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 at least $75,000 cash available for investment into the business and a net worth of at least $250,000 to begin discussions with Midas. Development of new or multiple locations would require greater cash and net worth amounts to qualify. If you are close, let’s have a conversation. Many people overlook assets that would help them qualify.
Q. What special qualities or skills are required?
A. You must have some proven management experience or aptitude, strong business ethics (as this is a high-trust business) and abilities, a customer service mentality and willingness to be involved in the management of the shop. We look for owners who are success-driven and growth-minded.
Q. What are the franchise fees, royalty fees and franchise terms?
A. Franchise fee* — $10,000 to $30,000
Royalty fee* — Up to 10%, with at least half of the royalties devoted to 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.
Q. Will Midas help with financing?
A. Midas works with 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 might offer special financial incentives for opening a new shop. In addition Midas can help franchisees use other financing vehicles such as self-directed IRAs and home equity lines to finance their businesses.
Many Midas franchisees finance their business through SBA loans. Midas is part of the U.S. Small Business Administration’s Franchise Registry. The SBA created the Franchise Registry in 1998 to streamline the process banks use to determine franchisees’ eligibility for SBA loans. When the agency approves a franchise system for inclusion, it agrees to guarantee 75 to 85 percent of any loan to franchise candidates, reducing the risk to banks and increasing the likelihood of approval.
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 our 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. You will reap the rewards of our multimedia advertising campaigns that generate brand awareness. You will get to take advantage of the skills-enhancing training programs that we have designed around today’s retail environment. We know that as an established business owner, you already are knowledgeable about your market and your customers. We expect that you might be ready to grow your business even more by expanding your customer base through an affiliation with Midas. Also, under our brand name, you might find it easier to expand your business into new markets through multiple unit ownership.
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.
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 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 your facility will accommodate the Midas service offering, we will be glad to evaluate it.
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. Midas serves individual vehicle owners as well as nationwide vehicle fleets.
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 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.
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. These expenditures 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 might include local media, direct mail and Yellow Pages. In addition, Midas franchisees invest $10,000 in Grand Opening marketing for a new store, and Midas matches that investment with an extra $5,000.