Michelin® Commercial Service Network™ Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
The Michelin Commercial Service Network is a franchise of commercial-truck tire service centers serving fleets and commercial customers. Franchisees run a tire dealership managing inventory, installation, repair, and roadside service, plus fleet accounts.
FranchiseVerdict summary · 2026
A MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise requires a total initial investment of $189K – $4.3M, including a $3K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $189K – $4.3M
- 27th pct Automotive
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 340
- 43rd pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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 $189K – $4.3M including a $3K franchise fee.
- RETURNSFigures from audited financial statements of Michelin Retread Technologies, Inc. (a wholly owned subsidiary of Michelin Corporation), the entity relied on for FDD Item 21. Statements are presented in thousands of US dollars; all figures multiplied by 1,000. Fiscal years ended December 31, 2024 (most recent) and 2023. Revenue metric is "Net revenue" per the Statements of Income and Retained Earnings. Balance sheet reconciles: total liabilities 82,414 + stockholder's equity 63,929 = total assets 146,343 (in thousands). Auditor PricewaterhouseCoopers LLP (Halifax, Nova Scotia, Canada), report dated April 28, 2025.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Michelin Retread Technologies, Inc.
- Parent company
- Michelin Corporation
- Ultimate parent
- Compagnie Financiere Michelin
- CEO title
- President and Director
- Peter G. Dunphy
- CEO experience
- 2021 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 101 Harrison Bridge Road, Simpsonville, South Carolina 29681
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $229.0M
- vs $253.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Peter G. Dunphy
- Headquarters
- SC
- Founded
- 1997
- FDD year
- 2025
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 137% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $3K | $3K | |
| Site development | $10K | $3.0M | |
| Travel, living, and related expenses during initial training; fees for ongoing training | $5K | $50K | |
| ERS inventory requirement | $5K | $100K | |
| Software | $12K | $150K | |
| Opening availability of MCSN Equipment | $3K | $500K | |
| Initial advertising and brand identification per location | $2K | $10K | |
| Computer system | $100K | $140K | |
| Additional funds - 3 Months | $50K | $300K | |
| Total initial investment | $189K | $4.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $189K – $4.3M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $300K
- Top 40% of category vs category
- Franchise fee
- $3K – $3K
- Top 40% of category vs category
- Royalty
- No royalty fee disclosed in Item 6
- Ad fund
- No national advertising fund; franchisee does not contrib…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Inventory (initial) | $5K – $100K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
MICHELIN® COMMERCIAL SERVICE NETWORK™ did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one MICHELIN® COMMERCIAL SERVICE NETWORK™ unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
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
Figures from audited financial statements of Michelin Retread Technologies, Inc. (a wholly owned subsidiary of Michelin Corporation), the entity relied on for FDD Item 21. Statements are presented in thousands of US dollars; all figures multiplied by 1,000. Fiscal years ended December 31, 2024 (most recent) and 2023. Revenue metric is "Net revenue" per the Statements of Income and Retained Earnings. Balance sheet reconciles: total liabilities 82,414 + stockholder's equity 63,929 = total assets 146,343 (in thousands). Auditor PricewaterhouseCoopers LLP (Halifax, Nova Scotia, Canada), report dated April 28, 2025.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+2.1% 3-year CAGR) with 340 units.
Multi-unit rate
Only 24% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How Michelin® Commercial Service Network™ Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 340
- Opened
- 18
- Last reporting year
- Closed
- 16
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 24.1%
- Net growth (3-yr)
- +2.1%
- Net unit change over 3 years
- 3-yr CAGR
- +2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 18
- Closed (3yr)
- 16
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 1.5%
- Owners selling to other franchisees
- Continuity rate
- 95.5%
- Units that stayed open
- Ceased ops
- 0.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining unit count, undisclosed financials, murky fee structure, and unprotected territory create meaningful profitability uncertainty despite a stable brand.
Litigation (Item 3)
No litigation required to be disclosed in this Disclosure Document.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 75 / 100 verdict
- 01MINORMassive investment range ($189K–$4.25M) suggests inconsistent unit economics and unclear cost structure
- 02MEDRoyalty rate not disclosed — hidden ongoing fees could erode profitability significantly
- 03MINORNo Item 19 financial disclosures (avg revenue/net income) prevents assessment of franchisee earnings potential
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINOR10-year term is longer than industry standard (5-7 years), locking franchisees into potentially unfavorable agreement
- 06MINORLow franchise fee ($2,500) relative to investment range suggests hidden costs elsewhere (working capital, inventory, equipment)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 180 days |
| Mandatory arbitration | Yes |
| Arbitration location | South Carolina (county of franchisor's principal place of business at time of arbitration) |
| Jury trial waiver | Yes |
| Governing law | SC |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in this Disclosure Document.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 100 hrs
- Training location
- Online, MNA training center, franchisee's Service Center, other Service Centers
- Ongoing training
- Required
- Field support
- 385 hrs/yr
- On-site visits per year
- Site selection
- Franchisor designates/approves Service Territory and site
- Franchisor financing
- Not offered
- Item 10
- POS system
- MCSN Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MCSN Software
Item 20 · call current owners
Franchisee Contacts
348 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MICHELIN® COMMERCIAL SERVICE NETWORK™ · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise?
The total investment to open a MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise ranges from $189K – $4.3M, with an initial franchise fee of $3K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise owners earn?
MICHELIN® COMMERCIAL SERVICE NETWORK™ does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the MICHELIN® COMMERCIAL SERVICE NETWORK™ 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 MICHELIN® COMMERCIAL SERVICE NETWORK™ FDD and qualifies whose outlets they describe.
What is MICHELIN® COMMERCIAL SERVICE NETWORK™'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for MICHELIN® COMMERCIAL SERVICE NETWORK™ (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise locations are there?
As of their most recent FDD filing, MICHELIN® COMMERCIAL SERVICE NETWORK™ has 340 total units in the United States, including 340 franchised units and 0 company-owned units. 18 new units were opened in the latest reporting year.
Is MICHELIN® COMMERCIAL SERVICE NETWORK™ a good franchise to buy?
FranchiseVerdict rates MICHELIN® COMMERCIAL SERVICE NETWORK™ as a A-grade franchise with a verdict score of 75 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
For franchisors
Are you the franchisor?
If you represent MICHELIN® COMMERCIAL SERVICE NETWORK™, you can request corrections or provide updated information.
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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.