Tire Discounters
Bottom line
- Total investment $509K – $2.7M including a $35K franchise fee, 3.5% ongoing royalty.
- Average unit revenue of $2.2M/year (median $2.0M).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- 67% of franchisees own multiple units — high repeat-buyer signal suggests strong unit 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 Tire Discounters unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tire Discounters units return on equity?
Equity IRR · 5-yr
28.1%
3.45× MOIC
Year-1 DSCR
2.89×
EBITDA ÷ debt service
Equity required
$10.9M
on $22.7M purchase
Total debt
$11.8M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate tire retail and automotive service centers, managing inventory, performing tire sales/installation, wheel alignments, and general maintenance services. Day-to-day operations include staff scheduling, customer service, inventory management, and coordination with national accounts while paying 3.5-5% royalties on gross sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 8 states 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.
8
states with franchisees (per FDD Item 12)
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
Tire Discounters presents moderate-to-cautious risk: while franchise fee is reasonable and territory is protected, the absence of net income disclosure, stagnant unit growth, and wide investment range obscure true profitability and scalability.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNo average net income disclosed in FDD — impossible to assess actual profitability or ROI against $509k-$2.67M investment
- 02MEDUnit count stagnant at 196 with unknown/likely flat growth — suggests mature or declining system with limited expansion momentum
- 03MINORHigh investment range ($2.16M spread) indicates inconsistent unit economics and unclear path to stated $2.16M average revenue
- 04HIGHNo going concern statement is positive, but combined with flat growth and hidden profitability, suggests underperforming mature brand
- 05MINORRoyalty structure (3.5-5% + 1% national accounts) compounds margin pressure on service-based business with tight labor costs
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tire Discounters · FDD (2023) PDF