Midas built its name on a warranty that follows the vehicle, not the shop — which means a resale has to work out, in writing, what happens to open warranty obligations on brakes, exhaust and other covered work already performed under the seller's ownership. Layered on top of the franchisor's own international consent process, that warranty question is usually the first thing a Midas buyer's lawyer should be asking, alongside the lease and the shop's equipment.
Midas resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer is conditioned on franchisor consent, a mechanical review of shop equipment, and confirmation of how outstanding warranty claims on prior work will be handled.
1–3 weeks†The Midas system reviews the incoming owner's background and financial standing, and typically holds a right of first refusal it can exercise before consenting to the transfer.
4–8 weeks†Arthur Wishart Act disclosure may still be required on a resale — courts read the exemption narrowly, so we confirm early whether it applies to your specific transfer.
runs alongside consent†Getting to closing
Most shops operate from a leased bay-and-service premises; landlord consent to assign is often the practical pacing item for the whole deal.
2–6 weeks†Franchisor operational training for the incoming owner runs alongside registering the shop's warranty-network status and confirming how prior customers' outstanding warranty coverage is honoured going forward.
2–4 weeks†Funds, the franchise agreement, and the shop's equipment and inventory change hands, with equipment financing and open warranty liability confirmed before the date is set.
1 day, once conditions are met†midasfranchise.com franchise inquiry form includes Canada as a selectable country; thousands of locations worldwide including Canadian shops.
Ontario shops among the Canadian network.
This is the first real decision in a Midas resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | Shop equipment, parts and tire inventory, the lease, goodwill and the franchise agreement. | The shares of the corporation that holds the franchise agreement, including its history and existing liabilities. |
| The franchise agreement | Assigned to the buyer with franchisor consent, usually alongside a new or amended agreement. | Generally stays with the corporation, but the franchisor must consent to the ownership change. |
| Outstanding warranty obligations | Whether warranty claims on work performed before closing follow the buyer, the seller, or the brand's network warranty program needs to be spelled out in the agreement. | Warranty exposure typically remains with the corporation, since the entity issuing the original work doesn't change. |
| The lease | Needs landlord consent to assign — often the pacing item for the whole closing. | Usually stays in place unless the lease has its own change-of-control clause. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased; an HST election may apply to the sale. | Seller may access the lifetime capital gains exemption on qualifying shares. |
| Typical use | The more common structure for a single-shop Midas resale. | Occasionally preferred specifically to keep warranty history attached to the same corporate entity that issued it. |
Shop equipment, parts and tire inventory, the lease, goodwill and the franchise agreement.
The shares of the corporation that holds the franchise agreement, including its history and existing liabilities.
Assigned to the buyer with franchisor consent, usually alongside a new or amended agreement.
Generally stays with the corporation, but the franchisor must consent to the ownership change.
Whether warranty claims on work performed before closing follow the buyer, the seller, or the brand's network warranty program needs to be spelled out in the agreement.
Warranty exposure typically remains with the corporation, since the entity issuing the original work doesn't change.
Needs landlord consent to assign — often the pacing item for the whole closing.
Usually stays in place unless the lease has its own change-of-control clause.
Buyer gets a stepped-up cost base on the assets purchased; an HST election may apply to the sale.
Seller may access the lifetime capital gains exemption on qualifying shares.
The more common structure for a single-shop Midas resale.
Occasionally preferred specifically to keep warranty history attached to the same corporate entity that issued it.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Midas shop changing hands between an existing owner and an incoming owner-operator, with the current technicians, lease and warranty history continuing largely as-is.
Start my file →A shop with a significant volume of outstanding warranty work that needs explicit allocation in the agreement, a franchisor requiring equipment or signage upgrades as a condition of consent, or an owner acquiring more than one Midas location at once.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
It depends entirely on how the purchase agreement allocates that risk, and that's exactly why it needs to be addressed explicitly rather than left implied. Midas's brand warranty on covered repairs creates real ongoing exposure tied to work sold before you owned the shop, and we negotiate who carries that before you sign.
Often somewhat, since Midas operates as part of a larger international franchise system with its own standardized consent process — we build a realistic timeline into your offer rather than assuming it moves as quickly as a purely regional brand.
Handling of used oil, coolant, refrigerant and tires is routine in the business, and while it doesn't usually derail a deal, a screening-level review of current disposal practices and contracts is standard diligence before you take on the site.
Possibly, yes. Ontario courts have read the Arthur Wishart Act's resale exemption narrowly, so a shared network relationship doesn't settle the question on its own — we confirm whether disclosure applies to your specific transfer.
Most single-shop resales run about 45 to 90 days, generally paced by the franchisor's consent review, which tends to run a bit longer given the size of the international system behind it.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Midas or its franchisor.
Tell us about your Midas resale — we'll point you the right way and confirm the cost in writing before any work begins.