BandagFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Bandag franchise requires a total initial investment of $357K – $6.5M, including a $3K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 8.3% charge-off rate across 13 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $357K – $6.5M
- 35th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- N/A
- Units
- 157
- 28th pct Automotive
- SBA default
- 8.3%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1957. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $357K – $6.5M including a $3K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 85/100. SBA loan charge-off rate of 8.3% across 13 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BRIDGESTONE BANDAG, LLC
- Parent company
- Bridgestone Americas Tire Operations, LLC
- Incorporated in
- IA
- HQ
- 200 4th Avenue South, Nashville, Tennessee 37201
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $594.1M
- Most recent fiscal year
Overview
About
Bandag franchisees operate tire retreading and repair facilities, servicing commercial vehicle fleets and independent truckers. Day-to-day operations include receiving worn tires, buffing and preparing casings, applying retread rubber, curing tires in molds, and managing inventory and logistics. Franchisees typically manage 5-15+ employees and handle customer relationships with fleet operators and truck stops.
- CEO
- Brian Douglas
- Headquarters
- TN
- Founded
- 1957
- FDD year
- 2026
- States available
- 47
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $3K | $3K |
| Working capital (3–6 mo) | $112K | $2.3M |
| Equipment, build-out, other | $242K | $4.2M |
| Total initial investment | $357K | $6.5M |
Source: Bandag 2026 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
- $357K – $6.5M
- Better than avg vs category
- Liquid capital req'd
- $112K – $2.3M
- Near category avg vs category
- Franchise fee
- $3K – $3K
- Better than avg vs category
- Royalty
- -n/d
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $2K |
| Renewal fee | $1K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How Bandag Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 157
- Opened
- 0
- Last reporting year
- Closed
- 5
- Turnover rate
- 3.2%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -3.1%
- Net unit change last year
- 3-yr CAGR
- -9.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Michigan
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $8.1M
- Median loan
- $250K
- 50th percentile
- Charge-off rate
- 8.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 88.9%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Bandag's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bandag presents significant caution-level risk due to declining unit count, opaque financials, unprotected territories, and lack of performance disclosure, making ROI validation impossible for prospective franchisees.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 85 / 100 rating
- 01MINORUnit count declining 3.1% YoY (157 units) suggests system contraction and potential market saturation or franchisee struggles
- 02MEDZero financial transparency: no disclosed average revenue, net income, or royalty rate prevents ROI validation
- 03MINORExtremely wide investment range ($356.5K–$6.5M) indicates high variability in unit economics and unclear cost structure
- 04MINORNo territory protection exposes franchisees to direct brand competition and cannibalization within service areas
- 05MINORLow franchise fee ($2,500) relative to high capex suggests franchisor relies on royalties; hidden fee structure likely
- 06MINOR5-year term is shorter than industry standard (typically 10 years), increasing renewal risk and limiting payback periods
- 07MEDItem 19 (financial performance representations) not disclosed—cannot validate profitability claims or benchmark performance
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | County |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 88 hrs
- On-the-job training
- 88 hrs
- Training location
- On-site and off-site
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- BASys
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BASys
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Bandag · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bandag franchise?
The total investment to open a Bandag franchise ranges from $357K – $6.5M, with an initial franchise fee of $3K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bandag franchise owners earn?
Bandag does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Bandag's franchise failure rate?
Based on SBA 7(a) loan data, Bandag has a charge-off rate of 8.3% across 13 loans, meaning 8.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Bandag franchise locations are there?
As of their most recent FDD filing, Bandag has 157 total units in the United States, including 155 franchised units and 2 company-owned units.
Is Bandag a good franchise to buy?
FranchiseVerdict rates Bandag as a F-grade franchise with a risk score of 85 out of 100, 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.
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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.