How to Finance a Midas Franchise in 2026

Midas's total investment runs $192K–$431K — one of the more accessible automotive services franchises. SBA 7(a) is the primary financing vehicle. Here's how lenders evaluate the deal and what you need to qualify.

Key takeaways

• Total investment: $192K–$431K depending on site type, geography, and conversion vs. new build
• Midas is on the SBA Franchise Directory — SBA 7(a) covers the financed portion up to $5M
• Midas's multi-service model (brakes, exhaust, tires, oil changes) creates broader revenue diversification than single-service concepts
• SBA 504 applies when the franchisee acquires the real estate as owner-occupied commercial property
• Equipment financing can be layered for lifts, brake service equipment, alignment machines, and POS tech
• Typical lender timeline: 60–90 days from completed application to funding

Midas is one of the most recognized brands in automotive repair services (part of TBC Corporation), with over 1,200 North American locations. Unlike Jiffy Lube's preventive maintenance focus, Midas offers a broader service menu — brakes, exhaust, tires, oil changes, alignment — which creates a more diversified revenue stream. Lenders view this service breadth positively as a hedge against any single service category slowdown. This guide covers the financing mechanics. For a startup cost breakdown, see the companion cost-to-start guide.

Midas total investment + what lenders look at

Total estimated initial investment per the current FDD runs $192K–$431K depending on site type, geography, and new build vs. conversion. Lenders evaluate the following when underwriting a Midas franchise deal:

• Equity injection documentation: SBA requires a minimum 10–20% of total project cost in non-borrowed liquid cash.
• Service bay count and capacity: Midas's multi-service model requires adequate bay count to run brake, tire, and alignment services simultaneously.
• Automotive repair experience: Prior automotive services management experience is viewed favorably by both the franchisor and lenders.
• Location cash flow (existing unit): Trailing 12-month revenue; DSCR of 1.25x or better for acquisitions.
• Personal credit: 680+ personal FICO is a common SBA lender threshold for franchise deals.

SBA 7(a) for Midas franchises

The SBA 7(a) loan program is the primary financing vehicle for Midas franchise acquisitions. Midas's listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review — shortening timelines by 2–4 weeks. Key parameters:

• Maximum loan amount: $5M — far exceeds a single Midas unit, leaving room for multi-location acquisition packages
• Terms: Up to 10 years for equipment and working capital; up to 25 years when real estate is included
• Rate: Prime + 2.75% for loans over $350K (variable); fixed-rate options vary by lender
• Use of proceeds: Acquisition price, site improvements, bay equipment, alignment machines, working capital reserve
• What it does NOT cover: The equity injection — that must come from borrower's own liquid assets

SBA 504 for real estate and build-out

The SBA 504 program applies when a Midas franchisee is acquiring the real estate as owner-occupied commercial property. Structure: 50% conventional bank loan + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. Many Midas locations operate in standalone service bays that are owner-occupied — 504 is a natural fit for operators building a multi-location portfolio of owned properties.

Equipment financing for Midas

Midas's equipment requirements are more extensive than a preventive maintenance-only concept — the multi-service model needs alignment machines, brake lathes, tire mounting and balancing equipment, vehicle lifts, and exhaust welding equipment in addition to standard oil change systems. These can be financed via equipment loans or leases (3–7 year terms, collateralized by equipment) layered alongside the primary SBA loan. For conversion sites, much of this equipment may already be in place — reducing the equipment financing tranche significantly.

Franchisor financing programs

Midas (through TBC Corporation) does not operate a direct in-house lending program for franchisees. TBC Corporation maintains preferred lender relationships familiar with multi-service automotive franchises. The company has offered development incentives for multi-unit operators and operators in strategic markets — these are operational incentives, not direct financing products. The actual debt is market-rate from third-party lenders.

