Integrity 1st Car Pros Logo

Integrity 1st Car Pros

Integrity 1st Car Pros Franchise Holdings LLC
https://www.integrity1auto.com
1-972-807-7138
3330 Independence Pkwy #300, Plano, Texas, 75023

Initial Investment Range

$431,996 to $667,196

Franchise Fee

$94,796 to $139,796

As a franchisee of Integrity 1st Car Pros, you will operate a business that provides on-going vehicle maintenance, servicing, and automotive repair services under the INTEGRITY 1ST CAR PROS trademark and system.

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Integrity 1st Car Pros August 29, 2024 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
1
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Integrity 1st Car Pros Franchise Holdings LLC (Integrity 1st) is a new franchisor with a very limited operating history. Its unaudited financial statements in Exhibit F show minimal capitalization, with only $7,500 in assets. This raises significant questions about its financial capacity to provide the promised support, training, and assistance to you, especially in the early stages or if challenges arise. The FDD itself highlights this as a "Short Operating History" risk.

Potential Mitigations

  • Your accountant must analyze the franchisor's limited financial statements and assess the significant risks associated with its thin capitalization.
  • A business advisor can help you develop a contingency plan for potential lack of franchisor support or even system failure.
  • Discussing the franchisor's funding and capitalization plans directly with its executives is advisable, though their answers should be vetted by your attorney.
Citations: Item 1, Item 21, Exhibit F, "Special Risks to Consider About This Franchise"

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified as there are no franchised outlets yet. However, a high rate of franchisee terminations, non-renewals, or closures in an established system is a critical red flag. It often indicates systemic problems such as a lack of profitability, poor support, or an unsustainable business model. Monitoring future Item 20 data will be crucial for new franchisees.

Potential Mitigations

  • It is critical to have your accountant analyze Item 20 data in any franchise opportunity to calculate turnover rates.
  • A business advisor can help you compare a system's turnover rate against industry benchmarks.
  • Consulting with an attorney to understand the reasons for high turnover, if present, is a key part of due diligence.
Citations: Not applicable

Rapid System Growth

Low Risk

Explanation

This risk is not present as Integrity 1st has not yet begun significant franchise expansion. In other systems, rapid growth can strain a franchisor's ability to provide adequate support, training, and quality control. You should monitor the pace of future growth against the franchisor's capacity to support new units.

Potential Mitigations

  • A business advisor can help you assess whether a franchisor's support infrastructure is keeping pace with its unit growth.
  • Speaking with franchisees from various opening cohorts (early vs. recent) can reveal trends in support quality.
  • Your accountant should review a franchisor's financials to see if they are reinvesting in support systems during growth phases.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

Integrity 1st is a new and unproven franchise system, having only started offering franchises in January 2024. Item 1 states the franchisor entity itself has never operated a car repair shop, relying instead on affiliate experience. This lack of a track record for the franchise system itself, combined with its limited operating history, presents a significant risk to your investment as the business model's viability within a franchise structure is untested.

Potential Mitigations

  • Engaging a business advisor to conduct extensive due diligence on the viability of the business model is critical.
  • Your attorney should scrutinize the franchise agreement for any additional protections given the high-risk nature of a new system.
  • An accountant's review of the affiliate-owned shops' performance, if that data can be obtained, is essential to validate the concept.
Citations: Item 1, Item 20, Item 21, "Special Risks to Consider About This Franchise"

Possible Fad Business

Low Risk

Explanation

The automotive repair industry is a long-established and essential service, not a business model based on a fleeting trend. Generally, a fad business carries the risk that consumer interest may decline rapidly, leaving franchisees with a worthless investment even if their contract obligations continue. This does not appear to be a concern here.

Potential Mitigations

  • A business advisor can help evaluate the long-term market sustainability for any business concept you consider.
  • Your accountant can analyze industry trends to assess whether a particular business model has enduring customer demand.
  • Seeking legal counsel regarding the length of contract terms is important, especially if you are considering a trendy business.
Citations: Not applicable

Inexperienced Management

High Risk

Explanation

While the management team has experience operating affiliate-owned repair shops, Item 1 clearly states that Integrity 1st as a franchisor is new and has no experience offering franchises. This lack of direct franchising experience is a significant risk, as managing a franchise system requires different skills than managing company-owned stores. It could lead to underdeveloped support systems, training programs, and marketing strategies for franchisees.

Potential Mitigations

  • Inquire if the franchisor has hired any experienced franchise professionals or consultants to guide their new system.
  • A thorough discussion with a business advisor is needed to weigh the risks of investing with a management team new to franchising.
  • Your attorney should carefully examine the franchisor's contractual support obligations in Item 11 given this inexperience.
Citations: Item 1, Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD. Franchisors owned by private equity firms can sometimes prioritize short-term investor returns over the long-term health of franchisees. This may lead to increased fees, reduced support, or a quick sale of the franchise system.

Potential Mitigations

  • A business advisor can help research a private equity firm's reputation and track record with other franchise systems.
  • Your attorney should review the assignment clause in the franchise agreement to understand your rights if the system is sold.
  • Speaking with franchisees who have been through a sale can provide insight into the experience.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

Integrity 1st does not disclose a parent company, but it states that it relies on the experience of numerous affiliate companies that operate the actual repair shops. The FDD provides no financial statements for these affiliates, only for the new, thinly capitalized franchisor entity. This lack of financial transparency for the experienced, operating affiliates makes it difficult to fully assess the overall financial health and stability of the enterprise you are investing in.

Potential Mitigations

  • Your accountant should highlight the risk of relying on a franchisor entity with minimal assets and no financial data from its experienced affiliates.
  • Your attorney should inquire if there is any form of guarantee from the affiliate companies for the franchisor's obligations.
  • A business advisor can help you assess the operational risks when the franchisor entity has no direct operational experience.
Citations: Item 1, Item 21, Exhibit F

Predecessor History Issues

Low Risk

Explanation

This risk was not identified, as the FDD states Integrity 1st has no predecessors. In other cases, if a franchisor acquired the system from a previous entity, it is important to investigate the predecessor's history for issues like litigation, bankruptcy, or high franchisee turnover, as these could indicate underlying problems that may persist.

Potential Mitigations

  • An attorney should always carefully review Item 1 of an FDD for any mention of predecessors.
  • If predecessors exist, independent research into their business history can be a valuable part of due diligence.
  • A business advisor can help you understand how a change in ownership might impact the franchise system.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

Integrity 1st does not disclose any litigation history in Item 3, which is expected for a new franchisor. Generally, a pattern of lawsuits, especially those initiated by franchisees alleging fraud or misrepresentation, is a major red flag. It can signal systemic problems with the franchisor's business practices or relationships with its franchisees.

Potential Mitigations

  • An experienced franchise attorney should always be engaged to carefully review the details of any lawsuits disclosed in Item 3.
  • Independent legal research on disclosed cases can provide additional context beyond the FDD's summary.
  • Speaking with franchisees involved in past litigation can provide invaluable, direct insight.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
6
0
9

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
3
6
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.

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
4
1
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.

6

Regulatory & Compliance Risks

Total: 10
4
5
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.

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
4
7
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.

9

Term & Exit Risks

Total: 18
11
6
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.

10

Miscellaneous Risks

Total: 1
1
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.