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D71/100FDD 2025

Ziebart — Litigation & Risk

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

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
71 / 100
FranchiseVerdict composite
Rating
CAUTION
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
25
Government-backed loans issued
Default rate
12.5%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$5.7M
Avg loan size
$229K
Participating lenders
10

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 71/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Net Income) disclosure — unable to validate profitability claims against $450k-$924k investment
  2. 02MINORDeclining unit count (96 units with unknown/likely negative growth) suggests system contraction or franchisee struggles
  3. 03HIGHGoing Concern = False indicates potential financial instability at franchisor level, raising sustainability questions
  4. 04MEDHigh royalty burden (8% of gross sales) with undisclosed net income makes ROI calculation impossible
  5. 05MINORWide investment range ($474k spread) suggests inconsistent startup costs and unclear capital requirements
  6. 06MINORAutomotive aftermarket (rustproofing/undercoating) faces commoditization and declining consumer interest

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.