About Michelin Retread Technologies (Michelin Commercial Service Network) Franchise
Michelin Retread Technologies supports the Michelin Commercial Service Network through registered franchise operations in tire retreading and commercial fleet services.
Operating under the Michelin Corporation umbrella, this franchise program connects independent tire service providers with the resources, technology, and brand strength of one of the most recognized names in the global tire industry.
The network has been active since 2010.
Michelin Retread Technologies (Michelin Commercial Service Network) Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $2,500 | One-time payment upon signing |
| Royalty Fee | Not disclosed in provided text of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not applicable | 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 in provided text) and marketing fee (Not applicable) 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 specified |
| Technology Fee | $6,000 to $27,500 per year (additional fees for MCSN Software) |
| Audit Fee | 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 within 36 weeks; certification within 52 weeks after Franchise Agreement date. |
| Classroom Training | 8-40 hours (depending on subject) |
| On-the-Job Training | 10-100 hours (depending on subject) |
| 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 and offer MCSN Services within a defined Service Territory (a 30-mile radius around each Service Center). This is a non-exclusive right, meaning franchisees may face competition from other franchisees, franchisor-owned outlets, or other distribution channels/competitive brands controlled by the franchisor. The franchisor retains all rights to the Marks, MCSN Service System, and Service Center locations globally, including operating its own or licensing others to operate Service Centers anywhere, and offering products/services under other trademarks. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Up to 10 years from the anniversary of the Effective Date |
| Renewal Term | No unilateral right to renew; renewal is by mutual agreement on new terms and conditions. |
| Renewal Fee | Not specified |
| Renewal Conditions | Automatic renewal if neither party gives 90 days written notice not to extend. May be conditioned on executing a general release of claims against franchisor and affiliates, and signing the then-current franchise agreement. |
| 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 upgrades Service Center and MCSN Equipment to current requirements; transferee enrolls in training and obtains certification; transferee assumes all Transaction Documents or executes current standard franchise agreement; payment of assignment fee; franchisee and owners execute a general release; proposed transfer terms do not place unreasonable financial/operational burden on transferee; any franchisee financing is subordinate to franchisor obligations; franchisee and owners execute a noncompetition covenant. |
| Termination for Cause | Immediate termination without notice for insolvency, bankruptcy, receivership, unsatisfied judgments of $50,000+, attached bank accounts/property, levied execution, lien foreclosure, voluntary dissolution, or if continued operation endangers public health/safety, or inability to pay debts. Termination upon notice for failure to open/operate Service Center, unauthorized removal/transfer of 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 within 12 months. |
| Non-Compete Period | During the term of the franchise; None after termination or expiration. |
| Non-Compete Details | During the term, without MRTI's consent, franchisee, owners, guarantors, affiliates, spouses, and immediate family members may not directly or indirectly own, advise, or render services to any competitive business, provide competing services/products, divert business, or do anything prejudicial to the Marks or MCSN Service System. This applies anywhere a competitive business is located or grants franchises. After termination or expiration, there are no non-competition covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If you are an individual, we strongly encourage you to participate in the operation of the Service Center personally. Your manager need not have an equity interest in the business. If the franchisee is a legal entity, owners may be required to sign a personal guarantee and non-disclosure agreements. |
| Required Suppliers | Franchisees must purchase or lease all equipment, supplies, signs, and equipment of types, brands, and models that meet MRTI’s standards and specifications, and only from MRTI or accepted suppliers. MRTI has designated a single supplier for certain MCSN Products, which franchisees must purchase from exclusively. |
| Supply Restrictions | If MRTI has an approved supplier/manufacturer list, franchisees must purchase or lease service equipment, tools, and materials only from MRTI or those on the approved list. MRTI may periodically modify this list. Franchisees must obtain written approval from MRTI to use any unaccepted equipment, signs, or supplies. |
| Franchisor Revenue from Suppliers | Presently, the franchisor does not receive payments from third-party suppliers based on franchisee purchases, but may 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) Franchise Earnings — Item 19
Michelin Retread Technologies (Michelin Commercial Service Network) 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) 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) System Growth
Michelin Retread Technologies (Michelin Commercial Service Network) 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 | 12 | 320 |
| 2020 | 8 | 11 | 317 |
| 2021 | 35 | 12 | 340 |
Transfers: 20 | Closures: 35
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by PricewaterhouseCoopers LLP for year ending December 31.
Michelin Retread Technologies (Michelin Commercial Service Network) Franchise — FAQ
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