MICHELIN COMMERCIAL SERVICE NETWORK Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$189,000 - $4,252,500
Franchise Fee
$2,500
Total US Locations
340
Business Summary
MICHELIN® COMMERCIAL SERVICE NETWORK™ operates service centers that provide professional truck fleet services. These services include emergency road service, comprehensive tire and wheel supply, repair, and maintenance services, such as alignment, computer wheel balancing, and wheel refurbishing. They also offer mounted wheel delivery programs, fleet inspections, secured storage of tire and wheel assets, digital photography, and light mechanical and industrial services. All services are performed by TIA certified technicians and utilize state-of-the-art reporting systems to maximize repair completion times and manage fleet assets.
Corporate History
Michelin Retread Technologies, Inc. (MRTI) was formed in Delaware on June 12, 1997, and began offering Michelin Retread Shops franchises in August 1997. The company started offering MICHELIN® COMMERCIAL SERVICE NETWORK™ (MCSN) Service Center franchises in July 2010. MRTI is a subsidiary of Michelin Corporation, which is ultimately owned by Compagnie Financiere Michelin. Historically, an affiliate, Michelin North America, Inc. (MNA), acquired Tire Centers, Inc. in 1999 and Stringer Tire Co. in 2000, both of which operated tire and motor vehicle service centers and were later sold. MRTI's foreign affiliates also offer various types of tire and automotive service franchises globally, such as Retread Shops in Canada and Mexico, Tyreplus outlets in China, and Euromaster service centers across Europe, and Blackcircles online tire fitting franchises in Canada and Egypt.
Financial Overview
Investment Range
$189,000 - $4,252,500
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$2,500
Equipment Costs (Low)
$12,500
Equipment Costs (High)
$3,500,000
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
MICHELIN® COMMERCIAL SERVICE NETWORK™ appears to be in sound financial health, with positive net income for both 2023 and 2024. The independent auditors have issued an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the company's financial position and results of operations. No substantial doubt about the company's ability to continue as a going concern was raised by the auditors.
Financing Details
MICHELIN® COMMERCIAL SERVICE NETWORK™ does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
340
Franchised Units
340
Corporate Units
0
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
MICHELIN® COMMERCIAL SERVICE NETWORK™ has no litigation required to be disclosed in its Franchise Disclosure Document.
Bankruptcy History
MICHELIN® COMMERCIAL SERVICE NETWORK™ has no bankruptcy history required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, MICHELIN® COMMERCIAL SERVICE NETWORK™ franchisees must ensure neither party provides a written notice of non-renewal at least six months before the current term ends. Renewal may be conditioned upon the franchisee and its affiliates executing a general release of all claims against the franchisor and its affiliates, and the franchisee signing the franchisor's then-current franchise agreement, which may have different terms.
Training & Support Program
Franchisor Assistance
MICHELIN® COMMERCIAL SERVICE NETWORK™ offers pre-opening assistance, which includes providing initial training for the franchisee's manager and key personnel (at the franchisor's discretion, with the franchisee covering travel/living costs), loaning copies of the Operating Manual, and designating the Service Center's location and territory. The franchisor also provides site development guidance, including prototype plans for premises adaptation. Ongoing support involves conducting Service Center inspections to evaluate operations and compliance, offering supplemental training for managers and key service personnel (potentially with reasonable charges), and providing periodic guidance through written documents and technical bulletins regarding the MCSN Service System. The franchisor provides a centralized dispatch service for emergency road services (ERS), for which the franchisee pays the provider for referred calls. Franchisees may also be eligible to participate in the MRTI Affiliate Dealer Program, which facilitates agreements with other commercial tire dealers to provide services, though this program can be modified or discontinued. Additionally, MICHELIN® COMMERCIAL SERVICE NETWORK™ may establish local or regional advertising cooperatives, which franchisees would be required to join and contribute to, and the franchisor also provides an online training module and a sales reporting portal accessible via a computer post in the Service Center. The franchisor may also convene an MCSN Council for communication with franchisees.
Training Location
Various locations
Ongoing Support
MICHELIN® COMMERCIAL SERVICE NETWORK™ provides ongoing support to its franchisees through regular Service Center inspections to evaluate operations and compliance. They offer supplemental training programs for new managers and key service personnel, though reasonable charges may apply for these. Franchisees receive periodic guidance via written documents and technical bulletins (in hard copy or online) regarding improvements and changes to the MCSN Service System. The franchisor also provides a centralized dispatch service for emergency road service (ERS), for which franchisees must use the prescribed provider and pay for referred calls. Franchisees may also be eligible to participate in the MRTI Affiliate Dealer Program, which allows for agreements with other commercial tire dealers to provide services. Additionally, MICHELIN® COMMERCIAL SERVICE NETWORK™ may convene an MCSN Council as a forum for communication between franchisees and the franchisor.
Franchise Requirements
Ideal Candidate Profile
Michelin Retread Technologies is looking for franchisees who are financially qualified to purchase a MICHELIN Commercial Service Network franchise and are willing to have their owners personally guarantee financial and other obligations under the Franchise Agreement. The company strongly encourages individual franchisees to personally participate in the Service Center's operations. Franchisees, their managers, and key personnel must attend and satisfactorily complete initial and any required supplemental training programs, and sign non-disclosure agreements regarding confidential information. Franchisees are expected to operate with the highest standards of honesty, integrity, fair dealing, and ethical conduct, and must comply with Michelin Retread Technologies' anti-corruption policy.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Each MICHELIN® COMMERCIAL SERVICE NETWORK™ franchise territory is defined as a 30-mile radius around each Service Center location.
Staffing Notes
MICHELIN® COMMERCIAL SERVICE NETWORK™ requires that each Service Center always be managed by a manager who has completed the franchisor's initial and all required supplemental training. Each Service Center must also be staffed by a sufficient number of competent, properly trained, and certified employees. The franchisee is solely responsible for hiring all employees, setting their compensation, defining their employment terms, and ensuring their proper training and certification for their specific job functions. This includes ensuring all service technicians at each Service Center location are TIA certified, as prescribed by the franchisor, and complete any necessary third-party training for non-MRTI manufactured equipment.