FDD Analysis 2025 FDD

Michelin Commercial Service Network Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Michelin Commercial Service Network's FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).

What the Michelin Commercial Service Network FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Not disclosed by this franchisor

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$189,000 - $4,252,500
Franchise Fee$2,500

Investment Breakdown

Franchise Fee$2,500 - $2,500
Site development²$10,000 - $3,000,000
Travel, living, and related expenses during initial training; fees for ongoing training³$5,000 - $50,000
ERS inventory requirement⁴$5,000 - $100,000
Software⁵$12,000 - $150,000

+ 4 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee
Marketing/Advertising Fee

Other Ongoing Fees

Transfer FeeVaries
Interest on Late PaymentsVaries
TaxesVaries
Special AssistanceVaries
Fees to Evaluate Alternative SuppliersVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

No Item 19 Disclosure

Michelin Commercial Service Network does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

340

Total Units

+2

Net Growth (YoY)

+0.6%

Growth Rate

Franchised Units340
Company-Owned Units

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

No Revenue Disclosure

Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.

Related Resources

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