Best & Worst Car Repair Franchises: SBA Franchise Loan Default Rates | Franchise Law Blog

Best and Worst Car Repair Franchises: SBA Franchise Loan Default Rates

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Car Repair Franchise Default Rates

When it comes to tracking the performance of franchises‚ the SBA maintains some informative statistics.  Listed below are the franchisee default rates reported by the SBA for auto repair franchises.  The ranked franchises include Lee Myles‚ AAMCO‚ MAACO‚ Jiffy Lube and Eagle Transmission.  The failure rate for some of these franchises appear to be quite high.  However even where a franchise opportunity is ranked positively‚ i.e. a low failure rate‚ caution is nevertheless required as the only “failure rate” that will matter to you is whether or not your “own” franchise opportunity turns out to be a profitable one.  When purchasing a franchise due diligence should always be performed prior to signing any documents.  The default rates are listed below.  With regard to “Goodyear Tire” I have no clue as to how they have a 0% failure rate – information must be missing.

Below is a list of popular car repair franchises listed on the 2011 SBA franchise loan default rate list which are listed from worst default rates to best:

Rank Franchise Brand Failure %
42 All Tune and Lube 51.00%
47 Lee Myles Automotive Transmissions 50.00%
48 Mr. Transmission 50.00%
124 AAMCO Transmissions 37.00%
196 Tuffy Muffler Center 27.78%
197 Eagle Transmission‚ Inc. 27.27%
213 Speedee Oil Charge & Tune-Up 25.93%
214 MAACO Auto Painting Center 25.00%
328 Midas Muffler Shop 16.00%
388 Merlin’s Muffler 11.54%
402 Car-X Muffler Shop 10.00%
411 Jiffy Lube 10.00%
475 Kwik Kar Oil & Lube 6.25%
479 Valvoline Instant Oil Change 6.25%
553 Goodyear Tire 0.00%

Helpful Resources When Buying a Car Franchise

Video Series: Buying a Franchise University Video Series

Article: 6 Steps to Buying a Franchise

Book: An Entrepreneurs Guide to Purchasing a Business or Franchise

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Date: 06/03/2011 | Category: Buy a Franchise

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