1-800-radiator Franchise Cost & 2025 FDD Data
56/100
Second tier
56 this brand59 Automotive medianlikely 52–60 (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,232 of 3,068 graded brands
Why a B: Helped by unit economics, scale, legal record and transparency. See all six factors
- Total investment
- $464K – $1.3M
- excl. real estate
- Avg gross sales
- $2.2M
- “Part II - Sales to Cost Analysis (all survey respondents)”, 112 outlets; not profit
- SBA charge-off
- 23.4%
1 in 4 SBA 7(a) loans to 1-800-radiator owners charged off (15 of 64 resolved loans, approved FY2006 to FY2016); Automotive median 14.2%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2025 FDD
Per the 2025 FDD, a 1-800-radiator franchise requires a total initial investment of $464K – $1.3M, excluding real estate, including a $45K franchise fee. Once open, the ongoing royalty is 8.0%. Per the 2025 FDD, average gross sales were $2.2M (Item 19 group “Part II - Sales to Cost Analysis (all survey respondents)”, 112 outlets; gross sales, not profit). SBA 7(a) loans show a 23.4% charge-off rate on 64 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2025 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium (issued 12 to 24 months ago; a newer filing is likely on file)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Automotive median
Top edge: green = better than the Automotive median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $2.2M/year (outlet median $1.7M; Item 19 group “Part II - Sales to Cost Analysis (all survey respondents)”, 112 outlets; gross sales, not profit), with an estimated 10% cash-on-cash return (based on EBITDA).
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 1 (0 opened, 1 closed).
AT STAKEOne unit at the Item 7 midpoint: $115K a year in payments on assumed SBA 7(a)-style terms.You put in about $178K of your own cash and personally guarantee a $711K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- Net -1 franchised outlets in 2024 (Item 20, outlet counts). Ask owners why outlets closed.
- SBA 7(a) charge-off 23.4% on 64 resolved loans approved FY2006 to FY2016, above the Automotive median of 14.2% (33 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor and the full filing on file, and an Item 19 average from 112 units. Not on file here, so ask: jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the 1-800-radiator owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.4× the Automotive median ($366K).
Source: FDD 2025 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask 1-800-Radiator Franchisor SPV LLC (Item 1: 4401 Park Road, Benicia, California 94510) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Start-Up Warehouse Equipment and Supplies | $42K | $85K | |
| Opening Marketing Package | $30K | $30K | |
| Travel and Living Expenses While Training | $2.5K | $10K | |
| Lease Deposit | $5K | $25K | |
| Delivery Vehicle | $5K | $45K | |
| Miscellaneous Opening Costs | $25K | $75K | |
| Opening Inventory | $250K | $800K | |
| Rent for first 3 months | $9K | $49K | |
| Additional Funds – 3 months | $50K | $150K | |
| Total initial investment | $464K | $1.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
Payback period9.7 yrs · from FDD / Item 19
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology feesTechnology Fee currently $145-$165 per user account per year (typical Warehouse has 2-15 user accounts); may increase but will not exceed $10,000/year | See the list |
| Transfer fee | $20,000 |
| Renewal fee | $20,000 |
| Total fee loadabove the Automotive median of 7.5% (heavy) | 10.0% of sales |
What do units actually make?
Average gross sales are 2.1× the Automotive median ($1.0M).
Source: FDD 2025 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one 1-800-radiator unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $2.2M (FDD p.81), and the royalty and ad fund take about $215K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $115K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $889K Item 7 midpoint is a $711K loan, paid over 10 years at 10.5%: $115K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. 1-800-radiator's past SBA 7(a) loans averaged 5.7% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $178K Assumption (the part the loan does not cover of the $889K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $711K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
FDD-reported earnings
The FDD reports $167K as EBITDA. This is a disclosed figure, not our estimate: we publish no modelled profit for 1-800-radiator.
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one 1-800-radiator unit leave you each year after the loan payment?
Item 19: $2,150,588 average for 112 outlets (Part II - Sales to Cost Analysis (all survey respondents)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $464K to $1.3M
Item 7's $50K to $150K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $711K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD · filed by 1-800-Radiator Franchisor SPV LLC
Financial performance
- Avg ebitda
- $167K
- The filing's own EBITDA line (Item 19), as it defines it; not comparable with other brands' figures
- Cash-on-cash
- 10.4%
- Based on EBITDA / investment midpoint
- Range (low → high)
- $310K→$8.9MSource: 2025 FDD, page 81
- Cohort dispersion (min → max)
Percentile ranks within Automotive
Each rank is among the Automotive brands that report that figure (the count is under each bar).
