Bottom line
- Total investment $103K – $179K including a $45K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 ALSET Auto unit return on the cash you put in?
Unlevered ROIC · per unit
69%
Above typical band (30–60%)
Overview
About
ALSET Auto franchisees operate automotive retail or service locations (exact service mix unclear without full FDD review). Day-to-day operations likely include vehicle sales/service delivery, customer management, inventory handling, and compliance with franchisor systems. The 8% gross-revenue royalty structure suggests high franchisor revenue dependency.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
ALSET Auto presents meaningful caution due to shrinking unit base, complete lack of financial disclosure, and opaque profitability metrics relative to the $102k–$179k investment required.
Score breakdown · what drove the 62 / 100 rating
- 01MEDUnit count declined 16.7% YoY (12 units down from ~14.4), signaling franchisee struggles or exit
- 02MEDNo average revenue or net income disclosed — prevents ROI validation and profitability assessment
- 03MINOR8% royalty on gross revenue with no Item 19 financial performance claims creates blind spot on actual unit economics
- 04MINOR5-year term is shorter than industry standard (10 years typical), increasing renewal risk and franchisee uncertainty
- 05MEDInitial investment range of $102,744–$178,994 is sizable without disclosed average unit volumes to justify returns
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ALSET Auto · FDD (2024) PDF