Midas is one of the most recognized names in automotive repair and maintenance, with a legacy spanning more than six decades and thousands of locations across North America. For entrepreneurs who want to tap into the booming auto services industry, owning a Midas franchise offers a proven business model, strong brand equity, and a loyal customer base. But turning that opportunity into reality requires real capital - and that is where a Midas franchise loan becomes essential. This guide walks you through everything you need to know about financing a Midas franchise, from startup costs to loan types to qualification requirements, so you can move forward with confidence.
In This Article
Before you can secure financing, you need a clear picture of what a Midas franchise actually costs. The total investment required to open a new Midas location ranges from approximately $196,000 to $530,000, depending on a variety of factors including real estate, market conditions, and whether you are converting an existing shop or building from scratch.
Here is a breakdown of the primary cost components:
In addition to the upfront investment, ongoing costs include a royalty fee of 10% of gross sales and an advertising fee of 5% of gross sales. These recurring obligations must factor into your cash flow projections and long-term financial planning.
Midas also requires franchisees to have a minimum net worth of $250,000 and liquid assets of at least $75,000. These thresholds are designed to ensure that new owners have sufficient financial strength to weather early-stage challenges without putting the business - or the brand - at risk.
According to SBA.gov's franchise financing guide, automotive service franchises are among the most financeable categories in the franchise sector, given their stable demand, consistent revenue, and tangible asset base. That makes Midas an attractive option for both first-time franchise investors and experienced multi-unit operators.
Ready to Finance Your Midas Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. Apply in minutes - no obligation.
Apply Now →Franchise financing is a specialized form of business lending tailored to the unique structure of franchise ownership. Unlike a traditional startup where lenders must evaluate an unproven concept, franchise financing benefits from the franchisor's track record, the brand's financial disclosure document (FDD), and the historical performance of existing franchise units.
When you apply for a Midas franchise loan, lenders look at several layers of information:
The Franchise Disclosure Document is a legal requirement under U.S. law and contains 23 mandatory disclosure items, including the franchisor's audited financials, litigation history, unit performance data, and the detailed terms of the franchise agreement. Most lenders familiar with franchise financing will request a copy of the Midas FDD as part of underwriting. The FDD's Item 19 - Financial Performance Representations - is particularly valuable because it gives lenders and prospective franchisees insight into average unit volumes and profitability ranges.
Lenders will evaluate your personal credit score, tax returns, bank statements, existing debt obligations, and overall financial history. For SBA and conventional bank loans, a credit score of 680 or above is typically required. Alternative lenders like Crestmont Capital work with a wider range of credit profiles, making financing accessible even if your credit history is less than perfect.
Most Midas franchise loans require some form of collateral - either the business assets themselves (equipment, inventory, leasehold improvements) or personal assets such as real estate. SBA loans typically require borrowers to inject at least 10-20% of the total project cost from their own funds. The remaining 80-90% can be financed through the loan.
A well-prepared business plan is a critical component of any franchise loan application. Your plan should include a market analysis of your target trade area, projected revenue and expense statements for the first three years, a detailed use-of-funds breakdown, and a description of your management experience and qualifications.
Franchise financing works best when borrowers approach it with preparation. Lenders want to see that you understand your market, have a plan for customer acquisition, and have the operational experience - or the team - to run a successful auto service business. The good news is that Midas provides extensive pre-opening training and ongoing operational support, which lenders view favorably when evaluating franchise loan applications.
There is no single best loan for every Midas franchisee. The right financing solution depends on your financial profile, the amount you need, your timeline, and your risk tolerance. Here are the primary options available:
The SBA 7(a) loan program is the most popular government-backed loan for franchise financing. Loan amounts range from $500,000 to $5 million, with repayment terms up to 10 years for working capital and up to 25 years for real estate. Interest rates are competitive - typically prime plus 2.75% to 4.75% - and the SBA guarantee (up to 85% on loans under $150,000 and 75% on loans above) reduces lender risk, making approval more accessible for borrowers who might not qualify for conventional financing alone.
