Meineke Franchise Cost, Revenue & Review 2026
- Investment
- $225K – $1.2M
- Disclosed sales
- $971K
- gross sales, not profit
- SBA charge-off
- 27.1%
- on 572 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Meineke is an automotive-service franchise specializing in exhaust, brakes, tires, oil changes, and general repair. Franchisees run service centers managing technicians, diagnostics, parts, and customer sales.
FranchiseVerdict summary · 2026
A Meineke franchise requires a total initial investment of $225K – $1.2M, including a $45K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $971K[2]. SBA 7(a) loans show a 27.1% charge-off rate across 572 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $225K – $1.2M
- 31st pct Automotive
- Avg gross sales
- $971K
- Outlet subset10th pct Automotive
- Royalty
- 7.0%
- 31st pct Automotive
- Units
- 716
- 49th pct Automotive
- SBA charge-off
- 27.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $225K – $1.2M including a $45K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $971K/year (median $914K) (reported for a subset of outlets rather than the whole system), with an estimated 16% cash-on-cash return (based on 4-Wall EBITDA).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 27.1% across 572 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +14 franchised outlets in the latest year (36 opened, 22 closed); 43 signed but not yet open (Item 20).
- LEGAL14 litigation matters disclosed in Item 3, higher than typical. Of the 13 listed on this page, 4 name the franchisor itself, 7 its parent, affiliates or predecessor, 2 an officer personally. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Meineke Franchisor SPV LLC
- Parent company
- Driven Systems LLC
- FDD Item 1, page 10 of the 2025 FDD
- Ultimate parent
- Driven Brands, Inc.
- FDD Item 1, page 10 of the 2025 FDD
- Predecessor
- Meineke Car Care Centers, LLC
- Prior franchisor entity
- CEO title
- Manager and Chief Executive Officer
- Daniel Rivera
- Incorporated in
- DE
- HQ
- 440 South Church Street, Suite 700, Charlotte, North Carolina 28202
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $270.2M
- vs $289.7M prior year
Affiliated brands
- shares our pr
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 10
6 other brands on this site name Driven Brands, Inc. as parent or ultimate parent in their own FDD.
Portfolio: Driven Brands
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Daniel Rivera
- Headquarters
- NC
- Founded
- 1972
- FDD year
- 2025
- States available
- 46
Can you afford it, and what does the money buy?
Entry cost runs 94% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $50K | $75K |
| Equipment, build-out, other | $130K | $1.1M |
| Total initial investment | $225K | $1.2M |
Source: Meineke 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $225K – $1.2M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $75K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 8.0%
- typical 3–5%
- Total fee load
- 15.0%
- vs 9–13% typical
- Payback period
- 6.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 8.0% of gross sales |
| Technology fee | $750 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 15.0% of rev |
At 15.0% total fee load, roughly $146K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales land near the automotive norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Meineke until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$775K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $211K as 4-Wall EBITDA. This is a disclosed figure, not our estimate — we publish no modelled profit for Meineke.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Meineke unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $971K
- Per unit, per year
- Median gross sales
- $914K
- Avg 4-wall ebitda
- $211K
- Reported as 4-Wall EBITDA in FDD Item 19
- Cash-on-cash
- 16.3%
- Based on 4-Wall EBITDA / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and cost analysis
- Sample size
- 549 outlets
- vs category median 70 · large
- Range (low → high)
- $156K→$3.7MCited, not corroborated — printed on page 87 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $647K→$1.3M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $971K/year in gross sales. Revenue-to-investment ratio: 1.4x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 15.0% — above the Automotive median of 8.0%.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.6% 3-year CAGR) with 716 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Meineke Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 716
- Opened
- 36
- Last reporting year
- Closed
- 22
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +1.6%
- Net unit change over 3 years
- 3-yr CAGR
- +1.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 8
- Not renewed
- 8
- Signed, not yet open
- 43
- 0.06 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 46 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
46
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- GA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 572
- Loan volume
- $191.5M
- Median loan
- $222K
- 50th percentile
- Charge-off rate
- 27.1%
- on 572 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 72.9%
- 5-yr charge-off
- 13.3%
- Loans approved 2021+
- Active lenders
- 152
- Defaults
- 133
- Typical loan rate
- 6.7%
- avg rate to borrowers
- Franchised industry avg
- 23.2%
- brand above franchise avg ↑
- Jobs supported
- 3,042
- 1.6 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 53% went to startups / new businesses, 47% to established operators
Franchise vs independent — in general automotive repair, franchised businesses charge off at 23.2% vs 13.9% for independents — franchising is associated with 67% higher SBA default risk in this category.
