Meineke Franchise Has Grown By Leaps And Bounds

Dave and Crystal Wood of Kitchener wanted a small auto repair business of their own when they opened a Meineke Car Care franchise in Cambridge 13 years ago.

Their franchise grew from one location to three in the Waterloo Region and then a fourth location last October.

Then, just over a month ago, the franchise expanded again, this time in a big way.

Franchise Ranking History
Franchise 500: #52 (2014), #51 (2013), #53 (2012), #55 (2011), #132 (2010),
America's Top Global: #54 (2013), #49 (2012), #48 (2011), #106 (2010)
FranchiseGator 100 list: #60 (2014)

The Woods acquired a group of seven CAA Car Care Centres in Cambridge, Kitchener, Waterloo, Listowel, Elmira and Stratford. The acquisition gives them a total of 11 locations, making theirs the fourth-largest Meineke franchise in North America and dramatically expanding the brand's footprint in this area.

Their formula for success is honesty, transparency and building customer relationships, Dave Wood says. "I want people to feel confident that where they get their car repaired is trustworthy."

Joe McIntyre, who was brought in last year as general manager, says customer education is the guiding policy, and people are always shown what is wrong with their vehicle. "They don't just have to sit on the other side of the counter and be told what is wrong."

The centres provide full service, including oil changes and tune-ups, and brake, transmission and engine repairs. The only thing the centres don't do is auto body work.

Dave Wood was a licensed auto mechanic who managed a Meineke location run by a different owner in Waterloo before he got his own franchise on Eagle Street in Cambridge.

"One of the things that attracted us to the Meineke brand is the freedom that you get," he says. "With some other brands, there are a lot of restrictions about having to buy the products through them or from their suppliers, and they determine the price that you sell for."

Six years into the business, the Woods added a second location when they bought a car repair business on Victoria Street in Kitchener. Three years after that, they picked up another location in Cambridge. Last fall, they added a Meineke location on Manitou Drive in Kitchener.

An even bigger opportunity presented itself earlier this year, when the Canadian Automobile Association (CAA) decided to get out of the car repair business and focus on membership benefits. The Woods bought seven more locations: on University Avenue in Waterloo, Westmount Road and Fairway Road in Kitchener, Hespeler Road in Cambridge, as well as in Elmira, Listowel and Stratford.

The acquisition is a big leap for the business. "It is a learning transition for all of us," Crystal says. "But we have a really good staff we can depend on." The Woods now employ 43 people. Some former CAA staff came on board and they have been hiring people as well.

It's not an easy business. "Our biggest competitors are the new car dealerships," Dave says. The Woods are renovating each of the centres to provide "living room" style waiting areas. For people who can't wait for their vehicles, options of car or cab rides are provided.

The Woods try to keep their prices in the middle range. "We are not trying to be the cheapest because that doesn't always give you the best job or the best experience," Dave says. "But we will show you what is wrong with your vehicle so you can make an informed decision."

That approach has paid off. Dave says their centres have been able to get repeat business of more than 50 per cent every year as well as referrals. "Our advertising is almost all done by word of mouth," Crystal says.

Meineke is a familiar brand that started in Houston, Texas in 1972. But Dave says no franchise can survive purely on brand recognition. "Any brand can get a customer to come in the first time, but what happens inside the location is what gets them to come back," he says.

Prior to becoming a general manager for the Meineke franchise, McIntyre worked in business offices in the corporate world. He finds this job more satisfying.

"You can make so many people happy," he says. "They come in here and their car is doing something crazy or making noises, and we get to solve that problem for them and do it in such a way that it makes them happy. That creates a relationship, and that is rewarding."

Dave notes that running a people-oriented business with more than 40 employees and all kinds of people coming in the doors with stories to tell means that "your day is never dull."

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