FranchiseVerdict
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F88/100FDD 2022

All Tune and Lube — Litigation & Risk

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

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
88 / 100
FranchiseVerdict composite
Rating
AVOID
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
270
Government-backed loans issued
Default rate
43.9%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
118 loans
Loans charged off or defaulted
Total loan volume
$26.9M
Avg loan size
$100K
Participating lenders
73

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
2 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 88/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count: -7.4% YoY (25 units) suggests system contraction and potential market saturation or franchisee struggles
  2. 02MEDNo Item 19 financial disclosure: Average revenue and net income not disclosed makes ROI assessment impossible; unable to validate if $112k-$146.5k investment generates adequate returns
  3. 03MINORComplex tiered royalty structure (3%-7% + $395/week minimum) creates unpredictable cost burden, especially if revenue is heavily weighted toward low-margin tire/battery sales (3% rate)
  4. 04HIGHGoing Concern status is FALSE: Indicates franchisor may have had financial viability concerns or restructuring issues that warrant deeper investigation
  5. 05MED15-year term is unusually long without disclosed profitability metrics; locks franchisee into commitment without baseline performance data
  6. 06HIGHVague litigation language: 'Routine litigation' statement is boilerplate; unable to assess severity, frequency, or nature of actual disputes

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.