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Frequently Asked Questions

Frequently Asked Questions

How do I qualify to own a Midas shop?
What special qualities or skills are required?
What is the ... franchise fee, royalty fee, franchise term, shop size?
Will Midas help with financing?
What are the benefits of converting my business to a Midas?
How does Midas evaluate a new store location?
What is the standard shop size?
Are there existing shops available?
What automotive services does Midas provide?
What about inventory?
What advertising support can I expect?
Does Midas assist in the hiring process and contribute towards benefits for shop employees?

 

 

 


Q. How do I qualify to own a Midas shop?
A. Solid business or retail experience, proven management skills, and a strong financial position would be your best preparation. You will need between $50,000 and $100,000 cash available for investment into the business and a net worth of between $250,000 and $300,000 to begin discussions with Midas. Development of new or multiple locations would require greater cash and net worth amounts to qualify.
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Q. What special qualities or skills are required?
A. You must have an understanding of business management principles and be involved as an owner-operator in the management of the shop. Strong ethics and customer service values will guide you in building a customer driven team in your shop. A successful franchisee also possesses proven management skills, leadership ability, vision, and a desire for growth.
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Q. What is the ... franchise fee, royalty fee, and franchise term?
A. Franchise fee* — $30,000
Royalty fee* — 10%
Advertising* — Midas currently contributes half of the royalties collected towards advertising
Franchise term —The Franchise term is for 20 years and is renewable at the end of the term subject to approval, conditions and payment of renewal fee.

 *See the current Franchise Disclosure Document for a description of the range of initial franchise fees.
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Q. Will Midas help with financing?
A. Midas does not provide direct financing, but we will identify qualified lenders who have either financed other Midas operations or expressed an interest in working with Midas franchise candidates.  These lenders can usually meet a variety of business funding needs to help you pursue the Midas franchise opportunity of your choice. Midas may offer special financial incentives for opening a new shop.
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Q. What are the benefits of converting my business to a Midas?
A. The high awareness level of our brand name increases your visibility and chances for success.  By putting the Midas logo on your building you become a part of something bigger — Midas.

You will benefit from the tools we have perfected over the years to grow our franchise network.  From our multi-media advertising campaigns that generate brand awareness to the skills enhancing training programs that are designed around today’s retail environment.
We know that as an established business owner, you are already knowledgeable about your market and your customers.  We expect that you may be ready to grow your business even more by expanding your customer base through an affiliation with Midas.  Also, under our brand name, you may find it easier to expand your business into new markets through multiple unit ownership.
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Q. How does Midas evaluate a new store location?
A. Midas analyzes information from various sources for traffic count, registered vehicles, replacement rates, population, growth trends, competitive factors, zoning, retail shopping patterns, and other appropriate factors.
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Q. What is the standard shop size?
A.  A Midas shop can be found in almost every type of market throughout the United States and Canada.  The range of shop sizes varies throughout our network from 4 bay shops to 12 bay shops.  These shops also vary in building design depending on when they were built.  With today’s business model our recommendation for new development is for 6 bays or larger.  However, we will evaluate each market opportunity on a case by case basis to determine the right fit for expected service demands.

If you are a conversion candidate and are concerned about whether the size of your facility will accommodate the Midas service offering, we will be glad to evaluate it and let you know our findings.
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Q. Are there existing shops available?
A. Yes, and sometimes buying an established Midas franchise may be the way to go. Existing operations already have the equipment, inventory and employees in place. The existing Franchise and Trademark Agreement, as well as any leases, if applicable, are assigned to the new owner.
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Q. What automotive services does Midas provide?
A. Midas has evolved from a specialist in under-the-car services to the provider of an extensive and growing list of maintenance and repair services: brakes, steering, suspension, exhaust, catalytic converters, batteries, tires, and more. To support the growing maintenance category, Midas is currently launching key maintenance and fleet service initiatives. While our legacy provides a strong foundation for building your business, increasingly important is sustaining long term relationships with customers by expanding the range of services available at the local Midas shop.
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Q. What about inventory?
A. The Midas franchisee is required to maintain an inventory that is adequate both in terms of range and quantity of items to fulfill the public demand. Midas maintains strategic alliances for parts distribution to support the franchisee network. Additionally, these suppliers can provide “Just in Time” delivery to your store. By systematically building relationships on the supply side and within the retail network, Midas continues to bring an expanding line of products your way.
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Q. What advertising support can I expect?
A. As stated in the franchise agreement, Midas currently commits to spend not less than one-half of all royalties actually collected on certain advertising expenditures each year. In recent years, this has resulted in an annual expenditure of more than $50 million to promote the Midas name, image and services in a national advertising campaign that focuses on television, radio, billboards, local newspaper announcements and special events. On the local level, Midas works with franchisees to develop plans to help generate traffic and sales. Those plans may include local media, direct mail and Yellow Pages. In addition, Midas offers a variety of grand-opening materials to maximize the success of your shop's introduction.
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Q. Does Midas assist in the hiring process and contribute towards benefits for shop employees?
A. The franchisee is responsible for hiring, managing, and training the shop employees.  Payroll and benefits are also the franchisee’s responsibility.  Midas offers instruction that will prepare you to handle this challenge effectively on your own during New Franchisee Training.  You will receive information about employment practices, compensation plans, and guidance about staffing levels, employee training opportunities and management strategies.

As you can see, the franchise owner has significant influence over staffing decisions that may determine the quality of service at the Midas shop.  We expect the franchisee to make changes as needed to fit the business demands and to create an environment that delivers an excellent customer service experience.
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