What is our Financial Performance?
Midas franchise owners significantly outperform the industry
Midas franchise owners, on average, significantly outpace the performance of other general auto repair and maintenance businesses. In its 2014 Digital Factbook, the Automobile Aftermarket Industry Association estimates that general repair garages produced average revenues of $466,024 in 2012. As you’ll see below, the average Midas store does much better. Our mid-tier franchisees had average revenues of $708,093 in 2015. And the top third of our franchisees had revenues of $1,039,269 in 2015.
Here’s more detail from Item 19 of our Franchise Disclosure Document:
|Top Third||Middle Third||Bottom Third|
|Number of Shops in Group||18||17||18|
|Average Sales Per Shop||$1,039,269||$708,093||$531,250|
|Expenses as % of Sales|
|Cost of Goods Sold||25.80%||24%||25.9%|
|Other Variable Expenses||3.2%||3.5%||3.8%|
|Other Fixed Expenses||$47,817||$34,724||$29,505|
It’s important to note: The table immediately above excludes many other types of expenses often incurred by franchisees that are significant, including manager salaries, payroll, taxes, fringe benefits, rent, real estate taxes, insurance, business licenses, equipment leasing, professional fees, travel, entertainment, administrative salaries, depreciation, amortization, and interest expenses. These expenses have been excluded from the table above because they might be heavily influenced by discretionary factors and might vary significantly from what you might pay for them under normal market and business conditions.
We encourage you to consult with your financial advisors in reviewing the information in Item 19, in particular, estimating the categories and amount of additional expenses that might be incurred in establishing and operating a Midas shop.
Furthermore, you should be aware that any particular Midas shop’s financial performance might be affected by numerous factors that vary due to the individual characteristics of the Midas shop. These factors include: competition from car dealers and other auto service centers, appreciation and acceptance of the services and products that the Midas Shop offers in its community, a franchisee’s experience, business development and managerial skills, advertising programs, personnel and cost controls, geographic and socioeconomic conditions in the Midas area, business cycles, and performance of the economy locally, nationally, and worldwide.