Bottom line
- Total investment $464K – $1.3M including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $1.5M). Estimated payback in 5.3 years.
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 74 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 1-800-RADIATOR & A/C unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 1-800-RADIATOR & A/C units return on equity?
Equity IRR · 5-yr
42.8%
5.94× MOIC
Year-1 DSCR
2.03×
EBITDA ÷ debt service
Equity required
$3.0M
on $11.4M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
1-800-RADIATOR & A/C franchisees operate automotive repair shops specializing in radiator, air conditioning, and related cooling system services. Day-to-day operations include customer intake/diagnostics, repair/replacement work, parts inventory management, technician scheduling, and direct customer sales for both warranty and non-warranty repairs.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mature, declining franchise system with corporate litigation overhang, unprotected territories, and marginal franchisee economics that warrant careful validation of unit-level profitability and franchisor financial stability.
Score breakdown · what drove the 55 / 100 rating
- 01MINORUnit count declining (-0.5% YoY) suggests system contraction or saturation despite 194-unit base
- 02MINORMultiple pending class action and derivative lawsuits at parent level indicate potential governance/securities issues affecting franchisor stability
- 03MINORNo protected territory creates direct competition risk—franchisees can cannibalize each other's revenue
- 04MINORNet income of $167K on $1.9M revenue (~8.8% margin) is thin after 8% royalty, leaving minimal cushion for owner salary and reinvestment
- 05MINORHigh investment ceiling ($1.3M) with declining unit base raises ROI recovery concerns
- 06MINORData breach and regulatory settlements (no-poaching) suggest compliance/operational vulnerabilities at corporate level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
1-800-RADIATOR & A/C · FDD (2025) PDF