Meineke
Meineke offers automotive maintenance and repair services, specializing in exhaust and brake systems. Known for reliable car care solutions, it operates across the U.S., serving a wide range of customers with franchise opportunities.
About Meineke
Meineke Car Care Centers, Inc., more commonly known as Meineke is a franchise-based international automotive repair chain with 966 locations. The chain is ranked #52 in the Franchise 500 (2014) and #54 in America's Top Global (2013). Previously known as Meineke Discount Mufflers, the company changed its name to Meineke Car Care Centers in 2003 when it expanded to offer full-service auto repairs.
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Meineke franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Meineke ® center franchise ranges from $224,898 to $1,200,818. This range includes the costs specified but does not reflect potential real estate purchase costs or construction expenses [p.2].
What is the initial franchise fee?
The initial franchise fee for each new Meineke Center franchise is $45,000. This fee is not refundable and is used to cover training, supplies, general and administrative expenses, as well as costs associated with selecting and approving the location [p.32, p.46].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of all revenues derived from products sold and services rendered at or in connection with the Center, except for Authorized Products and Services. For unreported Gross Revenues uncovered by an audit, the royalty fee increases to 8%. Additionally, you must contribute to the Marketing Advertising Fund (MAF) on a weekly basis together with the royalty fees due. This contribution is required regardless of whether Meineke Car Care Centers owned by the company or its affiliates are involved [p.415, p.60].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your Meineke Car Care Center. However, the franchisor has the right to refuse such a transfer for good cause [p.6(g)]. If approved, the transferee must pay a standard transfer fee of $7,500, which may be adjusted based on inflation [p.162(f)]. Additionally, at closing, the purchasing franchisee will need to sign a promissory note, security agreement, and UCC-1 Financing Statements due to the franchisor's retained security interest in the assets, including the franchise license [p.398].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement prior to expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure within a reasonable time frame, typically no more than 30 days [p.6]. Additionally, the franchisor may terminate the agreement if there is no agreement on a location for the franchise center within 180 days after signing the Franchise Agreement or if the franchisee fails to lease or purchase the premises within one year from the date of the Franchise Agreement [p.58].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a guarantor, you must meet the Guarantor Net Worth Threshold, which is defined by the franchisor and can be modified periodically. Additionally, you are required to provide annual financial statements or documents demonstrating compliance with this threshold. There's no specific mention of minimum liquid capital requirements for franchisees in the provided excerpts; however, Meineke does allocate a Capital Fund based on Tier eligibility, indicating some form of financial contribution is expected from the franchisee [p.464]. This isn't specified in the excerpts regarding net worth and liquid capital for initial franchise qualifications directly.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, Meineke-owned outlets, or competitive brands controlled by the company [p.68]. However, there is a development area where you have certain rights, and this area excludes existing Meineke Centers as of the Effective Date [p.426].
What training and ongoing support does the franchisor provide?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific training programs or ongoing support services offered by the franchisor to franchisees.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information based on gross revenues and cost and expense data reported by franchisees. However, these figures are not audited, and no certified public accountant has expressed an opinion regarding their contents or form [p.92]. The franchisor also provides unaudited financial statements for its own company but does not guarantee obligations under the Franchise Agreement [p.106].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain products; however, you may have to purchase some items from designated suppliers. For example, cutting and welding equipment, air compressors, and other tools must be purchased from the franchisor's designated supplier [p.49]. Customer receipts need to be sequentially numbered and obtained from the designated supplier [p.54]. Other supplies can generally be sourced from any supplier that meets the standards set by the franchisor, though a list of approved suppliers is maintained [p.49].