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Meineke

Meineke

Meineke franchises automotive maintenance and repair centers that specialize in servicing exhaust system components, brake system components, and providing other automotive maintenance and repair services. The business model allows franchisees to operate these centers under the Meineke brand, offering quick and reliable vehicle services. The target market includes vehicle owners seeking professional auto repairs and maintenance.

716locations
$225K–$1201K
Since 1972
AutomotiveCharlotte, NCDriven Brands, Inc.www.meineke.comDisclaimer

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Franchise Costs

Franchise Fee
$45,000
Initial Investment
$224,898 – $1,200,818
Royalty Rate
5.00%
Brand Fund
8.00%
Fixed Monthly Fees
$305 – $750

Tiered royalty (3%-7% of gross sales by service category, typical 5%) + 8% MAF ad fund (1.5% on tires/towing/inspections) + $305-$750/mo technology/software fees

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$971,221
Median Gross Revenue
$913,607
EBITDA Margin
20%
Top Quartile Revenue
$1,297,015
Bottom Quartile Revenue
$646,613
Average Gross Profit
$784,248
Average EBITDA
$211,147

Data Based On: 549 franchised Meineke Centers that operated from December 31, 2023 through December 28, 2024 (the “2024 Fiscal Year”) and that met the following criteria: (i) the Meineke Center had operated for at least 2 full years as of the end of the 2024 Fiscal Year; (ii) the Meineke Center operated with at least 5 repair bays; and (iii) the Meineke Center reported Gross Revenues and KPI data to us for the full 2024 Fiscal Year.

* Primary average gross revenue and median gross revenue are based on 549 franchised Meineke Centers for the 2024 Fiscal Year, as detailed in Part A of the financial performance representation. Revenue for Top 50% and Bottom 50% segments are also derived from this sample. Gross profit and EBITDA figures are based on a subset of 91 franchised Meineke Centers that provided full P&L statements and met additional criteria, as detailed in Part C. Weighted average calculations were performed to verify the reported 'Average for All Meineke Centers' values for the 91-center sample (Gross Revenues, Gross Profit, 4-Wall EBITDA, and 4-Wall EBITDA %). The 'best_guess_profit_low' is the average 4-Wall EBITDA for the bottom performing 50% of the 91 centers ($127,333), and the 'best_guess_profit_high' is the average 4-Wall EBITDA for the top performing 50% of the 91 centers ($296,824), providing a range based on segmented performance.

Extracted Item 19 Section

Avg. Revenue: $971,221

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Meineke Franchise Analysis

Meineke has powered automotive repair franchises for over five decades, but its latest FDD paints a mixed picture of steady operations laced with notable churn. Item 19 finally discloses revenue and profit benchmarks that challenge assumptions about easy scalability in auto services, while SBA lending history uncovers financing realities. Can this veteran brand deliver the returns its footprint suggests, or do the transfer volumes hint at something else?

Franchising since 1972 under Driven Brands, Meineke expanded modestly from 702 to 716 locations between 2023 and 2024—a 2% uptick—with 14 projected new units signaling cautious optimism. Yet system health metrics raise eyebrows: 8 terminations and 8 non-renewals in the past year, alongside 74 transfers, suggest active resale market rather than organic growth. Item 20 details this stability without contraction, but the high transfers could mean franchisees are flipping shops amid profitability pressures, a common sign in mature service brands.

Financials hit harder: initial investment spans $224,898-$1,200,818 including a $45,000 franchise fee, with tiered royalties averaging 5% (3%-7% by service) plus 8% ad fund and $305-$750 monthly tech fees. Item 19 reveals average gross sales of $971,221 and median $913,607, with estimated profits $127,333-$296,824—though a flagged 0% EBITDA margin screams operational squeezes from labor or parts costs. SBA data shows 277 loans averaging $450,596 but a 13.4% default rate, while litigation skews toward franchisor suits over fees. For auto-savvy investors, revenues tempt, but thin margins and churn demand scrutiny before committing.

Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How Meineke Compares

Key Insights

  • Higher investment than 88% of Business Services franchises
  • Lower than average SBA loan default rate in Business Services
FranchiseInvestmentFeeRoyaltyLocations
Meineke
Current
$225K – $1.2M$45K5.0%716
Bimbo Foods Bakeries Distribution, LLC$14K – $607KN/AN/A6,454
THE UPS STORE (TRADITIONAL)$216K – $609K$30K5.0%4,500
RE/MAX$37K – $337K$35K1.0%2,994
JACKSON HEWITT TAX SERVICE$71K – $105K$25K15.0%2,744
CRUISE PLANNERS$2K – $21K$11K3.0%2,655
Business Services Average
198 franchises
$121K – $289K$47K10.2%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1TX
52
2PA
52
3NC
47
4NJ
44
5IL
40
6NV
32
7IN
26
8VA
25
9FL
25
10MA
24
11MO
22
12CO
22
13MD
22
14CT
21
15WA
19

+33 more states

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SBA Loan History


Historical SBA 7(a) loan data for Meineke franchisees (20102025)

Total Loans
277
Average Loan
$450,596
Total Volume
$124.8M
Default Rate
13.4%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

277 SBA loans on record

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Franchisee Contacts

739 franchisee contacts on file from official FDD filings.

739 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases8

Primarily fee collection, royalty payment, advertising contribution, and breach of contract disputes initiated by franchisor against franchisees; franchisee claims involving fraud in inducement, misrepresentation, renewal rights, and good faith/fair dealing.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
8
Non-Renewals
8
Reacquired
0
Ceased Ops
6
Transfers
74
Sold to Franchisees
0
Projected New
14

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Frequently Asked Questions

The total initial investment to open a Meineke franchise ranges from $224,898 to $1,200,818. This includes a franchise fee of $45,000. Ongoing royalty fees are 5.0% of gross sales.