A mature, single-brand repair center may produce approximately $48,000 to $126,000 in annual pre-tax owner earnings under the scenarios below. This is an independent estimate for a full-time, on-site owner—not an official Mr. Transmission profit claim. If the owner also replaces a paid shop supervisor, the estimated owner-operator benefit rises to about $113,000–$191,000, but the added amount compensates the owner for labor and is not passive business profit.
This range is an independent analytical scenario, not an Item 19 financial performance representation by Moran Family of Brands, LLC. It combines identified 2026 FDD facts with separately identified industry benchmarks and editorial assumptions. Actual results can differ materially by location, unit format, sales, repair mix, labor productivity, occupancy, financing, owner involvement, required advertising, and execution.
The legal franchisor is Moran Family of Brands, LLC. The FDD was issued April 29, 2026, and Item 19 measures calendar-year 2025 results. The official Mr. Transmission U.S. franchise page describes the transmission-repair format, while the franchisor's current franchise disclosure notice identifies state-level offering restrictions. No matching 2026 FDD was verified on a franchisor-controlled public webpage, so FDD references in this article are cited by year, Item, and page without a hyperlink.
Median for 68 mixed repair-brand centers in Item 19 Table 1-A; revenue, not earnings.
For the separate 38-center P&L subset; many operating expenses remain below gross profit.
Sixty-one operational repair-brand franchisees did not submit P&Ls and were excluded.
At the scenario sales levels; contractual minimum payments can govern lower-sales centers.
May 2023 annual mean wage for first-line repair supervisors in automotive repair and maintenance.
What does the 2026 FDD actually report?
Officially, Item 19 reports Gross Sales, Cost of Goods, and Gross Profit Margin for selected repair-brand centers; it does not report operating profit, net income, owner compensation, cash flow, or distributions. The measurement period is January 1 through December 31, 2025, and the tables cover centers open for more than one year and operating throughout the period. Source: 2026 FDD, Item 19, pp. 47–49.
The FDD defines Cost of Goods as parts, fluids, and technician labor. It expressly says rent, royalty fees, advertising, taxes, startup costs, insurance, and other expenses are not included in that cost figure. Therefore, the reported 46.9% Gross Profit Margin cannot be renamed “owner earnings.”
How broad is the official sales distribution?
The official 68-center sales table spans from $129,657 to $2.33 million, showing why a single average is not a reliable owner-income forecast. These are 2025 Gross Sales observations for a mixed repair-brand population, not a Mr. Transmission-only cohort.
| 2025 Gross Sales band | Centers | Average Gross Sales | Median Gross Sales |
|---|---|---|---|
| $1,000,000 and above | 24 | $1,484,629 | $1,233,947 |
| $500,000–$999,999 | 28 | $706,915 | $702,009 |
| $499,999 and below | 16 | $314,205 | $310,215 |
| Total | 68 | $835,250 | $748,724 |
Official FDD facts. Across the three disclosed sales bands, individual center results ranged from $129,656.94 to $2,327,218.00. Only 29 of 68 centers, or 42.65%, exceeded the overall average Gross Sales figure. Source: 2026 FDD, Item 19, Table 1-A, p. 48.
Why is the evidence not Mr. Transmission-only?
The FDD's “Repair Brand Centers” combine single-brand Mr. Transmission and Milex centers with legacy Multistate Transmission and Dr. Nick's locations. Co-branded Mr. Transmission/Milex centers are not identified as part of this Item 19 cohort. A buyer therefore cannot isolate a pure Mr. Transmission result or assume the figures apply to a co-branded center.
The FDD supplies revenue and gross-profit anchors but no compatible owner-earnings measure.
The estimate combines two different FDD samples with an external margin sensitivity and cannot isolate the brand.
How was the annual earnings range estimated?
The estimate multiplies three mature-center revenue scenarios by three explicitly assumed residual margins: 8%, 11%, and 14%. Revenue is anchored to the official $748,723.55 median Gross Sales figure; the margin band is an editorial sensitivity constrained by the FDD's 46.9% gross margin, current recurring fees, and reported automotive-repair net-margin bands.
- Conservative scenario80% of official median Gross Sales, or $598,979, multiplied by an 8% residual margin.
- Base scenario100% of official median Gross Sales, or $748,724, multiplied by an 11% residual margin.
- Upside scenario120% of official median Gross Sales, or $898,468, multiplied by a 14% residual margin.
The 80%/100%/120% revenue spread is analytical, not FDD-reported. The 8%/11%/14% margin band is also an editorial scenario, not a franchisor forecast. It is informed by the 2024 Ratchet+Wrench survey's reported net-margin bands, which came from a broader independent auto-repair population. The survey's methodology summary describes nearly 400 U.S. repair shops, but it does not establish that respondents used a uniform treatment of owner pay, depreciation, interest, or taxes. That definitional limitation is built into the Limited confidence rating.
