Merlin
The total investment to open a Merlin franchise ranges from $262,300 to $531,000. The initial franchise fee is $30,000. Ongoing royalties are 6.9% plus a 5% advertising fee.
What is the Merlin franchise?
Merlin is an auto repair business that services customers’ vehicles. The estimated total initial investment is $262,300 to $531,000, with an initial franchise fee of $30,000.
The ongoing royalty is 6.9 percent of sales, and the advertising or brand fund fee is 5 percent. The franchise agreement runs for 20 years. Merlin is headquartered in Charlotte, NC, and was founded in 1975.
Loan Activity Score
23/100
SBA Default Rate
12.2%
Active Lenders
24
According to its Franchise Disclosure Document or public business records, Merlin has 61 locations, all owned by franchisees. Public SBA loan records show 24 lenders made 74 loans to franchisees of Merlin. PeerSense calculates Merlin's score as 23 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1975 · 61 locations
$262,300 to $531,000
$30,000
61
61 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Merlin
74
Total SBA loans
$221K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Merlin
Loan Activity Score Breakdown
Established (25 to 99 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
12.2%
vs 10.8% peer avg
SBA Loans
74
Total Volume
$16.4M
Active Lenders
24
2 selective
States
4
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Merlin based on SBA lending data
SBA Default Rate
12.2%
1.4% above peer avg
SBA Loan Volume
74 loans
Across 24 lenders
Lender Diversity
24 lenders
Avg 3.1 loans per lender
Investment Tier
Significant investment
$262,300 to $531,000 total
Merlin: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
1999
9 approvals. The best year on record for Merlin.
Top SBA State
Illinois
61 SBA financed Merlin locations, the densest operator footprint.
Average Loan Size
$236K
Median $197K. Use as a sizing anchor when modeling your own Merlin unit.
Lender Concentration
48.7%
Concentrated
Share of Merlin approvals captured by the top 3 SBA lenders.
Merlin's SBA lending pipeline peaked in 1999 (9 approvals). The last five fiscal years account for 3% of cumulative volume ($246K approved). Operator density is highest in Illinois with 61 SBA financed locations. Average funded ticket sits at $236K, with the median at $197K. Lender mix is concentrated: the top three SBA lenders account for 48.7% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$2,715
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Merlin, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman