Tire Pros

Item 7 lays out the financial entry: initial investment spans $11,995 to $136,745, covering franchise fee of $7,000 plus buildout, inventory, and equipment for conversions or new stores. Ongoing fees bite monthly at $695 for franchising, $200 national ad fund, and $85 warranty—totaling around $980 before local marketing. No Item 19 disclosure means no official revenue or profit figures, forcing reliance on anecdotes or benchmarks; this opacity is a red flag in a sector where margins can squeeze under parts costs and competition from chains like Discount Tire. SBA data adds intrigue with 26 loans averaging $753,481, suggesting many franchisees leverage big debt for scaling, but the system's bankruptcy history (yes, flagged in FDD) hints at past financial strains that could echo for operators.

System health per Item 20 shows 644 locations after +3% growth from 623 in 2022, with 95 projected new units signaling ambition amid 11 transfers. However, 50 terminations and 3 non-renewals last year equate to roughly 8% attrition—far above healthy benchmarks—pointing to possible fee burdens, market saturation, or support gaps in this replacement tire niche. For investors eyeing conversions of existing shops, the model's flexibility appeals, but high terminations and no earnings data demand caution; slow growth and debt-heavy SBA stats suggest Tire Pros suits experienced auto operators more than novices chasing quick returns.