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A38/100FDD 2025

Fix Auto — Litigation & Risk

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

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Elevated Risk

12 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
12
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
38 / 100
FranchiseVerdict composite
Rating
STRONG
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
15
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
Total loan volume
$23.4M
Avg loan size
$1.6M
Participating lenders
8

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 38/100 rating

Risk Score Breakdown

  1. 01HIGHSignificant litigation portfolio: three franchisor-initiated breach actions, multiple shareholder class actions against parent company (Driven Brands), securities violations, and advertising fund misappropriation claims affecting affiliate brands
  2. 02MINORNo Item 19 (Average Net Income) disclosure despite $3.18M average revenue, making ROI calculation impossible and suggesting either poor profitability or franchisor unwillingness to disclose performance data
  3. 03HIGHSlow unit growth of only 5.0% YoY with 212 units indicates market saturation or franchisee dissatisfaction; flat/declining growth combined with litigation raises sustainability concerns
  4. 04MINORParent company (Driven Brands) facing securities law violations and shareholder derivative complaints, indicating potential financial instability or mismanagement at corporate level that could affect franchise support
  5. 05MINORWide investment range ($55K-$3.09M) with no correlation to revenue/territory suggests inconsistent unit economics and potential for unprofitable locations

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.