RimTymeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A RimTyme franchise requires a total initial investment of $473K – $802K, including a $25K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $473K – $802K
- 37th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- 4.0%
- 3rd pct Retail
- Units
- 29
- 13th pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
Franchised units fell from 37 to 29 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $473K – $802K including a $25K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 90/100.
- System contracting at -21.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Rent-A-Center Franchising International, Inc.
- Parent company
- Upbound Group, Inc.
- Incorporated in
- TX
- HQ
- 5501 Headquarters Drive, Plano, Texas 75024
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $120.6M
- vs $122.2M prior year
Overview
About
RimTyme franchisees operate lease-to-own retail locations for automotive wheels and tires, generating revenue through rental payments from customers and point-of-sale tire/wheel sales. Day-to-day operations include managing customer lease agreements, inventory, sales transactions, and collections while remitting 4% of gross rental and sales revenue to the franchisor as royalties.
- CEO
- Mitchell E. Fadel
- Headquarters
- TX
- Founded
- 1980
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $95K | $130K |
| Equipment, build-out, other | $353K | $647K |
| Total initial investment | $473K | $802K |
Source: RimTyme 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $473K – $802K
- Better than avg vs category
- Liquid capital req'd
- $95K – $130K
- Better than avg vs category
- Franchise fee
- $15K – $25K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $504 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How RimTyme Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- Opened
- 0
- Last reporting year
- Closed
- 9
- Turnover rate
- 31.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 12.5%
- Net growth (yr3)
- -23.7%
- Net unit change last year
- 3-yr CAGR
- -21.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
- Total loans
- 15
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
RimTyme presents extreme risk: a collapsing franchise system (down 24% YoY) with going concern doubts, active multi-state litigation, regulatory fraud settlements, and zero financial transparency—avoid unless seeking distressed acquisition.
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 90 / 100 rating
- 01MEDSevere unit decline of 23.7% YoY (29 units remaining) indicates system contraction and loss of franchisee confidence
- 02HIGHGoing Concern status is FALSE, signaling material doubt about franchisor's ability to continue operations
- 03HIGHMultiple active litigations including consolidated arbitration on renewal/advertising terms, shareholder class actions on financial reporting, and regulatory settlements with FTC and multiple state AGs regarding lease-to-own practices
- 04MEDFinancial transparency crisis: average revenue and net income not disclosed, preventing ROI validation and suggesting poor franchisee performance or franchisor unwillingness to disclose
- 05MINORLease-to-own regulatory violations across multiple states (CA, MA, GA) indicate systemic compliance failures and reputational/legal exposure
- 06HIGHShareholder class actions (Hall/DePalma) alleging financial reporting fraud create doubt about franchisor's truthfulness in FDD disclosures
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Allowed renewalsℹ | 1 |
|---|---|
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 8 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 15 hrs
- POS system
- VersiRent
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: VersiRent
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RimTyme · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RimTyme franchise?
The total investment to open a RimTyme franchise ranges from $473K – $802K, 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 RimTyme franchise owners earn?
RimTyme does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is RimTyme's franchise failure rate?
SBA 7(a) loan charge-off data is not available for RimTyme (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 RimTyme franchise locations are there?
As of their most recent FDD filing, RimTyme has 29 total units in the United States, including 37 franchised units and 0 company-owned units.
Is RimTyme a good franchise to buy?
FranchiseVerdict rates RimTyme as a F-grade franchise with a risk score of 90 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.
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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.