Meineke Touts Incentives to Boost Multi-Unit Deals
While it has more than 800 auto care centers across the United States, there’s plenty of white space for Meineke, said Devin Hughes, the brand’s director of franchise sales, as he added, “We are in deal mode.”
For the franchisor, based in Charlotte, North Carolina, that means offering some “aggressive” incentives to franchisees who can develop large swaths of a market, incentives Hughes explained today during his presentation at the Franchise Investment Conference, hosted by Franchise Times this week outside Dallas.
Through an LOI, or letter of intent, program Meineke is offering discounted franchise fees of $17,500 for two shops and $15,000 for three, versus the $35,000 it charges for a single franchise. Those multi-shop franchisees also benefit from a 75 percent royalty reduction for the first six months that those second and third shops are open, noted Hughes.
As an automotive aftermarket brand, Meineke, which provides full-service vehicle care from oil changes to engine and drivetrain repair, is “very recession resistant,” he continued, making it attractive to franchisees at an approachable investment level. The cost to open a Meineke ranges from $123,121 to $572,411, with $400,000 being “a solid investment amount,” said Hughes.
The brand in particular is focused on real estate support as it looks to develop new locations. A conversion program launching this year will focus on helping franchisees identify and purchase independent shops and rebrand them to Meineke.
Average gross revenue for a Meineke shop is $765,932, according to Item 19 in the brand’s franchise disclosure document. Meineke is part of Driven Brands, the parent of fellow auto aftermarket concepts such as Maaco and Carstar. Private equity firm Roark Capital acquired Driven Brands from Harvest Partners in 2015.
The Franchise Investment Conference, which continues through March 11 at the Renaissance Dallas at Plano Legacy West Hotel, is where franchise owners, operators, lenders and investors connect with CEOs and other senior executives of leading franchise companies. The event features presentations from more than 40 franchise brands.