Midas is included in the SBA's Franchise Directory, which means SBA lenders can streamline the franchise review process and move to approval faster. You can explore SBA loan options through Crestmont Capital to get matched with the right program for your situation.
If your Midas location involves significant real estate purchase or heavy equipment investment, the SBA 504 loan is worth considering. This program provides long-term, fixed-rate financing for major fixed assets, with loan amounts up to $5.5 million. The structure involves a conventional lender covering 50% of the project cost, a Certified Development Company (CDC) covering 40%, and the borrower injecting 10%. The fixed interest rate and long term make monthly payments predictable and affordable.
Traditional bank loans offer competitive interest rates for borrowers with strong credit and established business history. For a new Midas franchise, conventional loans can be harder to qualify for without significant collateral or personal guarantees. However, if you are an existing business owner opening an additional location, your track record with prior lenders can open doors to conventional financing with favorable terms.
Because a Midas shop requires substantial investment in automotive lifts, diagnostic machines, tire equipment, and alignment systems, equipment financing is a natural fit. Equipment loans are secured by the equipment itself, which reduces lender risk and often results in faster approvals. Terms typically range from 2 to 7 years, with fixed monthly payments tied directly to the useful life of the equipment.
A business line of credit is an excellent tool for managing working capital needs after your Midas location opens. Rather than borrowing a lump sum, you draw from a revolving credit facility as needed - paying interest only on what you use. Lines of credit are ideal for covering seasonal cash flow gaps, restocking inventory, or handling unexpected repair or maintenance expenses.
Short-term business loans from alternative lenders can provide fast capital for time-sensitive needs, such as acquiring a lease before a competitor does or purchasing equipment at a discount. These loans typically have repayment terms of 3 to 18 months and can be funded in as little as 24 to 48 hours - a major advantage when speed matters.
For franchise owners who need larger capital amounts and prefer predictable monthly payments over an extended period, long-term business loans offer repayment schedules of 3 to 10 years or more. These are ideal for financing the full scope of a new Midas build-out, including real estate improvements, equipment, and initial working capital - all under one loan structure.
By the Numbers
Midas Franchise - Key Facts
$530K
Max Total Investment
10%
Royalty Fee
1,200+
U.S. Locations
65+
Years in Business
Understanding what lenders look for before you apply can save you time and improve your chances of approval. Here is what most franchise lenders - including Crestmont Capital - evaluate when reviewing a Midas franchise loan application:
For SBA loans, most lenders require a personal credit score of 650 or above, with 680+ preferred. Conventional bank loans may require 700+. Crestmont Capital works with a broader spectrum of credit profiles and can often structure solutions for borrowers with scores in the 580-650 range. If your credit has blemishes, our bad credit business loans page explains how we approach non-traditional borrowers.
For existing business owners adding a Midas location, lenders typically want to see at least 1-2 years of business operations. For first-time franchise owners, the Midas FDD's performance data and your management experience become more important factors in the underwriting decision.
If you are an existing business owner, most lenders want to see annual revenues that comfortably support debt service. A general rule is that your debt service coverage ratio (DSCR) should be 1.25 or higher - meaning your business generates $1.25 in operating income for every $1.00 of loan payment due.
Midas requires a minimum of $75,000 in liquid assets. Lenders will verify this through bank statements and investment account records. Having liquid reserves above and beyond the minimum demonstrates financial resilience and improves your loan terms.
Prior experience in the automotive industry is a plus but not a requirement for Midas. What matters most is demonstrated business management experience - the ability to manage employees, control costs, deliver customer service, and grow revenue. If you lack direct industry experience, having a strong management team or general manager with automotive expertise strengthens your application significantly.
Most Midas franchise loans will be secured by the business assets - equipment, inventory, and leasehold improvements. SBA loans may also require a personal guarantee and, in some cases, a lien on personal real estate if business assets are insufficient to fully secure the loan.
