Item 7.01 Regulation FD disclosure

As previously reported, in May 2007, two Midas franchisees in Canada filed a lawsuit in Ontario Superior Court of Justice against Midas Canada, Inc. ("Midas Canada"), and Midas International Corporation ("Midas International"), claiming, among other things, that Midas Canada breached its franchise agreement when it closed its manufacturing and distribution operations in 2003. The plaintiffs--Landsbridge Auto Corporation and 405341 Ontario Limited--sought class certification.

On March 26, 2009, the court released its decision regarding certification of the action as a class proceeding. As expected, the court certified certain of the plaintiffs' claims. However, of the many and varied claims that were asserted by the plaintiffs, the only claims that the plaintiffs will be allowed to advance as a class are whether Midas Canada breached its common law and statutory duties of good faith/fair dealing when Midas Canada implemented its new supply chain in 2003, and, if so, whether Midas Canada could properly maintain the same royalty structure after ceasing to supply products to franchisees. All other causes of action against Midas Canada and Midas International, and proposed common issues based on those causes of action, were rejected by the court.

In its decision, the court ruled that Midas Canada did not breach its franchise agreement when it closed its manufacturing and distribution operations in 2003 or accepted rebates from its supplier. The court also held that Landsbridge is not a proper plaintiff in the proceeding and that the class definition is limited to only those franchisees who were part of the Midas system before the new supply chain was implemented and continued as franchisees through the date of the claim. There are no class claims remaining against Midas International.

Midas continues to believe that the plaintiffs' case is without merit and will vigorously defend these remaining claims at trial.