About Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions Franchise
Michelin Retread Technologies operates the Michelin Commercial Service Network, a franchise system focused on commercial tire retreading and fleet tire services.
The brand is backed by Michelin Corporation, one of the world's most trusted names in tire manufacturing.
Since 2010, the franchise program has been connecting commercial fleet operators with certified service providers who extend the life of tires through professional retreading processes.
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $2,500 | One-time payment upon signing |
| Royalty Fee | Not disclosed as a percentage of gross sales. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not a separate fee. Local advertising materials vary by invoice. No national advertising fund contribution required. | National brand fund |
| Total Investment Range | $189,000 – $4,252,500 | Includes build-out, inventory, working capital |
The investment range of $189K–$4.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Not disclosed as a percentage of gross sales.) and marketing fee (Not a separate fee. Local advertising materials vary by invoice. No national advertising fund contribution required.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $2,500 | $2,500 |
| Site development | $10,000 | $3,000,000 |
| Travel, living, and related expenses during initial training; fees for ongoing training | $5,000 | $50,000 |
| ERS inventory requirement | $5,000 | $100,000 |
| Software | $12,000 | $150,000 |
| Opening availability of MCSN Equipment | $2,500 | $500,000 |
| Initial advertising and brand identification per location | $2,000 | $10,000 |
| Computer system | $100,000 | $140,000 |
| Additional funds – 3 Months | $50,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Then-current standard assignment fee |
| Renewal Fee | Not disclosed as a separate fee. |
| Technology Fee | $6,000 to $22,000 per year (for additional MCSN Software fees) |
| Audit Fee | Varies |
| Local Advertising Materials | Varies |
| Interest on Late Payments | Lesser of 24% annually or maximum legal rate we are able to charge |
| Taxes | Actual costs |
| Special Assistance | Per diem fees and charges that we establish |
| Fees to Evaluate Alternative Suppliers | Currently, only out-of-pocket expenses |
| Supplemental Training | Varies |
| Insurance | Cost of the premium plus any costs for our services in procuring the insurance |
| Attorneys’ Fees and Other Costs | Varies |
| Indemnification | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training is provided within 36 weeks after the Franchise Agreement date. Certification must be obtained within 52 weeks. |
| Classroom Training | 8-24 hrs (Best practices, MCSN Software, ERS, Reporting requirements, MCSN online access and information, Audit training); 8-40 hrs (TIA (or other) training and certification); TBD by manufacturer (Non-MRTI manufactured equipment and tools) |
| On-the-Job Training | 10-100 hrs (Best practices, MCSN Software, ERS, Reporting requirements, MCSN online access and information, Audit training, TIA (or other) training and certification); TBD by manufacturer (Non-MRTI manufactured equipment and tools) |
| Training Location | Online, MNA training center, your Service Center, other Service Centers. |
| Additional Training | Supplemental training programs may be required for managers and other personnel, for which reasonable charges may be assessed. Franchisees are responsible for ensuring service technicians are TIA certified and for third-party training for non-MRTI manufactured equipment. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | thirty (30) mile radius around each Service Center |
| Description | The Franchise Agreement grants the right to operate Service Centers within a defined Service Territory (Exhibit A). This right is non-exclusive, and the franchisee may face competition from other franchisees, franchisor-owned outlets, or other distribution channels/competitive brands. MRTI retains all rights to the Marks, MCSN Service System, and Service Center locations globally, including operating or licensing others to operate Service Centers anywhere, even in the vicinity of the franchisee's Service Center. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Up to 10 years |
| Renewal Term | Not specified as a fixed term; on mutually agreed terms and conditions. |
| Renewal Fee | Not disclosed as a separate fee. |
| Renewal Conditions | Subject to mutual agreement, fulfillment of conditions (including executing general releases of claims against franchisor and affiliates), and signing the then-current form of the Franchise Agreement. Automatic renewal if neither party gives 90 days written notice of non-extension. |
| Transfer Fee | Then-current standard assignment fee |
| Transfer Conditions | Subject to MRTI's prior written approval. Conditions include: franchisee and owners in compliance and all amounts paid; transferee provides requested information, meets qualifications, has sufficient business experience, aptitude, and financial resources; transferee agrees to upgrade Service Center and MCSN Equipment to current requirements and enroll in training; transferee assumes all Transaction Documents or executes current franchise agreement; franchisee/transferee pays assignment fee; franchisee/owners execute general release; proposed transfer terms do not place unreasonable financial/operational burden on transferee; any financing by franchisee to transferee is subordinate to obligations to MRTI; franchisee/owners execute non-competition covenant (2 years, 200 miles from Service Center/Territory). |
| Termination for Cause | Immediate termination without notice for insolvency, bankruptcy, receivership, or assignment for creditors. Automatic termination upon notice for unsatisfied judgments ($50,000+ for 30+ days), attached bank accounts/property, levied execution, lien foreclosure (not dismissed in 30 days), voluntary dissolution, failure to comply with laws, seizure of premises, danger to public health/safety, or inability to pay debts. Termination upon notice for failure to open Service Center, abandonment (30 days), unauthorized removal/transfer of MCSN Equipment/Software, material misstatement in application, lease cancellation, felony conviction, unauthorized transfer, unauthorized use/disclosure of Confidential Information/Operating Manual, failure to timely pay amounts due (10 days to cure), or failure to comply with other Transaction Document provisions (30 days to cure), or 3+ failures to comply within 12 months. |
| Non-Compete Period | During the term of the franchise, and for 2 years after transfer. |
| Non-Compete Details | During the term, franchisee and its affiliates, owners, guarantors, spouses, and immediate family members may not directly or indirectly own, advise, or provide services to any Competitive Business, divert business, or do anything prejudicial to Marks/MCSN Service System. After transfer, franchisee and owners may not directly or indirectly own, advise, or provide services to any Competitive Business within 200 miles of each Service Center and/or within the Service Territory for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If the franchisee is an individual, participation is strongly encouraged. If the franchisee is a legal entity, owners may be required to sign a personal guarantee and nondisclosure agreements. The franchisor does not require the manager to have an equity interest. |
| Required Suppliers | Franchisees must purchase or lease all equipment, fixtures, services, supplies, and signs from MRTI or from suppliers MRTI has accepted. If no MRTI recommendation or approved supplier list exists, each Service Center makes the decision per the needs of its business. |
| Supply Restrictions | MRTI may periodically modify the list of specifications and standards, including accepted types, brands, models of supplies, signs, equipment, and/or suppliers. Franchisees must obtain written approval from MRTI to use any equipment, signs, or supplies not on the accepted list. MRTI may impose reasonable fees to cover evaluation costs for alternative suppliers. |
| Franchisor Revenue from Suppliers | Presently, we do not receive payments from third-party suppliers based on your purchases related to the provision of MCSN Services from such third-party suppliers. We may, however, arrange to do so in the future. |
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. We do not know whether you will be able to obtain financing for all or part of your investment and, if so, the terms of the financing. We do not receive direct or indirect payments for placing financing. |
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions Franchise Earnings — Item 19
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions System Growth
Michelin Retread Technologies (Michelin Commercial Service Network) Exemptions currently operates 340 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 | 14 | 25 | 320 |
| 2020 | 8 | 11 | 317 |
| 2021 | 35 | 12 | 340 |
Transfers: 20 | Closures: 48
State Registrations
Registered in 6 states: CA, IL, IN, MI, NY, WI
Franchisor Financials (Item 21)
Audited by PricewaterhouseCoopers LLP for year ending December 31.
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