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F80/100FDD 2025

Payless Car Rental — Litigation & Risk

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

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
4
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
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 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
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 80/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates financial instability at corporate level
  2. 02HIGHPending consumer fraud litigation involving counter sales, administrative fees, and pricing misrepresentation — suggests systemic operational issues
  3. 03HIGHHistory of concluded litigation on deceptive practices (fuel charges, tolls) and misclassification — pattern of legal exposure
  4. 04MEDNo disclosed average revenue or net income — inability or unwillingness to demonstrate unit economics
  5. 05MINORTerritory not protected — direct competition from other franchisees and corporate-owned locations possible
  6. 06MINORHigh investment range ($625.5K-$1.6M) with 7.5% royalty on unknown revenue base — ROI cannot be calculated
  7. 07MINOROnly 109 units with unknown growth trajectory — suggests stagnant or declining system
  8. 08MINORFranchise fee ($50K) relatively low compared to investment, suggesting franchisor dependent on royalties from struggling units

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.