4/10

Franchimp Summary Rating

7 /10
Earnings Transparency
1 /10
Investment Accessibility
Higher than 97% of peers

Franchise Summary

Description
The franchisee will operate a business within a designated territory that sells and distributes automotive replacement parts, supplies, chemicals, lubricants and other maintenance products.
Company Background
MDSA is a company that specializes in distributing and selling parts for automobiles. The company has been around since 1998 and has grown to service over 20 countries within the automotive industry. MDSA's goal is to provide high-quality replacement parts and accessories and maintain competitive pricing while also providing excellent customer service.
Franchise Opportunity
Finding the right replacement parts for your car can be a hassle. Not only do you have to know the make and model of your car, but you also need to know the specific part that needs to be replaced. And if you don't have time to go to a physical store, or if you're not sure which part you need, it can be even harder to find the right replacement part. MDSA is here to help. We sell and distribute automobile replacement parts online, so you can find the perfect part for your car without having to leave home. Plus, our knowledgeable staff is always happy to help answer any questions you may have about finding and installing the right replacement part for your car.
Corporate Structure
MDSA is a Georgia limited liability company which was organized under the name MDSA, LLC on December 6, 1999. We are a wholly owned subsidiary of Gonher North America, Inc., a Georgia corporation (our "Parent"). We do business as Mighty Distributing System of America and are commonly referred to as "Mighty" and "Mighty Auto Parts". Our corporate headquarters and principal place of business are located in the Atlanta, Georgia area at 650 Engineering Drive. Peachtree Corners, Georgia 30092. Our Parent acquired all of the membership interests in MDSA in a purchase that was completed on December 23, 2009. In that transaction, our Parent acquired complete ownership of MDSA from our predecessor, Mighty Distributing System of America, Inc. (Georgia corporation).
Investment and Franchisee Fees
The total investment necessary to begin operation of a Mighty franchised business is between $228,000 and $485,100. This includes from $55,000 to $120,000 that must be paid to the Franchisor or its affiliates.
Royalties and Marketing Fees

Royalties : 5% of Gross Sales

Royalties : 0.5% of Gross Sales

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Automotive Industry

$1,967,801 / unit

Franchise Type: Standard

Average Revenue During 2022

$1,967,801
$1,008,618
Industry Low
$1,967,801
Industry High
Show All Years +

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Mighty Auto Parts Franchisees

Mighty Auto Parts Franchise System Development in 2022

FAQ

How much investment do I need to start my own Mighty Auto Parts business?
Franchisees typically require at least $240 to $517 investment to get their Mighty Auto Parts business started
What are the initial franchise fees for Mighty Auto Parts?
Franchisees typically need to pay at least $55 in fees directly to Mighty Auto Parts in order to earn the right to launch their business
How much money can I make with a Mighty Auto Parts franchise? What are the average revenues for a typical Mighty Auto Parts business?
We estimate that the average revenue of an individual Mighty Auto Parts unit is approximately $1,967,801. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Mighty Auto Parts unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

1 /10
The Franchisor's investment costs ranges from $356,500 to $6,524,200 which is Much Higher than the $0 to $0 average in the Automotive industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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