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D68/100FDD 2026

Snap-on — Litigation & Risk

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

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Elevated Risk

7 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
7
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
59
Government-backed loans issued
Default rate
18.5%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$11.0M
Avg loan size
$187K
Participating lenders
35

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
State in which the List of Calls is located
State whose law governs disputes — relevant if you're not based there

What drove the 68/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-2.4% YoY) suggests system contraction and potential market saturation
  2. 02HIGH7 total litigation cases involving misclassification of franchisees—3 pending—indicating systemic employment classification disputes
  3. 03MINORNo Item 19 (average revenue/income disclosure) prevents validation of franchise profitability claims
  4. 04MINORHigh initial investment ($223k–$509k) combined with low monthly royalty ($156) suggests reliance on upfront fees rather than revenue sharing
  5. 05MINORMultiple labor code violation settlements indicate potential compliance issues with franchisee treatment
  6. 06MINORData security breach settlement raises operational and liability concerns

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.