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.
- Rated CAUTION with a risk score of 74/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
- 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
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 RimTyme unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
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.
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 · 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 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
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.
Score breakdown · what drove the 74 / 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
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
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RimTyme · FDD (2025) PDF