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.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- System 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Bandag unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 57 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bandag · FDD (2026) PDF