Bandag Franchise Cost, Revenue & Review 2026
- Investment
- $357K – $6.5M
- Disclosed sales
- not disclosed
- SBA charge-off
- 8.3%
- on 13 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Bandag is an automotive franchise providing commercial tire retreading and repair for truck fleets and trucking operations. Franchisees run a retread plant and service operation managing casings, production, and fleet accounts.
FranchiseVerdict summary · 2026
A Bandag franchise requires a total initial investment of $357K – $6.5M, including a $3K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 8.3% charge-off rate across 13 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: 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 scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $357K – $6.5M
- 42nd pct Automotive
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 157
- 36th pct Automotive
- SBA charge-off
- 8.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · 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
- COSTTotal investment $357K – $6.5M including a $3K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 66/100 (higher is better). 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, 2010–2025).
- GROWTHNegative: net -5 franchised outlets in the latest year (0 opened, 5 closed) (Item 20).
- DECLINESystem contracting at -9.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Bridgestone Bandag, LLC
- Parent company
- Bridgestone Americas Tire Operations, LLC (BATO)
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Bridgestone Americas, Inc. (BSAM)
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Bandag, Incorporated
- Prior franchisor entity
- CEO title
- Chairman and President
- Brian Douglas
- Incorporated in
- IA
- HQ
- 200 4th Avenue South, Nashville, Tennessee 37201
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $165K
- vs $201K prior year
Overview
About
- CEO
- Brian Douglas
- Headquarters
- TN
- Founded
- 1957
- FDD year
- 2026
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 835% above the typical automotive franchise.
Source: FDD 2026 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $112K – $2.3M
- Middle of category vs category
- Franchise fee
- $3K – $3K
- Top 40% of category vs category
- Royalty
- No royalty fee; Bandag earns revenue from required purcha…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $2K |
| Renewal fee | $1K |
| Inventory (initial) | $32K – $666K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Bandag makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Bandag unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -9.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How Bandag 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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 157
- Opened
- 0
- Last reporting year
- Closed
- 5
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.2%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- -9.9%
- Net unit change over 3 years
- 3-yr CAGR
- -9.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
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).
Where the owners are · Item 20 owner list
97 current owners across 34 states.
- CA 10
- AL 7
- NC 7
- FL 6
- IL 6
- IN 6
- GA 5
- IA 4
- KY 4
- MA 4
- KS 3
- MI 3
- +22 more states
Counts only, from the list the franchisor prints in Item 20; 3 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 13 loans · 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)
- 91.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- 11.1%
- brand is below its industry ↓
- Jobs supported
- 97
- 1.6 per loan
- Lender concentration
- 22%
- top lender's share
Top lenders financing Bandag franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Bandag from SBA 7(a) FOIA data.
- Principal loss rate
- 2.0%
- Avg SBA guarantee
- 81%
- Avg interest rate
- 5.75%
- Avg chargeoff amount
- $125K
- Lender concentration
- 22.2%
- Job velocity
- 1.6 per $100K
- NAICS benchmark
- 11.1%
- NAICS 326212
- Jobs supported
- 97
Top SBA lendersTop lender holds 22% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Truist Bank | 2 | $254K | 50.0% |
| 2 | First Horizon Bank | 1 | $100K | 0.0% |
| 3 | Wells Fargo Bank National Association | 1 | $100K | 0.0% |
| 4 | MISSINGMAINBANKID | 1 | $760K | 0.0% |
| 5 | Bank of America, National Association | 1 | $250K | 0.0% |
| 6 | GE Capital Small Business Finance Corporation | 1 | $860K | 0.0% |
| 7 | Manufacturers and Traders Trust Company | 1 | $903K | 0.0% |
| 8 | BankUnited, National Association | 1 | $2.9M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 2 | 0 | 0.0% |
| FLFlorida | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 0 | 0.0% |
| IAIowa | 1 | 0 | 0.0% |
| MEMaine | 1 | 0 | 0.0% |
| MIMichigan | 1 | 0 | 0.0% |
| NCNorth Carolina | 1 | 1 | 100.0% |
| OKOklahoma | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.3% — 48% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation information required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are those of the affiliate guarantor Bridgestone Bandag Franchising, LLC (a wholly-owned subsidiary of Bridgestone Americas Tire Operations, LLC), not the operating franchisor. Its only revenue is interest income on a related-party note receivable ($165,108 in 2025; $200,988 in 2024); the sole expense is audit fees of $35,000/yr.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 66 / 100 verdict
- 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
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | TN |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 88 hrs
- On-the-job training
- 88 hrs
- Training location
- BCS Education Center in Muscatine, Iowa and/or Akron, Ohio; online via Bridgestone and Firestone Education Network; field locations
- Ongoing training
- Required
- Site selection
- Franchisee (with Bandag consent for location)
- Franchisor financing
- Not 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Bandag?
Bandag is franchised by Bridgestone Bandag, LLC. Its parent company is Bridgestone Americas Tire Operations, LLC (BATO). The ultimate parent named in the FDD is Bridgestone Americas, Inc. (BSAM). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Bandag 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 Bandag FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 66 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.