The vendor opportunity at Meineke Franchisor
Meineke Franchisor runs 705 franchised automotive-services centers per its 2023 FDD, all franchised with no company-owned locations, inside Driven Brands' vehicle-services holding structure alongside Abra Auto Body & Glass Repair, 1-800-Radiator, Merlin Franchisor, Econo Lube Franchisor, ABRA Franchisor and CARSTAR Franchisor. Franchised-outlet count is roughly flat, down 0.142% year over year. The Item 19 figures span three cohorts — 496 mature centers, 107 Profitability Program participants and 66 new centers in their first-year ramp — with the 496 mature centers averaging $969,604, on royalties of 3% to 7% of Gross Revenues depending on the service category and a 15-year initial term.
Who controls software purchasing
Meineke's specifications-only procurement model still carves out software: the franchisor is currently the only approved supplier of shop management software, M.Key, for new franchisees, who must sign an M.Key Software License and Maintenance Agreement. The operator base is largely single-unit — 622 mapped operators run roughly 626 centers, with only 3 running multiple units.
Tech named in the FDD, and what is actually required
Every center must install and use the Franchisee Profitability Program software, which submits standardized profit-and-loss data to Meineke's Franchise Profitability Program department, and must run a computer system that uploads sales and marketing information to the home office. Franchisees may use any hardware that meets Meineke's specifications, but the software itself must comply with those specifications, and any software vendor must hold a license from Meineke to use its proprietary information.
Procurement, renewals, and timing
Item 8's specifications-only model lets franchisees buy from any supplier meeting Meineke's standards, with two exceptions: sequentially numbered customer receipts, required from a designated supplier currently Dominion Holdings, Inc., and new-franchisee shop management software, for which Meineke is the sole approved supplier. Item 17 of the FDD sets the specific renewal conditions and windows for the 15-year initial term — see the filing below for the full terms.
How to read the Meineke Franchisor FDD
The embedded PDF viewer below holds the complete 2023 Franchise Disclosure Document for Meineke Franchisor.
Talk to FranCloud for a ranked list of automotive-services franchise systems with sole-supplier software mandates like Meineke's.