F88/100FDD 2009
Auto Select — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
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
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Non-compete
1 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
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 88/100 rating
Risk Score Breakdown
- 01HIGHGoing concern status is FALSE — indicates financial distress or operational instability at corporate level
- 02HIGHActive litigation involving franchisor (Michael J. Molitor, Sr.) and parent entity raises governance and legal risk concerns
- 03MEDNo average revenue or net income disclosed — inability to assess unit-level profitability or ROI on $110k-$160k investment
- 04MINORUnknown unit count and growth trajectory — suggests shrinking or stagnant system with poor transparency
- 05MINORNo protected territory — franchisees face direct competition from other franchisees and corporate encroachment
- 06MINORRoyalty structure (greater of $700/month or 5%) creates high fixed costs on low-margin service business
- 07MINORMinimal franchise fee ($2,500) relative to total investment may indicate franchisor capital constraints or desperation
- 08MED10-year term is long-duration commitment with no disclosed break-even timeline or exit strategy
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.