Auto Lab Franchise Cost & 2025 FDD Data
63/100
Second tier
63 this brand59 Automotive medianlikely 57–69: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#931 of 3,068 graded brands
Why a B: Helped by financial health, unit growth and transparency. Held back by legal record. See all six factors
- Total investment
- $297K – $746K
- Avg gross sales
- $970K
- 17 outlets reporting; not profit
- SBA charge-off
- 9 resolved of 9 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2025 FDD
Per the 2025 FDD, a Auto Lab franchise requires a total initial investment of $297K – $746K, including a $14K – $28K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2025 FDD, average gross sales were $970K (17 outlets reporting; gross sales, not profit). Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2025 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium (issued 12 to 24 months ago; a newer filing is likely on file)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Automotive median
Top edge: green = better than the Automotive median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $970K/year (outlet median $932K; reported for a subset of outlets rather than the whole system; 17 outlets reporting; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 2 (3 opened, 1 closed).
AT STAKEOne unit at the Item 7 midpoint: $68K a year in payments on assumed SBA 7(a)-style terms.You put in about $104K of your own cash and personally guarantee a $417K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (1)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 17 units. Not on file here, so ask: SBA charge-off rate against the category median, jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 42% above the Automotive median ($366K).
Source: FDD 2025 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Auto-Lab Franchising, LLC (Item 1: 40400 Ann Arbor Road, Suite 101, Plymouth, MI 48170) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $13.8K | $27.5K | |
| Equipment and Fixtures | $131K | $225K | |
| Inventory | $5K | $24K | |
| Leasehold Improvements | $25K | $180K | |
| Training Expenses | $3K | $5K | |
| Pre-Opening Expenses | $15K | $25K | |
| Grand Opening Advertising | $7.5K | $7.5K | |
| Signage | $65K | $125K | |
| Business licenses and permits | $2.5K | $5K | |
| Real Estate Rent | $0 | $42K | |
| Additional Funds (3 months) | $25K | $75K | |
| Insurance (3 months) | $4K | $5K | |
| Total initial investment | $297K | $746K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
Marketing / ad fundThe filing's detailBrand-wide marketing pool. Franchisor may collect up to 3% of weekly Gross Sales for regional/national advertising; currently not collected (did not collect in 2024). Separately, franchisee must spend 6% of Gross Sales on Local Advertising (pai... | 0.0% of gross sales |
| Technology feeMonthly technology fee, currently $100/month, franchisor reserves right to charge up to $500/month | $100/month |
| Total fee loadbelow the Automotive median of 7.5% (lean) | 6.0% of sales |
A 6.0% total fee load is below the Automotive median of 7.5% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are near the Automotive median ($1.0M).
Source: FDD 2025 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Auto Lab unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $970K (FDD p.38), and the royalty and ad fund take about $58K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $68K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $521K Item 7 midpoint is a $417K loan, paid over 10 years at 10.5%: $68K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $104K Assumption (the part the loan does not cover of the $521K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $417K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Auto Lab unit leave you each year after the loan payment?
Item 19 reports $969,708 per unit. Reported for a subset of outlets rather than the whole system.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $297K to $746K
Item 7's $25K to $75K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $417K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD · filed by Auto-Lab Franchising, LLC
Financial performance
- Range (low → high)
- $293K→$1.6MSource: 2025 FDD, page 38
- Cohort dispersion (min → max)
Percentile ranks within Automotive
Each rank is among the Automotive brands that report that figure (the count is under each bar).
vs Automotive medians
How Auto Lab compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Auto-Lab Franchising, LLC, owned by Wilson Holdings, L.L.C.
Item 21 (audited financials) · audited statements · 2025 FDD
The franchisor's own finances
The franchisor paid out about 211% of its latest net income as dividends. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $25Klatest year · FDD Item 21
- Dividends paid
- $54K211% of net income (our arithmetic) · FDD p.52
- Total assets
- $480KFDD Item 21
- Equity
- $139KFDD Item 21
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Auto-Lab Franchising, LLC
- Parent company
- Wilson Holdings, L.L.C.
- FDD Item 1, page 9 of the 2025 FDD
- 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
- latest fiscal year in the 2025 FDD; $901K the year before
Same owner · FDD Item 1, page 9
1 other brand on this site names Wilson Holdings, L.L.C. as parent or ultimate parent in its own FDD.
