Midas Franchise Startup Cost, Profit & Opportunities
Do you want to start a Midas franchise? Midas is a large automotive repair franchise situated in North America. The company is well recognized in the world.
We shall examine Midas as a company and the business possibilities it gives to the entrepreneurs and business people in this article.
To begin with, we shall center on the relic of the company. We shall then focus on the expense needed to initiate a Midas franchise and the charge that the firm requests its franchisees.
We shall also be deliberating on the instruction and supports that the firm gives to its franchisees.
Lastly, you shall be notified of how you can begin a Midas franchise in your locality.
Is Midas a Franchise?
Midas is a true franchise. “MIDAS” stands for Muffler Installation Dealers Associated Services.
The company name is derived from King Midas and his golden touch, hence the company adopted ‘ Trust the Midas Touch,’ as one of its slogans. Other slogans of the company include; Nobody beats Midas. Nobody, You should trust the Midas touch and Trust Midas.
The Midas franchisee owns its stores.
On April 20, 1956, Nate H. Sherman brought the company into existence in Macon, Georgia, United States. Since then, the company has expanded and dominated automotive repairs stores industries. The company has outdone above 1000 auto servicing stores in the United States and beyond 1300 stores globally.
Currently, the company owns more than 2500 locations and shops in the United States, Canada, and in 16 other countries internationally. The company has its headquarters located in Palm Beach Gardens, Florida, United States.
Midas franchise strives to provide credible services to its franchisees and everyone. The company has won and acquired accolades, recognition, and prizes. The Company has even been listed in the top 500 franchise opportunities by the ‘Entrepreneur’ magazine manual. It was ranked position 39 overall in 2011. The company has also been ranked number 36 in America’s Top Global Franchises.
Midas franchise has also been factored by ‘Midas Man,’ a fictional cast and speaker, in TV advertisements.
The company offers several amenities to its franchisees and everyone. Some of the amenities offered by the company to its franchisees include; calipers, exhaust system hardware, suspension and steering batteries, and wheel alignment services.
Why You Should Give This Opportunity A Chance
There are several reasons why you should give Midas a chance. This is due to its huge experience in the industry. With over 60 years committed to ensuring clients and investors get the best, you are in good hands. Plus, you become part of a thriving and well-recognized auto repair brand.
Midas has a strong purchasing power that gives your investment portfolio the much-needed diversity it needs. This is seen in its access to a wide range of popular and reliable tire brands such as Goodyear, Michelin, Continental, Cooper and much more.
What more? Midas has a well-established national tire distribution network. Franchisees also get strong local and national support, access to its national feet accounts and access to its large client base among others. These have been beneficial to lots of Midas franchisees and continue to be.
What Do You Get As A Franchisee?
There has been a growing need by companies and businesses to incentivize their services for both clients and investors. Midas is no different. To ensure it becomes more attractive for investors, it has introduced a multi-unit ownership program.
Here, prospective franchisees interested in owning multiple franchise units get the opportunity to do so within specified territories. For this to happen, you’ll need to sign an Area Development Agreement (ADA) with the franchisor.
Already in the auto repair and maintenance service? Midas has an opportunity for you too! You get to convert your shop to a Midas easily which also comes with the benefit of a 0% royalty rate on your existing book of business for 10 years.
First responders such as those in the healthcare, firefighting and police departments are given a $30,000 franchise fee waiver. This is significant for first responders interested in starting their auto maintenance and repair businesses.
How Much Does a Midas Franchise Cost?
Part of the requirements for becoming a Midas franchisee includes fulfilling its financial requirements. These include an estimated initial investment sum of between $191,650 to $460,482. There’s a net-worth requirement of $250,000 plus liquid cash requirement of $75,000.
Ongoing fees also apply and include a royalty fee of 10% of gross sales and an ad royalty fee as provided in its franchise disclosure document. These and more will be covered shortly. However, let’s begin by giving a breakdown of the estimated initial investment. It includes the following;
Estimated Initial Investment Breakdown
An initial franchise fee or minimum site payment ranging from $0 to $30,000, and marketing support program costing from $5,000 to $10,000. Traveling & living expenses while training starts from $1,000 to $7,800. Security deposit, licenses & permits will take up about $0 to $14,000.