Item 19 · 6 groups · FDD p.77
Item 19 by group
The 2025 filing reports gross sales for 6 groups of outlets. The headline average on this page is the “Part II - Sales to Cost Analysis (all survey respondents)” group (112).
| Group | n | Average | Median |
|---|---|---|---|
| Part II - Sales to Cost Analysis (all survey respondents)headline above | 112 | $2.2M | $1.7M |
| Part I - 1st Quartile (highest Metro Sales per Metro Customer)Top 25% by sales of Part I - All Warehouses (Total Sales) | 48 | $2.8M | $2.7M |
| Part I - 2nd QuartileMiddle 25% by sales of Part I - All Warehouses (Total Sales) | 47 | $2.5M | $2.0M |
| Part I - 3rd QuartileMiddle 25% by sales of Part I - All Warehouses (Total Sales) | 47 | $1.4M | $1.2M |
| Part I - 4th Quartile (lowest Metro Sales per Metro Customer)Bottom 25% by sales of Part I - All Warehouses (Total Sales) | 47 | $872K | $701K |
| Part I - All Warehouses (Total Sales) | 189 | $1.9M | $1.5M |
Costs and gross margin, as the filing prints them
The filing's “Gross Margin” is before rent. The filing does not say whether it is after royalty, ad fund, debt service and depreciation. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 5 groups (FDD p.77)
| Line, as the filing names it | Part I - 1st Quartile (highest Metro Sales per Metro Customer)n=48 | Part I - 2nd Quartilen=47 | Part I - 3rd Quartilen=47 | Part I - 4th Quartile (lowest Metro Sales per Metro Customer)n=47 | Part I - All Warehouses (Total Sales)n=189 |
|---|---|---|---|---|---|
| Average gross sales | $2.8M | $2.5M | $1.4M | $872K | $1.9M |
| Gross Margin | 50.00% | 48.00% | 48.00% | 48.00% | 49.00% |
vs Automotive medians
How 1-800-radiator compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
1-800-Radiator Franchisor SPV LLC, owned by Driven Systems LLC.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- 1-800-Radiator Franchisor SPV LLC
- Parent company
- Driven Systems LLC
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Driven Brands Holdings Inc.
- FDD Item 1, page 10 of the 2025 FDD
- Predecessor
- 1-800-RADIATOR & A/C Corporation; 1-800-Radiator Franchise Inc. (RFI)
- Prior franchisor entity
- CEO title
- Manager and Chief Executive Officer
- Daniel Rivera
- Incorporated in
- Delaware
- HQ
- 4401 Park Road, Benicia, California 94510
Same owner · FDD Item 1, page 10
6 other brands on this site name Driven Brands Holdings Inc. as parent or ultimate parent in their own FDD.
- Abra (grade B)
- CARSTAR (grade A)
- FIX AUTO (grade A)
- Maaco (grade B)
- Meineke (grade C)
- Take 5 Oil Change (grade A)
Portfolio: Driven Brands
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Wholesale distribution of radiators, condensers, air conditioning compressors, and other automotive parts and products from a warehouse location to automotive repair shops, parts stores, body shops, and other repair shops within a defined territory.
- CEO
- Daniel Rivera
- States and territories listed
- 31
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
0 franchised outlets over the two years to 2024 (193 to 193, 0.0% in total, 0.0% a year compounded).
Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 1 for every 97 open outlets · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units held at 193 from 2022 to 2024
Axis does not start at zero.
Source and method
Where the outlets are · Item 20 owner list
3 current outlets in 2 states, plus 3 with no US state or territory: the 6 on the owner list, of 193 franchised at year end (Item 20).
- CA 2
- NC 1
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 23.4% of 64 resolved SBA 7(a) loans, above the 14.2% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 65
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $14.6M
- Average loan
- $224K
- loan volume divided by loans
- Charge-off rate
- 23.4%
- 15 of 64 resolved loans
- Paid in full
- 76.6%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2017
- Lenders
- 31
- Average interest rate
- 5.7%
- Jobs reported
- 391
- Lender concentration
- 15%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Automotive brand charges off 14.2% (33 brands with a published rate, same cumulative window and source). This brand is 9.3 points above it.
