Bottom line
- Total investment $342K – $925K including a $35K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.3M). Estimated payback in 3.6 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 193 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Midas unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Midas units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.2M purchase
Total debt
$4.9M
SBA $3.1M + senior + seller note
Overview
About
Midas franchisees operate automotive service centers specializing in brake service, oil changes, maintenance, and exhaust system repair. Day-to-day operations include managing technicians, handling customer vehicle intake and diagnostics, performing repairs, managing inventory, and driving customer acquisition through local marketing. Franchisees must maintain brand standards while competing in a commoditized automotive service market.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Midas operates a shrinking 975-unit system with litigation baggage, unprotected territories, and undisclosed financial performance—presenting meaningful execution risk for new franchisees entering a declining market segment.
Score breakdown · what drove the 46 / 100 rating
- 01MINORDeclining unit count (0.8% YoY contraction) suggests system-wide challenges and potential franchisee dissatisfaction
- 02MINORNo Item 19 financial performance disclosure limits ability to validate the $175k average net income claim across diverse locations
- 03HIGHMultiple litigation cases involving termination disputes, royalty conflicts, and regulatory violations indicate franchisor-franchisee friction and compliance issues
- 04MINORUnprotected territory creates direct competition between franchisees and risk of brand cannibalization
- 05MINORHigh royalty rate (10%) combined with declining units suggests franchisees may struggle with profitability and unit economics
- 06HIGHGoing Concern status of False raises questions about financial stability and long-term viability of support systems
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Midas · FDD (2025) PDF