- Auto-Lab Express (grade C)
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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
- Franchised outlets in
- 3 states and territories
- Item 20 Table 3, at year end
- States and territories listed
- 5
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+1 franchised outlets over the two years to 2024 (18 to 19, +5.6% in total, +2.7% a year compounded).
Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 18 in 2022 to 19 in 2024
Axis does not start at zero.
Source and method
Item 20 (outlet counts) Table 3 · franchised outlets at year end
Where current outlets are
Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 3 statesNo current outlet
19 franchised outlets at year end in 3 states (Item 20 Table 3).
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.
- Loans on file
- 9
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $2.5M
- Average loan
- $277K
- loan volume divided by loans
- Charge-off rate
- 9 resolved of 9 loans: too few to judge
- Insufficient SBA coverage: 9 loans, rate hidden below 10
- Paid in full
- 9 resolved of 9 loans: too few to judge
- Recent-loan charge-off
- 9 resolved of 9 loans: too few to judge
- Lenders
- 7
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Explore lender portfolios on Bank Reports or regional data on State Reports.
What are the risks?
Main risk in the grade: legal. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 63/100 (category median 59); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive; dividends paid equal to 211% of net income (Item 21; shown, not scored)
- Unit economics NeutralAvg gross sales $970K on a $521K investment midpoint, 1.9x (gross sales, not profit)
- Unit growth Helps+1 franchised outlets over the two years to 2024 (18 to 19, +5.6% in total, +2.7% a year compounded); turnover 5.3%
- Scale Neutral19 franchised units; franchising since 1989
- Legal Weighs on it, weakest dimension1 matter naming the franchisor among the Item 3 matters we list (5.3 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
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)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Total revenue of franchisor Auto-Lab Franchising, LLC for FY2024 ($939,609) comprised Royalties $658,183, Franchise fees $44,471, Advertising $140,122, Software and technology $59,930, and Other fees $36,903.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Litigation case detail1 matter · Item 3
Litigation cases
The franchisor
Concluded (1)
In Re: Empower Central Michigan, Inc.
concludedBrought by a franchisee · filed 2023-08-04 · U.S. Bankruptcy Court, Eastern District of Michigan · 23-31281
“… (United States Bankruptcy Court – Eastern District of Michigan Case No. 23-31281).”Page 12 of the 2025 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes, on conditions |
|---|---|
| Territory condition | Franchisee must meet a minimum annual Gross Sales threshold of $450,000 beginning in year 2 to retain exclusive rights in the Designated Area. |
| Exclusive territory | No |
| Territory radius | 3–5 mi |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 30 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Oakland County, Michigan |
Items 10 (financing), 11 (training and support)
Training and 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 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
20 current outlets listed
Each record has a phone number and state. No franchisee names or cities. 20 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list holds 20 current outlets; Item 20's table counts 19 franchised at year end.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Auto Lab franchise?
Per the 2025 FDD, the total investment to open a Auto Lab franchise ranges from $297K to $746K, with an initial franchise fee of $14K – $28K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Auto Lab franchise owners earn?
According to Item 19 of the Auto Lab FDD, average gross sales were $970K (17 outlets reporting; gross sales, not profit). The median is $932K. What an owner keeps depends on location, operating costs and management.
Who owns Auto Lab?
Auto Lab is franchised by Auto-Lab Franchising, LLC. Its parent company is Wilson Holdings, L.L.C.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Auto Lab FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Auto Lab FDD and qualifies whose outlets they describe.
What is Auto Lab's franchise failure rate?
There is no published franchise failure rate, and Auto Lab has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Auto Lab franchise locations are there?
Per the 2025 FDD, Auto Lab has 19 franchised units and 0 company-owned (19 in all). In the latest year, the number of franchised outlets grew by 2 (3 opened, 1 closed).
Is Auto Lab a good franchise to buy?
FranchiseVerdict gives Auto Lab a B Verdict grade (Second tier) with a verdict score of 63 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit growth and transparency. Held back by legal record (1 matter naming the franchisor among the Item 3 matters we list: 5.3 per 100 outlets). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Automotive franchises
Similar investment first, then by grade
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.