Mighty Franchise Cost, Revenue & Review 2026
- Investment
- $249K – $571K
- Disclosed sales
- $2.3M
- gross sales, not profit
- SBA charge-off
- 10.5%
- on 140 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mighty, known as Mighty Auto Parts, is a B2B automotive franchise that distributes auto parts and supplies directly to repair shops through a managed-inventory program. Franchisees run a route-based distribution business serving shop accounts in a territory.
FranchiseVerdict summary · 2026
A Mighty franchise requires a total initial investment of $249K – $571K, including a $25K – $60K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.3M[2]. SBA 7(a) loans show a 10.5% charge-off rate across 140 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
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 scored0 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $249K – $571K
- 35th pct Automotive
- Avg gross sales
- $2.3M
- 19th pct Automotive
- Royalty
- 5.0%
- 10th pct Automotive
- Units
- 92
- 28th pct Automotive
- SBA charge-off
- 10.5%
- % of SBA 7(a) loans not repaid · median varies by category
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 $249K – $571K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.3M/year (median $1.7M).
- RISKVerdict B (Above average), verdict score 68/100 (higher is better). SBA loan charge-off rate of 10.5% across 140 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHFlat: no net change in franchised outlets in the latest year (4 opened, 4 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- MDSA, LLC
- Parent company
- Gonher North America, Inc.
- Predecessor
- Mighty Distributing System of America, Inc.
- Prior franchisor entity
- CEO title
- Director, Franchise Development
- Russell Lamar Russo
- Incorporated in
- GA
- HQ
- 650 Engineering Drive, Peachtree Corners, Georgia 30092
- Auditor
- Bennett Thrasher LLP
- Audited financials
- Franchisor revenue
- $127.1M
- vs $126.1M prior year
Overview
About
- CEO
- Russell Lamar Russo
- Headquarters
- GA
- Founded
- 1999
- FDD year
- 2026
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 11% above the typical automotive franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $174K | $446K |
| Total initial investment | $249K | $571K |
Source: Mighty 2026 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
- $249K – $571K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $100K
- Top 40% of category vs category
- Franchise fee
- $25K – $60K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 5.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $300 |
| Transfer fee | $38K |
| Renewal fee | $8K |
| Inventory (initial) | $40K – $70K |
| Total fee load | 5.5% of rev |
A 5.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 122% above the automotive norm.
Source: FDD 2026 · 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 Mighty 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 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
$485K
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 Mighty 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 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 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: 2026 FDD
Financial Performance
- Avg gross sales
- $2.3M
- Per unit, per year
- Median gross sales
- $1.7M
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 sales
- Sample size
- 80 franchisees
- vs category median 70
- Range (low → high)
- $507K→$5.1MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 167 Automotive brands
Revenue is 5.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
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 $2.3M/year in gross sales. Median is $1.7M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 5.6x.
Fee burden
Total ongoing fee load of 5.5% — below the Automotive median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -3.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Mighty 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 92
- Opened
- 4
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.4%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -3.2%
- Net unit change over 3 years
- 3-yr CAGR
- -3.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 42 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
42
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 140
- Loan volume
- $30.4M
- Median loan
- $217K
- average
- Charge-off rate
- 10.5%
- on 140 loans · 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 2
Vintage analysis
Mighty charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Mighty franchisees
Showing 3 of 4 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Mighty from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 122 | $24.6M | 11.1% |
| 2 | First Bank of the Lake | 7 | $2.3M | N/A |
| 3 | Cadence Bank | 2 | $709K | N/A |
| 4 | Banner Bank | 2 | $291K | 0.0% |
| 5 | First Commonwealth Bank | 2 | $785K | N/A |
| 6 | TD Bank, National Association | 1 | $322K | N/A |
| 7 | Arizona Financial Credit Union | 1 | $264K | N/A |
| 8 | Dogwood State Bank | 1 | $548K | N/A |
| 9 | German American Bank | 1 | $252K | N/A |
| 10 | SouthState Bank, National Association | 1 | $350K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 22 | 1 | 25.0% |
| FLFlorida | 20 | 0 | -- |
| COColorado | 10 | 1 | 25.0% |
| NJNew Jersey | 9 | 0 | -- |
| GAGeorgia | 8 | 0 | 0.0% |
| MIMichigan | 6 | 0 | 0.0% |
| NCNorth Carolina | 6 | 0 | -- |
| TNTennessee | 6 | 0 | -- |
| KSKansas | 4 | 0 | -- |
| KYKentucky | 4 | 0 | 0.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 10.5% — 34% 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
Clean profile: zero litigation, no bankruptcy or going-concern, strong net worth of $14,847,952 and positive net income of $1,561,678 on $127M revenue. Audited with Item 19 disclosed; only a slight -3.2% unit decline.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Item 3 discloses no pending actions, no litigation against franchisees commenced in the past fiscal year, and no concluded actions.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bennett Thrasher LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2025 total revenues $127,059,068 (net merchandise sales $115,985,099; franchise royalties $10,277,990; initial franchise fees $264,706; other $531,273). Audited financials for MDSA, LLC by Bennett Thrasher LLP, Atlanta GA, dated March 4, 2026.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 verdict
- 01MINORZero litigation, no bankruptcy
- 02MINORNet worth $14.8M, net income $1.56M
- 03MEDAudited, Item 19 disclosed
- 04MINORMinor -3.2% net growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | A territory usually encompasses an area with at least 500,000 registered cars and light trucks (typically 500,000–1,500,000 registered vehicles), defined by county lines, interstate highways, street addresses or other physical boundaries. |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Mandatory arbitration | Yes |
| Arbitration location | Atlanta, Georgia |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3 discloses no pending actions, no litigation against franchisees commenced in the past fiscal year, and no concluded actions.
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 96 hrs
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Autopart or Pacesetter
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Autopart or Pacesetter
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mighty franchise?
The total investment to open a Mighty franchise ranges from $249K – $571K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mighty franchise owners earn?
According to Item 19 of the Mighty FDD, the average gross sales per unit is $2.3M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Mighty?
Mighty is franchised by MDSA, LLC. Its parent company is Gonher North America, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Mighty 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 Mighty FDD and qualifies whose outlets they describe.
What is Mighty's franchise failure rate?
Based on SBA 7(a) loan data, Mighty has a charge-off rate of 10.5% across 140 loans, meaning 10.5% 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 Mighty franchise locations are there?
As of their most recent FDD filing, Mighty has 92 total units in the United States, including 90 franchised units and 2 company-owned units. 4 new units were opened in the latest reporting year.
Is Mighty a good franchise to buy?
FranchiseVerdict rates Mighty as a B-grade franchise with a verdict score of 68 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.