Michelin® Commercial Service Network™Franchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $189K – $4.3M
- 21st pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- N/A
- Units
- 340
- 33rd pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $189K – $4.3M including a $3K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 58/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- 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
- $253.6M
- vs $229.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Michelin franchise operators run commercial tire service centers managing inventory of tires and maintenance supplies, performing tire installation/repair, wheel balancing, and roadside assistance services for fleet and commercial customers. Revenue depends heavily on local market density, competitive pricing, and ability to retain B2B accounts. Daily operations involve managing technician staff, customer service, parts ordering, and fleet account management.
- CEO
- Peter G. Dunphy
- Headquarters
- SC
- Founded
- 1997
- FDD year
- 2025
- States available
- 47
FDD Item 7 · 2025 filing · 9 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
- Better than avg vs category
- Liquid capital req'd
- $50K – $300K
- Better than avg vs category
- Franchise fee
- $3K – $3K
- Better than avg vs category
- Royalty
- -n/d
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Inventory (initial) | $5K – $100K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How Michelin® Commercial Service Network™ Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 340
- Opened
- 18
- Last reporting year
- Closed
- 16
- Turnover rate
- 4.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 24.1%
- Net growth (yr3)
- +0.6%
- Net unit change last year
- 3-yr CAGR
- +2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 · 31 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 is required to be disclosed in this Disclosure Document.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
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 58 / 100 rating
- 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
- 03MEDZero unit growth (0.6% YoY decline) across 340 units indicates market saturation or franchisee struggles
- 04MINORNo Item 19 financial disclosures (avg revenue/net income) prevents assessment of franchisee earnings potential
- 05MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 06MINOR10-year term is longer than industry standard (5-7 years), locking franchisees into potentially unfavorable agreement
- 07MINORLow 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| 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 | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | state and county we have our principal place of business |
| Jury trial waiver | Yes |
| Governing law | South Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Disclosure Document.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 70 hrs
- Training location
- Online, MNA training center, franchisee Service Center, other Service Centers
- Ongoing training
- Required
- Field support
- 385 hrs/yr
- On-site visits per year
- POS system
- MCSN Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MCSN Software
Item 20 · call current owners
Franchisee Contacts
100 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 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 333 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 B-grade franchise with a risk score of 58 out of 100, 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
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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.