Stem Guys Tire Supplies Franchise Cost, Revenue & Review 2026
- Investment
- $91K – $237K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Stem Guys Tire Supplies is an automotive supply franchise selling tire valves, stems, and accessories to service centers and dealers. Franchisees run local operations, managing inventory, sales, and accounts.
FranchiseVerdict summary · 2026
A Stem Guys Tire Supplies franchise requires a total initial investment of $91K – $237K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $91K – $237K
- 12th pct Automotive
- Avg gross sales
- N/A
- Company-owned onlyn=1
- Royalty
- 7.0%
- 31st pct Automotive
- Units
- 1
- 1st pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $91K – $237K including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSItem 19 reports Company Owned Outlet rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- DATAItem 19 reports Company Owned Outlet rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Stem Guys Tire Supplies LLC
- Predecessor
- Sole Proprietorship operated by Steve Clayton
- Prior franchisor entity
- CEO title
- President and CEO
- Richard Leland
- Incorporated in
- CA
- HQ
- 364 Fremont Peak Drive, Brentwood, CA 94513
- Auditor
- DA Advisory Group
- Audited financials
Overview
About
- CEO
- Richard Leland
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 55% below the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Travel and Living Expenses While Training | $500 | $5K | |
| Storage | $500 | $2K | |
| Vehicle | $5K | $87K | |
| Decals | $1K | $5K | |
| Management and Technology System | $1K | $5K | |
| Opening Inventory | $18K | $36K | |
| Uniforms | $200 | $500 | |
| Office Supplies | $200 | $600 | |
| Grand Opening Marketing | $0 | $4K | |
| Business Licenses and Permits | $1K | $5K | |
| Professional Fees | $3K | $5K | |
| Insurance | $1K | $3K | |
| Additional Funds (3 months) | $10K | $30K | |
| Total initial investment | $91K | $237K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $91K – $237K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $18K – $36K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Stem Guys Tire Supplies is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Stem Guys Tire Supplies unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
- Item 19 type
- Company Owned Outlet
- Sample size
- 1
- vs category median 70 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Automotive median).
Disclosure
Item 19 reports Company Owned Outlet rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Stem Guys Tire Supplies Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Brand-new 2024 franchisor with a single company-owned unit and minimal net worth of $10,000. Limited history is the main risk; Item 19 is disclosed and financials audited. No litigation, bankruptcy, or going-concern.
Litigation (Item 3)
No litigation information required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 01MINORVery new (franchising 2024), 1 unit only
- 02MINORMinimal net worth $10,000
- 03MINORNo franchised units operating yet
- 04MEDItem 19 disclosed, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 60 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 60 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Mediation held in Contra Costa County/Austin, California area (or franchisor's then-current HQ metro area); litigation venue is Contra Costa County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee, with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Business Management and Technology System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Business Management and Technology System
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Stem Guys Tire Supplies franchise?
The total investment to open a Stem Guys Tire Supplies franchise ranges from $91K – $237K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Stem Guys Tire Supplies franchise owners earn?
Item 19 of the Stem Guys Tire Supplies FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Stem Guys Tire Supplies?
Stem Guys Tire Supplies is franchised by Stem Guys Tire Supplies LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Stem Guys Tire Supplies FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Stem Guys Tire Supplies FDD and qualifies whose outlets they describe.
What is Stem Guys Tire Supplies's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Stem Guys Tire Supplies (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 Stem Guys Tire Supplies franchise locations are there?
As of their most recent FDD filing, Stem Guys Tire Supplies has 1 total units in the United States.
Is Stem Guys Tire Supplies a good franchise to buy?
FranchiseVerdict rates Stem Guys Tire Supplies as a C-grade franchise with a verdict score of 39 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.