The approval-year breakdown covers 58 of the 64 resolved loans and 15 of the 15 charge-offs (FY2006 to FY2016).
SBA 7(a) · charge-off rate by approval year
1-800-radiator: 9 of the 10 charge-offs in the rated years came from 2007 loans
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2006 | 5 | 2 | Too few |
| 2007 | 20 | 9 | 45.0% |
| 2008 | 13 | 1 | 7.7% |
| 2009 | 5 | 1 | Too few |
| 2010 | 3 | 0 | Too few |
| 2012 | 6 | 2 | Too few |
| 2016 | 6 | 0 | Too few |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for 1-800-radiator from SBA 7(a) FOIA loan records.
- Principal charged off (% of dollars)
- 6.9%
- Average charge-off
- $67K
- across 15 charged-off loans
- Average SBA guarantee
- 67%
- Average interest rate
- 5.7%
- Lender concentration
- 15%
- Jobs reported
- 391
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| PNC Bank, National Association | ||
| 10 | $1.6M | Not on file |
| The Huntington National Bank | ||
| 6 | $773K | Not on file |
| JPMorgan Chase Bank, National Association | ||
| 5 | $1.4M | Not on file |
| Popular Bank | ||
| 4 | $397K | Not on file |
| Federal Deposit Insurance Corporation | ||
| 3 | $548K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| PA Pennsylvania | 8 | 2 | Too few8 resolved |
| TX Texas | 7 | 3 | Too few7 resolved |
| OH Ohio | 5 | 2 | Too few5 resolved |
| CA California | 4 | 0 | Too few4 resolved |
| AR Arkansas | 3 | 0 | Too few3 resolved |
| GA Georgia | 3 | 2 | Too few3 resolved |
| NC North Carolina | 3 | 0 | Too few3 resolved |
| AL Alabama | 2 | 2 | Too few2 resolved |
| FL Florida | 2 | 1 | Too few2 resolved |
| KS Kansas | 2 | 0 | Too few2 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
A 23.4% charge-off rate means about 1 in 4 resolved SBA 7(a) loans to this brand was charged off. The approval-year chart above shows which years they came from.
What are the risks?
SBA loans charge off at 23.4% on 64 resolved loans approved FY2006 to FY2016, above the Automotive median of 14.2% (33 brands).
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 56/100 (category median 59); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics HelpsAvg gross sales $2.2M on a $889K investment midpoint, 2.4x (gross sales, not profit); an Item 19 earnings figure of $167K also counts
- Unit growth Neutral0 franchised outlets over the two years to 2024 (193 to 193, 0.0% in total, 0.0% a year compounded); turnover 0.5%
- Scale Helps193 franchised units, +1 company-owned (194 in all); franchising since 2004; mostly company-owned (1% franchised)
- Legal Helps1 matter naming the franchisor among the Item 3 matters we list (0.5 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-21 points)SBA loan record: the SBA charge-off rate (23.4% on 64 resolved loans approved FY2006 to FY2016) is between 20% and 50%, a range the score counts against a brand, so it took 15 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Score limits: a ceiling the method sets for specific risks (such as a very high SBA charge-off rate, high turnover or an auditor's going-concern doubt) took 6 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
No litigation against 1-800-Radiator itself. Item 3 discloses 5 pending securities/derivative actions against parent Driven Brands Holdings and its officers (Genesee, Terwilliger, Gaiman, Kalimon, Bushansky: all alleging failure to disclose info resulting in misstatements about Driven Brands Holdings business/prospects), plus a Maaco franchisee breach-of-contract suit (PJC Management) against affiliate Maaco/Driven Brands/Driven Systems, and historical settled affiliate actions (ARG/Arby's no-poach, Dunkin' no-poach and NY data breach settlements). None allege wrongdoing by 1-800-Radiator or affect the brand directly.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Litigation case detail7 matters · Item 3
Litigation cases
The franchisor and its predecessor
Concluded (1)
Independent Association of Radiator Franchisees, Inc., et. al. v. 1-800-Radiator Franchise, Inc., et. al.
