Bottom line
- Total investment $396K – $979K including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.2M). Estimated payback in 2.1 years.
- Rated STRONG with a risk score of 53/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 KAL Partz unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 KAL Partz units return on equity?
Equity IRR · 5-yr
35.6%
4.58× MOIC
Year-1 DSCR
2.30×
EBITDA ÷ debt service
Equity required
$4.9M
on $14.2M purchase
Total debt
$9.2M
SBA $5.0M + senior + seller note
Overview
About
KAL Partz franchisees operate automotive aftermarket parts retail or distribution businesses, likely managing inventory, customer sales, and supply chain logistics. Day-to-day operations involve point-of-sale transactions, customer service, parts fulfillment, and vendor relationship management within a protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
KAL Partz presents moderate-to-caution risk as a micro-franchise system with opaque unit economics, unclear financial disclosure, and insufficient growth data to validate the business model's repeatability.
Score breakdown · what drove the 53 / 100 rating
- 01MEDOnly 13 units system-wide with unknown growth trajectory suggests limited scale and market validation
- 02MINORWide investment range ($395K-$979K) indicates inconsistent startup costs or unclear disclosure
- 03MINORNo Item 19 financial performance representations provided; average revenue/income figures lack context on unit count sampled
- 04MINOR6% royalty on $1.57M average revenue = ~$94K annual fee is substantial relative to $332K net income (28% of net)
- 05MINORUnknown unit growth rate prevents assessment of system momentum or franchisee success pattern
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KAL Partz · FDD (2024) PDF