Bottom line
- Total investment $291K – $2.0M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.0M/year (median $874K). Estimated payback in 3.7 years.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 43 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Kwik Kar unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Kwik Kar units return on equity?
Equity IRR · 5-yr
40.6%
5.50× MOIC
Year-1 DSCR
2.10×
EBITDA ÷ debt service
Equity required
$3.4M
on $12.0M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Kwik Kar franchisees operate automotive quick-service centers providing oil changes, tire services, batteries, and preventive maintenance. Day-to-day operations include managing technicians, scheduling appointments, maintaining inventory of parts and fluids, handling customer billing, and managing facility upkeep to deliver fast turnaround service.
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 · 20 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
Kwik Kar presents elevated risk due to a stagnant small unit base, lack of financial transparency, unprotected territories, and absence of earnings claims—making it difficult to validate ROI assumptions.
Score breakdown · what drove the 57 / 100 rating
- 01MINOROnly 26 units with unknown/stagnant growth trajectory raises questions about system viability and market demand
- 02HIGHNo Item 19 financial performance representation (Going Concern = False) means franchisor provides no earnings claims or benchmarking data
- 03MINORUnprotected territory creates direct competition risk; franchisees could face cannibalization from other company-owned or franchised locations
- 04MINORWide investment range ($291K-$1.97M) suggests inconsistent unit economics or unclear build-out requirements
- 05MED6% royalty on $1.04M average revenue ($62.5K annually) combined with $309K net income leaves limited margin for underperforming units
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
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Kwik Kar · FDD (2025) PDF