dismissedBrought by a franchisee · 1-800-Radiator Franchise, Inc. (RFI), the former franchisor, together with its affiliate 1-800-RADIATOR & A/C Corporation · filed 2014-07-29 · American Arbitration Association · 01-14-0001-0767
“filed a demand for arbitration against RFI and A/C Corporation demanding (i) that RFI and A/C Corporation immediately discontinue certain acts and practices alleged therein; (ii) return of allegedly improperly collected fees and charges, plus interest, (iii) compensatory, exemplary, consequential and punitive damages, plus interest”Page 24 of the 2025 FDD, Item 3
Outcome: “On August 26, 2014, the AAA dismissed the Independent Association of Radiator Franchisees, Inc. for failure to identify an arbitration agreement with RFI or A/C Corporation and bifurcated the existing franchisees”
Within this matter, as the filing narrates it · 2 proceedings
1-800-Radiator of San Francisco, Inc. v. 1-800-Radiator Franchise, Inc., et. al.
settledBrought by a franchisee · names a predecessor · 1-800-Radiator Franchise, Inc. (RFI), the former franchisor, together with its affiliate 1-800-RADIATOR & A/C Corporation · filed 2014-09-05 · American Arbitration Association · 01-14-0001-4741
“the San Francisco Franchisee filed its individual bifurcated arbitration demand against RFI and A/C Corporation (1-800-Radiator of San Francisco, Inc. v. 1-800-Radiator Franchise, Inc., et. al.; American Arbitration Association Case No. 01-14-0001-4741) alleging breach of contract, breach of the implied covenant of good faith and fair dealing”Page 25 of the 2025 FDD, Item 3
Outcome: “On August 14, 2015, the parties settled the dispute with the San Francisco Franchisee, whereby (i) the arbitration was dismissed with prejudice without any fees and costs to any party, (ii) the parties provided mutual general releases, and (iii) RFI agreed to take no steps to terminate the franchise”
Diane McKay d/b/a 1-800-Radiator of Fairfield, Inc. v. 1-800-Radiator Franchise, Inc., et. al.
settledBrought by a franchisee · names a predecessor · 1-800-Radiator Franchise, Inc. (RFI), the former franchisor, together with its affiliate 1-800-RADIATOR & A/C Corporation · filed 2014-09-05 · American Arbitration Association · 01-14-0001-0767 (same AAA case number as the Independent Association demand)
“On September 5, 2014, the Fairfield Franchisee filed her individual bifurcated arbitration demand against RFI and A/C Corporation (Diane McKay d/b/a 1-800-Radiator of Fairfield, Inc. v. 1-800- Radiator Franchise, Inc., et. al.; same AAA case number as above) alleging breach of contract, breach of the implied covenant of good faith and fair dealing”Page 24 of the 2025 FDD, Item 3
Outcome: “On August 14, 2015, the parties settled the dispute with the Fairfield Franchisee, whereby (i) the arbitration was dismissed with prejudice without any fees and costs to any party, (ii) the parties provided mutual general releases, and (iii) RFI agreed to take no steps to terminate the franchise agreement.” (page 25)
Counted as one matter, the way Item 3 groups it.
Parent, affiliates, master franchisor and subfranchisor
Pending (3)
Gaiman v. Fitzpatrick, et al.
pendingDriven Brands Holdings Inc. (derivative action against its current and former executive officers and board members) · filed 2025-04-30 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:25-cv-00288
“… (United States District Court for the Western District of North Carolina (Charlotte Division); Case No. 3:25-cv-00288) (Filed April 30, 2025). Jonathan Gaiman filed a purported derivative complaint in the United States District Court for the Western”Page 24 of the 2025 FDD, Item 3
Terwilliger v. Fitzpatrick, et al.
pendingDriven Brands Holdings Inc. (derivative action against its current and former executive officers and board members) · filed 2025-01-10 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:25-cv-00019
“… (United States District Court for the Western District of North Carolina (Charlotte Division); Case No. 3:25-cv-00019) (Filed January 10, 2025). Daniel Terwilliger filed a purported derivative complaint in the United States District Court for the Western”Page 23 of the 2025 FDD, Item 3
Genesee County Employees' Retirement System v. Driven Brands Holdings Inc., et al.