Pro Tip: Strengthen Your Application
Before applying for a Midas franchise loan, pull your personal credit report and address any errors or outstanding collections. Organize your last 3 years of tax returns, 6 months of bank statements, and a detailed personal financial statement. The more organized your documentation, the faster the underwriting process - and the better your chances of approval.
Ready to Finance Your Midas Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. Apply in minutes - no obligation.
Apply Now →Crestmont Capital is the #1 business lender in the United States, and we specialize in helping franchise owners like you secure the funding needed to open, expand, and grow their businesses. Whether you are a first-time Midas franchisee or an experienced multi-unit operator looking to add another location, we have the products, expertise, and speed to get you funded.
Here is what sets Crestmont Capital apart from traditional banks and SBA lenders:
Traditional SBA loan processes can take 60 to 90 days or longer. Crestmont Capital moves faster - many of our clients receive funding decisions within 24 to 48 hours and have funds in their accounts within days of approval. When you find the right Midas location and need to move quickly, speed is everything. Our fast business loans and same-day business loans are designed for exactly these situations.
We work with a wide range of credit profiles, business histories, and loan structures. Whether you need a single loan to cover your full startup investment or a combination of an equipment loan plus a working capital line of credit, we can structure a financing package that fits your specific situation.
Our lending specialists understand the franchise model, including how FDDs work, what lenders look for in franchise applications, and how to position your application for the best possible outcome. We have helped franchise owners across dozens of concepts secure funding, and we bring that experience to every Midas loan we underwrite.
From the moment you submit your application through closing and beyond, you will have a dedicated Crestmont Capital advisor working with you. We answer questions, explain options, and advocate for your approval - so you are never left in the dark about where your loan stands.
We also offer small business loans for broader financing needs, whether you are covering your franchise investment, funding marketing campaigns, or handling unexpected capital requirements in your first year of operations.
Important: Midas Franchise Financing Timeline
Most Midas franchise openings take 6 to 12 months from signed franchise agreement to grand opening. Starting your financing process early - ideally within 30 days of signing your FDD - gives you the best chance of having capital in place when you need it. Do not wait until you have a lease signed to begin your loan application.
Understanding how different types of borrowers approach Midas franchise financing can help you identify the best path for your own situation. Here are four realistic scenarios based on common borrower profiles:
Maria is a former corporate manager with 15 years of operations experience who has always wanted to own a business. She has $100,000 in savings, a 710 credit score, and no prior business ownership. She selects a Midas location in a growing suburb of Atlanta, with a total project cost of $340,000.
Maria uses $85,000 as her equity injection (25% of the project) and applies for an SBA 7(a) loan for the remaining $255,000. Crestmont Capital helps her navigate the SBA process, prepare her business plan, and gather FDD documentation. Her loan closes in 45 days at a rate of prime plus 2.75%, with a 10-year repayment term. Her monthly payment is approximately $2,800 - comfortably covered by projected revenue in her first year.
James already owns two Midas locations in the Dallas-Fort Worth area and wants to open a third. His existing locations generate strong cash flow, and he has a 740 credit score and proven track record with Midas corporate. His total investment for the new location is $420,000.
Because of his existing performance history, James qualifies for a conventional loan through Crestmont Capital with no SBA guarantee required. He puts down 20% ($84,000) and finances the remaining $336,000 over 7 years at a competitive rate. His strong DSCR from existing locations satisfies lender requirements, and his loan closes in just 18 days.
David is converting an existing independent auto shop into a Midas franchise. The location already has a lease and basic infrastructure, but it needs new lifts, alignment equipment, and diagnostic tools to meet Midas brand standards - a total equipment investment of $130,000.
Rather than applying for a full project loan, David uses equipment financing from Crestmont Capital secured by the equipment itself. The loan closes in 5 days, and he funds the remaining working capital from his personal savings. His monthly equipment payment is $2,100 over 60 months - aligned with the useful life of the equipment and the expected revenue from his converted location.
