About Meineke Franchise
Meineke is a nationally recognized automotive maintenance and repair franchise that has been serving vehicle owners since 1972.
Operating under Driven Systems LLC, Meineke centers specialize in exhaust system service, brake repair, and a wide range of general automotive maintenance and repair services for the driving public.
The franchise fee is $45,000.
Meineke Franchise Cost & Fees
Minimum Investment
$227K
Average Investment
$404K
Maximum Investment
$581K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | Greater of an annual minimum royalty of $20,800 or a calculated royalty based on percentages of Gross Revenues (7% for exhaust systems, 5.5% for engine/transmission replacement/diagnostics/mounts/scheduled maintenance, 4% for batteries, 3% for tires/inspections/towing, 5% for all other Authorized Products and Services) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 8% of your Gross Revenues (1.5% for tires, towing, government-regulated inspections) | National brand fund |
| Total Investment Range | $226,774 – $580,818 | Includes build-out, inventory, working capital |
The investment range of $227K–$581K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of an annual minimum royalty of $20,800 or a calculated royalty based on percentages of Gross Revenues (7% for exhaust systems, 5.5% for engine/transmission replacement/diagnostics/mounts/scheduled maintenance, 4% for batteries, 3% for tires/inspections/towing, 5% for all other Authorized Products and Services)) and marketing fee (8% of your Gross Revenues (1.5% for tires, towing, government-regulated inspections)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (2) | $45,000 | $45,000 |
| Living Expenses During Initial Training (3) | $7,500 | $10,000 |
| Real Estate Rent and Security Deposit (4) | $5,585 | $12,600 |
| Opening Inventory | $10,000 | $15,000 |
| Equipment, Signs, Small Tools, Installation (5) | $35,000 | $175,000 |
| Freight | $3,500 | $7,500 |
| Point of Sale Software and Computer Hardware (6) | $4,871 | $10,000 |
| Center Supplies | $4,318 | $6,318 |
| Insurance | $10,000 | $12,000 |
| Initial Marketing | $20,000 | $20,000 |
| Legal and Accounting Expenses | $1,000 | $12,400 |
| Building Improvements and Building Design (7) | $30,000 | $180,000 |
| Additional Funds - 3 Months (8) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (subject to CPI increase); $1,000 (M.Key Software Transfer Fee) |
| Renewal Fee | $5,000 (subject to CPI increase) |
| Technology Fee | $100 per month (Technology Administrative Fee); $375 Basic Software Maintenance Fee (or $275 if AutoVitals) |
| Audit Fee | Cost of audit, including charges of independent accountant/third-party vendor, attorneys’ fees, per diem fees and costs of our employees, plus interest |
| Intershop Late Fee | $20 |
| Service Fee | $34 per week, subject to annual adjustment |
| Franchisee Profitability Program Software Fees | Currently, $14.95 per month |
| M.Key Software Maintenance Fee (Additional options) | Up to $200 per month (Technical Procedures Software); $25 per month (Quick Books Integration); $59 per month (Motovisuals); $399 one-time setup fee (AutoVitals eInspection); $225 per month basic package (AutoVitals eInspection); $24 per month for each additional technician tablet (AutoVitals eInspection) |
| AutoNet TV Fee | $30 to $50 per month, subject to periodic adjustment |
| Attorneys’ Fees and Other Costs | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
| Commingled Funds Fee | $2,500, plus $250 for each subsequent month |
| Reimbursement of Repair and Maintenance Costs | Will vary under the circumstances |
| Interest on Late Payments and Other Related Charges | Interest rate on late payments is 3% above the prime rate, not to exceed the highest rate permitted by law; $35 charge for each non-sufficient funds occurrence |
| Fascia and Sign Update | $3,000 |
| Alternative Supplier Evaluation Fees | Will vary under the circumstances |
| Training Fees | No charge associated with initial training for you and one other person; may charge fee for out-of-pocket costs of supplemental training |
| Upgrade of Center | Up to $20,000 per occurrence |
| Sublease Rent | 110% of the rent payable by the sublessor, plus an amount equal to 1.25% of the contribution made by the sublessor to fund construction and improvement of the premises |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to a maximum of 13 days |
| Classroom Training | Up to 69 Hours |
| On-the-Job Training | Up to 7 Hours |
| Training Location | Meineke University training center in Charlotte, North Carolina, at a designated Meineke Center and/or virtually through our current learning management system |
| Additional Training | We endeavor to provide special training on various aspects of operating a Meineke Center for which you will be required to pay training fees. If significant deficiencies are determined, we may require you (or your Operating Partner) and managers/key employees to attend periodic or additional training programs for which fees may be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area with Right of First Refusal |
| Exclusive Territory | Yes |
| Territory Size | Two-mile radius from the Premises |
| Description | Once the Premises are determined, we will not grant others the right to operate (1) a Meineke Center within a two-mile radius (Protected Area); (2) a Meineke Center outside the Protected Area but within a three-mile radius without offering you a right of first refusal; or (3) more than one Meineke Center for every 50,000 motor vehicles registered in the Metropolitan Statistical Area. Continuation of exclusive rights does not depend on sales volume, market penetration, or other contingency. We may not alter your Protected Area without your written agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15, eight or five years at your choice |
| Renewal Fee | $5,000, subject to any increase in the CPI |