Vintage analysis
Meineke charge-off rate by loan vintage
Top lenders financing Meineke franchisees
Showing 3 of 152 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Meineke from SBA 7(a) FOIA data.
- Principal loss rate
- 11.5%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.65%
- Avg chargeoff amount
- $166K
- Lender concentration
- 13.3%
- Job velocity
- 1.6 per $100K
- Startup risk premium
- +16.1pp
- NAICS benchmark
- 23.2%
- NAICS 811111
- Jobs supported
- 3,042
Top SBA lendersTop lender holds 13% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 76 | $20.5M | 20.3% |
| 2 | Readycap Lending, LLC | 64 | $19.2M | 49.2% |
| 3 | The Huntington National Bank | 21 | $5.2M | 47.4% |
| 4 | Live Oak Banking Company | 20 | $17.5M | 0.0% |
| 5 | PNC Bank, National Association | 19 | $4.5M | 21.1% |
| 6 | Manufacturers and Traders Trust Company | 18 | $5.7M | 0.0% |
| 7 | Bank of America, National Association | 15 | $2.2M | 13.3% |
| 8 | Comerica Bank | 14 | $4.7M | 71.4% |
| 9 | Stearns Bank National Association | 14 | $5.7M | 10.0% |
| 10 | First National Bank of Pennsylvania | 12 | $6.1M | 44.4% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 57 | 21 | 46.7% |
| PAPennsylvania | 39 | 12 | 33.3% |
| FLFlorida | 36 | 10 | 32.3% |
| ILIllinois | 36 | 7 | 22.6% |
| NCNorth Carolina | 34 | 3 | 11.1% |
| CACalifornia | 32 | 6 | 23.1% |
| GAGeorgia | 27 | 3 | 14.3% |
| NJNew Jersey | 21 | 2 | 11.1% |
| COColorado | 19 | 0 | 0.0% |
| MAMassachusetts | 18 | 3 | 17.6% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 27.1% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 27.1% — 69% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Meineke presents a mature, slow-growing system with significant corporate litigation exposure and modest unit economics that may not justify the capital investment, particularly given stagnant market expansion.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 audited financial statements are the consolidated statements of Driven Systems LLC (Meineke's parent and guarantor) and its subsidiaries, audited by PricewaterhouseCoopers LLP, for fiscal years ended Dec 28 2024, Dec 30 2023, and Dec 31 2022. Balance-sheet figures reported here are as of Dec 28, 2024 (members' equity $530,691K; total assets $561,290K; total liabilities $30,599K, all in thousands). The full-year audited statements of operations (total revenue / net income) were not legibly extractable from the source text due to font-encoding corruption in Exhibit N, so those values are left null rather than guessed. A separate unaudited balance sheet for the actual franchisor entity, Meineke Franchisor SPV LLC, as of Mar 29 2025 shows total assets $163,211K, total liabilities $4,435K, members' equity $158,776K.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 40 / 100 verdict
- 01MINORStagnant unit growth (2.0% YoY) suggests market saturation or system challenges in 716-unit network
- 02HIGHMultiple active litigation cases including franchisor-initiated actions and securities class actions indicate governance/compliance issues at corporate level
- 03MINORTiered royalty structure (3-7%) with exhaust systems at 7% creates complexity and potential disputes over revenue categorization
- 04MINORHigh initial investment range ($224K-$1.2M) paired with only $211K average net income represents 1-5.7 year payback with no growth momentum
- 05MINORDeclining/flat unit count in automotive service sector suggests competitive pressure or franchisee dissatisfaction not reflected in litigation disclosure alone
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail14 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Meineke Franchisor SPV LLC and Meineke Realty, Inc. v. CJGL, Inc., Carl Douma, and Jan Douma