Rent & real estate taxes covering 3 months will cost about $15,000 to $42,000. There is also a warranty registration fee covering the same period and costs between $150 to $2,000. Equipment & tools will take up about $50,000 to $151,000.
Shipping and installation costs for equipment will attract anywhere from $5,000 to $20,000. The initial investment also includes computer, hardware & telephone system expenses of about $6,000. Office & waiting room furniture & point of purchase materials will cost $13,000.
There are more! Branding starts at $10,000 to $25,000, shipping & installation costs about $6,000 to $9,000, initial inventory and supplies range from $25,000 to $50,000. R.O Write Software starts at $0 to $1,000 (its maintenance for a period of 3 months ranges from $0 to $375).
R.O. Smart SmartStatus installation and monthly fees for 3 months cost about $0 to 650. Epicor parts & labor guide subscription for three months starts from $0 to $300. Going further, MotoLOGIC repair 3 User Subscription for three months costs from $0 to $357.
Insurance covering a period of three months will start from $1,500 to $4,500, legal and accounting from $1,000 to $3,500, additional funds for 3 months at $40,000 to $65,000 and miscellaneous at $3,000 to $5,000.
When starting as a prospective franchisee, certain difficulties might arise in areas that have to do with meeting the financial requirements. Midas identifies this problem and provides an option or alternative. It has entered into a relationship with third party financing sources.
These provide financing covering different areas essential to qualification as a Midas franchisee. These include the start-up costs, franchise fee, equipment, accounts receivable, payroll and inventory.
Veterans aren’t left out either. As an honorably discharged veteran, Midas honors you for your service to the country by waiving off the first-unit franchise fee.
Midas franchise cares about its franchisees. The franchisees are given enough training and support from the company.
The company provides two Operational Training Programs for its franchisees. The first Operational Training Program the company provides for its franchisees involves two times meeting with the company’s team. And also, a second Operational Training Program that is usually instructional.
The company also offers support for its franchisees. The assistance the franchisees get from Midas franchise include;
- The company provides financial assistance to its franchisees.
- The franchisees receive both local and national advertisement aid from the company.
- The company extends preopening support for its franchises, such as site selection and job design.
- The firm comes up with a market plan for its franchisees.
Right from the time you begin the application process to when you qualify and throughout your franchise ownership, you get all sorts of support. These help ensure you attain and maintain profitability in addition to growth. Support covers two major areas of its operations that include marketing and ongoing support.
New and existing franchisees benefit from several types of marketing support. Each of these helps generate increased sales and patronage. At the end of the day, it turns into a win-win situation for both franchisor and franchisee. Marketing support includes membership in its cooperative advertising and use of its ad templates.
Others are national media advertising, regional media advertising, social media presence, and advertising, SEO and local website development for your business. There’s also an email marketing and loyalty program support.
As the name suggests, this is the support you continually benefit from and includes membership in the membership of its purchasing cooperative. This gives you exciting discounts on supply purchases. There are also newsletter publications, meetings & conventions are organized for training, access to its toll-free lines and grand opening ceremonies for every unit opened.
Additional areas covered by ongoing support include security & safety procedures, field operations, site selection, use of Midas’ proprietary software and access to its franchisee intranet platform.
Midas Franchise Terms of Agreement/Renewal
Midas franchise has a 20 years-long initial franchise term. Franchisors are also allowed to renewal at their own will the franchise term for 20 years.
Interested franchisees are required to visit the company’s website to get more insight into the company’s initial franchise agreement and renewal.
How Much Does a Midas Franchise Make?
The company revenue varies. One cannot estimate the exact figures the company makes. In 2016, the company’s mid-tier franchisees made an average revenue of $758,736 (U.S dollar) while its top third franchisees made an average revenue of $1,142,098 (U.S dollar)
How to Open a Midas Franchise
Midas franchise has a well-known reputation worldwide. An investor who opens the Midas gains a trusted name once they start the business.
If the information you’ve read here is sufficient to get you started or you feel the need for more details, Midas is just a call away on 1-855-564-6563. The other option is to fill and submit its contact information form. A franchise development rep contacts you in no time to answer every question you have about the opportunity.
This is a highly rewarding auto-repair franchise opportunity you can invest in today. The chances for success are significant due to the support and business model as well as strategies at your disposal.