Honest1 Auto Care Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Honest-1 Auto Care is a full-service auto repair franchise offering maintenance, diagnostics, and repairs with an eco-friendly, customer-first positioning. Franchisees run the service centers, managing technicians, service advisors, and scheduling.
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]. SBA 7(a) loans show a 9.5% charge-off rate across 56 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $256K – $1.2M
- 29th pct Automotive
- Avg gross sales
- $1.5M
- 16th pct Automotive
- Royalty
- 6.0%
- 9th pct Automotive
- Units
- 64
- 18th pct Automotive
- SBA charge-off
- 9.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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
- 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 (Strongest tier), verdict score 63/100 (higher is better). SBA loan charge-off rate of 9.5% across 56 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- H-1 Auto Care, LLC
- Parent company
- H-1 Holdings, LLC
- Predecessor
- Honest-1 Auto Care, Inc.
- Prior franchisor entity
- CEO title
- President and CEO
- Michael B. Cowan
- 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
- CEO
- Michael B. Cowan
- Headquarters
- FL
- Founded
- 2007
- FDD year
- 2024
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 25% below the typical automotive franchise.
Source: FDD 2024 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $256K – $1.2M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $75K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · 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 |
| Training fee | $5K |
| Transfer fee | $25K |
| Renewal fee | $25 |
| Inventory (initial) | $5K – $15K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 12% above the automotive norm.
Source: FDD 2024 · Item 19
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
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross_sales
- Sample size
- 59 units
- vs category median 75
- Range (low → high)
- $380K→$2.9M
- Cohort dispersion (min → max)
- Quartile band
- $380K→$2.9M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 220 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.5M/year in gross sales. Revenue-to-investment ratio: 2.0x.
Fee burden
Total ongoing fee load of 8.0% (near the Automotive average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -3.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
33% of franchisees own multiple units, a moderate multi-unit rate.
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 averages
How Honest1 Auto Care Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 64
- Opened
- 1
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Multi-unit owners
- 33.3%
- Net growth (3-yr)
- -3.2%
- Net unit change over 3 years
- 3-yr CAGR
- -3.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 56
- Loan volume
- $25.3M
- Median loan
- $316K
- 50th percentile
- Charge-off rate
- 9.5%
- 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)
- 90.5%
- 5-yr charge-off
- 13.3%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 4
- Typical loan rate
- 6.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8111
- Jobs supported
- 426
- 1.7 per loan
- Lender concentration
- 23%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Honest1 Auto Care charge-off rate by loan vintage
Top lenders financing Honest1 Auto Care franchisees
Showing 3 of 27 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.
Premium insight
SBA Lending Report
Deep-dive into Honest1 Auto Care's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 9.5% — 41% 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
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)
Case 1 (Franchisor as plaintiff): H-1 Auto Care LLC v. Balhar Lasher et al. (NJ federal court, filed 2021) - breach of franchise agreements, trademark infringement, trade secret violations against former franchisees who opened competing centers. Case 2 (Franchisor as defendant): Charles D. Fasnacht III et al. v. H-1 Auto Care LLC (AAA arbitration, filed 2024) - former Region Developers claim wrongful termination of Region Developer Agreements.
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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 63 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 2 |
View Item 3 litigation summary
Case 1 (Franchisor as plaintiff): H-1 Auto Care LLC v. Balhar Lasher et al. (NJ federal court, filed 2021) - breach of franchise agreements, trademark infringement, trade secret violations against former franchisees who opened competing centers. Case 2 (Franchisor as defendant): Charles D. Fasnacht III et al. v. H-1 Auto Care LLC (AAA arbitration, filed 2024) - former Region Developers claim wrongful termination of Region Developer Agreements.
Items 10, 11
Training & Operations
- Classroom training
- 71 hrs
- On-the-job training
- 56 hrs
- Training location
- St. Petersburg, FL (corporate headquarters or designated location)
- Ongoing training
- Required
- Field support
- 120 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not 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?
Based on SBA 7(a) loan data, Honest1 Auto Care has a charge-off rate of 9.5% across 56 loans, meaning 9.5% 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 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 61 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Honest1 Auto Care a good franchise to buy?
FranchiseVerdict rates Honest1 Auto Care as a A-grade franchise with a verdict score of 63 out of 100 (higher is better), 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.
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.