Risk Score
Pending analysis
Investment Range
$263,640 - $4,569,050
Franchise Fee
$25,000
Total US Locations
57
Business Summary
Abra franchises the right to operate an Abra repair and refinishing shop that specializes in high-quality auto body repair, refinishing, and auto glass repair and replacement services at competitive prices. Abra Repair Centers utilize a business system that includes specific quality control standards, advertising and promotional programs, training, and distinct standards for the site, layout, and furnishings of the repair centers.
Corporate History
Abra began as ABRA, Inc., with its first repair center opening in Fridley, Minnesota, in March 1984. The formal Abra franchise system, ABRA Automotive Systems LP, was established in March 1987 by the shareholders of the original parent company. In September 2019, Driven Brands Inc. acquired ABRA Automotive Systems LP. The current franchisor entity, ABRA Franchisor SPV LLC, was organized in August 2019 and has been offering Abra franchises and development rights since January 2020.
Financial Overview
Investment Range
$263,640 - $4,569,050
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
0.7%
Equipment Costs (Low)
$130,000
Equipment Costs (High)
$375,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Driven Systems LLC, the guarantor for Abra, maintains very low cash balances, holding $1,000 in cash for both 2023 and 2022. However, it reported strong net income of $195 million in 2023 and $176 million in 2022, with significant cash being distributed to its parent company, Driven Holdco, indicating centralized cash management. Driven Systems LLC's auditors have issued an unqualified opinion, with no concerns about its ability to continue as a going concern. Driven Brands Inc., Abra's indirect parent, also reported healthy net income and substantial cash and assets, though it also carries a significant long-term debt of over $2 billion, secured by most of its assets. No going concern issues were noted for Driven Brands Inc. either.
Financing Details
Abra does not provide any direct or indirect financing to its franchisees. Additionally, Abra does not guarantee any notes, leases, or other obligations for its franchisees. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
57
Franchised Units
57
Corporate Units
0
Avg Square Footage
15,000
Franchising Since
1987
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
7
Litigation Summary
Abra, through its current and affiliated entities, has been involved in seven disclosed litigation matters. Two cases are currently pending: a securities class action filed in December 2023 against Driven Brands Holdings Inc., Jonathan G. Fitzpatrick (Abra's Manager and CEO), and Tiffany L. Mason (former CFO) for alleged misrepresentations post-acquisition; and a December 2022 action against affiliate Take 5 Canada SPV LP and others, including Jonathan Fitzpatrick, for alleged breach of franchise disclosure and fair dealing provisions. One concluded arbitration case from 2019 against Abra's predecessor, ABRA Automotive Systems, LP, involved a franchisee alleging breach of contract and improper encroachment after a merger, which was settled in 2020 for $57,500. Additionally, an affiliate's predecessor, Econo Lube N' Tune, Inc., was subject to an Arizona consent judgment in 2011 regarding alleged unfair trade practices, resulting in an injunction and payment of penalties and fees. Other affiliates, Arby's and Dunkin' Brands, Inc., also faced and resolved separate legal actions concerning "no-poaching" clauses in 2019 (no monetary penalties) and a cyberattack (settled for $650,000 plus costs) in 2019-2020, respectively.
Bankruptcy History
Abra has no bankruptcy history to report for the franchisor, its predecessors, parents, or affiliates as no bankruptcy is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Abra franchisees must provide written notice at least 180 days before the current term ends. They must be in compliance with all material provisions of their Franchise Agreement and any other agreements with Abra or its affiliates, including paying all monetary obligations. Franchisees are required to remodel, modernize, and redecorate the Repair Center to reflect the then-current appearance of new Abra Repair Centers and meet any current qualification and training requirements, all at their own expense. A Renewal Fee of $7,500 must be paid to Abra. Franchisees must also sign Abra's then-current standard Franchise Agreement, which may have materially different terms and conditions (though the Renewal Fee replaces the Initial Franchise Fee, and the Continuing Fee remains the same). Finally, they must secure a renewal or extension of their lease for the Authorized Location if applicable.
Training & Support Program
Franchisor Assistance
Abra provides extensive support to its franchisees both before and after opening. Before opening, Abra assists with site selection by reviewing up to four potential locations free of charge and providing building plans and design specifications. Franchisees and designated managers receive mandatory training, access to the confidential Operations Playbook and other manuals, and lists of approved products and suppliers. Abra also provides opening assistance, including up to four weeks of on-site training at the new Repair Center. Ongoing support includes periodic evaluations of the Repair Center with written reports, advisory services upon request, and regular updates to the Business System and Operations Playbook. Additional training programs are offered periodically, sometimes for a fee, and provides access to its intranet and communication platforms. Abra also helps with applications for Corporately Managed Insurance Programs. For marketing, Abra manages a National Brand Fund, currently 0.7% of gross sales, used for various promotional activities including national advertising, website maintenance, and customer programs. There is also a $5,000 Opening Promotion Fee for initial advertising. Abra may also require participation in regional or local marketing programs with a fee up to 3% of gross sales. Franchisees must install and use Abra's Network Computer System, including specified hardware and software, with high-speed internet access, and allow remote data access.
Initial Training Hours
28
Training Location
Your Repair Center and Online
Ongoing Support
Abra franchisees receive ongoing support through periodic evaluations of their Repair Center, including written reports. Advisory services related to Repair Center operations are available upon written request. Abra continuously provides updates and revisions to its Business System and the confidential Operations Playbook. Additional training programs are offered periodically, some potentially for a fee, and provides access to Abra's intranet and other communication media. Abra requires franchisees and their Repair Center managers to attend an annual national convention and may mandate up to one additional training program per year. Furthermore, Abra assists pre-certified Repair Centers with submitting applications to participate in Corporately Managed Insurance Programs.
Franchise Requirements
Ideal Candidate Profile
Abra is currently offering new franchises exclusively to existing Abra franchise owners who are in good standing, along with their approved shareholders and affiliates. New franchise agreements are also signed in connection with the transfer or assignment of an existing franchise.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
For a single Abra franchise, the protected territory is defined as a one-mile radius surrounding the Repair Center location. If a franchisee enters into a Development Agreement for multiple centers, they will receive an Exclusive Development Territory. The size of this exclusive territory will vary depending on the number of Repair Centers the franchisee commits to open, the population density, and the demographics of the desired operating area.
Staffing Notes
Abra franchisees are responsible for the business operations and staffing of their Repair Center, ensuring a sufficient number of adequately trained, competent, and courteous employees are hired to provide efficient customer service. Franchisees manage all personnel decisions, including setting wages, work hours, and compensation, without influence or liability from Abra. Employees are required to wear uniforms designated by Abra. While the franchisee is expected to personally manage and operate the Repair Center, they may, with Abra's written consent, delegate this authority to a Repair Center Manager. Abra recommends, but does not require, that the Repair Center Manager have an ownership interest in the franchisee entity. Initial training programs are provided for key managerial roles such as General Manager, Customer Service Manager, Customer Service Representative, and Pre-Op Manager.