Midas franchise startup costs run $345K–$1.4M for an auto repair shop specializing in brakes, tires, exhaust, and general repair. Midas is owned by TBC Brands and has over 1,700 locations in North America. The brand's 10% royalty rate is high for the franchise sector but is supported by strong brand recognition.
Midas is an auto repair franchise founded in 1956 in Macon, Georgia, originally focused on exhaust systems before expanding into brakes, tires, oil changes, steering, suspension, and general mechanical repair. As of 2026, Midas operates more than 1,700 locations in the US and Canada. The brand is owned by TBC Brands, a Florida-based tire and auto service company that also operates Big O Tires and NTB (National Tire & Battery). Midas's positioning as a full-service neighborhood auto repair center — rather than a single-service quick-lube or tire-only shop — gives franchisees access to a broad customer service basket that supports higher average ticket values. Prospective Midas franchisees should review the current FDD for exact investment projections.
Per the current FDD, total estimated initial investment for a Midas franchise runs $345,000–$1,400,000. The range reflects new build vs. conversion of an existing auto service building, market, and whether the franchisee acquires an existing Midas location:
Midas franchisees pay a 10% royalty on net sales plus an advertising fund contribution of 7–9% — for a combined 17–19% of net sales. Midas's royalty rate is among the highest in the auto service franchise sector. This rate reflects the brand's strength in a category where customer trust and brand recognition are primary purchase drivers — consumers are more likely to return to a nationally recognized brand for safety-critical services like brake and exhaust repairs than to shop price alone. TBC Brands' advertising platform supports national and regional campaigns, digital presence, and the Midas loyalty program.
Midas requires prospective franchisees to demonstrate net worth of $200,000 or more and liquid capital of $80,000 or more — financial entry thresholds that are lower than most auto service competitors at this brand level. Auto repair experience or management background is preferred but not always required. The brand evaluates candidates on business operations aptitude, customer service orientation, and community presence, in addition to financial qualifications.
Midas is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:
Midas is on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. At $345K–$1.4M, SBA 7(a) covers most of the range; larger new-construction projects may require SBA 504 for real estate. Here is what underwriters evaluate:
Most Midas loans are SBA 7(a) term loans at 10-year terms covering franchise fee + leasehold improvements + equipment + parts inventory + working capital. After 10–30% equity injection at $345K–$1.4M, loan amounts run $240K–$980K. Vehicle lift and diagnostic equipment is often financed on standalone equipment notes to reduce the SBA loan amount. See SBA 7(a) vs. equipment financing for the structural tradeoff.
ClearValue Lending works with auto service franchise operators on SBA and equipment financing structures. Apply at Find my match. Your file routes to one matched lender.
Per the current FDD, total estimated initial investment runs $345,000–$1,400,000. New-construction auto service shops are at the high end; conversions of existing service buildings are at the low end.
Midas charges a 10% royalty — high for auto service franchises. The rate reflects the brand's recognition value in a safety-critical service category where customers specifically seek out trusted names for brake and exhaust repairs. TBC Brands positions this as a return on brand equity rather than a straight operating cost.
Midas is owned by TBC Brands, a Florida-based tire and auto service company that also operates Big O Tires and NTB (National Tire & Battery).
Midas locations offer brakes, tires, oil changes, exhaust systems, steering and suspension, filters, batteries, and general mechanical repair — a broad service basket relative to single-service competitors.
Yes. Midas is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, build-out, equipment, and working capital. Equipment financing is also common for the lift and diagnostic equipment.
SBA SOP 50 10 7 sets the minimum global DSCR at 1.15× — projected net cash flow must cover all debt obligations at 1.15× or better. Most SBA participating lenders require 1.25×–1.35× for franchise startups. For Midas, lenders model DSCR from FDD Item 19 gross sales data for comparable shops, adjusting for the 17–19% combined royalty/ad fee, lease, technician labor, parts costs, and insurance. Shops with established insurance direct repair program (DRP) relationships support stronger DSCR projections because DRP revenue is non-discretionary. Source: SBA SOP 50 10 7.
Borrowers must inject equity from personal funds — not borrowed for this purpose — per SBA SOP 50 10 7. For Midas's $345K–$1.4M range, equity injection runs $34K–$420K (10–30% of project cost). New-construction auto service facilities and high-end build-outs near the top of the range typically require 20–30% equity; conversions of existing buildings at the lower end may qualify at 10–15%. Equity is documented at closing with bank statements showing funds seasoned in the account for 60+ days.