Mr. Transmission Franchise Costs $207K – $301K (+ 2024 Profits)

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 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.

Type of Expenditure	Amount
Single Unit Franchise Fee	$40,000
Computer Software and Hardware Systems	$4,600 to $5,700
VOIP Telephone Equipment Package	$900
Initial Parts and Inventory	$3,800 to $4,500
Furniture and Fixtures	$5,500 to $6,000
Equipment	$65,000 to $79,000
Shop Tools and Supplies	$3,000 to $4,000
Signs	$8,000 to $17,200
Initial Marketing Campaigns (First 6 months)	$30,000
Displays and Marketing Materials	$4,800
Warranty Fund Security Deposit	$5,000
Leasehold Improvements/ Miscellaneous	$20,000 to $40,000
Rental/Utility Deposits	$12,000 to $18,000
Training Fee	$5,000
Training Expenses	$1,500 to $2,500
Mandatory Outside Sales Development Program	$3,000
Additional Funds (6 months)	$36,500 to $57,500
Total	$249,000 to $323,000

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.

Initial Franchise Fee

The initial franchise fee for a Mr. Transmission Service Center or Milex Complete Auto Service Center is $40,000. For a Co-Branded Service Center, the fee is $50,000.

Royalty Fee

Franchisees must pay a royalty fee of 7% of weekly gross sales, or a minimum of $250 per week, whichever is greater.

Marketing/Advertising Fee

Franchisees are required to spend 3.5% of gross sales or a minimum of $1,500 per month on marketing and advertising, whichever is greater.

Technology Fee

The software subscription fee is currently $350 per month.

Transfer Fees

The transfer fee is $7,500.

Renewal Fees

The renewal fee for continuing the franchise agreement is $2,500.

Franchise pros and cons

The Pros:

• Comprehensive training: The franchisor offers its franchisees and auto technicians a detailed training program to equip them with the basics of its business concept, best operations, customer service, sales, technical support and back-shop support and facilitate the launch of their centers.
• Site selection and construction: Mr. Transmission helps its franchisees identify the right repair center location, negotiate their leases, design and develop their repair centers.
• Sales and customer care: The franchisor provides its franchisees with lead generation programs and training to assist them in building lasting relationships with the automotive communities in their local areas to benefit from referrals and improve their sales.
• Marketing and advertising: The franchisor helps its franchisees with marketing techniques such as ad templates, web development, email marketing, SEO, national media, regional advertising and local store promotional campaigns.
• Balanced work-lifestyle: The franchisor allows franchisees to plan their schedules, have time to spend with their loved ones and work on improving the performance of their ventures.
• Third-party financing: Mr. Transmission has relationships with third-party lenders to finance its franchise owners’ franchise fees, startup costs, equipment, inventory and payroll.
• Exclusive territory protection: The franchisor allows its franchisees to operate in an exclusive market area. As long as they comply with its franchise terms, the franchisor does not establish other franchises or operate competing businesses in the protected area.
• Co-branding with Milex Complete Auto Care: The franchisor allows its franchisees to co-brand with Milex Complete Auto Care, allowing them to offer a one-stop automotive experience to their customers, stand out from the competition and boost their earnings.
• Semi-absentee with a passive ownership opportunity: Mr Transmission gives franchisees the freedom to run a side business if they would prefer this. 

The cons:

• Not a home-based opportunity: The Mr. Transmission franchise cannot be run from home or a vehicle. Franchisees must have an office space, warehouse or retail facility.
• Competition: These may include Certified Transmission, Fix Auto USA, Christian Brothers Automotive and AAMCO Transmission.

How to open

Opening a Mr. Transmission 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 Mr. Transmission franchise.

1. Conduct Preliminary Research

• Learn about the Mr. Transmission franchise by visiting their official website and reviewing available resources.
• Understand the services offered, franchise business model, and market positioning.

2. Initial Inquiry

• Contact Mr. Transmission to express your interest in opening a franchise.
• Fill out any preliminary forms or applications available on their website to request more detailed information.

3. Review Franchise Disclosure Document (FDD)

• Obtain and carefully review the Franchise Disclosure Document (FDD) provided by Mr. Transmission.
• Consider consulting with a franchise attorney to help interpret the legal and financial details of the FDD.

4. Secure Financing

• Assess your financial capacity against the investment requirements outlined in the FDD.
• Explore financing options. Mr. Transmission may offer guidance on preferred lenders, including those offering SBA loans.

5. Site Selection and Approval

• Work with Mr. Transmission’s real estate team to identify a suitable location for your franchise based on demographics, traffic patterns, and competitive landscape.
• Finalize the site selection and get approval from the franchisor.

6. Sign Franchise Agreement

• Once your location is approved and financing is in place, you’ll sign the franchise agreement to formalize your commitment.
• Pay any required initial fees as outlined in the agreement.

7. Training and Support

• Participate in the comprehensive training program provided by Mr. Transmission. Training typically covers technical skills, customer service, operational procedures, and business management.
• Take advantage of ongoing support services which may include marketing, technical assistance, and business advisory.

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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