VelofixFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Velofix franchise requires a total initial investment of $170K – $203K, including a $25K franchise fee and an ongoing 8.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $170K – $203K
- 20th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- 8.0%
- 25th pct Automotive
- Units
- 99
- 23rd pct Automotive
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 97 to 71 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $170K – $203K including a $25K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 96/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -26.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Velofix Holdings USA, Inc.
- Parent company
- 1016464 B.C. LTD.
- Incorporated in
- DE
- HQ
- 303 West 5th Avenue, Vancouver, British Columbia, Canada V5Y 1J6
- Auditor
- DAVIDSON & COMPANY LLP
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.1M prior year
Overview
About
Velofix franchisees operate mobile bicycle repair and maintenance services, typically working from a van or mobile unit that travels to customer locations. Day-to-day work involves diagnosing and repairing bikes, managing customer appointments, scheduling routes, and handling inventory of parts and tools.
- CEO
- Davide Xausa
- Founded
- 2014
- FDD year
- 2022
- States available
- 19
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $15K | $20K |
| Equipment, build-out, other | $130K | $158K |
| Total initial investment | $170K | $203K |
Source: Velofix 2022 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
- $170K – $203K
- Better than avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $140 |
| Transfer fee | $10K |
| Renewal fee | $8K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How Velofix Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 99
- Opened
- 1
- Last reporting year
- Closed
- 8
- Turnover rate
- 8.1%
- Company-owned
- 28
- Corporate units in the system
- % franchised
- 72%
- vs corporate-owned
- Net growth (yr3)
- -22.0%
- Net unit change last year
- 3-yr CAGR
- -26.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 6
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $869K
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Velofix's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Velofix presents HIGH RISK due to significant unit contraction, financial non-disclosure, and going concern flag—franchisees lack visibility into realistic earnings potential.
Audited financials (Item 21)
Yes · DAVIDSON & COMPANY LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 96 / 100 rating
- 01MEDUnit count declined 22% YoY (99 units) — indicates system contraction and franchisee exits
- 02MEDNo average revenue or net income disclosed — impossible to assess ROI or profitability expectations
- 03HIGHGoing concern status is FALSE — suggests franchisor financial instability or material uncertainty
- 04MINORHigh initial investment ($170K–$203K) combined with no financial performance data creates blind investment
- 05MED8% royalty on undisclosed sales means franchisees cannot calculate break-even or cash flow scenarios
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | ZIP code(s) |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 17 hrs
- POS system
- Lightspeed
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Lightspeed
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Velofix · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Velofix franchise?
The total investment to open a Velofix franchise ranges from $170K – $203K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Velofix franchise owners earn?
Velofix does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Velofix's franchise failure rate?
Based on SBA 7(a) loan data, Velofix has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Velofix franchise locations are there?
As of their most recent FDD filing, Velofix has 99 total units in the United States, including 97 franchised units and 28 company-owned units. 1 new units were opened in the latest reporting year.
Is Velofix a good franchise to buy?
FranchiseVerdict rates Velofix as a F-grade franchise with a risk score of 96 out of 100, 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.