FranchiseVerdict
Abra logo
D72/100FDD 2025

Abra — Litigation & Risk

Automotive - Repair & Service · FDD Items 3, 4 & 5

Back to overview

Elevated Risk

10 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
3
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINORSystem contraction of 3.5% YoY with only 55 units suggests weak franchisee recruitment and retention
  2. 02MINORNo Item 19 financial disclosure (Avg Revenue and Net Income) prevents validation of ROI claims and raises transparency concerns
  3. 03MINORMultiple pending securities and class action lawsuits against parent company Driven Brands indicate potential financial instability and management credibility issues
  4. 04MINORHigh minimum royalty of $45,000/year creates fixed cost burden regardless of sales performance, problematic for underperforming locations
  5. 05MEDWide investment range ($263k-$4.6M) with no disclosed average revenue makes unit economics impossible to evaluate
  6. 06HIGHAffiliate litigation involving advertising fund misuse and no-poaching agreements suggests corporate governance problems affecting franchisees
  7. 07HIGHNo 'Going Concern' flag indicates potential solvency issues at corporate level, threatening franchise support and brand viability

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.