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What Every Prospective Franchisee Needs to Know Before Investing in a Midas Auto Service Franchise

Last updated on December 17, 2011 by Franchise Chatter Leave a Comment
in Auto Service Franchise, Franchise Reviews

The Franchise Chatter Blog’s List of 23 Things Every Prospective Franchisee Needs to Know Before Investing in a Midas Auto Service Franchise

Midas Auto Service Franchise Business Model

1.  Midas is one of the top automotive service providers in North America.  With a dominant share of the market in exhaust and brake products, Midas has expanded its line of products and services to address all car care needs.

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2.  Midas now offers brake service, exhaust service, state emissions inspections, starting and charging systems, tire sales, steering suspension service, heating and air-conditioning service, and preventive maintenance (including oil changes, tune-ups, etc.).

3.  Midas is also creating a strong commercial customer base by promoting Midas Fleet Maintenance Services, which is another multi-billion dollar opportunity.

4.  The auto repair industry is poised for growth because more vehicles are on the road each year, drivers are keeping their cars longer, and do-it-yourself repairs are more difficult because of increasingly complex automotive technology.  In order to capitalize on these market trends, Midas has transformed itself from a repair business to a one-stop shop for total car care, including tires.

5.  Midas offers a lifetime guarantee on mufflers, brake pads or shoes, shocks or struts — giving new customers the confidence to try Midas and demonstrates superior service by honoring the warranties.  The Midas lifetime guarantee is honored at all Midas locations, not just where the product was originally purchased.

6.  When evaluating a new shop location, Midas analyzes information from various sources for traffic counts, registered vehicles, replacement rates, population, growth trends, competitive factors, zoning, retail shopping patterns, and other appropriate factors.


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7.  The range of shop sizes varies throughout the network from 4 bay shops to 12 bay shops.  With the current business model, Midas recommends 6 bays or more, although everything is subject to the unique situation of each market.

8.  Midas franchisees are required to maintain an inventory that is sufficient in range and quantity of items to fulfill the public demand.  Midas maintains strategic alliances with parts suppliers to support the franchisee network.  These suppliers can provide “Just in Time” delivery to each store, reducing the need to carry excessive inventory.

Midas Auto Service Franchise History and GrowthMidas Auto Repair Franchise Photo by Lancastrian



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9.  Midas started as a single shop in Macon, Georgia in 1956.  It now has over 2,500 franchised and licensed shops throughout the U.S., Canada and in 16 other countries worldwide.

10.  A new franchisee can enter the Midas system by opening a new shop, buying an existing Midas location, or converting an existing auto repair shop into a Midas franchise.

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Midas Auto Service Franchise Training

11.  A new franchisee gets several in-shop observation days at an existing Midas location, where a member of the Midas support team works with the franchisee to develop a business plan, analyze the competition, and discover the Midas approach to customer service.

12.  The next phase of training is 10 days at the Midas Training Centre at the corporate headquarters in Itasca, IL, consisting of classroom training and hands-on shop orientation.

13.  Franchisees receive automotive industry training in air conditioning, brakes, diagnostics, drive train, heating and cooling, maintenance, suspension, shocks, and struts, tires, and wheel alignment, among others.

14.  Ongoing training at Midas is available through operations manuals and guides, classroom instruction, e-learning, self-study and regional seminars.

Midas Auto Service Franchise Support

15.  A new franchisee receives pre-opening support in the form of site selection assistance, shop design guidance and floor plans, equipment ordering, and on-site support during opening.

16.  Ongoing support is available through an intranet portal that provides access to reports, shop and account data, and other business resources; regional meetings; and access to a local District Manager, and the Business Support Group at the home office.

17.  Each year, Midas spends at least one-half of all royalties collected on advertising expenditures. In recent years, Midas has spent $50 million annually on national advertising campaigns (television, radio, billboards, local newspaper announcements and special events).

18.  On the local level, Midas helps franchisees develop local marketing plans that may include ads in local newspapers, direct mail, and Yellow Pages ads. Midas also offers a variety of grand opening materials to help franchisees launch their new business.

19.  Midas provides its franchisees with Internet tools such as a personalized website for each shop, search engine marketing campaigns to drive traffic to shop websites, and a sophisticated customer relationship management (CRM) system that tracks customer behavior and targets marketing promotions to their specific needs.

Midas Auto Repair Franchise Photo by troutfactoryMidas Auto Service Franchise Cost

20.  The total initial investment to open a new Midas auto repair franchise ranges from $88,500 to $390,970.

21.  The initial franchise fee for Midas ranges from $20,000 to $30,000, depending on the size of the territory.  The ongoing royalty fee is 10% of gross sales.  The royalty fee may seem high but keep in mind that Midas spends at least 50% of the amount collected on national advertising campaigns, and franchisees do not pay any additional advertising contributions on top of the royalty fee.

22.  The minimum net worth requirement to open a new Midas location is between $250,000 and $300,000, and the prospective franchisee must have between $50,000 and $100,000 in cash available for investment into the business.

Midas Auto Service Franchise Accolades

23.  In 2011, Entrepreneur Magazine ranked Midas #39 in its Franchise 500 list and #36 in its list of America’s Top Global Franchises.


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