Velofix Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Velofix is a mobile franchise providing on-demand bicycle repair, service, and sales from a fully equipped van. Franchisees run a mobile bike shop scheduling appointments and serving riders and retailers in a territory.
FranchiseVerdict summary · 2026
A Velofix franchise requires a total initial investment of $170K – $203K, including a $35K 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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $170K – $203K
- 25th pct Automotive
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 36th pct Automotive
- Units
- 74
- 25th pct Automotive
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $170K – $203K including a $35K franchise fee, 8.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -33.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Velofix Holdings USA, Inc.
- Parent company
- Velofix Group of Companies
- CEO title
- President and CEO
- Davide Xausa
- Incorporated in
- Delaware
- HQ
- 1632 West 6th Ave, Vancouver, British Columbia, Canada V6J 1R3
- Auditor
- DAVIDSON & COMPANY LLP
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.1M prior year
Overview
About
- CEO
- Davide Xausa
- Founded
- 2014
- FDD year
- 2022
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 80% below the typical automotive franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $15K | $20K |
| Equipment, build-out, other | $120K | $148K |
| 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
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $20K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Velofix did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Velofix unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
55%
Within the 30–60% "attractive franchise" band
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: 2022 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% (near the Automotive average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -33.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Velofix Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 74
- Opened
- 1
- Last reporting year
- Closed
- 8
- Turnover rate
- 14.7%
- Company-owned
- 40
- Corporate units in the system
- % franchised
- 46%
- vs corporate-owned
- Net growth (3-yr)
- -33.3%
- Net unit change over 3 years
- 3-yr CAGR
- -33.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 1
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 12.9%
- brand beats franchise avg ↓
- Jobs supported
- 33
- 3.8 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% to established operators
Franchise vs independent — in other personal and household goods repair and ma, franchised businesses charge off at 12.9% vs 19.0% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Velofix franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Mobile bike-repair franchisor (74 units) with parent-level financials showing net worth -$844,241 and net loss -$105,588. System is shrinking sharply (net growth -33.3%, franchised units at 34 vs 40 company-owned). No litigation, but financial distress flagged and no Item 19.
Audited financials (Item 21)
Yes · DAVIDSON & COMPANY LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Score breakdown · what drove the 50 / 100 verdict
- 01MINORParent-level net worth -$844,241 (not brand-specific)
- 02MINORNet growth -33.3% (system contraction)
- 03MINORFinancial distress flag
- 04MINORNo Item 19 disclosure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 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 $35K. 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 Item 19 in the Velofix 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 Velofix FDD and qualifies whose outlets they describe.
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 74 total units in the United States, including 34 franchised units and 40 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 B-grade franchise with a verdict score of 50 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.