Mr. Transmission Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Mr. Transmission franchise requires a total initial investment of $268K – $341K, including a $45K – $55K franchise fee. Per the 2026 FDD, average unit revenue was $835K[2]. SBA 7(a) loans show a 37.0% charge-off rate across 46 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $268K – $341K
- 37th pct Automotive
- Avg gross sales
- $835K
- Outlet subset5th pct Automotive
- Royalty
- N/A
- Units
- 104
- 31st pct Automotive
- SBA charge-off
- 37.0%
- % 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 $268K – $341K including a $45K franchise fee.
- RETURNSAverage unit revenue of $835K/year (median $749K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 37.0% across 46 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -7.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Moran Family of Brands, LLC
- Parent company
- Automotive Franchise Brands, Inc.
- Ultimate parent
- Legacy Brands, Inc.
- Predecessor
- Moran Industries, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Barbara Moran-Goodrich
- Incorporated in
- Illinois
- HQ
- 11524 West 183rd Place, Suite 100, Orland Park, Illinois 60467
Overview
About
Mr. Transmission / Milex Complete Auto Care franchised retail automotive transmission repair and general automotive maintenance and repair service centers (also offered in Co-Branded format).
- CEO
- Barbara Moran-Goodrich
- Headquarters
- Illinois
- Founded
- 1962
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 67% below 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 | $45K | $45K |
| Working capital (3–6 mo) | $50K | $70K |
| Equipment, build-out, other | $173K | $226K |
| Total initial investment | $268K | $341K |
Source: Mr. Transmission 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
- $268K – $341K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $70K
- Top 40% of category vs category
- Franchise fee
- $45K – $55K
- Top 40% of category vs category
- Royalty
- 7% of weekly Gross Sales or a minimum of $250/week, which…
- Ad fund
- Local Advertising: new locations $5,000/month for first 6…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $299 |
| Training fee | $5K |
| Transfer fee | $8K |
| Renewal fee | $3K |
| Inventory (initial) | $4K – $5K |
What do units actually make?
Average unit sales run 45% below the automotive norm.
Reported for a subset of outlets rather than the whole system
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 Mr. Transmission 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 royalty rate, 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
$364K
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 Mr. Transmission 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 royalty rate, 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 royalty rate, 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: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $835K
- Per unit, per year
- Median gross sales
- $749K
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 ranges
- Sample size
- 68 outlets
- vs category median 70
- Range (low → high)
- $130K→$2.3M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
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 $835K/year in gross sales. Revenue-to-investment ratio: 2.7x. Reported for a subset of outlets rather than the whole system.
Operator retention
System contracting at -7.5% 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 averages
How Mr. Transmission Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 104
- Opened
- 1
- Last reporting year
- Closed
- 7
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 17.2%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- -7.5%
- Net unit change over 3 years
- 3-yr CAGR
- -7.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 15
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 15
- Reacquired (3yr)
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 46
- Loan volume
- $17.3M
- Median loan
- $152K
- 50th percentile
- Charge-off rate
- 37.0%
- 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)
- 63.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 17
- Typical loan rate
- 8.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8111
- Jobs supported
- 246
- 1.4 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Mr. Transmission charge-off rate by loan vintage
Top lenders financing Mr. Transmission franchisees
Showing 3 of 27 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.
A 37.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 37.0% — 131% above the 16.0% national norm, i.e. higher 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
Litigation (Item 3)
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Orland Park, Illinois (franchisor's then-current headquarters, per mediation clause); litigation venue is Cook County, Illinois / U.S. District Court, Northern District of Illinois |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 57 hrs
- Training location
- Orland Park, Illinois (classroom); online at franchisee's chosen location; field training at a designated operating Center
- Ongoing training
- Required
- Field support
- 57 hrs/yr
- On-site visits per year
- Site selection
- franchisor approves franchisee-selected site
- Franchisor financing
- Not offered
- Item 10
- POS system
- Shop-Ware
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Shop-Ware
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mr. Transmission franchise?
The total investment to open a Mr. Transmission franchise ranges from $268K – $341K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mr. Transmission franchise owners earn?
According to Item 19 of the Mr. Transmission FDD, the average gross sales per unit is $835K. The median is $749K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Mr. Transmission 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 Mr. Transmission FDD and qualifies whose outlets they describe.
What is Mr. Transmission's franchise failure rate?
Based on SBA 7(a) loan data, Mr. Transmission has a charge-off rate of 37.0% across 46 loans, meaning 37.0% 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 Mr. Transmission franchise locations are there?
As of their most recent FDD filing, Mr. Transmission has 104 total units in the United States, including 99 franchised units and 5 company-owned units. 1 new units were opened in the latest reporting year.
Is Mr. Transmission a good franchise to buy?
FranchiseVerdict rates Mr. Transmission as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Mr. Transmission, you can request corrections or provide updated information.
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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.