A50/100FDD 2026
Valvoline Instant Oil Change — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
61
Government-backed loans issued
Default rate
5.4%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$44.9M
Avg loan size
$737K
Participating lenders
39
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
Kentucky
State whose law governs disputes — relevant if you're not based there
What drove the 50/100 rating
Risk Score Breakdown
- 01HIGHActive class action litigation (Moore v. Valvoline) regarding misrepresentation of oil change intervals creates reputational and potential operational risk
- 02MINORNo Item 19 financial performance data provided; average net income of $549,958 cannot be independently verified against actual franchisee performance
- 03MINORHigh capital requirement ceiling ($3.48M) with wide variance suggests significant operational complexity and potential for underperformers
- 04MINORRecent Washington State enforcement action on no-poach provisions indicates compliance and HR management weaknesses at corporate level
- 05MINORGraduated royalty structure (4-6%) incentivizes under-reporting of revenue during critical early years
- 06MINORSystem growth of 10.5% YoY is moderate; no visibility into unit-level profitability trends or churn rates
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.