Honest1 Auto CareFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Honest1 Auto Care franchise requires a total initial investment of $256K – $1.2M, including a $75K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.5M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $256K – $1.2M
- 29th pct Automotive
- Avg gross sales
- $1.5M
- 17th pct Automotive
- Royalty
- 6.0%
- 8th pct Automotive
- Units
- 64
- 18th pct Automotive
- SBA default
- N/A
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
Franchised units fell from 63 to 61 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $256K – $1.2M including a $75K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.4M).
- Verdict A (Top Quintile) with a risk score of 48/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- H-1 AUTO CARE, LLC
- Parent company
- H-1 Holdings, LLC
- Predecessor
- does
- Prior franchisor entity
- Incorporated in
- NV
- HQ
- 100 2nd Avenue S, Suite 1203, St. Petersburg, Florida 33701
- Auditor
- SMITH+HOWARD PC
- Audited financials
- Franchisor revenue
- $6.4M
- vs $6.6M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Honest1 Auto Care franchisees operate independent automotive service centers providing maintenance, repair, and diagnostics. Daily operations include managing technician teams, customer service, inventory management, and scheduling—with support from franchisor systems and brand standards. Franchisees are responsible for local marketing, staffing, and facility management within their protected territory.
- CEO
- Michael B. Cowan
- Headquarters
- FL
- Founded
- 2007
- FDD year
- 2024
- States available
- 17
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $50K | $75K |
| Equipment, build-out, other | $131K | $1.1M |
| Total initial investment | $256K | $1.2M |
Source: Honest1 Auto Care 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$253K
17.0% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $256K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $50K – $75K
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $27K |
| Renewal fee | $25 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
- Item 19 type
- gross_sales
- Sample size
- 59 units
- vs category median 70
- Range (low → high)
- $380K→$2.9M
- Cohort dispersion (min → max)
- Quartile band
- $380K→$2.9M
- Bottom 25% → top 25%
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
vs Automotive averages
How Honest1 Auto Care Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 64
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 1.6%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Multi-unit owners
- 33.3%
- Net growth (yr3)
- -1.6%
- Net unit change last year
- 3-yr CAGR
- -3.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 3.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $24.5M
- Median loan
- $316K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Vintage analysis
Honest1 Auto Care charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Honest1 presents elevated risk due to unit decline, undisclosed profitability, dual litigation, lack of Item 19 financials, and questionable franchisor financial stability—warranting deep validation before committing $250K-$1.2M.
Litigation (Item 3)
2 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · SMITH+HOWARD PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 48 / 100 rating
- 01MINORUnit count declining 1.6% YoY suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo Net Income disclosure (Item 19) prevents validation of actual profitability claims; average revenue of $1.49M may not translate to promised returns
- 03HIGHActive litigation on two fronts (franchisor lawsuit + regional developer arbitration with counterclaim) indicates operational/contractual friction and potential governance issues
- 04MINORHigh investment range ($255K-$1.24M) with 20-year commitment creates long payback exposure if unit economics deteriorate
- 05MINOR6% royalty on gross sales (not net) means franchisees pay regardless of profitability, amplifying risk during economic downturns
- 06HIGHGoing Concern status = False suggests potential financial stress at corporate level, raising sustainability questions
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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 2 |
View Item 3 litigation summary
2 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 138 hrs
- On-the-job training
- 56 hrs
- Ongoing training
- Required
- Field support
- 120 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
- POS system
- Protractor
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Protractor
Item 20 · call current owners
Franchisee Contacts
72 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Honest1 Auto Care · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Honest1 Auto Care franchise?
The total investment to open a Honest1 Auto Care franchise ranges from $256K – $1.2M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Honest1 Auto Care franchise owners earn?
According to Item 19 of the Honest1 Auto Care FDD, the average gross sales per unit is $1.5M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Honest1 Auto Care's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Honest1 Auto Care (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Honest1 Auto Care franchise locations are there?
As of their most recent FDD filing, Honest1 Auto Care has 64 total units in the United States, including 63 franchised units and 3 company-owned units.
Is Honest1 Auto Care a good franchise to buy?
FranchiseVerdict rates Honest1 Auto Care as a A-grade franchise with a risk score of 48 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.