pendingBrought against a franchisee · filed 2023-01-18 · United States District Court for the Central District of California (Western Division) · 2:23-cv-00374
“Meineke and its affiliate brought this action against a former franchisee and its owners, alleging that the franchisee abandoned its Meineke Center and failed to pay amounts owed to Meineke under its franchise agreement and their personal guaranty and amounts owed to Meineke’s affiliate under the sublease for the Meineke Center.”Page 24 of the 2025 FDD, Item 3
Outcome:“On January 21, 2025, following a trial on the remaining issues, the Court granted judgment in favor of Meineke’s affiliate on the breach of sublease claim, entitling the affiliate to recover $13,796, plus interest, and in favor of the applicable defendants on Meineke’s breach of franchise documents” (page 25)
Concluded (2)
Meineke Franchisor SPV LLC, as successor-in-interest to Meineke Car Care Centers, LLC, as successor-in-interest to Meineke Car Care Centers, Inc. v. 1765978 Ontario Inc., Battista Congi, Caterina Congi, Giovanni Congi, Franco Congi, Luca Congi, and Elisa Congi
settledBrought against a franchisee · filed 2024-07-15 · American Arbitration Association (International Centre for Dispute Resolution Division) · 01-24-0006-4673
“Meineke, as successor-in-interest to MCC, filed this action against a former Canadian franchisee and its guarantors for failing to pay amounts owed to Meineke under the applicable franchise agreement. This matt”Page 27 of the 2025 FDD, Item 3
Association of Muffler Dealers, Inc. d/b/a Meineke Dealers Association, Inc. v. Meineke Franchisor SPV, LLC, Meineke Car Care Centers, LLC, Meineke Car Care Centers, Inc., Driven Systems, LLC, Driven Brands Funding, LLC, Driven Brands, Inc., Driven Holdings, LLC, Harvest Partners, L.P., and Roark Ca
settledBrought by a franchisee · filed 2016-07-27 · Superior Court Division for the County of Mecklenburg, North Carolina · 16 CVS 13328
“This lawsuit, which was filed against us and other parties (collectively, the “Defendants”), by the Meineke Dealers Association (the “Association”), alleged fraudulent, deceptive, unfair and commercially unreasonable conduct by reason of the Defendants’ refusal to honor certain alleged franchise contract renewal rights of Meinek”Page 28 of the 2025 FDD, Item 3
Outcome:“The parties subsequently settled the dispute on April 24, 2018 and agreed to dismiss the lawsuit. As part of the settlement, the parties agreed, among other things, that we would give existing franchisees meeting certain conditions who elect to renew their franchises for 8 years the right to operate” (page 29)
Status not stated in the filing (1)
Meineke Franchisor SPV LLC et al. v. The Woods Group, LLC, Theodore Woods III, and Brannon Harris
Brought against a franchisee · filed 2024-10-29 · United States District Court for the Southern District of Texas · 4:24-cv-04185
“Meineke filed this action against a former franchisee and its guarantors for failing to pay amounts owed to Meineke and/or its affiliate under the applicable franchise agreements. Meineke Franchisor S”Page 27 of the 2025 FDD, Item 3
Parent, affiliates and predecessor
Pending (2)
PJC Management Group, LLC et al. v. MAACO Franchisor SPV LLC, Driven Brands, Inc., and Driven Systems LLC
pendingBrought by a franchisee · MAACO Franchisor SPV LLC, Driven Brands, Inc. and Driven Systems LLC · filed 2025-11-05 · Mecklenburg County Superior Court (North Carolina) · 25-CV-059334-590
“Ten current Maaco franchisees filed a complaint against Maaco, Driven Brands, and Driven Systems alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and a violation of the North Carolina Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. 75-1.1 et seq. The Maaco franchisees allege t”Page 27 of the 2025 FDD, Item 3
Genesee County Employees' Retirement System v. Driven Brands Holdings Inc., et al.
