About Merlin Franchisor SPV Franchise
Merlin is an automotive repair and maintenance franchise operating under the Driven Systems LLC umbrella.
The brand has been part of the franchising landscape since 1981, offering a full spectrum of car care services including oil changes, brake repair, engine diagnostics, transmission service, and general maintenance.
Merlin centers are designed to be neighborhood destinations for reliable, affordable vehicle care.
Merlin Franchisor SPV Franchise Cost & Fees
Minimum Investment
$262K
Average Investment
$397K
Maximum Investment
$531K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6.9% of Net Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% of Net Revenues | National brand fund |
| Total Investment Range | $262,300 – $531,000 | Includes build-out, inventory, working capital |
The investment range of $262K–$531K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.9% of Net Revenues) and marketing fee (5% of Net Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Leasehold Improvements | $20,000 | $150,000 |
| Furniture, Fixtures, Equipment and Signage | $140,000 | $200,000 |
| First 3 Months’ Rent | $15,000 | $25,000 |
| Security Deposit | $4,300 | $10,000 |
| Opening Inventory and Supplies | $12,000 | $20,000 |
| Training Expenses | $1,000 | $6,000 |
| Miscellaneous Opening Costs | $10,000 | $30,000 |
| Additional Funds – 3 Months | $30,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $9,000 |
| Renewal Fee | No initial or renewal franchise fee |
| Technology Fee | Franchisee Profitability Program Software Fees: Currently, $14.95 per month (plus one-time onboarding fee of $50); M.Key Software Fees (Software Maintenance Fee): $375 basic software technical support and maintenance fee; M.Key Software Fees (Quick Books Integration): $25 per month (additional option) |
| Audit Fee | Cost of inspection or audit, plus any deficiency and late payment charges |
| Interest Charges on Late Payments | Lesser of 21% per year or highest rate allowed by law |
| AutoNet TV Fee | $40 per month, subject to periodic adjustment |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Customer Reimbursements | Up to 200% of original repair amount |
| Service Charges for Specified Defaults | $100 per day |
| Service Charges for Failure to Submit Financial Statements | $25 per day |
| Service Charge for Failure to Attend National or Regional Franchise Meetings | $2,500 per occurrence |
| Resale Assistance Fee | $10,000 per Merlin Shop |
| M.Key Software Transfer Fee | $1,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | minimum of 4 weeks |
| Classroom Training | 97 |
| On-the-Job Training | 47 |
| Training Location | Merlin Training Center in Hoffman Estates, IL |
| Additional Training | Supplemental and refresher training programs may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (2-mile radius under Franchise Agreement), Non-exclusive (under Development Agreement), Limited Exclusive (under Limited Exclusivity Addendum for 5+ shops) |
| Exclusive Territory | No |
| Territory Size | 2-mile radius |
| Description | Under the Franchise Agreement, you are granted a protected territory of a 2-mile radius around your shop, within which the franchisor will not operate or grant other Merlin Shop franchises. However, the Development Agreement states that development rights are non-exclusive. If you commit to developing 5 or more Merlin Shops, a Limited Exclusivity Addendum grants certain limited exclusive rights in the Development Area, meaning the franchisor will not grant other Merlin Shop franchises in that area, subject to compliance with the development schedule and agreement terms. The franchisor and its affiliates reserve the right to operate other businesses, including those that compete, within or outside your territory, and may use other distribution channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 10 years |
| Renewal Fee | No initial or renewal franchise fee |
| Renewal Conditions | Proper notice to us, remodel, execute general release, and sign then-current form of renewal franchise agreement. The renewal agreement may contain materially different terms and conditions than the Franchise Agreement, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees. |
| Transfer Fee | $9,000 |
| Transfer Conditions | Transferee qualifies; all obligations, including debts, are fulfilled; transferee completes training; fee paid; you execute general release, and transferee signs the then-current Franchise Agreement. |
| Termination for Cause | Under the Franchise Agreement, non-curable defaults include bankruptcy, conviction of a felony, abandonment, unauthorized transfers, unauthorized use or disclosure of confidential information or the Operations Manual, unauthorized use of the Marks, material misrepresentations, breach of non-compete, loss of right to possession of the premises, and repeated violations. Curable defaults include failure to cure health or safety ordinance violations (24 hours), monetary defaults (10 days), failure to develop shop or attend training (10 days), and other operational defaults (30 days). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, you may not have any direct or indirect ownership interest in or perform services for any Competitive Business (defined as motor vehicle shops specializing in repair/replacement of parts or automotive services, excluding other Merlin Shops or Driven Brands automotive businesses). After termination or expiration, you may not have any direct or indirect interest in any Competitive Business for two years within the Territory or a 2-mile radius of any other Merlin Shop, or in any entity granting Competitive Business franchises. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must devote a minimum of 40 hours per week to the business of operating the Shop, with 90% of that time spent on the Shop premises. The Shop must be under your direct supervision or that of one or more competent employees acting as the Shop manager at all times. The Shop manager must successfully complete the Company’s training program. |
| Required Suppliers | M.Key Software (only approved supplier); Driven Product Sourcing and Spire Supply (approved but not exclusive suppliers of signage) |
| Supply Restrictions | You must use only those brands and models of equipment, signs, inventory, and supplies that the Company has approved as meeting its specifications and standards for function and performance. All exhaust system components and other motor vehicle parts, tires, maintenance programs/packages, and other products, materials and supplies sold and used must be the Company’s or other private brand designated by the Company as being of acceptable quality or other brands of equivalent quality approved by the Company. |
| Franchisor Revenue from Suppliers | Our affiliates may receive from some parts suppliers a rebate of approximately 2% to 6% or more of purchases. During the 2021 fiscal year, our affiliates’ rebates totaled $80,453. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Merlin Franchisor SPV Franchise Earnings — Item 19
Merlin Franchisor SPV does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Merlin Franchisor SPV does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Merlin Franchisor SPV Litigation & Risk Flags
Clean Litigation RecordMerlin Franchisor SPV has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Merlin Franchisor SPV System Growth
Total Units
24
Franchised
24
Company-Owned
0
Merlin Franchisor SPV currently operates 24 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 2 | 27 |
| 2020 | 1 | 0 | 28 |
| 2021 | 0 | 4 | 24 |
Transfers: 10 | Closures: 6
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$208.8M
Net Income
$132.9M
Total Assets
$530.9M
Audited by Grant Thornton LLP for year ending December 25, 2021.
Merlin Franchisor SPV Franchise — FAQ
The total investment to open a Merlin Franchisor SPV franchise ranges from $262,300 to $531,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Merlin Franchisor SPV charges a royalty fee of 6.9% of Net Revenues of gross sales, plus a 5% of Net Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Merlin Franchisor SPV Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Merlin Franchisor SPV to ensure you have the most up-to-date version.
Merlin Franchisor SPV does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Merlin Franchisor SPV has been franchising since 1981. The FDD shows an investment range of $262,300-$531,000, a 6.9% of Net Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $262,300 to $531,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Merlin Franchisor SPV and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Merlin Franchisor SPV or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com