Victory Lane Logo

Victory Lane

Victory Lane Quick Oil Change, Inc.
https://www.victorylane.net
1-734-667-4304
45550 Helm St, Plymouth, MI 48170

Initial Investment Range

$156,500 to $3,759,500

Franchise Fee

$27,600 to $554,500

Victory Lane businesses offer oil change, vehicle maintenance and related products and services we may designate or approve.

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Victory Lane April 30, 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 explicitly discloses its challenging financial condition as a Special Risk. The audited financial statements in Exhibit B confirm this, showing a stockholder's deficit (negative net worth) of $397,169 as of year-end 2024. Furthermore, Note 11 reveals the company guarantees over $2.3 million in loans for related entities. This financial weakness could significantly impair its ability to provide support, grow the brand, or even remain in business, posing a direct threat to your investment.

Potential Mitigations

  • A franchise accountant must perform a deep analysis of the financial statements, including the significant negative equity and the large contingent liabilities detailed in the notes.
  • Discuss the specific implications of the franchisor's negative net worth and its loan guarantees with your financial advisor to assess its viability.
  • Your attorney should advise you on the potential consequences if the franchisor's financial condition leads to insolvency.
Citations: Item 5, Item 21, Exhibit B (Financial Statements, Note 11)

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a concerning trend of franchisee attrition. Over the past two years, the number of franchised outlets has seen a net decline. In 2024 alone, the system experienced a negative churn rate of approximately 14% from terminations and franchisor reacquisitions, with zero new franchised units opening. This pattern of outlets leaving the system could suggest underlying issues with profitability, franchisee satisfaction, or the viability of the business model.

Potential Mitigations

  • With your accountant, calculate the franchisee turnover rate for the past three years, focusing on terminations, non-renewals, and franchisor reacquisitions.
  • It is critical to contact a significant number of former franchisees listed in Item 20 to understand why they left the system.
  • A business advisor can help you assess if the high turnover rate points to systemic problems that could affect your potential for success.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. The data in Item 20 shows a net decrease in the number of franchised outlets over the last two years, indicating a period of contraction rather than rapid growth. While slow growth has its own challenges, the specific risks associated with a franchisor's support systems being overwhelmed by rapid expansion do not appear to be present here.

Potential Mitigations

  • Engage a business advisor to analyze the system's growth trajectory and its implications for long-term brand value and support.
  • An accountant should review the franchisor's financial investment in system growth and support infrastructure.
  • Your attorney can help you understand any future development obligations you might have, even in a slow-growth environment.
Citations: Not applicable

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD package. Victory Lane Quick Oil Change, Inc. (Victory Lane) reports it began franchising in 1986, indicating it is a mature system, not a new or unproven one. The FDD provides over three decades of operational history and includes multiple years of audited financial statements, distinguishing it from startup franchise systems that carry higher risks associated with unproven models and limited track records.

Potential Mitigations

  • A business advisor can help you analyze the long-term performance and evolution of a mature franchise system.
  • Your accountant should still review the multi-year financial statements for trends, even in an established system.
  • It is wise to have your attorney review the franchise agreement for terms that may have become more restrictive over time.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The market for automotive oil changes and basic maintenance has demonstrated sustained consumer demand for many decades. While competitive, this industry is not typically considered to be based on a short-term trend or fad. Your success will likely depend more on factors like location, competition, and operational execution rather than the fleeting popularity of the core service.

Potential Mitigations

  • A business advisor can help you research the stability and long-term trends of the quick automotive maintenance industry.
  • Have your accountant assist in creating financial projections based on the established nature of the market.
  • Your attorney can advise on how the franchise agreement addresses competition and market changes.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. Item 2 shows that the key executives have extensive experience with the Victory Lane system and in the automotive industry, dating back to 2008 and 2009 for several key personnel. This long tenure suggests a deep familiarity with the business operations and the franchise system, rather than a lack of relevant management experience.

Potential Mitigations

  • It is still beneficial to discuss the management team's strategic vision and support capabilities with current franchisees.
  • A business advisor can help you evaluate the depth and breadth of the management team's experience as detailed in Item 2.
  • Your attorney can review the franchisor's contractual obligations to provide support, regardless of management's experience.
Citations: Not applicable

Private Equity Ownership

Medium Risk

Explanation

This risk was not identified as direct private equity ownership. Victory Lane is owned by an individual, Justin Cialella, who also owns other Victory Lane centers through affiliated companies. While not a typical private equity structure, the significant number of affiliate-owned stores and large inter-company loans could create similar pressures to prioritize the owner's overall financial interests, which may not always align perfectly with the interests of independent franchisees.

Potential Mitigations

  • A franchise attorney should help you understand the complex corporate structure and the potential for conflicts of interest.
  • Discuss the franchisor's long-term vision and commitment to franchisees with your business advisor, given the ownership structure.
  • Have your accountant review the related-party transactions in the financial statements to assess their impact on the franchisor.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

This risk was not identified in the FDD package. The franchisor, Victory Lane, discloses its parent/affiliated companies in Item 1. However, a significant risk arises from the nature of these relationships. While the franchisor's financials are provided, the franchisor also guarantees over $2.3 million in debt for these related companies. The health of these other entities, whose financials are not provided, poses a direct and material risk to the franchisor itself.

Potential Mitigations

  • Your accountant must analyze the franchisor's financial statements, paying close attention to the nature and size of related-party loans and guarantees.
  • It is important to discuss with your attorney the risks posed by the franchisor guaranteeing the debts of affiliated companies.
  • A business advisor can help you question the franchisor about the health of its affiliates and the potential impact on its support capabilities.
Citations: Item 1, Item 21, Exhibit B (Note 11)

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the company was formed in 1980 and changed its name in 1986. It does not mention acquiring the system from a predecessor. The operational history appears to be contained within the current corporate entity, meaning there is no hidden history of a prior entity to investigate.

Potential Mitigations

  • It's good practice for your attorney to verify the corporate history disclosed in Item 1 through public records.
  • When speaking with long-term franchisees, a business advisor can help you ask about the company's history and any significant ownership changes.
  • An accountant can analyze long-term financial trends, if available, to understand the company's historical performance.
Citations: Not applicable

Pattern of Litigation

Medium Risk

Explanation

Item 3 discloses two concluded lawsuits. One was initiated by the franchisor against a former franchisee for trademark infringement and breach of contract, resulting in a $185,000 settlement paid to the franchisor. The other was an intellectual property enforcement action. While litigation is common, the case against a former franchisee could suggest an assertive enforcement posture. However, there is no disclosed pattern of franchisees suing the franchisor for fraud or similar claims.

Potential Mitigations

  • A franchise attorney should review the details of the disclosed litigation to understand the franchisor's enforcement history.
  • Ask the franchisor about its philosophy regarding litigation with franchisees to gauge its approach to dispute resolution.
  • Discussing dispute resolution experiences with current franchisees can provide valuable insight.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
7
0
8

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
9
2
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
6
1
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.

7

Franchisor Support Risks

Total: 4
1
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.

8

Operational Control Risks

Total: 12
3
7
2

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
9
7
2

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.