Michelin® Commercial Service Network™ Franchise Cost, Revenue & Review 2026
- Investment
- $189K – $4.3M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
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 scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $189K – $4.3M
- 25th pct Automotive
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 340
- 43rd pct Automotive
- SBA charge-off
- N/A
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 $189K – $4.3M including a $3K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- GROWTHPositive: net +2 franchised outlets in the latest year (18 opened, 16 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Michelin Retread Technologies, Inc.
- Parent company
- Michelin Corporation
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- Compagnie Financiere Michelin
- FDD Item 1, page 7 of the 2025 FDD
- 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 504% 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™ makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one MICHELIN® COMMERCIAL SERVICE NETWORK™ 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 annual revenue, royalty rate, ad fund rate, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Michelin® Commercial Service Network™ 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
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
346 current owners across 47 states.
- TX 35
- PA 27
- NC 25
- OH 19
- MO 18
- MI 16
- SC 11
- VA 11
- FL 10
- AR 9
- IA 9
- NY 9
- +35 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. 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.
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
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.
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 74 / 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 | No territory protection |
| 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
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™ makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns MICHELIN® COMMERCIAL SERVICE NETWORK™?
MICHELIN® COMMERCIAL SERVICE NETWORK™ is franchised by Michelin Retread Technologies, Inc.. Its parent company is Michelin Corporation. The ultimate parent named in the FDD is Compagnie Financiere Michelin. Source: FDD Item 1, 2025 filing.
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 74 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.
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.