Rad Air franchise
2022 filing · April 28, 2022Fewer locationsShares sales figures
Rad Air at a glance
An auto service and repair center for maintenance and repairs. At the end of 2021 there were 10 Rad Air locations in the US, 8 franchised and 2 company-owned.
The business
- Industry
- Auto repair
- Franchisor
- Rad Air Franchise Systems, Inc
- The company that sells the franchises
- Franchising since
- 1999
- 23 years of selling franchises
What you pay
- Cost to open
- $146K–$573K
- Fee, build-out and opening working capital
- Franchise fee
- $49,500
- Paid once, when you sign
- Royalty
- 6%
- The greater of 6% of gross revenue or a weekly minimum that rises from $0 in the first six months to $600 after two years, paid weekly
- Brand fund
- None now
- Not charged at present (0%); up to 3% of gross revenue
- Agreement length
- 15 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 10
- Franchised and company-owned
- Franchised
- 8
- Company-owned
- 2
- Change in 2 years
- −1
- Franchised locations, 2019–2021
- States
- 1
- Most in Ohio
From Rad Air Franchise Systems, Inc’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Rad Air among all franchises with the same figure.
| Figure | Rad Air | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $359,250 | Costs more than 50% of franchises |
| Franchise feePaid once, when you sign | $49,500 | Higher than 64% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 10 | Fewer than 61% of franchises |
| Sales per locationYearly, as the brand reports it | $1,137,017 | Higher than 69% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 3.2× | Higher than 81% of brands that share sales figures |
How much a Rad Air franchise costs
Opening one Rad Air costs an estimated $145,500 to $573,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are net leasehold improvements ($10,000 to $150,000) and furniture, fixtures, and equipment ($5,000 to $148,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Fee | $49,500 | ||
| Travel Expenses to Training | $1,000 | $7,500 | |
| Security Deposits for Lease and/or Utilities | $1,000 | $12,000 | |
| Rent (3 months) | $0 | $30,000 | |
| Construction Due Diligence | $0 | $6,000 | |
| Design/ Architecture/ Engineering | $1,000 | $5,000 | |
| Construction Permits and Permit Management | $250 | $1,000 | |
| Construction Project Management | $0 | $8,000 | |
| Net Leasehold Improvements | $10,000 | $150,000 | |
| Furniture, Fixtures, and Equipment | $5,000 | $148,000 | |
| Signage and Graphics | $3,500 | $15,000 | |
| Initial Inventory, Supplies and Accessories | $2,000 | $10,000 | |
| Business Management and Technology System | $2,000 | $6,500 | |
| Business Licenses | $250 | $500 | |
| Software Licensing & Technology Fee Through First Three Months | $3,000 | $5,000 | |
| Professional Fees | $1,000 | $6,000 | |
| Insurance Deposit and Initial Premiums (3 months) | $1,000 | $3,000 | |
| Grand Opening Marketing Spend | $35,000 | ||
| Additional Funds, 3 months | $30,000 | $75,000 | |
| Total | $145,500 | $573,000 | |
Source: Rad Air Franchise Systems, Inc, 2022 filing, page 22
Rad Air franchise fee
The franchise fee is $49,500. You pay it when you sign the franchise agreement.
Source: Rad Air Franchise Systems, Inc, 2022 filing, page 13
Royalty and ongoing fees
| Royalty | The greater of 6% of gross revenue or a weekly minimum that rises from $0 in the first six months to $600 after two years, paid weekly. |
|---|---|
| Brand or marketing fund | Not charged at present (0%); up to 3% of gross revenue. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Rad Air Franchise Systems, Inc, 2022 filing, page 15
Sales and earnings
Shares figures Rad Air publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $1,137,017
- Median sales
- $1,101,831
Yearly figures for 2021, covering franchised Cleveland-area outlets open 2019 through 2021 that reported (seven of eight) (7 locations). The average and median are worked out from each location's sales as listed in the filing. The average is about 3.2 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: Rad Air Franchise Systems, Inc, 2022 filing, pages 57–60
SBA loans to Rad Air franchisees
Lenders approved 5 SBA 7(a) loans for Rad Air franchisees from 2014 to 2026, $1.35M in all. Of the 3 that have ended, 2 were paid in full and 1 was charged off. The other 2 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Rad Air compares
Of the 53 auto repair franchises on this site, Rad Air is the 16th cheapest to open and the 42nd largest by number of locations.
| Figure | Rad Air | Typical auto repair brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $146K | $224K | $222K |
| Cost to open, high end | $573K | $534K | $477K |
| Franchise fee | $50K | $40K | $40K |
| Royalty | 6% | 6% | 6% |
| Sales per location | $1.14M | $1.14M | $794K |
| US locations | 10 | 92 | 21 |
| Closed or left per year | 0% | 4.8% | – |
| Change in franchised locations, 2 yrs | −11.1% | 0% | – |
| Shares earnings figures | Yes | 33 of 53 | 2,147 of 3,352 |
Typical is the median across the 53 brands in auto repair franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 8 (−1) | 2 | – | – |
| 2020 | 8 (0) | 2 | 0 | 0 |
| 2021 | 8 (0) | 2 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Company-owned centers are run by the franchisor's affiliates.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: auto repair franchise costs and franchise failure rates.
Source: Rad Air Franchise Systems, Inc, 2022 filing, page 64
Where Rad Air locations are
At the end of 2021, Rad Air had franchised locations in 1 state. The most are in Ohio.
- Ohio8
| State | Franchised |
|---|---|
| Ohio | 8 |
Source: Rad Air Franchise Systems, Inc, 2022 filing, page 65
Who owns Rad Air?
Rad Air franchises are sold by Rad Air Franchise Systems, Inc.
From Rad Air Franchise Systems, Inc’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 13. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Rad Air Franchise Systems, Inc, 2022 filing, litigation on page 13, bankruptcy on page 13
Rad Air filings
The figures on this page come from Rad Air Franchise Systems, Inc’s 2022 filing, issued April 28, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 28, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
