KAL PartzFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A KAL Partz franchise requires a total initial investment of $396K – $979K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.6M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $396K – $979K
- 35th pct Automotive
- Avg gross sales
- $1.6M
- 18th pct Automotive
- Royalty
- 6.0%
- 8th pct Automotive
- Units
- 13
- 10th 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
48% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
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), with an estimated 48% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 44/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KAL Partz Franchise Corporation
- Incorporated in
- CA
- HQ
- 10156 Live Oak Drive, Fontana, California 92335
- Auditor
- Peter Holtz CPA
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
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.
- CEO
- Kalvinder Singh
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2024
- States available
- 8
FDD Item 7 · 2024 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $25K | $25K | |
| Initial Training Expenses | $2K | $9K | |
| Rent and Utility Deposits | $13K | $52K | |
| Construction, Leasehold Improvements | $50K | $100K | |
| Furniture and Fixtures | $5K | $10K | |
| Signage (interior and exterior) | $5K | $50K | |
| Office Supplies | $1K | $2K | |
| Equipment | $27K | $74K | |
| Business Licenses and Permits | $800 | $1K | |
| Computer Systems | $4K | $12K | |
| Initial Inventory | $200K | $500K | |
| Grand Opening Advertising | $10K | $15K | |
| Professional Fees | $8K | $40K | |
| Insurancenot refundable | $417 | $6K | |
| Additional Funds - 3 months | $45K | $85K | |
| Total initial investment | $396K | $979K |
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.
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
$283K
18.0% margin
Unlevered ROIC
38%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $396K – $979K
- Better than avg vs category
- Liquid capital req'd
- $45K – $85K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $5K |
| Transfer fee | $19K |
| Renewal fee | $6K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.2M
- Avg p&l bottom line
- $332K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 48.3%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate Owned
- Sample size
- 11 units
- vs category median 70 · small
- Range (low → high)
- $447K→$5.1M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 221 Automotive brands
vs Automotive averages
How KAL Partz Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Peter Holtz CPA⚠ Going-concern note flagged
Score breakdown · what drove the 44 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | towns or counties |
| 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 | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | No |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 28 hrs
- Training location
- on-site
- Ongoing training
- Required
- Field support
- 112 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KAL Partz · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KAL Partz franchise?
The total investment to open a KAL Partz franchise ranges from $396K – $979K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KAL Partz franchise owners earn?
According to Item 19 of the KAL Partz FDD, the average gross sales per unit is $1.6M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is KAL Partz's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KAL Partz (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 KAL Partz franchise locations are there?
As of their most recent FDD filing, KAL Partz has 13 total units in the United States, including 0 franchised units and 13 company-owned units.
Is KAL Partz a good franchise to buy?
FranchiseVerdict rates KAL Partz as a A-grade franchise with a risk score of 44 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.
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.