FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S0007 since 2017

1-800-Radiator & A/C

Automotive · independent · est. —

1-800-Radiator & A/C is a distributor of replacement auto parts, specializing in radiators, air-conditioning condensers, and related cooling and climate components for vehicles. It supplies repair shops and installers rather than selling to the public. A franchisee runs a local distribution warehouse, stocking inventory and delivering parts to area mechanics.

1-800-Radiator & A/C net unit count grew 0.0% from 20222024 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & steady

Distress

0
STABLE

A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The standout in the record: owners who leave mostly sell rather than fail.

Exit rate · latest year

0.5%

vs 5.5% across 19 automotive systems

Cost to open

$464K–$1.3M

Item 7 total investment range

SBA loan defaults

22.1%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Weak
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2022–2024

0.0%
194202219520231942024

Survival record

FDD Item 20 · outlet status by year

In fiscal 2024, 1 of 194 franchised outlets left the system — a 0.5% annualized exit rate, vs 5.5% across 19 automotive systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202220232024
Outlets at start194194195
Opened150
Transfers101117
Terminations141
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end194195194
Net change0+1-1

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 97 SBA-backed loans to 1-800-Radiator & A/C franchisees since 2005. Of the 68 that have resolved, 22.1% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

22.1%

15 of 68 resolved defaulted

Loss given default

46.5%

avg. charged-off $ ÷ approved $

Expected loss

10.3%

default rate × loss severity

Avg. loan · FY2020+

$852,084

what recent franchisees borrowed

Median time to default

61 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

8 vs 12

distinct banks still lending

Charge-off rate by loan approval year (%)

40'0645820'09330'16

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO 1-800-RADIATOR & A/C BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

the Huntington National Bank

14.1% of this brand's loans

That lender charges off 10.0% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

60.7%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

+26.7pp

multi-unit vs single-unit owners

Owners of multiple units default at 26.7%; single-unit owners at 0.0%.

Computed from 97 SBA 7(a)/504 loans to 1-800-Radiator & A/C franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $45K franchise fee (Item 5) and a total investment of $464K–$1.3M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$464K–$1.3M

all-in investment range

Franchise fee (Item 5)

$45K

upfront, one-time

Royalty (Item 6)

8%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$80K

8% of sales, before profit

Over a 10-yr term

$800K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for 1-800-Radiator & A/C with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Moderate

Modeled from the public record, this brand looks safer than 67% of systems we score.

Risk percentile

33 / 100

Loan-corroborated

Modeled SBA charge-off

10.5%

Observed SBA charge-off

22.1%

Top drivers: Share financed by high-loss lenders (lowers) · Investment ceiling (log) (lowers) · Single-lender dependence (raises) · Item 20 exit rate (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for 1-800-Radiator & A/C. That's a good sign — but it reflects news coverage, not a guarantee.

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1-800-Radiator & A/C franchise questions, answered from the filings

What percentage of 1-800-Radiator & A/C franchises closed last year?

In 1-800-Radiator & A/C's latest FDD Item 20 (fiscal 2024), 1 of 194 franchised outlets left the system — an annualized exit rate of 0.5% — compared with 5.5% across 19 automotive systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a 1-800-Radiator & A/C franchise cost?

Per 1-800-Radiator & A/C's 2025 FDD, buying in requires an initial franchise fee of $45K (Item 5) and a total initial investment of $464K–$1.3M (Item 7).

What royalty does 1-800-Radiator & A/C charge?

1-800-Radiator & A/C charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2025 FDD.

Does 1-800-Radiator & A/C disclose earnings (Item 19)?

Yes — 1-800-Radiator & A/C makes a financial performance representation in Item 19 of its 2025 FDD. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for 1-800-Radiator & A/C franchises default?

Across 97 SBA-backed loans to 1-800-Radiator & A/C franchisees since 2005, 15 of the 68 that have resolved were charged off — a 22.1% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is 1-800-Radiator & A/C a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk