Last week was crazy with acquisition announcements. The biggest one was that the Midas chain had agreed to sell to Sumitomo (Tire Kingdom and Merchant Tire) for $173 million. 

The $173 million is not for the shops because most Midas stores are owned by franchisees. What it does cover is the agreement with franchises and their franchise fees. What does it mean for franchisees? It is tough to say.

Maybe I am getting old, but I remember when muffler/brake places wanted to take on tire dealers by selling tires and tire dealers want to take on muffler/brake places by offering service. Is this the final result after years of changing strategies? In ten years, will these chains look more like general repair shops?  Where will the buying authority for brake pads reside?

Your comments are welcome!