Meineke Car Care Centers
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Nearly four decades ago, Sam Meineke began his first store in Houston, TX with a single product line and a simple concept: provide quality products and workmanship at a fair price. That concept, along with the application of new technology and strategies, has made Meineke Car Care Centers one of the most recognized and trusted automotive franchise brands in North America. Today, the automotive franchise has over 900 centers worldwide and has successfully evolved into a one-stop automotive business that consumers are looking for.
The Meineke franchise represents a great opportunity as more people are holding on to older cars longer, driving the demands for professional repair and maintenance services. The U.S. automotive aftermarket repair and service business is approaching $200 billion in annual sales.
| |
Operating Units |
6/28/2009 |
6/27/2010 |
6/26/2011 |
|---|
| | Franchised |
847 |
837 |
844 |
| | % Change | -- |
-1.2% |
0.8% |
| | Company-Owned | 7 |
8 |
7 |
| | % Change | -- |
14.3% |
-12.5% |
| | Total |
854 |
845 |
851 |
| | % Change | -- |
-1.1% |
0.7% |
| | Franchised as % of Total |
99.2% |
99.1% |
99.2% |
Investment Required
The fee for a Meineke franchise is $30,000.
Meineke provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced. Please note the figures below represent expenses for a 4 Bay Location. Franchisees can also purchase a 5 Bay Location, with a Total Initial Investment of $149,432.81 – $344,802.55, and a 6 Bay Location with a Total Initial Investment of $163,132.90 – $415,833.47.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $15,000 | $30,000 |
| |
Expenses While Training | $1,875 | $2,700 |
| |
Rent, Security Deposits and Utility Deposits |
$3,200 |
$9,620 |
| |
Opening Inventory |
$1,000 |
$30,000 |
| |
Equipment, Signs, Tools, etc. |
$79,206.29 |
$106,349.53 |
| | Freight | $1,500 |
$2,500 |
| |
POS Software, Computer Hardware | $4,995 |
$7,729.17 |
| | Center Supplies |
$10,672.16 |
$10,672.16 |
| | Insurance |
$1,000 |
$2,000 |
| |
Initial marketing |
$1,200 |
$5,000 |
| |
Legal/Accounting Expenses |
$1,000 |
$6,000 |
| | Pre-paid Expenses |
$300 |
$25,000 |
| |
Additional Funds (3 Months) | $30,000 |
$60,000 |
| |
Total Initial Investment |
$150,948.45 |
$297,570.86 |
Ongoing Expenses
Meineke franchisees pay a royalty fee equal to the greater of an annual minimum of $20,800 or a fee ranging from 3-7% of gross revenue, depending on the types of services or products provided. Other fees include an advertising fund contribution equal to 1.5% of gross revenue generated from tire sales, towing services and inspections, and 8% of all other gross revenue.
What You Get—Training and Support
An initial training program is conducted every month at the Meineke University in Charlotte, NC and lasts a maximum of 25 days–the length for each trainee depends on the trainee’s job function(s). During week one, training covers the areas of advertising/marketing strategies, human resources, computer software, selling and pricing, telephone/drive-in procedures and management of finances. Week two training focuses on inventory management, customer relations/complaint handling, the warranty and intershop program, the commercial selling process, technical issues, safety procedures, undercar inspections and hands on repairs. During week three, franchisees are introduced to the hydraulic theory and similar principles, selling brakes, basic brake theory and corresponding principles, brake cataloging, shocks and struts, constant velocity joints, coil and leaf springs, and the rack and pinion/conventional steering system. The final week of training (week four) familiarizes franchisees with front-end parts, batteries, universal joints, motor and transmission mounts, trailer hitches, belts, the cooling system service and oil and filter changes.
Ongoing support with advertising and training is also provided.
Territory
Meineke grants protected territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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