Risk Score
Pending analysis
Investment Range
$55,100 - $3,090,000
Total US Locations
203
Business Summary
FIX AUTO offers franchises for the establishment and operation of collision repair shops specializing in auto body repair work and related services. These FIX AUTO Shops can be conversions of existing repair facilities or new businesses. The shops are dedicated to vehicle repair and serve a broad market including the general public, automobile dealerships, insurance companies, and fleet accounts. FIX AUTO aims to provide a distinct concept and operating system for a network of independent collision repair facilities.
Corporate History
FUSA Franchisor SPV LLC was formed in Delaware in April 2020 and became the franchisor for the FIX AUTO brand in July 2020. The brand's origins trace back to 79411 USA, Inc., which was founded in 1997 with a vision for a network of independent collision repair facilities under a single brand. 79411 USA, Inc. initially offered FIX AUTO franchises in California from 1998 to 2001. After 2001, the company shifted focus to a direct sales license program called "Collision Repair Experts" (CRX), which was discontinued by December 2023. In 2010, 79411 USA, Inc. decided to actively grow its franchise system again, creating FUSA, Inc. as the exclusive U.S. franchisor for the FIX AUTO System. In July 2020, FUSA Franchisor SPV LLC acquired the rights to the FIX AUTO brand, and its affiliate, FUSA Properties SPV LLC, acquired and operates nine FIX AUTO Shops.
Financial Overview
Investment Range
$55,100 - $3,090,000
Franchise Fee (High)
$10,000
Minimum Net Worth
$1,000,000
Royalty %
3%
Marketing %
0.75%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$2,320,000
Working Capital
$127,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
FUSA Franchisor SPV LLC's financial statements are consolidated with its parent company, Driven Systems LLC, which guarantees FUSA's performance. Driven Systems LLC reported total assets of $508.6 million and members' equity of $480.9 million for the year ended December 30, 2023. Its net income was $195.1 million in 2023. An indirect parent, Driven Brands, Inc., reported total assets of $3,742.7 million and shareholders' equity of $682.4 million for the same period, with net income of $155.5 million in 2023. Driven Brands and its affiliates are involved in secured financing transactions, with FUSA guaranteeing related indebtedness. The independent auditors for both Driven Systems LLC and Driven Brands, Inc. issued an unqualified opinion, indicating that their financial statements fairly present their financial positions and results of operations. There is no mention of any "going concern" issues or substantial doubt about the companies' abilities to continue operations.
Financing Details
FUSA Franchisor SPV LLC does not offer any direct or indirect financing to franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees, meaning franchisees will need to secure their own funding.
Performance Metrics
Total US Locations
203
Franchised Units
203
Corporate Units
0
Avg Square Footage
27,500
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
9
Litigation Summary
FIX AUTO, through its franchisor FUSA Franchisor SPV LLC and its affiliates, has been involved in several legal disputes. FUSA Franchisor SPV LLC filed breach of contract actions against two former franchisees and their guarantors in 2023 for amounts owed and unauthorized shop closures. One case, against MODA Collision Repair LLC, filed in August 2023, is ongoing. The other, against SBG, Inc., filed in April 2023, is awaiting a default judgment. A separate arbitration case, filed in October 2022 by FUSA Franchisor SPV LLC against former franchisee Beem's Auto Paint and Body Inc., also alleges breach of contract, with the former franchisee counterclaiming for fraud, negligent misrepresentation, and breach of good faith. Additionally, a securities class action lawsuit was filed in December 2023 against FIX AUTO's indirect parent, Driven Brands Holdings Inc., and two executives (including FIX AUTO's CEO), alleging misrepresentations related to acquisitions. An affiliate, Take 5 Canada SPV LP, is also facing a pending lawsuit filed in December 2022 by a former franchisee in Canada, alleging breach of disclosure and fair dealing provisions. Furthermore, an affiliate predecessor, Econo Lube N' Tune, Inc., entered into a consent judgment in October 2011 with the State of Arizona for alleged unfair trade practices and agreed to pay penalties. Other affiliates, Arby's Restaurant Group, Inc. and Dunkin' Brands, Inc., settled "no-poaching" lawsuits with state Attorneys General in 2019, agreeing not to enforce such provisions. Dunkin' Brands also resolved a lawsuit with the New York Attorney General in 2020 related to cyberattacks, paying $650,000 in penalties. FIX AUTO states these affiliate actions do not impact its brand and do not allege unlawful conduct by FIX AUTO itself.
