Honest-1

Item 7 lays out the financial entry: initial franchise fee of $75,000, total investment from $255,750 to $1,242,250 covering build-out, equipment, and inventory for these automotive service centers. Ongoing fees bite at 6% royalty on gross sales, 2% brand fund, plus a flat $1,000 monthly technology surcharge—higher than some peers without the tech justification shining through. Item 19 shines brightest here, reporting average gross revenues of $1,410,428 and medians of $1,300,259 across comparable units, suggesting top performers exceed $1.4 million annually in a cyclical market competing with Midas and Firestone. No direct profit figures, but these grosses imply healthy margins after fees if expenses stay lean, especially in high-traffic spots.

System health metrics paint a mixed picture: down 3% from 61 to 59 franchised locations in 2024, with just 3 corporate-owned and only 1 transfer recorded, per Item 20. SBA data reveals 71 loans averaging $449,258 but a 9.9% default rate—above industry norms, hinting at financing risks or operational hurdles for some owners. Litigation history in Item 3 includes post-termination non-compete fights, trade secret claims, and franchisee counter-suits over transfers, underscoring enforcement tensions since franchising began in 2007 from St. Petersburg, FL. For auto repair hopefuls, the revenue potential tempts, but contraction and defaults scream 'vet locations and ops meticulously' before committing over $1M.