What do the three mature-center scenarios produce?
The modeled annual pre-tax owner earnings range is $47,918 to $125,786 per center. The base scenario is a calculation midpoint, not the most likely result.
Interpretation: revenue and residual margin compound each other. A center below the Item 19 median with elevated occupancy or labor overhead can fall below the displayed range; a stronger center can exceed it.
Sources: 2026 FDD, Item 19, Table 1-A, p. 48; 2026 FDD, Item 6, pp. 8–11; external margin context from the linked 2024 Ratchet+Wrench Industry Survey. Scenario values are independent calculations rounded to the nearest dollar.
How does the base case reconcile from revenue to owner earnings?
The base case leaves $82,360 after modeled direct costs, current mature-center franchise obligations, software, and an implied 23.9% allowance for other operating costs. The allowance is a scenario balancing item—not an FDD-reported expense total—and includes paid supervisory labor, occupancy, insurance, utilities, payroll burden outside the FDD's Cost of Goods definition, administration, and ordinary overhead.
| Base-case line item | Evidence or treatment | Annual amount |
|---|---|---|
| Gross Sales | Official 2025 median revenue anchor | $748,724 |
| Cost of Goods | 53.1% FDD P&L-subset ratio; parts, fluids, technician labor | ($397,572) |
| Gross Profit | 46.9% before rent, fees, advertising, insurance, and other overhead | $351,151 |
| Royalty | 7% of Gross Sales | ($52,411) |
| Creative Fund | Current 1% of Gross Sales | ($7,487) |
| Mature local advertising | 3.5% of Gross Sales for locations open at least three years | ($26,205) |
| Software subscription | Current $299 monthly | ($3,588) |
| Other operating costs | Scenario allowance, including paid supervisory labor and ordinary overhead | ($179,101) |
| Estimated pre-tax owner earnings | 11% scenario residual; before financing and personal taxes | $82,360 |
Rounded rows reconcile to $748,724. The 53.1% Cost of Goods ratio comes from a different 38-center sample than the 68-center median Gross Sales table. Applying it to the median is therefore an analytical compatibility assumption, not an FDD calculation.
How does owner involvement change the economic result?
Owner involvement is not optional under the current FDD: Item 15 requires the owner, or a designated owner with at least a one-third interest, to provide full-time, on-site supervision and day-to-day management. A hired manager may oversee sales or production, but the manager does not replace the owner's full-time operating obligation. Source: 2026 FDD, Item 15, p. 39.
Can this be modeled as passive or absentee ownership?
No passive or absentee scenario is presented because it would conflict with the FDD's stated operating requirement. Even the “staffed” earnings scenario assumes the owner remains full-time and on-site; it merely includes paid supervisory labor in normal operating costs.
What if the owner also performs the paid supervisor role?
If the full-time owner replaces one paid first-line repair supervisor, the modeled owner-operator benefit increases by approximately $65,210 per year. That figure is a labor-value benchmark, not added passive profit. The benchmark is the May 2023 annual mean wage for first-line supervisors in the BLS Automotive Repair and Maintenance industry table; the BLS occupation profile describes the role as supervising mechanics, installers, and repairers and potentially advising customers.
How much does replacing a paid supervisor add?
The labor-value adjustment raises the modeled owner benefit by $65,210 in each scenario. The right-hand square includes both residual business cash and the value of work performed by the owner.
Interpretation: the gap is compensation for an operating role. It should not be capitalized as passive profit, and it should be removed if the center still needs a separate supervisor or service manager.
Sources: 2026 FDD, Item 15, p. 39; BLS May 2023 NAICS 811100 wage estimate for occupation 49-1011. Calculation: staffed residual + $65,210. Payroll taxes, benefits, and replacement coverage are not added.
- Owner compensationNo separate owner salary is deducted in the residual scenario. The owner may ultimately receive cash through salary, draws, or distributions depending on entity structure, but those payment forms do not change unit economics.
- Paid manager compensationIncluded within the modeled “other operating costs” for the staffed scenario. The precise staffing plan is not disclosed in Item 19.
- Interest and debt principalExcluded. Financing can materially reduce cash available to the owner and must be modeled separately using the buyer's actual loan terms.
- Depreciation and major capital expendituresExcluded from this cash-oriented estimate. Equipment replacement, leasehold work, and major repairs can reduce distributable cash.
- Personal income taxesExcluded. Entity structure, jurisdiction, deductions, and the owner's other income determine after-tax results.
Which variables can move actual owner earnings outside the range?
The largest earnings driver is Gross Sales relative to fixed overhead; the largest unresolved uncertainty is the amount of below-gross-profit operating expense for a specific location. Item 19 does not disclose rent, non-technician payroll, insurance, utilities, owner pay, operating profit, or debt service by center.
