Michelin Commercial Service Network Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$2,500
Investment required
$2,315,000 - $12,391,000
Royalty fee
n.a.

Michelin Commercial Service Network: Leading the Way in Tire Solutions and Fleet Support

The Michelin Commercial Service Network is a franchise system consisting of commercial tire dealers headquartered in Greenville, South Carolina. These dealers are essential for maintaining a steady supply of new tires and retreads, offering 24/7, year-round service, and providing skilled technicians to support truck fleets.

As part of Michelin Americas Truck Tires, the Michelin Commercial Service Network was established in 1997 and began franchising in 2010.

With a strong dedication to delivering consistent, high-quality service nationwide, the Michelin Commercial Service Network has expanded to hundreds of locations across the United States. This network offers a significant business opportunity within the tire industry, particularly as trucking fleets aim to reduce operational costs and manage their assets effectively.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Franchise Fee $2,500
Engineering Fee, Building and Leasehold Improvements $800,000 – $3,500,000
Signage $1,000 – $20,000
Travel and Living Expenses During Training $5,000 – $50,000
Opening Inventory of MRTI Rubber Products $60,000 – $400,000
MRTI Equipment $1,000,000 – $6,000,000
Bib Tread NEXT™ Software One-time fee of $15,000/Shop for new franchisees
BT Mobile™ Application One-time fee of $4,500 - $8,500 per mobile unit
Opening Inventory of Miscellaneous Equipment and Materials (Non MRTI Rubber Products) $25,000 – $100,000
Computer System utilizing Bib Tread NEXT™ $175,000 – $290,000
Initial Advertising $2,000 - $5,000
Additional Funds – 3 Months $225,000 – $2,000,000
TOTAL $2,315,000 to $12,391,000

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Number of units

2024
Franchised units

317

340

333

Company-owned units

0

0

0

Total units

317

340

333

Franchise Disclosure Document

Training 

The Michelin Commercial Service Network provides a comprehensive training program for its franchisees, ensuring they have the knowledge and skills needed to run a successful Service Center.

Initial Training Program

This mandatory program is designed for the franchisee's manager and key staff, covering essential topics such as MCSN best practices, audit procedures, web application usage, and the operation of MCSN software and equipment.

Supplemental Training

Offered to managers and other staff members, this training focuses on updates and additional skills required for efficient Service Center operations.

Certification

Participants in the initial training must successfully complete the program and earn certification within a designated timeframe.

Ongoing Guidance

The franchisor provides continuous support through regular updates and technical bulletins related to the MCSN Service System.

Territory Protection

The Michelin Commercial Service Network franchise allocates specific operating areas to its franchisees but does not promise exclusive territory protection. Franchisees are expected to conduct business within their designated areas; however, the agreement permits the franchisor or other franchisees to operate in the same territory.

This means that although franchisees have a defined operating area, it is not exclusively theirs, allowing for potential competition within the franchise network.

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