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Financing a Midas with an SBA loan

Since FY2020, 31 Midas locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.

Midas franchising: midasfranchise.com

Acquisition loans
31
since FY2020
Median loan size
$919,000
FY2025 to FY2026 Q3
Median rate
8.50%
at approval
Total approved
$4M
FY2025 to FY2026 Q3

What a Midas deal looks like

Midas is an established brand in the SBA loan file: 31 acquisitions cleared underwriting in the last five years. The median loan was $919,000 at 8.50 percent. Amortized over 25 years, that is about $7,400 a month, or $88,800 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $102,111 of buyer cash, some of which a seller note on standby can sometimes cover.

Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.

7(a) or 504 for a Midas?

Midas deals often include the real estate, which is why the median loan here is large and runs long. When the building is part of the purchase, the SBA 504 program is usually the better fit: a 50/40/10 stack, a bank first lien, a fixed-rate CDC debenture, and 10 percent down, with the real estate amortized up to 25 years. Model that structure in the 504 calculator.

When you are buying an existing Midas as a going concern without the real estate, a 7(a) loan is the usual route, typically over 10 years. Price it in the 7(a) calculator.

What it costs to open a Midas

These are Midas's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.

Total initial investment
$341,650 to $924,890
Initial franchise fee
$35,000
Ongoing royalty
Tiered/variable: 2-10% of Net Revenue (not a flat rate), up to 11% for a Co-Branded Shop franchise. Entrepreneur lists it as 1-5%; the FDD-based sources give 2-10%. frandb cites a 10% royalty figure (top of the tier).
Net worth required
$600,000
Liquid capital required
$200,000

Automotive service / repair, figures from the 2025 FDD. Sources: Franchise Chatter — Midas Franchise Review 2026 (FDD-based costs, fees, revenues), FranchiseOverview — Midas International FDD, Fees & Cost (2026), Entrepreneur Franchise 500 — Midas directory listing, frandb — Midas Shop Franchise: Fees, Cost & FDD Review (2025). Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.

Lenders that actually write these

The banks below approved the most Midas acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.

SBA conditions on this brand

From the SBA Franchise Directory

1. When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease may not be executed. 2. The Option Shop Lease Agreement may not be executed during the term of the SBA Loan. 3. Lender/CDC must ensure the obtain the correct lien position on all collateral as required pursuant to the SOP 50 10.

Every franchise the SBA will finance carries an entry in its directory, and some carry conditions like this one about how the real estate and the lease may be held. A lender has to clear these before funding, so they are worth reading before you make an offer.

Frequently asked questions

How much does it cost to buy a Midas franchise?

Opening a Midas takes a total initial investment of about $341,650 to $924,890, including a $35,000 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Midas was $919,000 in the federal loan file.

Can you buy a Midas with an SBA loan?

Yes. 31 Midas locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. The directory attaches a lender condition to this brand, so a lender clears that before funding.

How much do you need for a down payment on a Midas?

SBA requires a minimum 10 percent equity injection. On the median Midas loan of $919,000, that is roughly $102,111 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 25 years, around $7,400 a month at the median rate.

Which lenders finance Midas acquisitions?

Live Oak Banking Company, Centier Bank and HomeTrust Bank wrote the most Midas acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.

Other automotive brands buyers finance

Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Midas's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Midas or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.