Meineke is one of the largest car repair chains in the United States, and if you are looking to invest in the automotive industry, then Meineke must have crossed your mind.
If you want to find out how much does a Meineke franchise owner make, how much investment is required, what is the profit-earning potential, etc., then make sure you stick to this guide till the end.
About Meineke
Meineke is a high-quality and technology-focused automotive car repair company that was founded by Sam Meineke in 1972 in San Antonio, TX.
To transition into full-service care centers, in the year 1999, Meineke combined with Maaco to form Driven Brands. Subsequently in 2015 Driven Brands got acquired by Roark Capital Group, and ever since then Meineke has become a huge name in the automotive industry.
Meineke is offering franchise opportunities to individuals who have some business experience, a net worth of $1M, and liquid assets of $500K.
If you think you have the resources to qualify for the Meineke franchise, then keep reading to find out how much does a Meineke franchise owner make.
Meineke Franchise Key Investments
| Franchise fee | $45,000 |
| Royalty fee | 5.0% |
| Marketing fee | 8.0% |
| Investment (mid-point) | $384,000 |
| Payback period | 2.5 years |
| Minimum net worth | $1M |
| Minimum liquid capital | $500K |
How Much Does A Meineke Franchise Owner Make?
The revenue for each Meineke franchise owner may differ based on their performance, location, operating costs, service, etc.
However, an individual Meineke franchise owner makes $853,406 in revenue each year on average, with the minimum and maximum revenue lying in the range of $148,000 to $3,800,000.
And this data is based on the performance of 540/700 franchised centers operating in 2021.
How Much Does Meineke Employee Earn?
According to Ziprecruiter, Meineke pays its employees a minimum of $9.86 an hour and a maximum of $31.01 an hour on average.
If we see this in yearly terms, then an employee at Meineke in an entry-level position earns $20,500 a year, and someone at a higher-level position makes as much as $64,500 a year on average.
Please note that this is an average number, and a Meineke Employee may earn less or more than this depending on their education, skills, position, department, etc.
Pros And Cons Of Meineke Franchise
Pros of Meineke Franchise
- Highly profitable.
- Offers third-party financing.
- Offers comprehensive training.
- Provides exclusive territory protection.
- Real estate and site selection process.
Cons of Meineke Franchise
- External Competition.
Meineke Franchise Average Revenue & Profit
As mentioned earlier, individual Meineke Franchise owners make $853,406 in revenue each year on average.
And as per the information available in the FDD, Meineke Franchise owners make $168,000 of EBITDA each year on average.
We were able to calculate the net profit because of the information provided in the FDD. Here’s how we arrived at this calculation:
| Profit and loss | Amount | % revenue |
|---|---|---|
| Revenue | $853,406 | 100% (as per FDD) |
| Gross Profit | $619,031 | 73% (as per FDD) |
| COGS | $(234,375) | 27% (as per FDD) |
| Rent | $(79,090) | 9% (as per FDD) |
| Labor | $(195,751) | 23% (as per FDD) |
| Advertising | $(68,272) | 8% (as per FDD) |
| Royalty | $(42,670) | 5% (as per FDD) |
| Other operating costs | $(65,247) | 8% (as per FDD) |
| EBITDA | $168,000 | 20% |
Meineke Franchise Failure Rate
To determine the Meineke franchise failure rate, have a look at the table shared below:
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 2020 2021 | 727 726 702 | 726 702 700 | -1 -24 -2 |
| Company-Owned | 2019 2020 2021 | 1 0 0 | 0 0 0 | -1 0 0 |
| Total Outlets | 2019 2020 2021 | 728 726 702 | 726 702 700 | -2 -24 -2 |
The data shared in the table above shows us that a total of 2 outlets closed down in 2019, 24 in 2020, and 2 in 2021.
The decline in the number of outlets that opened and closed, we believe, was due to COVID-19. Also, the number is not very substantial when compared to the total number of outlets.
So Meineke has a low failure rate overall.
Meineke Franchise Payback Period
To find out the Meineke franchise payback period, let us do some calculations:
| AVERAGE INVESTMENT | $384,000 |
| AVERAGE REVENUE PER OWNER | $853,406 |
| AVERGAGE PROFIT PERCENTAGE | 20% |
| AVERGAGE PROFIT PER YEAR | $168,000 |
| AVERAGE PAYBACK PERIOD | 2.5 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 384000/168000 = = 2.2 Years based on median
The average investment for a Meineke Franchise is $384,000 and the average revenue per owner is $853,406.
With an average profit percentage of 20%, the average profit per year is $168,000.
This means that the average payback period for a Meineke franchise is 2.5 years, as the total average investment of $384,000 would be recovered within this period.
What is Meineke Best known For?
Meineke is the nation’s number-one car repair brand that offers a plethora of services, including oil changes, brake repairs, paint, tires, and wheels change, etc.
The company is known for offering timely and quick repairs, for which they have put up an entire package of preventative and repair maintenance services.
You can choose a package that suits you the best and get all the potential issues fixed and taken care of so that you face minimal issues with your vehicle.
Is Meineke Franchise Profitable?
Yes, Meineke is a very profitable franchise opportunity, and by putting in an initial investment ranging from $206,774 – $561,688, you can easily make a net profit of $168,000 on average and up to $3,800,000 in revenue.
Meineke has a net profit margin of 20% on average which is above the industry standard for car servicing franchises, and as such, Meineke is a very profitable business opportunity.
Meineke Franchise Earning Potential
The Meineke Franchise has a high earning potential.
In fact, as per the performance of 540 franchises out of 700 centers, it was found that the top 50% of the Meineke franchise made an annual revenue of as much as $3,800,000.
With a 20% profit margin, this seems very profitable for the franchise owners who were able to make this kind of revenue.
So as a Meineke Franchise owner, you can also make this kind of amount given that you are able to make record-breaking sales.
Wrap Up
Meineke is a very lucrative franchise opportunity to invest in. To be eligible, you simply need to have a net worth of $1M and liquid assets of $500K with some experience handling a business.
By putting in an initial investment ranging from $206,774 – $561,688, you can easily earn a net profit of $168,000 on average.
The payback period of this franchise is low as well, and since it is a renowned brand, you do not have to worry about sustaining it much.
Overall, we couldn’t find any major flaw in this franchise opportunity, and you can definitely consider investing in it.
FAQ
Can I own multiple Meineke franchise outlets?
Yes, Meineke allows qualifying candidates to open multiple franchise outlets and even offers various incentives for the same.
What is the initial franchise fees to own a Meineke franchise?
The initial franchise fee to own a Meineke franchise is $45,000.
How much is the initial investment to open a Meineke franchise?
The intial investment to open a Meineke franchise can range anywhere between $206,774 – $561,688.