Bottom line
- Total investment —.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 77/100. SBA loan default rate of 0.0% across 218 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 ARCO, MARATHON, or TESORO unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees typically operate ARCO/Marathon/Tesoro-branded gas stations and convenience stores, managing fuel sales, point-of-sale transactions, inventory, staffing, and fuel delivery logistics. Day-to-day operations include customer service, payment processing, compliance with petroleum regulations, and managing fuel margins that are often 3-8 cents per gallon.
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
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 20 · 8 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
This is a petroleum/convenience store franchise with dangerously incomplete disclosure, unknown unit economics, unprotected territory, and potential franchisor financial instability — avoid until comprehensive Item 19 data and current franchisee financial statements are provided.
Score breakdown · what drove the 77 / 100 rating
- 01MINORAll critical financial metrics absent (investment, revenue, net income, royalty rates) — impossible to assess profitability
- 02MINORUnit count and growth trajectory unknown — unable to verify system health or franchisee success rates
- 03MEDNo Item 19 financial performance data disclosed — major red flag under FTC Franchise Rule
- 04MINORTerritory not protected — direct competition from same brand and corporate locations likely
- 05HIGHGoing concern status is FALSE (meaning going concern issues may exist) — potential franchisor financial distress
- 06MINORZero transparency on franchise fee and term length — suggests either non-traditional model or deliberate obfuscation
- 07MINORGas/convenience store sector experiencing consolidation — unit counts declining industry-wide
- 08HIGHNo litigation disclosed but petroleum industry faces environmental/regulatory risks — litigation may exist but unreported
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ARCO, MARATHON, or TESORO · FDD (2025) PDF