Analysis based on the 2025 Franchise Disclosure Document for Mr. Transmission and Milex Complete Auto Care.
Executive Scorecard
| Item | Score (1-10) | The Verdict (Web Summary) |
|---|---|---|
| Item 1: History | 9 | A legacy powerhouse with 50+ years of operational history and stability. |
| Item 3: Litigation | 10 | Zero history of fraud or franchise law violations; high corporate integrity. |
| Item 4: Bankruptcy | 10 | Spotless financial history for both the corporation and its executives. |
| Item 5: Entry Costs | 7 | Fair initial fees, though ancillary service deposits increase the “true” entry price. |
| Item 6: Ongoing Fees | 6 | Standard royalties, but mandatory weekly minimums can strain low-revenue shops. |
| Item 7: Investment | 8 | Realistic startup ranges with a generous 6-month safety buffer for working capital. |
| Item 8: Supply Chain | 10 | Franchisor does not profit from your supplies, aligning their goals with your sales. |
| Item 11: Support | 8 | Robust training includes a critical focus on community outreach and outside sales. |
| Item 12: Territory | 5 | Small 3-mile radius and no exclusivity rights leave franchisees exposed to competition. |
| Item 17: Exit Terms | 6 | Standard but broad non-competes limit future business options within 25 miles. |
| Item 19: Financials | 7 | Strong sales transparency, though expense data is based on a smaller self-reported group. |
| Item 20: Stability | 7 | A mature, stable system with low growth but steady predictable unit performance. |
Item 1: The Franchisor & History
Standard
- Corporate Name: Moran Industries, Inc.
- Date Incorporated: July 27, 1990
- Date Franchising Began: 1970 (Legacy brands)
- Predecessors: Milex, Multistate Transmissions, Dr. Nick’s, and Atlas Transmission.
Competitive Edge
Over 50 years of franchising experience provides a level of institutional stability and brand recognition rarely found in the automotive sector.
The Watchlist
The franchisor manages several legacy brands simultaneously, which may lead to operational overlap with existing “Dr. Nick’s” or “Multistate” centers in certain regions.
Item 3: Litigation
Standard
- Litigation Status: YES (One active royalty collection suit initiated by franchisor).
- Pending Actions against Franchisor: 0
- Concluded Actions: 0
- Allegations of Fraud: NO
Competitive Edge
A zero-count for pending fraud or franchise law violations suggests a high-integrity relationship between corporate and its franchisees.
The Watchlist
The recent suit against a franchisee in Georgia shows the franchisor is proactive and aggressive in litigating for unpaid royalties and fees.
Item 4: Bankruptcy
Standard
- Bankruptcy Filings: NO
Competitive Edge
A spotless bankruptcy record for both the entity and its executive officers is a strong indicator of financial solvency and management experience.
The Watchlist
No red flags identified; this is a baseline indicator of corporate stability.
Item 5: Initial Entry Fees
Manageable
- Initial Franchise Fee: $45,000 (Single) / $55,000 (Co-Branded)
- VetFran Discount: $6,750 for qualified veterans.
- Mandatory Deposits: $5,000 Warranty Fund, $5,000 Training Fee, $3,000 Outside Sales Program Fee.
Competitive Edge
The $45,000 core fee is highly competitive for a technical, high-equipment automotive brand.
The Watchlist
Be prepared to pay approximately $13,000 in non-refundable “ancillary” fees (training, warranty, and sales programs) on top of the base franchise fee.
Item 6: Ongoing Fees
Manageable
- Royalty Fee: 7% of Weekly Gross Sales (Minimum $250/week).
- Brand Fund: 1% of Gross Sales (Minimum $250/month).
- Technology Fee: $299 per month.
- Audit Fee: Triggered if underreporting exceeds 2%.
Competitive Edge
The technology fee is transparent and fixed, preventing the “fee creep” often seen in digital-heavy franchises.
The Watchlist
The weekly minimum royalty ($250) applies regardless of sales, which can penalize owners during the ramp-up phase or seasonal lulls.
Item 7: Total Investment
Standard
- Total Investment Range: $267,300 – $340,800.
- Working Capital: $50,000 – $70,000 allocated.
- Duration of Buffer: 6 months.
Competitive Edge
Allocating 6 months of working capital in the disclosure is a conservative and protective measure for the franchisee.
The Watchlist
The estimate includes a $30,000 initial marketing requirement, which is a mandatory cash outlay in the first six months of operation.
Item 8: Supply Chain Control
Standard
- Franchisor Revenue from Sales to Units: 0.4% ($24,077).
Competitive Edge
With less than 1% of franchisor revenue coming from selling supplies to you, their financial incentive is perfectly aligned with your top-line sales growth.
The Watchlist
While the franchisor doesn’t profit from your purchases, you are strictly limited to an “Approved Supplier” list for all major equipment and signage.
Item 11: Training & Support
Standard
- Classroom Training: 30 hours (1 week).
- Online Training: 51 hours (2 weeks).
- On-the-Job/Field: 57 hours.
Competitive Edge
The inclusion of a 3-day field-based “Outside Sales” program provides actionable business development skills that go beyond basic mechanical training.
The Watchlist
While the training itself is covered by the $5,000 fee, all travel, lodging, and wages for your staff during training are your sole responsibility.
Item 12: Territory Rights
Critical
- Exclusive Territory: NO.
- Protection Radius: 3 miles.
- Alternative Distribution: YES (Corporate can sell in your area via Internet/catalogs).
Competitive Edge
The 3-mile radius ensures you won’t have a direct Milex/Mr. Transmission competitor opening across the street.
The Watchlist
The lack of “Exclusive” rights and the franchisor’s ability to sell online or through other channels in your zip code is a significant competitive risk.
Item 17: Exit & Renewal
Manageable
- Non-Compete Duration: 2 years.
- Non-Compete Radius: 25 miles.
- Renewal Requirement: Execution of a “General Release.”
Competitive Edge
Conversion franchisees (those who already owned a shop) are exempt from the non-compete for products they sold before joining Moran.
The Watchlist
A 25-mile non-compete radius effectively prevents you from opening any similar business in your entire local market if you leave the system.
Item 19: Financial Performance
Manageable
- Average Gross Sales: $884,923.
- Reporting Sample Size: 71/106 centers (67%).
- Units Meeting/Exceeding Average: 45%.
Competitive Edge
Transparency is high; reporting on nearly 70% of the network gives a realistic view of the system compared to brands that only report on the top 20%.
The Watchlist
Only 34 units (32%) provided full Profit & Loss data, meaning the expense side of the business is significantly less verified than the sales side.
Item 20: System Growth & Stability
Manageable
- System Churn Rate: ~8.0%.
- Net Growth (2024): +1 unit.
- Corporate Re-acquisitions: 2 units in 2024.
Competitive Edge
The system is in a “steady state,” suggesting it is a mature brand with predictable turnover rather than a volatile startup.
The Watchlist
Stagnant net growth indicates the brand may be facing market saturation or high competition for new prime locations.
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