About Meineke Franchisor SPV- seasoned franchisor exemption Franchise
Meineke is a well known automotive repair franchise specializing in exhaust system service, brake system repair, and comprehensive vehicle maintenance for the general public.
The brand has been franchising since 1972 under Driven Systems LLC, establishing itself as one of the most trusted names in automotive care over more than half a century of operations.
The franchise fee is $45,000.
Meineke Franchisor SPV- seasoned franchisor exemption Franchise Cost & Fees
Minimum Investment
$207K
Average Investment
$384K
Maximum Investment
$562K
| 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 Gross Revenues: 7% of exhaust systems; 5.5% replacement of engines or transmissions, engine diagnostics, engine seals, mounts and gaskets, transmission mounts, scheduled maintenance; 4% of batteries; 3% of tires, state inspections, towing services, Emissions Inspections; 5% of all other authorized products and services. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 8% of your Gross Revenues; 1.5% of Gross Revenues from the sale of tires, towing services, and government-regulated inspections. For new centers, the greater of 8% of Gross Revenues or $250 for the first 12 weeks. | National brand fund |
| Total Investment Range | $206,774 – $561,688 | Includes build-out, inventory, working capital |
The investment range of $207K–$562K 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 Gross Revenues: 7% of exhaust systems; 5.5% replacement of engines or transmissions, engine diagnostics, engine seals, mounts and gaskets, transmission mounts, scheduled maintenance; 4% of batteries; 3% of tires, state inspections, towing services, Emissions Inspections; 5% of all other authorized products and services.) and marketing fee (8% of your Gross Revenues; 1.5% of Gross Revenues from the sale of tires, towing services, and government-regulated inspections. For new centers, the greater of 8% of Gross Revenues or $250 for the first 12 weeks.) 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 | $155,870 |
| 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) | $10,000 | $180,000 |
| Additional Funds - 3 Months (8) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500, subject to increase in the CPI, or, at our option, our then-current initial franchise fee for Meineke Centers |
| Renewal Fee | $5,000, subject to any increase in the CPI |
| Technology Fee | Technology Administrative Fee: $100 per month; Franchisee Profitability Program Software Fees: Currently, $14.95 per month (one-time onboarding fee of $50); M.Key Software Maintenance Fee: $375 Basic Software Maintenance Fee (or, if you purchase AutoVitals, $275), plus additional options. |
| Audit Fee | Cost of audit, including charges of independent accountant/third-party vendor, attorneys’ fees, per diem fees and costs of employees related to travel and lodging, plus interest. |
| Intershop Late Fee | $20 |
| Service Fee (Co-branded Meineke/Econo Lube Center) | $34 per week |
| Initial Advertising Contribution Upon Transfer | $20,000 |
| Resale Assistance Fee | $15,000 |
| M.Key Software Transfer Fee | $1,000 |
| Relocation Fee | $1,000 |
| Upgrade of Center | Up to $20,000 per occurrence (not more often than once every 5 years) |
| Sublease Rent | 110% of rent payable by sublessor, plus 1.25% of contribution for construction/improvement |
| 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 month thereafter |
| 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 (NSF) occurrence |
| Alternative Supplier Evaluation Fees | Will vary under the circumstances |
| Training Fees | No charge for initial training; may charge a fee to cover out-of-pocket costs of supplemental training |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to a maximum of 13 days |
| Classroom Training | 69 Hours |
| On-the-Job Training | 7 Hours |
| Training Location | Meineke University in Charlotte, North Carolina, with additional training possible at a designated Meineke Center. |
| Additional Training | Initial training program for retraining is offered at no charge. Training for new Core Products and Services is provided at no charge. Special training for deficiencies may be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area with Right of First Refusal |
| Exclusive Territory | Yes |
| Territory Size | 2-mile radius (Protected Area); 3-mile radius (Right of First Refusal); more than 1 Meineke Center for every 50,000 motor vehicles in the Metropolitan Statistical Area. |
| Description | The Franchise Agreement grants the right to operate at a specific location. A 2-mile radius from the Premises is a 'Protected Area' where no other Meineke Center will be granted. Outside this 2-mile radius but within a 3-mile radius, the franchisor must offer a right of first refusal for new Meineke Centers. Additionally, there will be no more than 1 Meineke Center for every 50,000 motor vehicles registered in the Metropolitan Statistical Area. For Development Agreements with 5 or more centers, a Limited Exclusivity Addendum grants certain limited exclusive rights in the Development Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15, 8 or 5 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; franchisee, owners, and affiliates must be in compliance with agreements; maintain possession of premises for the term of renewal; sign successor franchise agreement; remodel Center; pay successor franchise fee; sign release (if state law allows). The successor franchise agreement may have materially different terms and conditions. |
| Transfer Fee | $7,500, subject to increase in the CPI, or, at our option, our then-current initial franchise fee for Meineke Centers |
| Transfer Conditions | Franchisee must give notice, be in compliance with agreements, pay transfer fee, and execute a non-compete agreement and general release (if state law allows). Transferee must meet franchisor standards, complete training, pay initial advertising contribution, execute new franchise agreement or assignment, remodel Center to new standards, and meet financial requirements. Center must be open and operating. Financing offered by franchisee must be subordinate to franchisor obligations. |
