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Midas Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a Midas Franchise?
To open a Midas franchise, you should be prepared for a total initial investment ranging from $341,650 to $916,890. This includes a franchise fee of $35,000. Additionally, you will need to have cash available between $106,650 and $917,640, and a net worth of $300,000 to $400,000. Understanding these financial commitments is crucial for aspiring franchisees to gauge their readiness for this opportunity.
What Are the Ongoing Fees for a Midas Franchise?
Midas franchisees are subject to ongoing fees that include a royalty fee of 10% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand presence and support, contributing to the overall success of your franchise. It's important to factor these costs into your financial planning to ensure sustainable operations.
What Can You Expect in Terms of Revenue from a Midas Franchise?
Midas franchises generate impressive annual revenues, with averages around $1,191,441 per unit. The revenue can vary significantly, with the lowest reported at $675,000 and the highest reaching up to $4,000,000. Understanding these revenue potentials can help you assess the viability and profitability of investing in a Midas franchise.
What Is the Breakeven and Payback Timeline for a Midas Franchise?
For a Midas franchise, the breakeven point is typically reached within 18 months, while the investment payback period averages around 36 months. This timeline is crucial for potential franchisees to consider, as it indicates how quickly you can expect to recover your initial investment and start seeing profits.
Midas Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Midas Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 61 | 58 | 56 |
| Net Change YoY | -3 | -2 | |
| Franchised Units | 61 | 58 | 56 |
| Net Change YoY | -3 | -2 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Midas franchise offers a compelling investment opportunity for aspiring entrepreneurs looking to enter the automotive service industry. With an initial investment ranging from $341,650 to $916,890, including a franchise fee of $35,000, potential franchisees can expect a solid foundation for their business. The cash required to get started varies between $106,650 and $917,640, making it accessible for a range of investors.
Franchise Financials
The financial performance of Midas franchises is noteworthy, with average annual revenue per unit reported at $1,283,770. Franchisees can anticipate a breakeven period of approximately 18 months, with an investment payback timeframe of around 36 months. These metrics highlight the potential for profitability and a favorable return on investment for dedicated operators.
Ongoing Fees
Franchisees are required to pay a royalty fee of 10% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the support and resources provided by the Midas corporate team, ensuring franchisees benefit from national advertising and brand recognition while maintaining operational excellence.
Franchise Growth
The Midas franchise has shown a steady presence in the market with 61 franchised units in 2021, decreasing to 56 units by 2023. This trend indicates a focus on maintaining quality and operational standards rather than rapid expansion, allowing existing franchisees to thrive in their respective markets.
Operational Insights
The average operating expenses for a Midas franchise are approximately $129,250 annually. This includes costs such as marketing support, rent, insurance, and additional funds for working capital. Understanding these expenses is crucial for franchisees to manage their budgets effectively and maximize profitability.
Brand Reputation
Midas has established a strong reputation within the automotive service sector, known for its commitment to quality and customer satisfaction. The brand's legacy dates back to its founding, and it continues to evolve with industry trends, making it a reliable choice for franchisees seeking to capitalize on a trusted name in car care.
Frequently Asked Questions
The initial investment for a Midas franchise ranges from $341,650 to $916,890. This includes the franchise fee, equipment, and other startup costs.