Garage Force Logo

Garage Force

Ilfrich Integrated Solutions, Inc.
https://www.garageforce.com
1-608-209-1507
700 Stonebridge Avenue, Onalaska, WI 54650

Initial Investment Range

$132,900 to $200,600

Franchise Fee

$127,000

Garage Force® Businesses provide products and services for residential garages, including the application and installation of coatings for concrete and concrete floors; the repair, maintenance and renovation of concrete and concrete floors; and the design and installation of cabinets and related storage accessories and organization systems.

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Garage Force May 3, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s audited 2024 balance sheet reveals a significant financial risk: total liabilities of $7.26 million exceed total assets of $5.28 million, resulting in a negative stockholder's equity of nearly $2 million. The FDD itself explicitly warns that the financial condition “calls into question the franchisor's financial ability to provide services and support to you.” This structural insolvency suggests a heavy reliance on new franchise sales for cash flow, creating instability.

Potential Mitigations

  • A thorough review of the financial statements and auditor's notes with your accountant is essential to assess the franchisor's viability.
  • Your franchise attorney should determine if any financial assurances, such as a bond or escrow account, are required by your state.
  • Discussing the franchisor's plans to address its negative equity with your business advisor can provide critical context for your decision.
Citations: Item 21, Exhibit A

High Franchisee Turnover

High Risk

Explanation

Item 20 data from 2024 shows a concerning franchisee turnover rate of approximately 9.7%, with 18 units ceasing operations or being reacquired by the franchisor. This is amplified by the fact that Item 19 performance data excludes 125 franchisees operating under a different model. Furthermore, the franchisor discloses using confidentiality agreements with former franchisees, which may severely limit your ability to learn the true reasons for these departures during your due diligence.

Potential Mitigations

  • Your business advisor should help you contact a broad range of current and former franchisees from the list in Item 20 to inquire about their experiences.
  • Engage your accountant to analyze the turnover trends over the past three years and discuss their potential implications on system health.
  • It is advisable to have your attorney help you frame careful questions for former franchisees, recognizing they may be legally restricted from speaking freely.
Citations: Item 19, Item 20

Rapid System Growth

High Risk

Explanation

The system expanded by over 22% in 2024, adding 60 new franchised outlets. This rapid growth, when viewed alongside the company's negative stockholder's equity, may indicate an over-reliance on initial franchise fee revenue to fund operations. Such a focus could potentially strain the franchisor's ability to provide adequate training and ongoing support to all franchisees, both new and existing, as resources may be stretched thin.

Potential Mitigations

  • In discussions with current franchisees, it's important to ask about the quality and timeliness of support they have received as the system has grown.
  • Your accountant should analyze the franchisor's cash flow statements to assess its dependency on initial fees versus ongoing royalties.
  • Question the franchisor directly about their specific plans and resource allocation for scaling support infrastructure to match unit growth, with guidance from your business advisor.
Citations: Item 20, Item 21, Exhibit A

New/Unproven Franchise System

Medium Risk

Explanation

While Ilfrich Integrated Solutions, Inc. (Ilfrich) began franchising in 2014, making it an established system by age, its financial instability and the high number of franchisees operating under a different, now excluded, business model could suggest the current full-time operational model is not fully proven. The significant negative equity raises questions about the long-term sustainability and viability of the current business structure, introducing a level of risk similar to that of a newer, less established system.

Potential Mitigations

  • A deep dive into the company’s history and the evolution of its business model with your business advisor is recommended.
  • Inquiring with long-term franchisees about their experience with changes in the business model over time can offer valuable perspective.
  • Your accountant should help you scrutinize the profitability and stability of the *current* model as presented in the FDD.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business provides garage floor coatings, cabinets, and storage systems, which is an established niche within the home services industry. While subject to market trends and economic cycles, the core offering is not based on a short-term fad. However, long-term consumer demand can still fluctuate.

Potential Mitigations

  • Engaging a business advisor to research the long-term market demand and competitive landscape for home garage renovation services is prudent.
  • It is wise to assess the company’s plans for product and service innovation to ensure it remains competitive over time.
  • Your financial advisor can help you evaluate the business model’s resilience to shifts in consumer spending and economic downturns.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. The key executives listed in Item 2 have been with the company since 2014 or 2016, indicating they have significant experience managing this specific franchise system. Lack of management experience does not appear to be a primary risk factor. However, the effectiveness of that management can be a separate consideration.

Potential Mitigations

  • You should still consider speaking with current franchisees about their perception of management's competence and support.
  • Having a business advisor help you assess the strategic direction provided by the leadership team can be beneficial.
  • Understanding the background of the individuals who would be providing your direct training and support is a practical due diligence step.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchisor is a privately held corporation and does not disclose ownership by a private equity firm. This reduces risks associated with short-term profit motives that can sometimes accompany private equity ownership. However, the ownership could change in the future.

Potential Mitigations

  • Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the franchisor is sold in the future.
  • It is wise to ask the franchisor about any long-term plans regarding a potential sale of the company.
  • A business advisor can help you understand the potential impacts a change in ownership could have on the franchise system.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 discloses the franchisor and its affiliates, but does not mention a parent company. The provided financial statements are for the franchisor entity itself. Therefore, the risk of a parent company's undisclosed financial instability impacting the system appears low.

Potential Mitigations

  • Your attorney can confirm the corporate structure and ensure there are no undisclosed parent entities with controlling influence.
  • It is prudent to have your accountant verify that the provided financials are for the correct legal entity granting the franchise.
  • Understanding any guarantees or support obligations between the disclosed affiliates is a valuable discussion to have with your attorney.
Citations: Item 1, Item 21, Item 22

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor changed its name in 2017 from Garage Force International, Inc., but this entity appears to be the same continuing operation. The FDD does not disclose any other predecessors from which it acquired the business, so there are no apparent risks from a hidden or problematic history of a prior owner.

Potential Mitigations

  • You may ask your attorney to perform an independent search on the former company name to ensure no other issues are uncovered.
  • Inquiring with long-term franchisees who operated under the previous name about the transition can provide additional context.
  • A business advisor can help you confirm that the brand's history is consistent and stable.
Citations: Item 1, Item 3, Item 4

Pattern of Litigation

Medium Risk

Explanation

Item 3 discloses a concluded administrative action by the Nevada State Contractors Board. The franchisor was fined, paid costs, and placed on probation for a year for obtaining the wrong type of license and improperly allowing a franchisee to operate under it. While not a pattern of franchisee-initiated fraud lawsuits, this is a significant compliance failure that suggests potential weaknesses in the franchisor's legal and regulatory oversight, which could create risks for you.

Potential Mitigations

  • Your attorney must review this litigation carefully and discuss its implications for the franchisor's operational competence.
  • It's important to ask the franchisor what specific steps have been taken to prevent similar compliance issues in the future.
  • You should independently verify the specific licensing requirements for operating this business in your own state with a local attorney.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
3
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
5
4
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
6
5
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
3
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
7
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.