Ideal Automotive Sales Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Ideal Automotive Sales is a franchise operating used and new car dealerships. Franchisees run the dealerships, managing inventory acquisition, sales, financing coordination, and service.
FranchiseVerdict summary · 2026
A Ideal Automotive Sales franchise requires a total initial investment of $164K – $405K, including a $45K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $164K – $405K
- 80th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 10th pct Real Estate
- Units
- 5
- 9th pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate 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
- COSTTotal investment $164K – $405K including a $45K franchise fee, 5.0% ongoing royalty.
- RETURNSFY2024 total operating revenues of $126,679 comprised Royalty $90,485 and Branding Advertisement $36,194. Audited financials (Report of Independent Auditors, Troy, MI, dated April 1, 2025) present only the single year ended December 31, 2024.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Ideal Automotive Broker Franchising, LLC
- Parent company
- Ideal Automotive Holdings, LLC
- CEO title
- Chief Executive Officer
- Jian Li
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 15-23 132nd Street, College Point, NY 11356
- Auditor
- DA Advisory Group
- Audited financials
- Franchisor revenue
- $127K
- vs $127K prior year
Affiliated brands
- Liberty Assist
- Ideal Automotive IP Holdings
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jian Li
- Headquarters
- NY
- Founded
- 2019
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 33% above the typical real estate franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Grand Opening Advertising and Promotion Event | $6K | $10K | |
| Grand Opening Assistancenot refundable | $9K | $10K | |
| Training Expensesnot refundable | $800 | $8K | |
| Lease Payments (3 Months)not refundable | $6K | $30K | |
| Lease Security Deposit | $6K | $40K | |
| Leasehold Improvementsnot refundable | $10K | $50K | |
| System Setup Feenot refundable | $295 | $295 | |
| Computer Equipment and Softwarenot refundable | $3K | $7K | |
| Signagenot refundable | $6K | $10K | |
| Furniture & Equipmentnot refundable | $3K | $13K | |
| Utilitiesnot refundable | $200 | $800 | |
| Uniformsnot refundable | $100 | $1K | |
| Office Suppliesnot refundable | $400 | $500 | |
| Promotional Suppliesnot refundable | $2K | $3K | |
| Architecture Feesnot refundable | $2K | $3K | |
| Insurancenot refundable | $1K | $5K | |
| Licenses and Permitsnot refundable | $300 | $8K | |
| Legal and Accountingnot refundable | $3K | $8K | |
| Dues and Subscriptionsnot refundable | $2K | $3K | |
| Total initial investment | $164K | $405K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $164K – $405K
- Bottom third — review vs category
- Liquid capital req'd
- $60K – $150K
- Bottom third — review vs category
- Franchise fee
- $45K – $45K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 47.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $40 |
| Transfer fee | $5K |
| Renewal fee | $50 |
| Total fee load | 47.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Ideal Automotive Sales did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Ideal Automotive Sales unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
31%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
FY2024 total operating revenues of $126,679 comprised Royalty $90,485 and Branding Advertisement $36,194. Audited financials (Report of Independent Auditors, Troy, MI, dated April 1, 2025) present only the single year ended December 31, 2024.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 47.0% — above the Real Estate average of 9.1%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +100.0% over 3 years (0 opened, 0 closed).
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 Real Estate averages
How Ideal Automotive Sales Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 20.0%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
No litigation required to be disclosed.
Largest disclosed settlement: $45,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group
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
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 51 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 47.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | New York County, NY |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisor HQ (College Point, NY)
- Ongoing training
- Required
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Syndicate System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Syndicate System
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ideal Automotive Sales franchise?
The total investment to open a Ideal Automotive Sales franchise ranges from $164K – $405K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ideal Automotive Sales franchise owners earn?
Ideal Automotive Sales does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Ideal Automotive Sales FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ideal Automotive Sales FDD and qualifies whose outlets they describe.
What is Ideal Automotive Sales's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ideal Automotive Sales (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 Ideal Automotive Sales franchise locations are there?
As of their most recent FDD filing, Ideal Automotive Sales has 5 total units in the United States, including 1 franchised units and 4 company-owned units.
Is Ideal Automotive Sales a good franchise to buy?
FranchiseVerdict rates Ideal Automotive Sales as a B-grade franchise with a verdict score of 51 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.