B64/100FDD 2026
Thrifty — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
Elevated Risk
22 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
22
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
32
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
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 64/100 rating
Risk Score Breakdown
- 01HIGHParent company has going concern warning — indicates solvency/operational viability questions at corporate level
- 02HIGHExtreme litigation exposure: 22 total legal actions (3 pending Thrifty-specific, 4 pending parent, 13 past parent actions) including $168M false arrest settlement and major bankruptcy-related claim vs. Wells Fargo
- 03MINORNo Item 19 financial disclosure (average unit volumes/net income) — impossible to validate ROI on $879K-$16.2M investment range
- 04MINORUnprotected territory with modest 11% YoY growth (302 units) — suggests market saturation risk and cannibalization potential
- 05MINORWide investment range ($879K to $16.2M) indicates highly variable unit economics depending on location type
- 06HIGHParent entity instability (Hertz bankruptcy context) creates supply chain, brand support, and operational continuity risks
- 07MEDHigh royalty burden (6-8%) without disclosed revenue benchmarks means franchisees cannot assess profitability thresholds
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.