FranchiseVerdict
B65/100FDD 2024

Kennedy Transmission® Brake & Auto Service — Litigation & Risk

Automotive - Repair & Service · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 7 units systemwide indicates extremely limited franchise network with minimal brand recognition and support infrastructure
  2. 02MINORNo Item 19 financial disclosures (average revenue/net income) prevents validation of $88.5K-$162.5K investment ROI claims
  3. 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or undisclosed operational challenges at corporate level
  4. 04MED6% royalty on undisclosed revenue baseline makes it impossible to calculate actual profitability or breakeven timeline
  5. 05MEDNo disclosed unit growth trajectory over historical period raises questions about market demand and franchisee retention
  6. 06MINOR15-year term length locks franchisees into commitment with minimal transparency on performance metrics or exit opportunities

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.