Miracle-Ear Franchise Costs $120K - $353K (2024 FDD Summary)

INVESTMENT

$120,000

-

$353,000

LOCATIONS

1516

Debbie

Updated

April 17, 2024

Is

Miracle-Ear

a franchise?

Yes,
Miracle-Ear
currently
accepts
franchise
applications

Miracle-Ear, Inc., founded by Kenneth Dahlberg in 1948, is a prominent hearing aid and hearing care company headquartered in Minneapolis, Minnesota. The company, a subsidiary of Amplifon, the global leader in hearing care and hearing aid retail based in Milan, Italy, has grown significantly over the years across the United States.

Miracle-Ear began franchising in 1983 and has since become the best-known hearing aid brand in the U.S., providing innovative hearing solutions and services to improve the lives of those with hearing impairments.

Miracle-Ear stands out in the hearing care industry not only for its widespread recognition and trust among consumers but also for its commitment to franchisee support and development. The franchise offers an exclusive territory system to its franchisees, ensuring a defined geographical area for each franchise without internal competition. This approach enables franchisees to achieve sufficient market penetration and fosters a collaborative environment within the Miracle-Ear network.

The franchise provides comprehensive support to its franchisees, including access to industry-leading training programs, marketing initiatives, and specialized support from dedicated business managers. These resources are designed to assist franchisees in strategic planning, operational management, and growth, reinforcing Miracle-Ear's position as a leader in the hearing healthcare sector​​​​.

How many

Miracle-Ear

franchises

are there?

In 2022, there were
0
outlets in
the United
States, of which
are franchises, and
are corporate-owned.

What are the

Miracle-Ear

franchise

fees?

Royalty fee

$48.80 for each Miracle-Ear hearing aid.

Advertising fee

10.00%

Initial Franchise Fee

The Initial Franchise Fee includes a License Fee of $20,000 and a Territory Fee of $4,000 per 100,000 population, with a minimum Territory Fee of $10,000 for areas up to 250,000 persons.

Royalty Fee

Franchisees pay $48.80 for each Miracle-Ear® hearing aid and $30.15 for each AudioTone Pro hearing aid.

CRM Program Fee

This fee varies based on the customer database size, capped at $570 per Center per month.

Local Advertising Expenditures

Franchisees must allocate at least 10% of "Net Sales" towards local advertising efforts.

Regional Cooperative Advertising

The regional advertising council sets the fee, which cannot exceed 10% of Net Sales.

Transfer Fee

A fee of $5,000 applies for majority or controlling interest transfers, and $2,000 for minority and non-controlling interest transfers.

Experience Enhancements

Franchisees may spend up to $5,000 per Center for minor updates to enhance the customer experience.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Miracle-Ear

franchise?

It costs between
$120,000
and
$353,000
to start a
Miracle-Ear
franchise.
Type of Expenditure Amount
Initial Franchise Fee $30,000
Prepaid Expenses - Franchise $500 to $2,500
Prepaid Expenses - Location $1,000 to $5,000
Travel and Living Expenses During Training $1,500 to $5,000
Real Property, Build Out Costs $20,000 to $150,000
Furniture, Fixtures and Equipment $30,000 to $60,000
Signage $1,500 to $10,000
Inventory $5,000 to $10,000
Additional Funds - 3 months $30,000 to $80,000
Total $119,500 to $352,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Miracle-Ear

provide

training

to its

franchisees?

Yes,
Miracle-Ear
provides
training

The franchisor provides comprehensive training for new franchisees, covering various aspects essential for running a Miracle-Ear® Center. The training includes:

Initial Training Program

  • This program is mandatory for new franchisees and takes place at a mutually agreeable time and location, which may include the franchisor's home office or other designated places. The program covers the basics of franchise operation, including marketing, human resource management, business analysis, financial management, store planning, sales strategies, and information technology.

Continuing Education

  • Franchisees are required to attend additional courses, seminars, and training programs as deemed necessary by the franchisor. These may include license preparation courses, advanced fitting sessions, and other educational forums. The franchisor reserves the right to require franchisees and certain management-level employees to attend an annual national or regional meeting, seminar, or convention for training or business purposes.

Tailored Training

  • The New Franchisee Business Workshop is usually tailored to each franchisee's level of experience, business acumen, and other factors at the field manager's discretion. This ensures that the training is relevant and effective for each franchisee.

Does

Miracle-Ear

provides

territory

protection?

Miracle-Ear provides territorial protection to its franchisees, as outlined in their Franchise Disclosure Document. Specifically, the franchisor agrees not to establish or operate, nor to license or allow any other person or entity to establish or operate a Miracle-Ear Center using the Proprietary Marks within the franchisee's designated territory, provided the franchisee is in compliance with their Relocation Schedule and Development Schedule.

This territorial protection is contingent upon the franchisee's adherence to the terms of the agreement and their fulfillment of development and relocation obligations.

Can a

Miracle-Ear

franchise

be run as

a passive

investment?

Miracle-Ear's franchise model requires direct involvement in the management and operation of the Franchised Business. If you are an individual or a sole proprietorship, you must directly manage and operate the franchised Miracle-Ear® Centers.

In the case of a partnership, one of the general partners must handle the direct management and operation. For a limited liability company, a member who owns at least 5% or more of the company's membership interests must be involved in the direct management and operation. However, it is permissible to designate a general manager to have direct management and operational responsibility for one or more Centers, under certain conditions.

Both the franchisee (or, if the franchisee is a corporation, partnership, or limited liability company, the managing shareholder, partner, or member) and the designated general manager must successfully complete Miracle-Ear's training program.

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