Auto Lab Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Auto Lab franchise requires a total initial investment of $297K – $746K, including a $28K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $970K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $297K – $746K
- 32nd pct Automotive
- Avg gross sales
- $970K
- 10th pct Automotive
- Royalty
- 6.0%
- 9th pct Automotive
- Units
- 19
- 11th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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
- Total investment $297K – $746K including a $28K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $970K/year (median $932K).
- Verdict A (Strongest tier), verdict score 63/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Auto-Lab Franchising, LLC
- Parent company
- Wilson Holdings, L.L.C.
- Predecessor
- Auto-Lab, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Stephen R. Wilson
- Incorporated in
- Michigan
- HQ
- 40400 Ann Arbor Road, Suite 101, Plymouth, MI 48170
- Franchisor revenue
- $940K
- vs $901K prior year
Overview
About
Full-service and diagnostic-oriented automotive repair and maintenance facility ("Auto-Lab Complete Car Care Centers") offering automotive and engine analysis, electrical system repair, air conditioning repair, engine repair and other automotive repair services for cars, SUVs, and light-duty trucks.
- CEO
- Stephen R. Wilson
- Headquarters
- Michigan
- Founded
- 2011
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 48% below 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 | $28K | $28K |
| Working capital (3–6 mo) | $25K | $75K |
| Equipment, build-out, other | $244K | $644K |
| Total initial investment | $297K | $746K |
Source: Auto Lab 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
- $297K – $746K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $75K
- Top 40% of category vs category
- Franchise fee
- $28K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $100 |
| Inventory (initial) | $5K – $24K |
What do units actually make?
Average unit sales run 27% below the automotive norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$155K
16.0% margin
Unlevered ROIC
27%
EBITDA / total invested capital
Payback
3.7 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $970K
- Per unit, per year
- Median gross sales
- $932K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross_sales_average_and_growth
- Sample size
- 17 units
- vs category median 75 · small
- Range (low → high)
- $293K→$1.6M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
Compared against 220 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 $970K/year in gross sales. Revenue-to-investment ratio: 1.9x.
Fee burden
6.0% royalty + 3.0% ad fund — lower than the category average.
Operator retention
System expanding at 11.8% CAGR over 3 years across 19 units — operators are staying and new ones are joining.
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 averages
How Auto Lab Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +11.8%
- Net unit change over 3 years
- 3-yr CAGR
- +11.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 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.
5
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $2.5M
- Median loan
- $225K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (9 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
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)
Franchisee Empower Central Michigan, Inc. filed Chapter 11 bankruptcy (Aug 2023) and sought to reject its franchise agreement to operate a competing business; Bankruptcy Court (E.D. Mich.) held Auto-Lab's contract rights survived rejection and enjoined Empower from competing/violating confidentiality and non-compete provisions; Empower's Amended Plan of Reorganization (assuming the franchise agreement) was confirmed Aug 21, 2024; case closed Oct 28, 2024.
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
What are you signing up for?
Ongoing fees run about 9.0% 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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Oakland County, Michigan |
| Litigation count | 1 |
View Item 3 litigation summary
Franchisee Empower Central Michigan, Inc. filed Chapter 11 bankruptcy (Aug 2023) and sought to reject its franchise agreement to operate a competing business; Bankruptcy Court (E.D. Mich.) held Auto-Lab's contract rights survived rejection and enjoined Empower from competing/violating confidentiality and non-compete provisions; Empower's Amended Plan of Reorganization (assuming the franchise agreement) was confirmed Aug 21, 2024; case closed Oct 28, 2024.
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 72 hrs
- Training location
- Home Office (Plymouth/Bloomfield Hills, Michigan); Belleville, Michigan affiliate Store; or Area Representative's Pilot Store
- Ongoing training
- Required
- Site selection
- franchisor_approval_franchisee_selects
- Franchisor financing
- Not offered
- Item 10
- POS system
- Auto-Lab Business Management System (ALBMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Auto-Lab Business Management System (ALBMS)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Auto Lab franchise?
The total investment to open a Auto Lab franchise ranges from $297K – $746K, with an initial franchise fee of $28K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Auto Lab franchise owners earn?
According to Item 19 of the Auto Lab FDD, the average gross sales per unit is $970K. The median is $932K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Auto Lab's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Auto Lab (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Auto Lab franchise locations are there?
As of their most recent FDD filing, Auto Lab has 19 total units in the United States, including 19 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Auto Lab a good franchise to buy?
FranchiseVerdict rates Auto Lab as a A-grade franchise with a verdict score of 63 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
For franchisors
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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.