Updated March 28, 2019.
Detailed Estimates of Meineke Franchise Costs Based on Item 7 (Estimated Initial Investment) of Meineke’s 2018 Franchise Disclosure Document
- Depending on whether you open a 5 or 6 Bay location, your total estimated initial investment (exclusive of real estate purchase and related costs) is $122,758 to $572,540.
- The amounts listed in this chart are based on a 3,400 square foot, 5 Bay location; and a 6,882 square foot, 6 Bay location, which includes 5 and 6 vehicle lifts respectively.
- If you open a Meineke Car Care Center with more than 6 Bays, your costs will be greater.
- Because owners of existing automotive repair facilities often bring an existing customer base to the Meineke system, the franchisor may occasionally offer certain incentives to these franchisees who convert their businesses to Meineke Centers, as described in the Conversion Agreement.
For 5 Bay Location
1. Initial Franchise Fee: $7,500 to $35,000
- As described in Item 5, when you sign the Franchise Agreement, you must pay the franchisor an initial franchise fee of $35,000. The initial franchise fee is not refundable.
- You may pay a reduced initial franchise fee for your Center, as described in Item 5.
2. Living Expenses During Training: $1,875 to $2,700
- The franchisor pays for airfare and hotel accommodations for one trip to and from Charlotte, North Carolina for up to 2 people for a new Meineke Center, who initially sign the Franchise Agreement or the guaranty of performance if the franchisee is a corporation or other legal entity.
- If you purchase an existing Meineke Center, you must pay your own airfare (varies with current airfare prices) and hotel expenses (approximately $1,675 for a 25-night stay).
- You are responsible for your own meals and incidental expenses incurred during training.
3. Real Estate Rent and Security Deposit: $5,585 to $12,000
- Most Meineke franchisees lease the premises for their Meineke Centers. Rent depends on geographic location, size, local rental rates, businesses in the area, site profile, and other factors, varies from market to market, and could be higher in large metropolitan areas than in suburban markets and smaller metropolitan areas.
- Your landlord likely will require you to pay a security deposit equal to one month’s rent or more. (Security deposits may be refundable.)
- Your lease negotiations with your landlord and the size and market area of the Center’s location ultimately will dictate when your rental payments will begin.
- It is possible, however, that you will choose to buy, rather than rent, real estate on which a building suitable for the Center already is constructed or could be constructed. Real estate costs depend on location, size, visibility, economic conditions, accessibility, competitive market conditions, and the type of ownership interest you are buying.
- Because of the numerous variables affecting the value of a particular piece of real estate, this initial investment table does not reflect the potential purchase cost of real estate or the costs of constructing a building suitable for the Center.
4. Opening Inventory: $5,000 to $15,000
5. Equipment, Signs, Small Tools, Installation: $29,500 to $156,275
- If you elect to co-brand your Center as a Co-branded Meineke/Econo Lube Center, you will be required to purchase and install an “Econo Lube” sign in addition to your “Meineke” sign. The cost of the sign and installation is approximately $22,000.
- Equipment costs are reduced when converting an existing auto repair shop with existing equipment.
6. Freight: $1,500 to $3,500
7. Point-of-Sale Software and Computer Hardware: $7,000 to $10,000
- You are not required to purchase the M.Key software package. You may purchase any hardware system that will meet or exceed the requirements found in Exhibit R-8.
8. Center Supplies: $4,318 to $6,318
9. Insurance: $1,000 to $9,100
10. Initial Marketing: $20,000
11. Legal and Accounting Expenses: $1,000 to $12,414
12. Pre-Paid Expenses: $10,000 to $116,000
- Prepaid expenses include property renovations (which may be contained in the cost of the property as described above), utility expenses, and expenses for minor repairs.
13. Additional Funds – 3 Months: $35,000 to $70,000
- These estimates are of your general operating expenses and working capital requirements for your first 3 months of operations and includes such costs as lease payments, advertising, payroll, supplies, telephone, professional services, vehicle expenses, taxes and licenses, debt service, repairs and maintenance, and other costs. These costs do not usually include the owner’s salary.
- These figures are estimates, and the franchisor cannot assure you that you will not have any additional expenses in starting the Center. Your actual expenses will depend on factors such as your management skill, experience, and business acumen; local economic conditions, the local market for the Center; the prevailing wage rate; competition in the market place; and sales level reached during the start-up phase.
14. Total Estimated Initial Investment: $129,278 to $468,307
- Meineke relied on its and its predecessors’ over 30 years of franchising Meineke Centers to compile these estimates.
For 6 Bay Location
- Total Estimated Initial Investment: $122,758 to $572,540