Bottom line
- Total investment $315K – $1.6M including a $30K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
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 NEXTCAR unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Overview
About
NEXTCAR franchisees operate car rental locations, managing vehicle inventory, customer acquisitions, reservations, and day-to-day rental operations. Franchisees are responsible for local marketing, customer service, fleet maintenance coordination, and generating revenues subject to 4% (minimum $800-$2,400/month) royalty payments to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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
NEXTCAR presents HIGH RISK due to a collapsing franchise system (-14.3% unit decline), undisclosed financials, adverse litigation establishing royalty-free precedent, going concern status, and opaque contract terms.
Score breakdown · what drove the 72 / 100 rating
- 01MEDSystem contracting sharply: 29 units with -14.3% YoY decline indicates accelerating collapse
- 02MEDNo financial disclosure: Avg revenue and net income not disclosed prevents ROI validation
- 03HIGHSignificant litigation: Schwartz case established lifetime royalty-free rights for at least one franchisee, creating precedent risk and potential liability exposure
- 04HIGHGoing concern status: False rating suggests franchisor financial distress or operational instability
- 05MINORWide investment range: $315K-$1.59M spread indicates inconsistent unit economics or unclear cost structure
- 06MINORMinimum royalty structure: $800-$2,400 monthly floor may exceed gross profit on underperforming locations
- 07MEDUnknown contract terms: Missing franchise agreement term length prevents long-term commitment assessment
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NEXTCAR · FDD (2025) PDF