pendingDriven Brands Holdings Inc. · filed 2023-12-22 · United States District Court for the Western District of North Carolina (Charlotte Division) · 3:23-cv-00895-MOC-DCK
“v. Driven Brands Holdings Inc., et al. (United States District Court for the Western District of North Carolina (Charlotte Division); Case No. 3:23- cv-00895-MOC-DCK) (Filed December 22, 2023). Genesee County Employees’ Retirement System filed a putative class action lawsuit in the U.S. District Court for the Western District of”Page 23 of the 2025 FDD, Item 3
Concluded (3)
New York v. Dunkin' Brands, Inc.
concludedGovernment or regulatory action · Dunkin' Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County; Case No. 451787/2019) (Filed September 26, 2019). In this matter, the N.Y. Attorney General (the “NYAG”) filed a lawsuit against our affiliate, DBI, related to credential-stuffing cyberattacks during 2015 and 2018.”Page 26 of the 2025 FDD, Item 3
Outcome: “Under consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers,”
The People of the State of California v. Arby's Restaurant Group, Inc.
settledGovernment or regulatory action · Arby's Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“Case No. 19STCV09397) (Filed March 19, 2019). On March 11, 2019, our affiliate, Arby’s Restaurant Group, Inc. (“ARG”), entered into a settlement agreement with the states of California”Page 25 of the 2025 FDD, Item 3
The People of the State of California v. Dunkin' Brands, Inc.
settledGovernment or regulatory action · Dunkin' Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“Case No. 19STCV09597) (Filed March 19, 2019). On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions”Page 26 of the 2025 FDD, Item 3
2 of the proceedings above are indented under the matter they belong to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 7 Item 3 discloses agree.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | No |
| Territory size | “The Territory is a mutually approved geographic area, generally with a present or anticipated customer base of 500 to 3,000 Shops. During the term, the franchisor will not establish, or authorize anyone else to establish, a 1-800-RADIATOR & A/C Warehouse in the Territory or solicit or accept orders there, except referrals, Chain Account sales the franchisee declines or cannot serve, alternative channels (with a right of first refusal to the franchisee), and other brands. No minimum sales quota applies to keep the Territory. This is not an exclusive territory.” |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 25 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Solano County, California |
| Governing law | California |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate Headquarters in Benicia, CA and Company-Owned Warehouse in Sacramento, CA
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisor_approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- WIZMO Software System
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
6 current outlets listed
Each record has a phone number. 1 of 6 also name the franchisee; 3 of 6 also name a state. No cities. 6 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 6 of the 193 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a 1-800-radiator franchise?
Per the 2025 FDD, the total investment to open a 1-800-radiator franchise ranges from $464K to $1.3M, with an initial franchise fee of $45K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do 1-800-radiator franchise owners earn?
According to Item 19 of the 1-800-radiator FDD, average gross sales were $2.2M (Item 19 group “Part II - Sales to Cost Analysis (all survey respondents)”, 112 outlets; gross sales, not profit). The median is $1.7M. What an owner keeps depends on location, operating costs and management.
Who owns 1-800-radiator?
1-800-radiator is franchised by 1-800-Radiator Franchisor SPV LLC. Its parent company is Driven Systems LLC. The ultimate parent named in the FDD is Driven Brands Holdings Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the 1-800-radiator FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the 1-800-radiator FDD and qualifies whose outlets they describe.
What is 1-800-radiator's franchise failure rate?
There is no published franchise failure rate. What is measurable is 1-800-radiator's SBA charge-off rate: 23.4% on 64 resolved loans approved FY2006 to FY2016. Put plainly: 1 in 4 SBA 7(a) loans to 1-800-radiator owners charged off (15 of 64 resolved loans, approved FY2006 to FY2016). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many 1-800-radiator franchise locations are there?
Per the 2025 FDD, 1-800-radiator has 193 franchised units and 1 company-owned (194 in all). In the latest year, the number of franchised outlets fell by 1 (0 opened, 1 closed).
Is 1-800-radiator a good franchise to buy?
FranchiseVerdict gives 1-800-radiator a B Verdict grade (Second tier) with a verdict score of 56 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit economics (avg gross sales $2.2M on a $889K investment midpoint, 2.4x: gross sales, not profit), scale, legal record and transparency. The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.