1-800-radiator Franchise Cost, Revenue & Review 2026
- Investment
- $464K – $1.3M
- Disclosed sales
- $2.2M
- gross sales, not profit
- SBA charge-off
- 23.4%
- on 65 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A 1-800-radiator franchise requires a total initial investment of $464K – $1.3M, including a $45K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.2M[2]. SBA 7(a) loans show a 23.4% charge-off rate across 65 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
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: 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
- Investment
- $464K – $1.3M
- 46th pct Automotive
- Avg gross sales
- $2.2M
- 19th pct Automotive
- Royalty
- 8.0%
- 40th pct Automotive
- Units
- 194
- 37th pct Automotive
- SBA charge-off
- 23.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $464K – $1.3M including a $45K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $1.7M), with an estimated 10% cash-on-cash return (based on EBITDA $*** $167,319).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 23.4% across 65 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed); 2 signed but not yet open (Item 20).
- TERMSNo 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
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.
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
- Headquarters
- California
- FDD year
- 2025
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 142% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $50K | $150K |
| Equipment, build-out, other | $369K | $1.1M |
| Total initial investment | $464K | $1.3M |
Source: 1-800-radiator 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $464K – $1.3M
- Middle of category vs category
- Liquid capital req'd
- $50K – $150K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 8.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Payback period
- 9.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $155 |
| Transfer fee | $20K |
| Renewal fee | $20K |
What do units actually make?
Average unit sales run 109% above the automotive norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for 1-800-radiator until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$989K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $167K as EBITDA $*** $167,319. This is a disclosed figure, not our estimate — we publish no modelled profit for 1-800-radiator.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one 1-800-radiator unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $1.7M
- Avg ebitda $*** $167,319
- $167K
- Reported as EBITDA $*** $167,319 in FDD Item 19
- Cash-on-cash
- 10.4%
- Based on EBITDA $*** $167,319 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- average sales and ebitda
- Sample size
- 112 outlets
- vs category median 70
- Range (low → high)
- $310K→$8.9MCited, not corroborated — printed on page 81 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.2M/year in gross sales. Median is $1.7M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.4x.
Fee burden
8.0% royalty + 2.0% ad fund — higher than the category average of 6.0%.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 194 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 194
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.5%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 17
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 31 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
31
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
4 current owners across 2 states.
- CA 2
- NC 2
Counts only, from the list the franchisor prints in Item 20; 4 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 65
- Loan volume
- $14.6M
- Median loan
- $180K
- 50th percentile
- Charge-off rate
- 23.4%
- on 65 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 76.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 31
- Defaults
- 15
- Typical loan rate
- 5.7%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 4231
- Jobs supported
- 391
- 2.7 per loan
- Lender concentration
- 15%
- top lender's share
Vintage analysis
1-800-radiator charge-off rate by loan vintage
Top lenders financing 1-800-radiator franchisees
Showing 3 of 31 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for 1-800-radiator from SBA 7(a) FOIA data.
- Principal loss rate
- 6.9%
- Avg SBA guarantee
- 67%
- Avg interest rate
- 5.70%
- Avg chargeoff amount
- $67K
- Lender concentration
- 15.4%
- Job velocity
- 2.7 per $100K
- Jobs supported
- 391
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 10 | N/A | N/A | |
| 2 | 6 | N/A | N/A | |
| 3 | 5 | N/A | N/A | |
| 4 | 4 | N/A | N/A | |
| 5 | 3 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| PAPennsylvania | 8 | 2 | 25.0% |
| TXTexas | 7 | 3 | 42.9% |
| OHOhio | 5 | 2 | 40.0% |
| CACalifornia | 4 | 0 | 0.0% |
| ARArkansas | 3 | 0 | 0.0% |
| GAGeorgia | 3 | 2 | 66.7% |
| NCNorth Carolina | 3 | 0 | 0.0% |
| ALAlabama | 2 | 2 | 100.0% |
| FLFlorida | 2 | 1 | 50.0% |
| KSKansas | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.4% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 23.4% — 46% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Customer base of 500-3,000 Shops |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Solano County, California |
| Governing law | California |
| Litigation count | 7 |
View Item 3 litigation summary
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.
Items 10, 11
Training & 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 & 11
Franchisor Support
Technology: WIZMO Software System
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 1-800-radiator franchise?
The total investment to open a 1-800-radiator franchise ranges from $464K – $1.3M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 1-800-radiator franchise owners earn?
According to Item 19 of the 1-800-radiator FDD, the average gross sales per unit is $2.2M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based 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?
Based on SBA 7(a) loan data, 1-800-radiator has a charge-off rate of 23.4% across 65 loans, meaning 23.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many 1-800-radiator franchise locations are there?
As of their most recent FDD filing, 1-800-radiator has 194 total units in the United States, including 193 franchised units and 1 company-owned units.
Is 1-800-radiator a good franchise to buy?
FranchiseVerdict rates 1-800-radiator as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.