| Renewal Conditions | Provide notice at least 180 days prior to expiration; you, your owners, and affiliates are in compliance with agreements; you maintain possession of Premises for term of renewal; sign successor franchise agreement; remodel Center; pay successor franchise fee; sign release (if state law allows). |
| Transfer Fee | $7,500, subject to increase in the CPI (or then-current initial franchise fee at our option) |
| Transfer Conditions | Give notice, be in compliance with agreements, pay transfer fee, execute non-compete and general release; transferee must meet our standards, complete training, pay initial advertising contribution, execute new franchise agreement or assignment, remodel Center to new standards, meet financial requirements; Center must be open and operating; you or transferee pay third-party broker fees or initial franchise fee. |
| Termination for Cause | Non-curable defaults include insolvency, bankruptcy, material misrepresentation, felony conviction, unauthorized use of confidential information/marks, unauthorized transfer, termination of lease, repeated defaults, or default under other agreements. Curable defaults include failure to discontinue unauthorized products/services (30 days to cure), monetary defaults (30 days to cure), and other breaches not listed as non-curable (30 days to cure). |
| Non-Compete Period | One year from the later of termination/expiration or when you begin to comply with the covenant |
| Non-Compete Details | You and your owners are prohibited from owning, managing, operating, or consulting with any Competitive Business located at the Premises; within a six-mile radius of the Center; or within a six-mile radius of any Meineke Center in operation at the time you signed the Franchise Agreement. Exceptions for owning less than 5% of publicly traded Competitive Business securities. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | We may require you (or your Operating Partner) to actively participate in, and exert your best efforts in connection with, the direction and management of your Center’s business. You must designate a manager who has satisfactorily completed our Internet training program and devotes substantially all business time to on-premises management. At least one employee must obtain and maintain ASE certification for services performed. |
| Required Suppliers | You are required to purchase sequentially numbered customer receipts from our designated supplier. For new franchisees, Meineke is the only approved supplier of M.Key shop management software. |
| Supply Restrictions | You may only use parts, uniforms, forms, labels, inventory and supplies that conform to our specifications and standards as to quality, performance, and safety and/or are purchased from approved suppliers. Exhaust system parts meeting stringent noise regulations are approved. Other parts meeting original equipment manufacturer's standards are approved unless determined otherwise. Items subject to standards and specifications constitute 40% to 50% of overall purchases. |
| Franchisor Revenue from Suppliers | Meineke and/or its affiliates received prompt pay discounts from vendors of $46,379 in fiscal year 2023. Affiliates' revenue from the sale of equipment, inventory, supplies, and other materials to Meineke franchisees was approximately $1,274,520. Affiliates' gross revenue from subleasing was approximately $1,343,698. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Meineke Franchise Earnings — Item 19
Average Revenue
$971K
Median Revenue
$915K
Revenue Range
$56K – $4.4M
Sample Size
507 units
Past financial performance does not guarantee future results. Individual results will vary.
Meineke Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Meineke System Growth
Total Units
702
Franchised
702
Company-Owned
0
Meineke currently operates 702 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 29 | 26 | 706 |
| 2022 | 23 | 24 | 705 |
| 2023 | 28 | 31 | 702 |
Transfers: 71 | Closures: 31
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$289.7M
Net Income
$195.1M
Total Assets
$508.6M
Audited by PricewaterhouseCoopers LLP for year ending December 30, 2023.
Meineke Franchise — FAQ
The total investment to open a Meineke franchise ranges from $226,774 to $580,818, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Meineke charges a royalty fee of Greater of an annual minimum royalty of $20,800 or a calculated royalty based on percentages of Gross Revenues (7% for exhaust systems, 5.5% for engine/transmission replacement/diagnostics/mounts/scheduled maintenance, 4% for batteries, 3% for tires/inspections/towing, 5% for all other Authorized Products and Services) of gross sales, plus a 8% of your Gross Revenues (1.5% for tires, towing, government-regulated inspections) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Meineke Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Meineke to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Meineke franchise owners report average revenue of $971K and median revenue of $915K. This is based on a sample of 507 units. Past performance does not guarantee future results.
Meineke has been franchising since 1972. The FDD shows an investment range of $226,774-$580,818, a Greater of an annual minimum royalty of $20,800 or a calculated royalty based on percentages of Gross Revenues (7% for exhaust systems, 5.5% for engine/transmission replacement/diagnostics/mounts/scheduled maintenance, 4% for batteries, 3% for tires/inspections/towing, 5% for all other Authorized Products and Services) royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 and the total investment ranges from $226,774 to $580,818 depending on location size and market. A minimum of $50,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Meineke and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Meineke or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com