Midas franchise cost: investment, fees and the SBA default rate

Items 5, 6 and 7 · Midas FDD 2026 · Updated 2026

A Midas franchise costs $385,450–$940,050 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $35,000 (Item 5). Midas charges a royalty of 2-10% of Net Revenue, with lower rates on tires and batteries; marketing is paid from royalties rather than a separate advertising fee. On the lending side, Midas franchisees defaulted on 10.0% of SBA 7(a) loans approved FY2010–FY2019 (8 of 80), and the average SBA loan to a Midas franchisee in that cohort was $385,469.

Midas franchise cost and SBA record.

Total initial investment (Item 7)	$385,450–$940,050
Initial franchise fee (Item 5)	$35,000
Ongoing fees (Item 6)	Midas charges a royalty of 2-10% of Net Revenue, with lower rates on tires and batteries; marketing is paid from royalties rather than a separate advertising fee.
SBA 7(a) default rate, FY2010–FY2019	10.0%
Average SBA loan, 2010s cohort	$385,469
Average SBA loan since 2020	$722,574
Industry	General Automotive Repair

How much does it cost to open a Midas franchise?

Item 7 of the FDD estimates the total initial investment at $385,450–$940,050. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Range is for a new 8-bay Midas Shop; converting an existing repair facility or opening a Co-Branding Shop has separate estimates.

What does the SBA data add?

The federal loan record adds what the FDD cannot: Midas franchisees defaulted on 10.0% of SBA 7(a) loans approved FY2010–FY2019 (8 of 80 resolved loans), against the General Automotive Repair industry average of 7.6%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 61 new SBA loans, of which 0 have already charged off.

Set the investment range against the loans: an average SBA loan of $385,469 against the $385,450–$940,050 investment range says roughly how much of a typical Midas opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.

Considering Midas?

The Item 19 in Midas's FDD was written by Midas. The record on this page was written by the banks that lent to its owners and by the federal agency that paid when those loans went bad. Take that record with you, or have an analyst hold the brand's own disclosures up against it before you sign.

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The loan-level detail this page leaves out: the default rate of Midas loans by the owner's situation (start-up, existing business, or bought an existing one), what owners who repaid borrowed against owners who defaulted, the year of the loan the charge-offs came in, how much was written off, the states with the most loans and the lenders that made them. Plus the rate by approval year, lending since 2020, nearest peers, what its FDD discloses and the CSV behind every table, in a PDF a loan officer will recognize. Stamped with your order. Yours the moment you pay.

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An analyst takes Midas's own disclosures, the Item 19 revenue claim, the Item 20 closures and transfers, the Item 3 litigation, and reads them line by line against this federal record, ending in a written verdict you can put in front of your attorney and lender. SBA Record Snapshot the moment you pay; the full teardown by email within 24 hours.

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Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.

Frequently asked

How much does a Midas franchise cost?

What is the Midas franchise fee?

$35,000, per Item 5 of the FDD.

What royalty does Midas charge?

Midas charges a royalty of 2-10% of Net Revenue, with lower rates on tires and batteries; marketing is paid from royalties rather than a separate advertising fee.

What is Midas's SBA loan default rate?

10.0%: 8 of 80 SBA 7(a) loans approved FY2010–FY2019 to Midas franchisees were charged off.

Source

Sources: Midas Franchise Disclosure Document (2026, Wisconsin DFI filing 641034); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.

Cite this page

Franchise Failure Rates (2026). Midas franchise cost, Items 5–7, and SBA 7(a) default rate. From the Midas FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/midas/cost/ · Data & methodology

Author: Franchise Failure Rates · First published August 17, 2026 · Updated September 30, 2026 · Citation format