Sandra has 580 credit score due to a medical hardship three years ago, but she has strong savings ($90,000 liquid), 20 years of experience in auto services management, and a solid business plan. Traditional banks have turned her down, but Crestmont Capital specializes in working with borrowers in her situation.
Through our non-traditional lending network, Sandra secures a $200,000 business loan with a slightly higher rate but a manageable 5-year repayment schedule. Her cash injection of $90,000 reduces lender risk and secures better terms than a zero-down approach would have achieved. She opens her Midas franchise within 8 months and is on track to refinance into a conventional loan within 24 months as her credit continues to rebuild.
| Loan Type | Amount Range | Term | Speed | Best For |
|---|---|---|---|---|
| SBA 7(a) | $50K - $5M | Up to 10 yrs | 30-90 days | First-time franchisees, full project cost |
| SBA 504 | $125K - $5.5M | Up to 25 yrs | 45-90 days | Real estate & heavy equipment |
| Equipment Financing | $10K - $500K | 2-7 yrs | 2-5 days | Lifts, diagnostics, tire equipment |
| Business Line of Credit | $10K - $250K | Revolving | 1-5 days | Working capital, inventory restocking |
| Short-Term Loan | $5K - $500K | 3-18 months | 24-48 hrs | Bridge capital, fast opportunities |
| Long-Term Loan | $25K - $2M | 3-10 yrs | 3-7 days | Full project finance, expansion |
Midas and the Automotive Services Boom
The U.S. auto repair and maintenance industry generates over $100 billion in annual revenue, according to data from the U.S. Census Bureau's Economic Indicators. As vehicles grow older - the average age of a U.S. car is now over 12 years - demand for maintenance and repair services continues to climb. Midas, with its established national footprint and consumer trust built over six decades, is well-positioned to capitalize on this trend. Forbes has consistently highlighted automotive services franchises as among the most resilient and financeable franchise categories available to new investors.
The total investment to open a Midas franchise ranges from approximately $196,000 to $530,000, depending on location, build-out scope, and market conditions. This includes the $20,000 franchise fee, equipment, real estate improvements, inventory, working capital, technology, insurance, and training expenses.
For SBA loans, a credit score of 650 or above is generally required, with 680+ preferred. For conventional bank loans, most lenders want to see 700+. Crestmont Capital works with a broader range of credit profiles and has financing solutions available for borrowers with scores as low as 580, depending on other qualifying factors.
Yes. Midas is listed in the SBA Franchise Directory, which means SBA lenders can process Midas franchise applications more efficiently. SBA 7(a) loans of up to $5 million are available for franchise financing, with repayment terms up to 10 years for working capital and up to 25 years for real estate purchases.
Most lenders require an equity injection of 10% to 25% of the total project cost. Midas requires a minimum of $75,000 in liquid assets. For a $340,000 project, you would typically need $34,000 to $85,000 of your own funds - with the remainder financed through a business loan.
Approval timelines vary by loan type. SBA loans typically take 30 to 90 days from application to funding. Conventional bank loans can take 3 to 6 weeks. Alternative lenders like Crestmont Capital can provide approvals in 24 to 48 hours, with funding available within days of approval - significantly faster than traditional options.
Midas franchisees pay a royalty fee of 10% of gross sales, plus an advertising fee of 5% of gross sales. These ongoing fees must be factored into your financial projections and cash flow planning. They are in addition to your loan payments and other operational expenses.
Automotive experience is helpful but not required for loan approval. Lenders focus more on overall business management experience, financial strength, and your ability to run an operation effectively. Midas provides extensive pre-opening training and ongoing support, which lenders view as a risk-reducing factor.