pendingThird-party plaintiff · Driven Brands Holdings Inc., with former officers Jonathan Fitzpatrick and Tiffany Mason as co-defendants · filed 2023-12-22 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:23-cv-00895-MOC-DCK
“Genesee County Employees’ Retirement System filed a putative class action lawsuit in the U.S. District Court for the Western District of North Carolina (the “Court”) against Driven Brands Holdings, as well as former Chief Executive Officer and President of Driven Brands, Jonathan Fitzpatrick, and a former executive of Driven Bra”Page 25 of the 2025 FDD, Item 3
Concluded (5)
Meineke Canada SPV LP vs. David Gordon Wood (individually and as executor of the Estate of Crystal Wood) and 2015206 Ontario Inc.
settledBrought against a franchisee · Meineke Canada SPV LP (a sister franchisor that offers Meineke Center franchises in Canada, Item 1 p13) · filed 2024-04-08 · American Arbitration Association (International Division) · 01-24-0004-4227-1-ER
“Meineke Canada filed a Notice of Arbitration against the former franchisees of 4 Meineke Centers located in Ontario, Canada seeking damages, disgorgement of profits from the operation of a competitive business, interest, costs and expenses, and any other relief that the arbitrator considers appropriate. The Notice of Arbitration”Page 27 of the 2025 FDD, Item 3
Outcome:“in violation of the franchise agreements’ post-termination non-competition provisions. This matter has been settled. Concluded Actions Adeyemi Odufuye” (page 28)
Adeyemi Odufuye and Nitium, Inc. v. Meineke Car Care Centers, LLC, Driven Brands, Inc., Driven Brands Holdings, LLC and Harvest Partners, L.P.
settledBrought by a franchisee · Meineke Car Care Centers, LLC ('MCC', the franchisor of Meineke Centers before the Securitization Transaction, Item 1 p10), with Driven Brands and former parents · filed 2018-05-09 · United States District Court for the Western District of North Carolina · 3:18-cv-00356
“A former franchisee of a Meineke Center filed a lawsuit against MCC, Driven Brands, and their current and former parent companies, alleging fraud in the inducement, fraud and/or deceit, negligent misrepresentation, breach of contract and the covenant of good faith and fair dealing, violation of the North Carolina Unfair Trade Pr”Page 28 of the 2025 FDD, Item 3
Outcome:“On June 13, 2019, the parties mutually settled the matter without any admission of liability. Under the terms of the settlement agreement, Meineke agreed to pay the former franchisee $54,000. On June 27, 2019, the case was dismissed. Micah”
Micah Cane v. Meineke Car Care Center of Dundalk #2342, Richard Seymour, T&T Enterprise, Inc., Thomas Campbell, Meineke Car Care Centers, LLC and Crista Campbell
judgmentThird-party plaintiff · Meineke Car Care Centers, LLC ('MCC') · filed 2017-11-20 · Circuit Court for Baltimore County, Maryland · 03C16009625
“The plaintiff alleged that he was invoiced for original equipment but instead received after-market, modified parts and brought claims against the franchisee for breach of contract, breach of warranty, unjust enrichment, fraud, and violation of Maryland’s Consumer Protection Act. MCC was named in the first amended complaint in 2”Page 28 of the 2025 FDD, Item 3
Outcome:“The court found MCC liable for breach of contract, breach of implied warranty, breach of express warranty, unjust enrichment, promissory estoppel, and unfair and deceptive trade practices in violation of Maryland’s Consumer Protection Act. MCC elected not to appeal the court’s ruling. The franchisee”
James Ervi, Miriam Ervi, and CJMJ, Inc. v. Meineke Car Care Centers, LLC, Driven Brands, Inc., Driven Brands Holdings, LLC, Harvest Partners, L.P., Ed Pearson and Roark Capital Group, Inc.
