Merlin franchise
2023 filing · June 21, 2023Fewer locations
Merlin at a glance
An auto repair shop focused on preventive maintenance, brakes, exhaust, suspension and tires. At the end of 2022 there were 24 Merlin locations in the US, all franchised.
The business
- Industry
- Auto repair
- Franchisor
- Merlin Franchisor SPV LLC
- The company that sells the franchises
- Franchising since
- 1981
- 42 years of selling franchises
- Franchisor based in
- Charlotte, North Carolina
- Typical size
- 3,900–4,400 sq ft
What you pay
- Cost to open
- $265K–$534K
- Fee, build-out and opening working capital
- Franchise fee
- $30,000
- Paid once, when you sign
- Royalty
- 6.9%
- 6.9% of net revenues, paid weekly
- Brand fund
- 5%
- 5% of net revenue
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 24
- Franchised and company-owned
- Franchised
- 24
- Company-owned
- 0
- Change in 3 years
- −3
- Franchised locations, 2020–2022
- States
- 5
- Most in Illinois, Georgia and Minnesota
From Merlin Franchisor SPV LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Merlin among all franchises with the same figure.
| Figure | Merlin | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $399,570 | Costs more than 54% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6.9% | Higher than 70% of brands with a set rate |
| US locationsFranchised and company-owned | 24 | More than 52% of franchises |
How much a Merlin franchise costs
Opening one Merlin costs an estimated $264,745 to $534,395. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are furniture, fixtures, equipment and signage ($142,445 to $203,395) and leasehold improvements ($20,000 to $150,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $30,000 | ||
| Leasehold Improvements | $20,000 | $150,000 | |
| Furniture, Fixtures, Equipment and Signage | $142,445 | $203,395 | |
| 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 | |
| Total | $264,745 | $534,395 | |
Source: Merlin Franchisor SPV LLC, 2023 filing, page 34
Merlin franchise fee
The franchise fee is $30,000. You pay it when you sign the franchise agreement.
Source: Merlin Franchisor SPV LLC, 2023 filing, page 26
Royalty and ongoing fees
| Royalty | 6.9% of net revenues, paid weekly. |
|---|---|
| Brand or marketing fund | 5% of net revenue. |
| Franchisee Profitability Program Software Fees | Currently, $14.95 per month |
| Transfer Fee | $9,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Merlin Franchisor SPV LLC, 2023 filing, page 29
Other fees as filed, from pages 29–31. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Merlin does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Merlin Franchisor SPV LLC, 2023 filing, page 62
SBA loans to Merlin franchisees
Lenders approved 71 SBA-backed loans for Merlin franchisees from 1991 to 2025, $17.1M in all: 69 7(a) loans and 2 504 loans. Of the 66 that have ended, 58 were paid in full and 8 were charged off (12.1%). The other 5 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Merlin | Typical auto repair brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | 0% / −11% | 0% / 0% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 8.3% / 22% | 3.5% / 13% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical auto repair brand is the median of the 27 brands in auto repair franchises with three years of counts.
How Merlin compares
Of the 53 auto repair franchises on this site, Merlin is the 37th cheapest to open and the 37th largest by number of locations.
| Figure | Merlin | Typical auto repair brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $265K | $224K | $222K |
| Cost to open, high end | $534K | $534K | $477K |
| Franchise fee | $30K | $40K | $40K |
| Royalty | 6.9% | 6% | 6% |
| Brand fund | 5% | 1.5% | 2% |
| US locations | 24 | 92 | 21 |
| Shares earnings figures | No | 33 of 53 | 2,147 of 3,352 |
Typical is the median across the 53 brands in auto repair franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 28 (+1) | 0 | +1 | 0 |
| 2021 | 24 (−4) | 0 | 0 | −4 |
| 2022 | 24 (0) | 0 | +2 | −2 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: auto repair franchise costs and franchise failure rates.
Source: Merlin Franchisor SPV LLC, 2023 filing, page 63
Where Merlin locations are
At the end of 2022, Merlin had franchised locations in 5 states. The most are in Illinois, Georgia and Minnesota.
- Illinois20
- Georgia1
- Minnesota1
- Texas1
- Wisconsin1
Source: Merlin Franchisor SPV LLC, 2023 filing, page 64
Who owns Merlin?
Merlin franchises are sold by Merlin Franchisor SPV LLC. It is a subsidiary of Driven Systems LLC.
Merlin is one of the 9 Driven Brands franchises here. Driven Brands Holdings is a public company based in Charlotte, North Carolina. Its shares trade on Nasdaq as DRVN.
From Merlin Franchisor SPV LLC’s 2023 filing, page 8; SEC.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 23–26. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Merlin Franchisor SPV LLC, 2023 filing, litigation on pages 23–26, bankruptcy on page 26
Merlin filings
The figures on this page come from Merlin Franchisor SPV LLC’s 2023 filing, issued June 21, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | June 21, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other auto repair franchises
All auto repair franchises
Other brands from Driven Brands: 1-800-Radiator & A/C, Abra Auto Body & Glass, CARSTAR, Econo Lube N' Tune & Brakes, Fix Auto, Maaco, Meineke and Take 5 Oil Change. See all 9 in the finder