| Termination for Cause | The franchisor may terminate the agreement upon notice for various defaults, including insolvency, bankruptcy, material misstatement, felony conviction, unauthorized use of confidential information, unauthorized transfer, termination of lease, repeated defaults, or default under other agreements. Curable defaults typically have a 30-day cure period. |
| Non-Compete Period | 1 year |
| Non-Compete Details | During the term of the franchise, you and your owners may not own, manage, operate, or consult with any Competitive Business anywhere, or any entity granting franchises for a Competitive Business. After termination or expiration, for 1 year, you and your owners are prohibited from owning, managing, operating, or consulting with any Competitive Business located at the Premises, within a 6-mile radius of the Center, or within a 6-mile radius of any Meineke Center in operation at the time the agreement was signed. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisor may require the franchisee (or Operating Partner) to actively participate and exert best efforts in the direction and management of the Center. A manager, who must successfully complete the Internet training program, must devote substantially all business time to on-premises management. If the franchisee is an entity, an Operating Partner owning at least 10% equity and voting rights, completing training, and having authority to bind the entity, must be designated. |
| Required Suppliers | Dominion Holdings, Inc. d/b/a Source4 (customer receipts); Meineke (M.Key Software) |
| Supply Restrictions | You must operate your Center in strict conformity with our methods, standards and specifications. You may only use parts, uniforms, forms, labels, inventory and supplies that conform to our specifications and standards and/or are purchased from approved suppliers (which may include us and/or our affiliates). Exhaust system parts meeting California noise regulations are deemed approved. All other parts meeting original equipment manufacturer’s standards are deemed approved unless determined otherwise by franchisor. |
| Franchisor Revenue from Suppliers | M.Key Software sales and maintenance: $2,620,140 (2021); Prompt pay discounts from vendors: $64,868 (2021); Affiliate revenue from equipment, inventory, supplies: $2,336,783 (2021); Affiliate gross revenue from subleasing: $1,679,366 (2021) |
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 Franchisor SPV- seasoned franchisor exemption Franchise Earnings — Item 19
Average Revenue
$853K
Median Revenue
$793K
Revenue Range
$148K – $3.8M
Sample Size
540 units
Past financial performance does not guarantee future results. Individual results will vary.
Meineke Franchisor SPV- seasoned franchisor exemption Litigation & Risk Flags
3 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 Franchisor SPV- seasoned franchisor exemption System Growth
Total Units
700
Franchised
700
Company-Owned
0
Meineke Franchisor SPV- seasoned franchisor exemption currently operates 700 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 |
|---|---|---|---|
| 2019 | 26 | 27 | 726 |
| 2020 | 26 | 50 | 702 |
| 2021 | 32 | 25 | 700 |
Transfers: 35 | Closures: 34
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
$208.8M
Net Income
$132.9M
Total Assets
$530.9M
Audited by Grant Thornton LLP for year ending December 25, 2021.
Meineke Franchisor SPV- seasoned franchisor exemption Franchise — FAQ
The total investment to open a Meineke Franchisor SPV- seasoned franchisor exemption franchise ranges from $206,774 to $561,688, 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 Franchisor SPV- seasoned franchisor exemption charges a royalty fee of Greater of an annual minimum royalty of $20,800 or a calculated royalty based on Gross Revenues: 7% of exhaust systems; 5.5% replacement of engines or transmissions, engine diagnostics, engine seals, mounts and gaskets, transmission mounts, scheduled maintenance; 4% of batteries; 3% of tires, state inspections, towing services, Emissions Inspections; 5% of all other authorized products and services. of gross sales, plus a 8% of your Gross Revenues; 1.5% of Gross Revenues from the sale of tires, towing services, and government-regulated inspections. For new centers, the greater of 8% of Gross Revenues or $250 for the first 12 weeks. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Meineke Franchisor SPV- seasoned franchisor exemption 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 Franchisor SPV- seasoned franchisor exemption to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Meineke Franchisor SPV- seasoned franchisor exemption franchise owners report average revenue of $853K and median revenue of $793K. This is based on a sample of 540 units. Past performance does not guarantee future results.
Meineke Franchisor SPV- seasoned franchisor exemption has been franchising since 1972. The FDD shows an investment range of $206,774-$561,688, a Greater of an annual minimum royalty of $20,800 or a calculated royalty based on Gross Revenues: 7% of exhaust systems; 5.5% replacement of engines or transmissions, engine diagnostics, engine seals, mounts and gaskets, transmission mounts, scheduled maintenance; 4% of batteries; 3% of tires, state inspections, towing services, Emissions Inspections; 5% of all other authorized products and services. royalty, and includes an Item 19 earnings disclosure. There are 3 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 $206,774 to $561,688 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.
Similar Automotive Franchises
Interested in Meineke Franchisor SPV- seasoned franchisor exemption?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Franchisor SPV- seasoned franchisor exemption 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 Franchisor SPV- seasoned franchisor exemption or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com