Mighty Auto Parts FAQ
Learn More about our Leading Auto Parts Franchise
At Mighty Auto Parts, we are passionate about the growth and success of our brand both nationally and internationally. We believe we offer a premium business model that best serves our customers and our franchise partners. For decades, our company has strived to be leaders in the multi-billion dollar auto industry. With quality products, competitive pricing, superior personal service, and a proven business model, Mighty Auto Parts has an advantage in the marketplace.
If your questions about Mighty Auto Parts are not satisfactorily answered below, give us a call at (888) 901-2925 for more information!
What are the financial qualifications necessary to become a franchisee?
Minimum financial qualifications include a solid net worth and cash availability of $100,000 or more.
Is financing available to Mighty Auto Parts franchisees?
Mighty Auto Parts does not offer financing for franchise investments. New franchisees often utilize personal lending sources, the Small Business Administration, or local banks. If needed, we can provide bank contacts with introductions and assistance with developing a presentation for a lender.
Does Mighty offer any financial incentives to veterans?
Mighty appreciates the service of our veterans, and is a member of the International Franchise Association’s VetFran Program. We are pleased to offer the following incentives to qualified veterans:
- 25% reduction of the License Fee
- $5,000 Training and Administrative fee is completely waived
- Special payment terms on initial inventory
Who is your ideal candidate for a franchise with Mighty Auto Parts?
Mighty looks for potential franchisees who are:
- Skilled in business management
- Customer relationship-oriented
- Active in the day-to-day business/hands-on
- Passionate about the automotive industry
- Experienced in managing others
What kind of support do you offer to franchisees?
We are proud to provide the most personalized, comprehensive franchise support in this industry. With Mighty Auto Parts, you’ll receive operational support from inception and take part in many training programs in order to help your business become profitable and productive.
Some of the specific areas in which we support you in running a successful Mighty Auto Parts franchise:
- Business set-up and opening
- Technical support services
- Financial and personnel management
- Sales and marketing
- Inventory management
- Business planning
Our vast array of continuous training and support is provided for both our franchise owners and their employees.
Who makes the Mighty Auto Parts-branded products that franchises sell?
All Mighty products are produced by leading manufacturers in the United States and around the world, and are built to meet or exceed original equipment requirements and new car warranty requirements. Mighty Product Managers visit factories and engineering labs globally searching for automotive products that pass our criteria for quality, product availability and competitive pricing.
What are the product inventory requirements for new franchises? What size warehouse is required?
New franchisees often focus early inventory on several key product lines. Opening inventory is generally between $70,000 and $125,000. The average warehouse size is between 4,000 and 6,000 square feet.
What are the average sales of a Mighty Auto Parts franchise owner?
The revenues of Mighty Auto Parts franchises vary based on many factors. Our average system-wide sales were $1,260,068 in 2016. In our Franchise Disclosure Document (FDD), we have a section that shows system sales figures and allows potential franchisees to estimate earnings potential.
How long does it take to become a Mighty Auto Parts franchise owner?
We have a structured discovery process at Mighty, and are committed to finding the very best partners. The typical timeframe is from 3 to 6 months.
How are the sizes of new franchise territories determined?
We base the size of our franchise territories on the number of registered vehicles within an area. The average franchise territory contains approximately 1,200,000 vehicles.
How many employees do most Mighty Auto Parts franchises have?
A small Mighty Auto Parts franchise may employ 4-5 individuals. A larger franchise may employ 10-15. Franchises may initially start with just one employee in addition to the owner, however, additional employees are often hired once the business starts to grow.
Who are Mighty customers?
As a Mighty franchisee, your customers are professional automotive repair and maintenance facilities such as tire stores, quick lube centers, brake shops, specialty repair shops, automobile dealerships, fleets, service stations, and garages.
How do Mighty franchises differentiate themselves in the market?
Mighty has a unique niche in the automotive aftermarket. Unlike other wholesale suppliers, Mighty offers a preventive maintenance parts stocking program versus on-demand, quick delivery. Our inventory management services are extremely valuable to our customers; we help them to maintain the right parts in-stock so that technicians consistently have the parts they need on-hand. Not having to wait for parts to be delivered allows them to service vehicles faster, see more cars each day, and make more money.
Mighty representatives visit customer locations at regular intervals to build rapport, provide inventory control services, write re-orders, provide training, technical and product information programs, and present opportunities to add additional product lines.
What are Mighty’s initial and ongoing fees?
Mighty’s initial franchise fee is based on the number of registered vehicles in the territory, and is currently $0.035 per vehicle for open/unlicensed territory and $.00175 per vehicle to acquire territory already licensed. There is also a one-time training and administrative fee of $5,000.
Mighty charges an ongoing royalty of 5% of gross sales. There is also an advertising co-op fee (matched by Mighty) of 0.5%. These fees are paid monthly.