What I Like About the Meineke Car Care Center Franchise Opportunity
1. Meineke is a leading one-stop auto repair and maintenance services franchise, with nearly 900 locations in the US. Meineke is constantly researching automotive services and products to help franchisees maximize their earnings potential. Among the many automotive products and services currently offered by Meineke are: Exhaust Systems, Brake Systems, Steering & Suspension Systems, Cooling Systems, Air Conditioning Systems, and Maintenance Packages, plus many others.
2. Meineke enjoys very strong brand recognition among US consumers, with over 92% of consumers in the US recognizing the Meineke brand name.
3. Annual sales in the US automotive aftermarket repair and services business is approaching $200 billion. The number of cars and light trucks is up 23% in the last 10 years, while the average age of vehicles has increased by 11% since 1993 to 9.2 years. As a result, the automotive repair and services market is growing at approximately 5% per year.
One of the provisions in Meineke’s Franchise and Trademark Agreement guarantees that no other shop will be placed within 2 miles of a current franchisee’s location. In addition, the current franchisee will have the 1st right to purchase the license for any location within 3 miles of his or her shop. To add a further layer of protection, Meineke has developed (with input from its franchisees) an “encroachment policy” that requires Meineke to compensate the current franchisee for any material impact that a new shop might have that Meineke has allowed to open within 6 miles of his or her shop.
5. With other franchise companies, contribution to the monthly advertising fund only covers the national and regional marketing of the brand. But in the case of Meineke, the franchisee enjoys national and local TV placement, yellow page listings and local print advertising. In addition, Meineke is able to provide direct mailings to the franchisees’ customers on a monthly basis. All of these are already included in the contribution to the Meineke Advertising Fund (MAF).
Meineke does recommend that the franchisee spend some money beyond the contribution to the MAF on local community programs. Even in these areas, Meineke has full in-house capability to assist with any creative work needed.
6. The total initial investment to open a Meineke Car Care Center averages around $220,000 to $240,000 (but can be as high as $330,000), which already includes the franchise fee, equipment, signage, and working capital — a very reasonable number.
Franchisees are required to put up at least 25% of the total initial investment in cash. Assuming that the prospective franchisee has a FICO credit score over 650, Meineke has preferred lender programs with a number of financing institutions who can lend the remaining 75%.
7. Meineke has one of the most comprehensive training programs in the industry, starting with 4 weeks of training for new franchisees at Meineke University in Charlotte, NC. Another plus is that hotel and travel expenses for up to two franchisees who originally sign the franchise agreement are included in the franchise fee.
Meineke also provides electronic interactive training programs, with over 80 online training courses available for franchisees and employees to access.