Yes, in many cases. Crestmont Capital has non-traditional lending options for borrowers with credit challenges. A larger equity injection, strong cash reserves, or an experienced guarantor can offset credit concerns. While interest rates will be higher than for prime borrowers, financing is often still achievable. Visit our bad credit business loans page for more information.
Standard documentation includes: personal and business tax returns (last 2-3 years), personal financial statement, bank statements (last 6 months), Midas Franchise Disclosure Document (FDD), signed franchise agreement (if available), business plan with financial projections, government-issued ID, and a resume or biography highlighting relevant business experience.
Midas has a 65+ year history, strong consumer brand recognition, and operates in the recession-resistant automotive services sector. As vehicles age and car ownership remains high, demand for services like oil changes, brakes, tires, and exhaust repair stays consistent regardless of economic conditions. According to CNBC, automotive services businesses were among the most resilient during the 2020 economic downturn. That said, every business involves risk, and success depends on location selection, management quality, and local market conditions.
Equipment financing allows you to borrow specifically to purchase the lifts, diagnostic tools, tire machines, alignment systems, and other equipment your Midas location requires. The equipment itself serves as collateral, which often results in lower rates and faster approvals than unsecured loans. Terms typically range from 24 to 84 months, with fixed monthly payments aligned to the equipment's useful life.
Midas requires prospective franchisees to have a minimum net worth of $250,000 and at least $75,000 in liquid assets. Net worth includes the value of all assets (home equity, retirement accounts, investments, business assets) minus all liabilities (mortgages, loans, credit card balances). These thresholds are set by Midas corporate and are not negotiable.
A business line of credit is best used as a supplement to primary financing rather than as the sole funding source for a Midas startup. Lines of credit are ideal for managing working capital, covering seasonal cash flow gaps, and funding inventory purchases after opening. For the core investment - equipment, build-out, franchise fee - a term loan or SBA loan is more appropriate.
Midas operates more than 1,200 locations across the United States and Canada, with additional locations in international markets. The brand is owned by TBC Corporation, one of North America's largest marketers of automotive replacement tires and a subsidiary of Sumitomo Corporation of Americas. The extensive network means strong brand recognition wherever you open your location.
Midas competes with other automotive service franchises such as Meineke, Jiffy Lube, Firestone, and Maaco. Compared to these alternatives, Midas offers a broad service menu (tires, brakes, exhaust, oil, shocks, heating, cooling), strong brand recognition, and a franchise system backed by TBC Corporation's resources and supply chain. When comparing franchise options, review each brand's FDD carefully, speak with existing franchisees, and work with a franchise advisor to assess fit for your market and financial profile.
Ready to take the next step toward owning your Midas franchise? Here is a simple, actionable roadmap to get from interest to funded:
Ready to Finance Your Midas Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. Apply in minutes - no obligation.
Apply Now →Owning a Midas franchise is a proven path to business ownership in one of the most durable sectors of the American economy. With over 65 years of brand history, more than 1,200 locations, and an unwavering customer demand for automotive services, Midas represents a compelling franchise opportunity - for the right investor with the right financing in place.
The key to success starts with understanding the full cost of investment, selecting the right loan structure for your situation, and working with a lender who understands the franchise model. Whether you are exploring an SBA 7(a) loan, equipment financing, a long-term business loan, or a combination of products, Crestmont Capital has the expertise and speed to get you funded and ready to open.
Other franchisees have successfully navigated this process - from first-time owners with strong savings to experienced multi-unit operators and credit-challenged borrowers who found the right path forward. The common thread is preparation, the right financing partner, and the willingness to take action.
If you are serious about opening a Midas franchise, now is the time to move. Apply online, speak with a specialist, and let Crestmont Capital help you turn your franchise ambitions into a thriving business. You can also explore related financing guides such as our Dutch Bros franchise financing guide or our Culver's franchise loan overview for additional perspective on how franchise financing works across different concepts. And for broader context on small business financing trends, the Reuters Finance section provides up-to-date coverage of lending markets and economic conditions affecting small business owners nationwide.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.