The model uses the mature local-advertising requirement of 3.5% of Gross Sales or $1,500 per month, whichever is greater. A new center must spend $5,000 per month during its first six months and then 7% of Gross Sales or $2,100 per month through its first three years. A startup or ramp-up center can therefore produce materially less owner cash than the mature-center scenarios even at similar sales.
What sample limitations matter most?
The P&L evidence is narrower and more selective than the sales evidence. Item 19 states that 61 of 99 operational repair-brand franchisees did not submit a P&L and were excluded, leaving a reported total of 38 centers. Those reporting centers averaged 16 years open, so their cost structure may not resemble a new location.
Table 2-A's three displayed sales-band counts add to 37 centers, although its total row and accompanying text state 38. The narrative also refers to an “Average Gross Profit Margin of 54%,” while the table's total is 46.9%. This article uses the table's 46.9% figure and the stated 38-center total, but a buyer should request written clarification and substantiation.
- Different Item 19 samplesThe $748,724 median comes from 68 centers, while the 46.9% gross margin comes from 38 reported P&L submitters. The model combines them only as a disclosed analytical proxy.
- Maturity mismatchThe sales cohort includes centers open more than one year, while this model applies the lower local-advertising rate reserved for centers open at least three years. It can overstate cash for a year-two or year-three center.
- Mixed brands and formatsThe data combine multiple single-brand repair concepts and legacy marks. They do not isolate Mr. Transmission or co-branded economics.
- Reporting selectionCenters that submitted P&Ls may differ systematically from non-reporters. Item 19 does not quantify that selection effect.
- Local cost dispersionA 4,000–5,000 square-foot facility, wage market, insurance market, and competitive repair pricing can vary significantly by territory.
- Repair mix and productivityParts mix, technician efficiency, warranty work, average repair order, and billed labor utilization can change gross margin even at the same sales level.
What does Item 20 add to the risk picture?
Item 20 does not prove why outlets left the system, but it shows material population movement that a buyer should investigate. U.S. franchised repair-brand outlets declined from 106 at the start of 2025 to 99 at year-end: two opened, three terminated, and six ceased operations for other reasons. Five outlets transferred to new owners during 2025. Source: 2026 FDD, Item 20, pp. 50–54.
The closest Census classification is 2022 NAICS 811114, Specialized Automotive Repair, which expressly includes automotive transmission repair shops. That classification supports industry comparability, but a broad government industry code still cannot supply the missing Mr. Transmission-specific operating-profit figure.
What should a buyer verify before relying on this earnings range?
A buyer should treat $48,000–$126,000 as a screening range and replace every scenario input with territory-specific evidence before signing. The highest-value checks are the written Item 19 substantiation, actual mature-center P&Ls, staffing structure, occupancy, and the economics of recent transfers or closures.
- Request Item 19 written substantiationAsk for the records supporting Tables 1-A and 2-A, including center identities, inclusion rules, and whether each location is Mr. Transmission, Milex, or a legacy mark.
- Separate single-brand and co-branded resultsDo not use the single-brand repair-center tables to forecast a Mr. Transmission/Milex co-brand without separate evidence.
- Interview both reporters and non-reportersUse Item 20 and the franchisee lists to speak with high-, middle-, and low-sales operators, plus former owners and transferees.
- Rebuild the P&L below gross profitVerify rent, service-advisor and manager payroll, payroll taxes, insurance, utilities, software, merchant fees, supplies, warranty expense, and maintenance.
- Test the required owner roleConfirm the weekly hours, on-site duties, coverage plan, and whether a separate customer-service or production manager remains necessary.
- Model ramp-up advertising separatelyUse the first-six-month fixed spend and the higher local-ad rate through year three rather than the mature rate used here.
- Add financing and capital reservesDeduct actual interest, principal payments, and a realistic equipment and leasehold reserve from operating cash before estimating distributions.
- Reconcile outlet changesAsk why the nine 2025 terminations or other cessations occurred and review the actual records of any existing outlet under consideration.
The FTC's Consumer's Guide to Buying a Franchise recommends evaluating earnings claims, speaking with current and former franchisees, and distinguishing company-owned or selected-outlet results from the economics a buyer is likely to experience.
What is the strongest defensible earnings conclusion?
The strongest defensible range is approximately $48,000 to $126,000 in annual pre-tax owner earnings for a mature, single-brand center under an active, full-time owner model. It is a scenario estimate—not an official Item 19 earnings disclosure. Sales volume relative to fixed occupancy and staffing is the most important driver. The largest unresolved uncertainty is the center-specific expense burden below the FDD's Gross Profit line. If the owner legitimately replaces a paid repair supervisor, estimated owner-operator benefit may rise to roughly $113,000–$191,000, but the increment represents labor value. Before relying on any figure, a buyer should verify Item 19 substantiation, obtain comparable outlet P&Ls, and test the assumptions in interviews with current, former, transferred, and recently closed franchisees.