Midas Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Midas is an automotive-service franchise specializing in brakes, exhaust, oil changes, and general maintenance and repair. Franchisees run service centers managing technicians, diagnostics, parts inventory, and customer acquisition.
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]. 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
- $342K – $925K
- 42nd pct Automotive
- Avg gross sales
- $1.2M
- 13th pct Automotive
- Royalty
- 10.0%
- 47th pct Automotive
- Units
- 1,031
- 51st pct Automotive
- SBA charge-off
- 13.3%
- % of SBA 7(a) loans not repaid · median varies by category
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 $342K – $925K including a $35K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better). SBA loan charge-off rate of 13.3% across 451 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- TERMSNo 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
Corporate structure & franchisor financials
- Legal entity
- MIDAS INTERNATIONAL, LLC
- Parent company
- Mavis Tire Express Services Corp.
- Ultimate parent
- Metis HoldCo, Inc.
- Predecessor
- Midas International Corporation
- Prior franchisor entity
- CEO title
- President and Chief Operating Officer
- Leonard Valentino Jr.
- Incorporated in
- DE
- HQ
- 100 Hillside Avenue, White Plains, New York 10603
- Auditor
- Warren Averett, LLC
- Audited financials
Overview
About
- CEO
- Leonard Valentino Jr.
- Headquarters
- NY
- Founded
- 1954
- FDD year
- 2025
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 28% below the typical automotive franchise.
Source: FDD 2025 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $342K – $925K
- Middle of category vs category
- Liquid capital req'd
- $40K – $67K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 10.0%
- typical 6–8%
- Ad fund
- No separate ad fund fee; franchisor spends at least 50% o…
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of net sales |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $25K – $100K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 12% below the automotive norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Midas until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$687K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Midas 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $1.2M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and income analysis
- Sample size
- 941 outlets
- vs category median 70 · large
- Range (low → high)
- $255K→$6.6M
- Cohort dispersion (min → max)
- Quartile band
- $709K→$2.0M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Revenue-to-investment ratio: 1.9x.
Fee burden
Total ongoing fee load of 10.0% (near the Automotive average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.2% 3-year CAGR) with 1,031 units.
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 Midas Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,031
- Opened
- 16
- Last reporting year
- Closed
- 8
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +1.2%
- Net unit change over 3 years
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 52
- Closed (3yr)
- 5
- Terminated (3yr)
- 38
- Non-renewed (3yr)
- 4
- Transfers (3yr)
- 246
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 48 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)
- 86.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 134
- Defaults
- 40
- Typical loan rate
- 6.7%
- avg rate to borrowers
- Franchised industry avg
- 23.2%
- brand beats franchise avg ↓
- Jobs supported
- 957
- 1.5 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 21% went to startups / new businesses, 79% to established operators
Franchise vs independent — in general automotive repair, franchised businesses charge off at 23.2% vs 13.9% for independents — franchising is associated with 67% higher SBA default risk in this category.
Vintage analysis
Midas charge-off rate by loan vintage
Top lenders financing Midas franchisees
Showing 3 of 134 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 13.3% — 17% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Three concluded cases disclosed: (1) VieRican, LLC arbitration (franchise termination/royalty dispute) settled for $203,362.67; (2) People of California v. CRC Luxury Motors/Midas (franchise consumer fraud by franchisee), Midas paid $210,000 in penalties and restitution fund, fully satisfied; (3) 8435758 Canada Inc. v. Midas Canada (rescission/damages under Arthur Wishart Act), settled for Cdn $414,359
Largest disclosed settlement: $210,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Warren Averett, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the audited financials of affiliate Express Oil Change Franchise, LLC (EOC), the guarantor of Midas's obligations, not Midas International, LLC itself. FY2024 total revenues $2,642,019 (royalties $2,599,261, franchise fees $2,497, area development fees $40,261); FY2023 $3,441,873. Net EOC Group Investment (equity) is negative ($276,255). Note: Item 8 narrative states Midas's own total revenue for FY ending 3/31/2025 was $103.8 million, but that figure is unaudited and not the Item 21 financial statement.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 73 / 100 verdict
- 01MINORDeclining unit count (0.8% YoY contraction) suggests system-wide challenges and potential franchisee dissatisfaction
- 02HIGHMultiple litigation cases involving termination disputes, royalty conflicts, and regulatory violations indicate franchisor-franchisee friction and compliance issues
- 03MINORUnprotected territory creates direct competition between franchisees and risk of brand cannibalization
- 04MINORHigh royalty rate (10%) combined with declining units suggests franchisees may struggle with profitability and unit economics
- 05HIGHGoing 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
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach Gardens, Florida |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 3 |
View Item 3 litigation summary
Three concluded cases disclosed: (1) VieRican, LLC arbitration (franchise termination/royalty dispute) settled for $203,362.67; (2) People of California v. CRC Luxury Motors/Midas (franchise consumer fraud by franchisee), Midas paid $210,000 in penalties and restitution fund, fully satisfied; (3) 8435758 Canada Inc. v. Midas Canada (rescission/damages under Arthur Wishart Act), settled for Cdn $414,359
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 60 hrs
- Training location
- Palm Beach Gardens, Florida (Part 2); local operating Midas Shop (Part 1); franchisee location (Part 3)
- Ongoing training
- Required
- Site selection
- Both
- Franchisor financing
- Offered
- Item 10
- POS system
- R.O. Writer
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: R.O. Writer
Item 20 · call current owners
Franchisee Contacts
1,052 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Midas 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 Midas FDD and qualifies whose outlets they describe.
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 1,031 total units in the United States, including 1,031 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 verdict score of 73 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
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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.