $1.08 million yearly revenue can result in $162,000 EBITDA annually.
Who owns Midas?
Midas is owned by TBC Corporation, a prominent company in the automotive industry. TBC Corporation acquired Midas in 2012, expanding its portfolio of automotive service brands. TBC itself is partly owned by Michelin North America, which acquired a 50% stake in TBC in 2018 through a joint venture.
This ownership structure positions Midas within a broader network of automotive service and tire companies under the TBC umbrella, benefiting from extensive resources and industry expertise.
Disclaimer
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