Midas Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Health & Wellness
• Initial Investment: $341,650 to $924,890
• Franchise Fee: $35,000
• Royalty: 2% to 10% of Net Revenue; up to 11% in certain co-branding cases
• Marketing / Ad Fee: The disclosure does not clearly establish a standard percentage
• Key additional recurring fees: Warranty registration fees, tire guarantee fees, possible rent/taxes/insurance if property is leased from affiliated landlords, fleet processing fee of 1.25% plus $0.95 per transaction, late/reporting fees
• Number of locations: 975 franchised outlets at year-end; 0 company-owned outlets
• Best Fit: Owner-operator

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The estimated initial investment ranges from $341,650 to $924,890, with a midpoint of roughly $633,270. The initial franchise fee is $35,000, and the disclosure also lists additional funds of $40,150 to $67,000.

Major cost drivers appear to include the franchise fee, lease-related costs, equipment-heavy shop setup, and working capital. The recurring fee table also indicates that if property is leased from Midas Realty or Midas Property, rent can run from $5,000 to $20,000 per month, plus real estate taxes and insurance, which can materially affect required capital and ongoing cash needs.

Based on the disclosed range, this is a high-cost franchise entry point.

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• Royalty: 2% to 10% of Net Revenue; up to 11% in certain co-branding cases
• Marketing / Advertising: The disclosure references this fee, but the standard amount is not clearly established in the available fee details
• Warranty Registration Fee: Examples include $2.43 per axle for brake pads or shoes, $4.80 per muffler, and $1.04 per shock or strut
• Midas Limited Lifetime Tire Guarantee Fees: $1.60 per qualifying tire sold
• Fleet Program Processing Fee: 1.25% of qualifying fleet sales transactions plus $0.95 per transaction
• Rent, Taxes & Insurance: If leased from affiliated landlords, fixed minimum rent of $5,000 to $20,000 per month or, in limited cases, 7% or more of gross sales, plus taxes and insurance
• Renewal Fee: Currently $5,000
• Relocation Fee: $1,000
• Late Sales Report Fee: $20 per month
• Manual Sales Report Fee: Currently $100
• Interest on Late Royalty Payments: Lesser of 18% per year or the maximum allowed by law

Overall, the fee load appears meaningful because it combines a variable royalty, advertising obligations that are referenced but not fully quantified here, and several transaction-based or operational charges.

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Yes, Item 19 includes financial performance data.

For 941 U.S. franchised shops that operated throughout 2023 and 2024, had been open at least 24 consecutive months as of December 31, 2024, and reported gross revenues for each month, the disclosure states that the overall average annual gross revenues were $1,234,101.77. It also states that 37.4% of reporting shops exceeded that average.

Revenue by quartile

Top quartile

• Average revenue: $2,181,224
• Median revenue: $1,822,754
• Range: $1,593,300 to $6,541,249

2nd quartile

• Average revenue: $1,335,101
• Median revenue: $1,335,826
• Range: $1,179,026 to $1,573,594

3rd quartile

• Average revenue: $1,046,362
• Median revenue: $1,024,502
• Range: $909,236 to $1,178,431

4th quartile

• Average revenue: $760,966
• Median revenue: $743,286
• Range: $423,536 to $906,855

Operating income data for a separate 438-outlet table

The disclosure also includes a table for 438 franchise outlets, with quartile averages for income and operating results:

Top quartile

• Total income: $2,181,224
• Gross profit: $1,551,851
• Net income from operations: $365,962
• Net income from operations margin: 16.8%
• Range of net income from operations: -$127,208 to $1,863,801
• Median net income from operations: $393,251

2nd quartile

• Total income: $1,335,101
• Gross profit: $971,565
• Net income from operations: $172,305
• Net income from operations margin: 12.9%
• Range of net income from operations: -$80,897 to $443,358
• Median net income from operations: $216,512

3rd quartile

• Total income: $1,046,362
• Gross profit: $771,586
• Net income from operations: $116,161
• Net income from operations margin: 11.1%
• Range of net income from operations: -$178,944 to $425,506
• The disclosure lists median net income from operations as $393,251, which does not align clearly with the quartile pattern and is not clearly established

4th quartile

• Total income: $760,966
• Gross profit: $547,589
• Net income from operations: $31,646
• Net income from operations margin: 4.2%
• Range of net income from operations: -$145,684 to $267,215
• The disclosure lists median net income from operations as $216,512, which also does not align clearly with the quartile pattern and is not clearly established

Interpretation

The disclosed results show a wide spread between higher- and lower-performing shops. Average revenue falls from about $2.18 million in the top quartile to about $761,000 in the bottom quartile, and the operating income table shows that some outlets in every quartile posted negative net income from operations.

That matters because revenue is not profit. Even where revenue is substantial, labor, occupancy, royalty and advertising, utilities, and other expenses materially reduce operating income. The operating income figures are useful, but they are not the same as owner cash flow or bottom-line profit after all possible costs, financing, taxes, or owner compensation. The disclosure does not clearly state here whether the Item 19 figures are audited.

The sample is also selective: the 941-shop revenue set excludes co-branded shops, excludes shops without full reporting, and requires at least 24 months of operation. Closed shops during the period are separately noted, which means the figures should not be treated as results for all openings or all operators.

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• Model: Shop-based service business
• Customer type: The disclosure contains mixed signals, but the fee structure and fleet processing references suggest a hybrid model rather than purely consumer or purely commercial
• Revenue pattern: Ongoing operating revenue rather than one-time project revenue
• Operations: On-premises management is required unless waived in writing; monthly sales reporting is required; the model appears equipment-heavy and labor-dependent; occupancy costs can be significant where property is leased from affiliated landlords

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Advantages

• Item 19 provides a large U.S. revenue sample of 941 shops meeting defined reporting criteria
• The system is sizable, with 975 franchised outlets at year-end and no company-owned outlets reported
• The disclosure includes quartile revenue data and a separate operating income table, which helps frame performance dispersion
• The initial term is 20 years, which may matter for operators evaluating a longer operating horizon

Considerations

• Startup cost is high at $341,650 to $924,890
• Owner participation is required unless the franchisor agrees otherwise in writing, limiting passive ownership
• Territory is non-exclusive, so geographic protection is limited
• Royalty can reach 10% of Net Revenue, and up to 11% in certain co-branding cases, before considering other recurring charges
• Performance varies materially across quartiles, and some outlets in each quartile showed negative net income from operations in the disclosed table

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This franchise may fit an owner-operator prepared for a higher initial investment, direct on-site involvement, and a business with meaningful labor, occupancy, and reporting requirements.

It likely does not fit someone seeking a low-cost entry, a passive or semi-absentee structure, or a model with exclusive territorial protection clearly built in.

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• The franchisor may terminate without cause, according to the disclosure
• Transfers can involve multiple charges, including a transfer fee and a new franchisee support fee
• If the site is leased from affiliated landlords, rent structure can include either fixed minimum rent or a percentage-of-sales component
• Late payment and reporting failures can trigger added charges and interest
• Litigation is indicated in Item 1

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Midas presents a tradeoff between a large established outlet base with detailed historical operating data and a business model that appears capital-intensive, operationally demanding, and variable by location. The main decision point is whether an investor is comfortable with hands-on management, non-exclusive territory, and a wide spread between top- and bottom-quartile results.

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