settledBrought by a franchisee · Meineke Car Care Centers, LLC ('MCC'), with Driven Brands, its current and former parents and an MCC representative (Ed Pearson) · filed 2016-06-02 · Superior Court of Mecklenburg County, North Carolina · 01-16-0002-3730
“Current franchisees of a Meineke Center filed a lawsuit against MCC, Driven Brands, their current and former parent companies, and an MCC representative alleging fraud in the inducement, fraud and/or deceit, negligent misrepresentation, breach of contract and the covenant of good faith and fair dealing, violation of the North Ca”Page 30 of the 2025 FDD, Item 3
Outcome:“The parties mutually settled the matter on August 14, 2017. The case was dismissed with prejudice with no admission of liability by either party. Meineke Car Care Centers”
Meineke Car Care Centers, LLC v. Keller & Sons, Inc., Michael Keller, Ryan Keller, and Christian Valle
settledBrought against a franchisee · Meineke Car Care Centers, LLC ('MCC') · filed 2015-08-14 · United States District Court for the Central District of California · 8:15-cv-01305
“MCC filed this lawsuit against a current franchisee for breach of the various franchise agreements and failure to pay franchise fees and advertising contributions. The current franchisee asserted counterclaims against MCC seeking rescission of all fr”Page 30 of the 2025 FDD, Item 3
Outcome:“The parties mutually settled the matter and as part of the settlement MCC purchased the assets used in the operation of the defendants’ franchises. The case was dismissed with no admission of liability by either party. D”
Officers and directors (individuals, not the company)
Pending (2)
Gaiman v. Fitzpatrick, et al.
pendingThird-party plaintiff · Jonathan Fitzpatrick, Tiffany Mason, Neal Aronson, Catherine Halligan, Chadwick Hume, Rick Puckett, Karen Stroup, Peter Swinburn, Michael Thompson and Jose Tomas (current and former Driven Brands Hold · filed 2025-04-30 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:25-cv-00288
“Jonathan Gaiman filed a purported derivative complaint in the United States District Court for the Western District of North Carolina against certain current and former Driven Brands Holdings’ executive officers and board members, including Jonathan Fitzpatrick, Tiffany Mason, Neal Aronson, Catherine Halligan, Chadwick Hume, Ric”Page 26 of the 2025 FDD, Item 3
Kalimon v. Aronson, et al.
pendingThird-party plaintiff · Neal Aronson and other current and former Driven Brands Holdings executive officers and board members, including Chief Executive Officer Daniel Rivera and board member Damien Harmon · filed 2025-10-07 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:25-cv-00764
“Kalimon v. Aronson, et al., United States District Court for the Western District of North Carolina (Charlotte Division), Case No. 3:25-cv-00764, filed October 7, 2025, and Bushansky v. Fitzpatrick, et al., Court of Chancery of the State of Delaware, Case No. 2025-1306-MTZ, filed November 18, 2025. John Kalimon and Stephen Busha”Page 26 of the 2025 FDD, Item 3
This list shows 13 of the 14 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 15.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 6 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, North Carolina |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 14 |
Items 10, 11
Training & Operations
- Classroom training
- 69 hrs
- On-the-job training
- 7 hrs
- Training location
- Meineke University training center in Charlotte, North Carolina, a designated Meineke Center, and/or virtually
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- M.Key Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: M.Key Software
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Meineke franchise?
The total investment to open a Meineke franchise ranges from $225K – $1.2M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Meineke franchise owners earn?
According to Item 19 of the Meineke FDD, the average gross sales per unit is $971K. The median is $914K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Meineke?
Meineke is franchised by Meineke Franchisor SPV LLC. Its parent company is Driven Systems LLC. The ultimate parent named in the FDD is Driven Brands, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Meineke FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Meineke FDD and qualifies whose outlets they describe.
What is Meineke's franchise failure rate?
Based on SBA 7(a) loan data, Meineke has a charge-off rate of 27.1% across 572 loans, meaning 27.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Meineke franchise locations are there?
As of their most recent FDD filing, Meineke has 716 total units in the United States, including 716 franchised units and 0 company-owned units. 36 new units were opened in the latest reporting year.
Is Meineke a good franchise to buy?
FranchiseVerdict rates Meineke as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.