Midas
Midas offers automotive maintenance and service centers providing tire, brake, exhaust, and general vehicle services. Known for quick oil changes and affordable repairs, Midas specializes in convenient, reliable auto care solutions.
Midas franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new Midas Shop franchise ranges between $385,450 and $940,050. This includes between $55,000 and $130,000 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee for a new franchisee is $50,000 for the first location and $35,000 for subsequent locations. These fees are generally due upon execution of the franchise agreement and are non-refundable [p.166, p.30, p.34].
What are the ongoing royalty and advertising fees?
The ongoing royalties paid by franchisees are based on a percentage of their monthly sales, ranging from 3% to 5%, as defined in the franchise agreement [p.149]. Additionally, if a franchisee's shop is located in a designated market area with two or more SpeeDee retail outlets, an additional royalty equal to one percent of net revenue derived from SpeeDee Services and Products may be required [p.227]. Advertising fees are expensed as incurred, but the franchisor commits to spending a certain amount on marketing and promoting products and services sold by franchisees [p.52], though specific advertising fee percentages are not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically does not specify a fixed term length but allows for renewal upon expiration, subject to EOC Franchise's approval and payment of a renewal fee [p.149, p.163].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, if Midas decides not to extend your franchise agreement upon expiration or under special conditions, you may have the option to sell the Approved Shop(s) at your discretion [p.212]. However, this is subject to Midas granting a new franchise agreement to the transferee. Additionally, there are provisions regarding the transfer of ownership of a franchise, which can be refused by Midas for good cause [p.5]. These provisions apply if the offer to sell a franchise is accepted in Washington or involves a resident of Washington [p.412, p.394]. This isn't specified in the excerpts for general cases outside of Washington state.
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 to cure such failure after being given written notice and a reasonable opportunity to do so [p.5]. This isn't specified in the excerpts regarding specific grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
According to [p.285], as a franchisee, you must maintain sufficient working capital and net worth, as determined by the franchisor, to fulfill your obligations under the Franchise Agreement. This ensures you have adequate financial resources to operate the business successfully.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchise agreement does not grant any geographic area, market, or exclusive territorial rights [p.59, p.172]. You may face competition from other Midas locations operated by the franchisor, affiliates, or other franchisees [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training and go-live support related to the required point-of-sale system remotely by the vendor, though on-site training can be requested for an increased fee. Additionally, the franchisor offers pre-opening services such as site selection, training, and inspections. Ongoing services include development of training material and quality control and inspection throughout the term of the franchise agreement [p.151, p.165].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific numbers for the total number of franchised outlets or those that have closed or been terminated. It mentions that as of December 31, 2025, there were 889 franchised Midas Shops in the United States (excluding Co-Branding Shops), and 1,031 Midas Shops internationally (including in Canada). However, it does not specify how many outlets have closed or been terminated. [p.9]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet you are considering buying, and may supplement the information in Item 19 if applicable. However, other than these specific cases, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.77].
What am I restricted to selling, and where must I buy supplies?
You must offer and sell only the products and services that the franchisor authorizes or requires as described in the Franchise Agreement, the Manual, or other communications from them. You may not offer or sell any unauthorized products or perform unapproved services without their written approval [p.67]. Additionally, you are required to buy items from the franchisor or a limited group of suppliers they designate, which may be more expensive than alternatives [p.3].