Vizta Tint Logo

Vizta Tint

Vizta Tint Holdings, INC
https://www.viztatint.com
1-888-846-8129
277 Route 70 STE 227, Toms River, New Jersey 08755

Initial Investment Range

$58,650 to $119,800

Franchise Fee

$30,000 to $60,000

The franchise offered is for the establishment and operation of a business that provides residential and commercial window tinting products, installation services, and related services and products.

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Vizta Tint April 10, 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
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, Vizta Tint Holdings, Inc. (Vizta Tint), is critically undercapitalized. Its audited opening balance sheet from April 10, 2024, shows total assets of only $100. This raises significant questions about its ability to meet its support obligations, fund growth, or even remain solvent. The FDD itself highlights “Financial Support” as a special risk, confirming the franchisor’s awareness of its precarious financial position, which poses a substantial threat to your investment.

Potential Mitigations

  • Your accountant must review the franchisor's balance sheet and discuss the severe risks associated with such minimal capitalization.
  • Given the financial state, it is crucial for your attorney to confirm if any financial assurances, like a bond or escrow, are required by your state.
  • A business advisor can help you assess the operational risks when a franchisor lacks the financial resources to provide meaningful support.
Citations: Item 21, FDD Exhibit D

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified as the franchise system is brand new with no operating history. Item 20, which tracks franchisee turnover, is empty. While there is no history of turnover, this also means there are no existing or former franchisees to provide insights about the system's viability or the franchisor's performance, which is a risk in itself.

Potential Mitigations

  • It is advisable to ask your business advisor to help you assess the risks of joining a new system with no performance track record.
  • An accountant can help you create financial projections with conservative assumptions, since no historical franchisee data is available.
  • Your attorney should review the agreement for any protections that could mitigate the risks of being one ofthe first franchisees.
Citations: Not applicable

Rapid System Growth

Low Risk

Explanation

This specific risk was not identified, as there are currently no operating franchises, so a history of rapid growth does not exist. However, Item 20 projects 14 new franchises opening in the next year. Such planned rapid growth, especially for a new and severely undercapitalized franchisor, could strain its ability to provide adequate support to all new units, creating future risk.

Potential Mitigations

  • With your business advisor, you should question the franchisor about their specific plans to scale support systems to handle projected growth.
  • Having an accountant evaluate the franchisor's financial capacity to support this planned expansion is a critical step.
  • Discuss with your attorney the support obligations detailed in the Franchise Agreement to understand what is contractually guaranteed.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

Vizta Tint is a new, unproven franchise system, having been formed in March 2024 and starting to offer franchises in April 2024. Item 20 confirms there are zero existing franchised or company-owned outlets. Investing in a new system carries a higher risk because the business model, brand recognition, and support structures are not yet tested in the market. The FDD explicitly acknowledges this by listing “Short Operating History” as a special risk.

Potential Mitigations

  • A business advisor should help you conduct deep due diligence on the principals' track record with their other franchise systems.
  • Engaging an attorney to negotiate more franchisee-favorable terms may be possible to offset the higher risk of a new system.
  • Your accountant should scrutinize the franchisor's capitalization and business plan to assess its long-term viability.
Citations: Items 1, 2, 20

Possible Fad Business

Medium Risk

Explanation

The business model centers on residential and commercial window tinting services. While window tinting is an established industry, the long-term success of this specific brand and its business model is unproven. A prospective franchisee should consider whether the market has sustained demand and if the business model is resilient enough to thrive beyond initial launch excitement and against established competition.

Potential Mitigations

  • It would be beneficial to have a business advisor help you research the long-term market demand for window tinting services in your local area.
  • Investigate the competitive landscape and determine how this franchise differentiates itself from established independent businesses.
  • Asking the franchisor about their long-term plans for innovation and service development is an important step.
Citations: Item 1

Inexperienced Management

High Risk

Explanation

While the principals listed in Item 2 have extensive experience managing other franchise brands, that experience is directly linked to a significant pattern of litigation and regulatory actions detailed in Item 3. These lawsuits, involving claims of fraudulent inducement and misrepresentation across their other systems, raise concerns about the nature of their experience. The leadership team's history suggests a risk of disputes and potential issues with their management and sales practices.

Potential Mitigations

  • A thorough review of the principals' history in Item 2 and the associated litigation in Item 3 with your attorney is critical.
  • Hiring a business advisor to research the reputation and performance of the principals' other franchise brands is recommended.
  • You should directly question the franchisor about the past litigation and how they have changed their practices to prevent similar issues.
Citations: Items 2, 3

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD. Item 1 indicates the franchisor is a privately held corporation and does not disclose any ownership by a private equity firm. However, the business is part of a larger portfolio of franchise brands managed by the same principals, which can create similar dynamics regarding resource allocation and strategic focus. You should be aware of how priorities are managed across these affiliated brands.

Potential Mitigations

  • It is wise to ask your attorney to help you understand the corporate structure and the relationship between the affiliated franchise brands.
  • A business advisor can help research if the management group has a history of selling its franchise systems.
  • Consider discussing with your attorney how a future sale of the franchisor or its affiliated brands could impact your agreement.
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 indicate the existence of a parent company. The franchisor entity itself, Vizta Tint, appears to be the primary operator, though its connections to numerous affiliate companies under the same management are important to note.

Potential Mitigations

  • Your attorney can help you verify the corporate structure and confirm the absence of an undisclosed parent entity.
  • An accountant should assess the financial stability of the disclosed franchisor entity, especially in the absence of a parent company guarantee.
  • A discussion with your business advisor can help clarify the operational relationships between the franchisor and its many affiliates.
Citations: Item 1

Predecessor History Issues

Low Risk

Explanation

This risk was not identified. According to Item 1, Vizta Tint is a newly formed entity and has no predecessors from which it acquired assets or that previously offered franchises for the same system. The risks associated with this franchise stem from its newness and the history of its principals, rather than from an inherited predecessor history.

Potential Mitigations

  • Your attorney should confirm the information in Item 1 regarding the lack of a predecessor entity.
  • A business advisor can help you focus due diligence on the track record of the franchisor's principals and their other, separate franchise systems.
  • Discuss with your accountant the risks of a new entity versus one with an established, albeit potentially problematic, history.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses an extensive and concerning pattern of litigation involving the franchisor's principals and their affiliated franchise companies. There are numerous lawsuits from former franchisees alleging fraudulent inducement and concealment, multiple regulatory actions for illegal franchise sales and disclosure violations, and several large cash settlements paid out. This history suggests a significant risk of disputes and indicates potential systemic issues with the management's sales and disclosure practices across their brands.

Potential Mitigations

  • A thorough review of every case disclosed in Item 3 with your franchise attorney is absolutely essential.
  • Treating this extensive litigation history as a major red flag and discussing the implications with your business advisor is highly recommended.
  • Your attorney should help you frame direct questions to the franchisor regarding this history and any changes in their practices.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
4
2
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

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4

Legal & Contract Risks

Total: 16
7
6
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.

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
3
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
3
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.

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
8
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.

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.