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.
Midas financing snapshot
SBA Franchise Directory
Listed
Loan programs typically used
SBA 7(a), SBA 504, Equipment financing
Total investment
$192,000–$431,000
Minimum equity injection
10%–20%
Typical timeline to funding
60–90 days
Source: Midas Franchise Disclosure Document (FDD) + published franchisee financing guidance · as of 2026-07-17. Figures vary by lender, market, and individual borrower profile; verify current terms with your funding partner before applying.
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
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.
2 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 + 3.0% 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
3 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.
4 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.
5 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.
6 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.
7 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.
8 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 the funding partners in our network best matched to your file. 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 Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources automotive services small employer firms use to fund startup and build-out costs at this investment tier. — Federal Reserve — Small Business Credit Survey
9 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 8):
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.
Frequently asked questions
Can I use an SBA loan to finance a Midas franchise?
Yes. Midas is on the SBA Franchise Directory, allowing lenders to skip independent franchise agreement review. SBA 7(a) can finance the portion above your equity injection, up to $5M — well above a single Midas unit.
How is Midas different from a single-service automotive franchise to finance?
Midas's multi-service model (brakes, exhaust, tires, oil changes, alignment) creates broader revenue diversification than a preventive maintenance-only concept. Lenders view this positively as a hedge against single service category downturns — which can translate to more favorable underwriting.
How much cash do I need to open a Midas franchise?
Midas's financial thresholds are in the current FDD. With a $192K–$431K investment range, plan for a 10–20% SBA equity injection plus working capital reserves. Review Item 7 with your lender for the most current figures.
Does Midas offer in-house financing for franchisees?
Midas does not operate a direct lending program. TBC Corporation may offer development incentives in strategic markets, but actual financing is market-rate debt from third-party SBA-preferred lenders.
How long does financing take for a Midas franchise?
Expect 60–90 days from a completed SBA application to funding. SBA Preferred Lenders (PLPs) can issue conditional commitments in 3–4 weeks. Coordinate the Midas franchisee approval process in parallel to avoid sequencing delays.
Summary:
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.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