Down payment and liquidity requirements

Midas's financial qualification thresholds are disclosed in the current FDD. With a $192K–$431K investment range, the SBA equity injection (10–20%) runs $19K–$86K depending on total project cost. Franchisees should also document working capital reserves to cover operating expenses through the ramp-up period. Review Item 7 and Item 5 of the current FDD with your lender for the most current figures.

Timeline to funding

1. Pre-qualification: Lender reviews financial statements, Midas approval letter, site lease or purchase agreement, and FDD. 1–2 weeks.
2. SBA package: Full SBA application: SBA Form 413, 3 years tax returns, business plan, site lease or purchase agreement. 2–3 weeks.
3. SBA approval: SBA review and conditional commitment. 3–6 weeks depending on lender's Preferred Lender (PLP) status.
4. Closing and funding: Title, legal, and closing. 2–3 weeks post-commitment. Total: 60–90 days from complete application.

Apply with ClearValue Lending

ClearValue Lending works with franchise operators across industries — from QSR to automotive services. Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loans explained · SBA 504 loan explained.

Sources

• Midas is listed on the SBA Franchise Directory, making it eligible for expedited SBA 7(a) franchisor review. — SBA Franchise Directory
• SBA 7(a) loans provide up to $5M for eligible franchise startup and acquisition costs, with terms up to 25 years when real estate is included. — SBA 7(a) Loan Program
• SBA 504 loans finance owner-occupied commercial real estate with a long-term fixed-rate debenture — applicable to automotive services franchise real estate acquisitions. — SBA 504 Loan Program
• The FTC Franchise Rule requires franchisors to provide a Franchise Disclosure Document (FDD) with Item 7 (estimated initial investment) and Item 5 (fees). — FTC Franchise Rule — Buying a Franchise: A Consumer Guide
• FDIC data shows SBA-guaranteed loans are the dominant vehicle for franchise acquisitions across sectors where borrower equity meets the 10–25% injection threshold. — FDIC — Financial Institution Letters

What lenders look for in a Midas franchise application

Here are the five factors SBA lenders evaluate when underwriting a Midas franchise deal (per SBA SOP 50 10 7):

• Equity injection: SBA requires 10–20% of project cost in non-borrowed liquid funds. Midas's wide investment range ($192K–$431K) means conversion builds at the lower end may qualify for SBA Express (up to $500K). TBC Corporation's financial qualification thresholds are disclosed in the FDD — document liquid assets before approaching lenders.
• Auto service equipment as collateral: Vehicle lifts, alignment machines, tire mounting and balancing systems, and brake service equipment are substantial capital assets with documented resale values. Lenders typically advance 50–70% against Midas-standard shop equipment. Providing the FDD equipment list upfront helps lenders finalize collateral value quickly.
• Environmental compliance documentation: Auto repair facilities that store used oil, coolant, and other regulated materials are subject to state environmental regulations. SBA lenders frequently require environmental compliance documentation or a Phase I assessment — especially for converted sites. This is the most commonly missed disbursement condition in auto service franchise deals.
• Revenue diversification DSCR: Midas's multi-service model (brakes, oil changes, tires, exhaust, suspension) reduces revenue concentration risk compared to single-service concepts. Lenders view multi-bay, multi-service shops more favorably in DSCR modeling — non-discretionary demand for auto repair supports revenue consistency.
• Conversion vs. new-build deal structure: Midas locations range from converted existing auto service facilities to new-build shops. Conversions have lower build costs and shorter timelines; new builds may need SBA 504 if the franchisee acquires the real estate. Site type determines the loan structure — clarify early with your lender.

Environmental phase review is the critical path item for Midas conversions

For Midas conversions — especially former gas station or auto service sites — a Phase I Environmental Site Assessment is often required before lenders issue a commitment. Order the Phase I early in the process. If Phase I flags a recognized environmental condition (REC), a Phase II may be required, adding 4–8 weeks to closing. New-build sites on clean land avoid this entirely. Ask your lender upfront whether they require Phase I for your specific site.

Frequently asked questions