Bottom line
- Total investment $164K – $405K including a $45K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Ideal Automotive Sales unit return on the cash you put in?
Unlevered ROIC · per unit
31%
In Yale's "attractive" band (30–60%)
Overview
About
Ideal Automotive Sales franchisees operate used or new car dealerships, handling inventory acquisition, sales transactions, customer financing coordination, and vehicle servicing. Day-to-day operations include managing inventory, sales staff, customer negotiations, financing paperwork, and regulatory compliance for automotive retail.
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 · 16 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
This is a distressed micro-franchise with going concern issues, minimal operating history across only 5 units, complete lack of financial transparency, and insufficient scale to provide meaningful support or proven business model validation.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status indicates financial instability or viability questions at corporate level
- 02MEDOnly 5 units system-wide suggests minimal scale, limited support infrastructure, and high franchise failure risk
- 03MEDNo disclosed average revenue or net income prevents ROI validation and suggests poor financial transparency
- 04MINORWide investment range ($164K-$405K spread of 147%) indicates unclear unit economics or inconsistent implementation
- 05MEDHigh royalty rate (5% of gross profits, not revenue) combined with undisclosed profitability creates earnings unpredictability
- 06MINORFranchise fee ($45K) represents 27% of minimum investment—high upfront cost relative to system size and support capacity
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ideal Automotive Sales · FDD (2025) PDF