MidasFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Midas franchise requires a total initial investment of $342K – $925K, including a $35K franchise fee and an ongoing 10.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 13.3% charge-off rate across 451 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $342K – $925K
- 34th pct Automotive
- Avg gross sales
- $1.2M
- 14th pct Automotive
- Royalty
- 10.0%
- 30th pct Automotive
- Units
- 975
- 39th pct Automotive
- SBA default
- 13.3%
- system-wide median varies by category
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
Franchising since 1956. Systems this mature have refined operations and brand recognition.
Franchised units fell from 975 to 963 over 3 years. Investigate why operators are leaving.
28% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
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), with an estimated 28% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 21/100. SBA loan charge-off rate of 13.3% across 451 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- MIDAS INTERNATIONAL, LLC
- Parent company
- Metis HoldCo, Inc.
- Incorporated in
- DE
- HQ
- 100 Hillside Avenue, White Plains, New York 10603
- Auditor
- Warren Averett, LLC
- Audited financials
- Franchisor revenue
- $2.6M
- vs $3.4M prior year
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.
- CEO
- Leonard Valentino Jr.
- Headquarters
- NY
- Founded
- 1954
- FDD year
- 2025
- States available
- 49
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $40K | $67K |
| Equipment, build-out, other | $267K | $823K |
| Total initial investment | $342K | $925K |
Source: Midas 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$148K
12.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $342K – $925K
- Better than avg vs category
- Liquid capital req'd
- $40K – $67K
- Better than avg vs category
- Franchise fee
- $5K – $35K
- Better than avg vs category
- Royalty
- 10.0%
- percentage · typical 6–8%
- Ad fund
- Included in the royalty
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 3.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.3M
- Avg p&l bottom line
- $175K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 27.7%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 941 units
- vs category median 70 · large
- Range (low → high)
- $255K→$6.6M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 221 Automotive brands
vs Automotive averages
How Midas Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 975
- Opened
- 16
- Last reporting year
- Closed
- 8
- Turnover rate
- 0.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.8%
- Net unit change last year
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 73
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 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.
- Total loans
- 451
- Loan volume
- $185.2M
- Median loan
- $327K
- 50th percentile
- Charge-off rate
- 13.3%
- 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)
- 89.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 134
- Defaults
- 40
Vintage analysis
Midas charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Midas's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 16-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Warren Averett, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 21 / 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
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 101 hrs
- On-the-job training
- 120 hrs
- POS system
- R.O. Writer
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: R.O. Writer
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Midas · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Midas franchise?
The total investment to open a Midas franchise ranges from $342K – $925K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Midas franchise owners earn?
According to Item 19 of the Midas FDD, the average gross sales per unit is $1.2M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Midas's franchise failure rate?
Based on SBA 7(a) loan data, Midas has a charge-off rate of 13.3% across 451 loans, meaning 13.3% 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 Midas franchise locations are there?
As of their most recent FDD filing, Midas has 975 total units in the United States, including 975 franchised units and 0 company-owned units. 16 new units were opened in the latest reporting year.
Is Midas a good franchise to buy?
FranchiseVerdict rates Midas as a A-grade franchise with a risk score of 21 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.
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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.