Bankruptcy History
FIX AUTO, its parent company, and its key personnel have no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, FIX AUTO franchisees must provide written notice between 6 and 12 months before the current term expires. They must be in good standing, having complied with all agreement provisions and not be in default. Franchisees need to substantially meet current qualification and training requirements, update their shop to reflect the current physical appearance of new FIX AUTO Shops, and achieve their required sales quota. A general release must be signed (if state law permits), and a renewal processing fee of $1,000 is due (or $10,000 for delayed renewals). The renewal will involve signing FIX AUTO's then-current franchise agreement, which may have materially different terms. Franchisees must also secure a renewal or extension of their Approved Premises' location agreement.
Training & Support Program
Franchisor Assistance
FIX AUTO provides franchisees with various forms of assistance. Before opening, it offers management training, site feasibility and designation help, a confidential Operations Playbook, specifications for shop layout and design, and lists of approved equipment, supplies, and initial inventory. It also licenses the use of its Marks and provides initial advisory assistance, ultimately authorizing the business opening. For multi-unit developers, FIX AUTO reviews and approves site applications and leases. During operation, FIX AUTO specifies and approves equipment, inventory, and suppliers. It offers additional and refresher training programs, including national and regional conferences, and manages the claims process to promote businesses to insurance carriers through the FCS MSO Program. FIX AUTO may obtain insurance coverage for franchisees who fail to maintain their own and administers a local advertising program. It may also audit customer satisfaction, maintains a Market Leaders Council for franchisee input, reviews and approves franchisee advertising materials, and provides regular operational consultation and advice. For multi-unit developers, FIX AUTO grants franchises for approved sites upon execution of the franchise agreement.
Initial Training Hours
27
Training Location
Corporate office or another designated site, typically via video conferencing. On-the-job training occurs at the franchisee's business location, also typically via video conferencing.
Ongoing Support
FIX AUTO franchisees receive ongoing support including additional and refresher training programs, such as a mandatory annual multi-day National Conference. They or a designated management employee must attend local or regional franchisee meetings approximately six to nine times per year. Franchisees are also required to conduct ongoing training for their own employees and have access to web-based training on FIX AUTO's intranet, known as Collision University. FIX AUTO manages the claims process and promotes franchisee businesses to regional and national insurance carriers and fleet organizations through the FCS MSO Program. It also specifies and approves equipment, inventory, and suppliers, administers a local advertising program, conducts customer satisfaction audits, and provides regular consultation and advice on administrative and operational issues.
Franchise Requirements
Ideal Candidate Profile
FIX AUTO seeks franchisees who possess strong management skills, experience, and business acumen. The franchisor frequently converts existing collision repair businesses, implying a preference for individuals with prior experience operating such facilities. For new single-unit locations, the franchisee (or a designated manager) must personally supervise the business full-time, with the franchisor strongly recommending the franchisee's direct, full-time involvement. For multi-unit development, candidates must be qualified and commit to opening a minimum of 10 FIX AUTO Shops. Owners, especially for multi-unit agreements, are required to meet a minimum net worth threshold of $1,000,000.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Under the Franchise Agreement, FIX AUTO provides a protected territory within a one-mile radius from the Approved Premises, measured in a straight line from the exterior walls of the premises, as long as the franchisee is in good standing. However, the overall territory is non-exclusive, meaning the franchisor can still compete outside this one-mile radius or with other brands. For Area Development Agreements, development area sizes and boundaries vary widely based on economic conditions, the number of shops a developer agrees to open, demographics, and site availability. There is no minimum size for these development areas, which are defined using county boundaries.
Staffing Notes
FIX AUTO requires that a person who has successfully completed mandatory training and meets current standards must personally supervise the Franchised Business on a full-time basis, with strong recommendations for the franchisee to be that on-site manager. Franchisees are responsible for hiring and managing their own employees, including all employment decisions and functions. All employees are the franchisee's employees, not FIX AUTO's. Key staffing requirements include maintaining I-CAR Gold Class Professional standard certification for the Franchised Business, and technicians are encouraged to achieve I-CAR Platinum Class certification, indicating a need for highly skilled repair staff. Franchisees must also conduct ongoing training programs for their employees at their own expense and ensure designated management employees attend required local or regional franchisee meetings.