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B64/100FDD 2025

Avis — Litigation & Risk

Automotive - Repair & Service · FDD Items 3, 4 & 5

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Elevated Risk

21 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
21
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
55
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
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation involving consumer fraud, deceptive counter sales practices, and contractor misclassification suggests systemic operational issues that could expose franchisees to legal liability
  2. 02MEDNo disclosed average revenue or net income data prevents accurate ROI calculation; combined with high investment range ($625.5K-$1.59M), franchisees cannot validate unit economics
  3. 03MEDMultiple concluded settlements for undisclosed surcharges, unwanted text messages, and administrative fees indicate pattern of problematic revenue collection practices that could damage franchisee reputation
  4. 04MINORUnprotected territory creates cannibalization risk in dense markets; with only 10.1% YoY unit growth and 1,900 locations, saturation concerns are legitimate
  5. 05MINORHigh 7.5% royalty on gross revenue (not net profit) compounds cash flow pressure, especially given industry's thin margins in car rental

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.