FranchiseVerdict
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B55/100FDD 2025

Turbo Tint — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 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
16
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$3.8M
Avg loan size
$240K
Participating lenders
4

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 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
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial instability or undisclosed operational challenges at corporate level
  2. 02HIGHActive litigation (Moran Industries royalty collection suit with default judgment in Dec 2024) signals enforcement issues and possible franchisee compliance/payment problems
  3. 03MEDNet Income not disclosed in FDD Item 19 — cannot validate the $662k average revenue translates to acceptable profitability after 7% royalties + operating costs
  4. 04MINORHigh unit growth rate (35.3% YoY) is atypical and may indicate aggressive recruitment masking underlying system weakness rather than organic demand
  5. 05MINORRoyalty enforcement action suggests corporate is pursuing collections aggressively, indicating cash flow pressure or systemic non-payment among franchisees
  6. 06MED15-year term with $45k franchise fee + $301-435k total investment requires strong unit-level economics not validated by missing net income data

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.