Tire Discounters Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Tire Discounters is an automotive franchise selling tires and providing alignments, brakes, and general maintenance. Franchisees run tire-and-service centers managing retail sales, service bays, and inventory.
FranchiseVerdict summary · 2026
A Tire Discounters franchise requires a total initial investment of $509K – $2.7M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2023 FDD, average unit revenue was $2.2M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $509K – $2.7M
- 47th pct Automotive
- Avg gross sales
- $2.2M
- Company-owned only17th pct Automotive
- Royalty
- 5.0%
- 9th pct Automotive
- Units
- 196
- 38th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · 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 $509K – $2.7M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $2.0M) (company-owned outlets only - not franchisee performance).
- RISKVerdict A (Strongest tier), verdict score 65/100 (higher is better).
- OWNERS67% of franchisees own multiple units, a high repeat-buyer signal suggests strong unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Tire Discounters Franchising, LLC
- Parent company
- Tire Discounters, Inc.
- CEO title
- President and Chief Executive Officer
- Jamie Ward
- CEO experience
- 37 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Ohio
- HQ
- 200 West Fourth Street, Cincinnati, OH 45202
- Auditor
- Clark Schaefer Hackett
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Jamie Ward
- Headquarters
- OH
- Founded
- 1976
- FDD year
- 2023
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 70% above the typical automotive franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $150K |
| Equipment, build-out, other | $424K | $2.5M |
| Total initial investment | $509K | $2.7M |
Source: Tire Discounters 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $509K – $2.7M
- Middle of category vs category
- Liquid capital req'd
- $50K – $150K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $1K |
| Transfer fee | $12K |
| Renewal fee | $7K |
| Total fee load | 7.5% of rev |
What do units actually make?
Average unit sales run 48% above the automotive norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2023 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$346K
16.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Tire Discounters unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
20%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tire Discounters units return on equity?
Equity IRR · 5-yr
29.9%
3.69× MOIC
Year-1 DSCR
2.70×
EBITDA ÷ debt service
Equity required
$8.6M
on $19.5M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
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: 2023 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $2.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical company-owned gross revenues
- Sample size
- 139
- vs category median 70
- Range (low → high)
- $1.1M→$7.1M
- Cohort dispersion (min → max)
- Quartile band
- $1.4M→$3.2M
- Bottom 25% → top 25%
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2021
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
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.
Unit economics
Average unit generates $2.2M/year in gross sales. Revenue-to-investment ratio: 1.4x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 7.5% — below the Automotive average of 9.3%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Multi-unit rate
67% of franchisees own multiple units — high repeat-buyer rate signals strong unit economics and operator satisfaction.
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 averages
How Tire Discounters Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 196
- Opened
- 37
- 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
- 0.0%
- Company-owned
- 196
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 66.7%
3-year detail · Item 20
- Opened (3yr)
- 37
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
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)
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
Clean FDD: no litigation, no bankruptcy, no going-concern, Item 19 disclosed with strong AUV of $2,161,162. Note all 196 units are company-owned with zero franchised units, so franchise track record is limited but no risk flags.
Litigation (Item 3)
No litigation is required to be disclosed in this Disclosure Document.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Clark Schaefer Hackett
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 verdict
- 01HIGHNo litigation, bankruptcy, or going-concern
- 02MINORStrong AUV $2,161,162
- 03MEDItem 19 disclosed
- 04MINORAll 196 units company-owned (no franchisees yet)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | radius, population, registered motor vehicles, or geographic boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cincinnati, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Disclosure Document.
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Time to open
- 13 mo
- From signing to launch
- POS system
- Computer System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Computer System
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tire Discounters · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tire Discounters franchise?
The total investment to open a Tire Discounters franchise ranges from $509K – $2.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tire Discounters franchise owners earn?
According to Item 19 of the Tire Discounters FDD, the average gross sales per unit is $2.2M. The median is $2.0M. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Tire Discounters 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 Tire Discounters FDD and qualifies whose outlets they describe.
What is Tire Discounters's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tire Discounters (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 Tire Discounters franchise locations are there?
As of their most recent FDD filing, Tire Discounters has 196 total units in the United States, including 0 franchised units and 196 company-owned units. 37 new units were opened in the latest reporting year.
Is Tire Discounters a good franchise to buy?
FranchiseVerdict rates Tire Discounters as a A-grade franchise with a verdict score of 65 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.