How Much Does a 1-800-Radiator & A/C Franchise Cost?

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Verified 2025 cost answer

How much does a 1-800-Radiator & A/C franchise cost?

The amended 2025 Franchise Disclosure Document gives two separate U.S. investment ranges. A Start-Up Warehouse requires an estimated $463,500 to $1,314,000, excluding the cost of purchasing real estate. A Re-sale Warehouse requires an estimated $386,500 to $5,284,000, with the purchase price of the existing operation creating most of the wider range.

Start-up: $463,500–$1,314,000Re-sale: $386,500–$5,284,000

These are separate Item 7 ranges, not interchangeable estimates. The Start-Up Warehouse total includes a $45,000 Initial Franchise Fee, equipment and supplies, a $30,000 Opening Marketing Package, initial inventory, premises-related costs, and Additional Funds for three months. The Re-sale Warehouse total substitutes a negotiated $250,000 to $5,000,000 Purchase Price for the separate start-up equipment and inventory categories. Source: 2025 FDD, Item 7, pages 32–36.

Data basis. Legal franchisor: 1-800-Radiator Franchisor SPV LLC, an indirect subsidiary of Driven Brands, Inc. The U.S. FDD was issued July 3, 2025 and amended December 29, 2025. The cost analysis uses Items 5, 6, 7, 8, 10, 11 and 17 for the Start-Up Warehouse and Re-sale Warehouse formats. Information was checked on July 16, 2026. No matching public copy of this amended FDD was located on an official franchise-controlled website, so FDD citations below are unlinked and identify the Item and page directly.

The brand identifies the official U.S. 1-800-RADIATOR & A/C website, while Driven Brands’ official corporate website provides parent-company context. The FTC Franchise Rule explains why an FDD contains 23 disclosure Items and why the current document—not a directory estimate—should control this cost review.

Capital snapshot

$45,000Initial Franchise FeeStart-up or re-sale; paid at signing and non-refundable.
$30,000Opening Marketing PackageDue three weeks before opening or the re-sale transaction.
$250,000–$800,000Opening InventoryStart-Up Warehouse; paid three weeks before opening.
$50,000–$150,000Additional FundsIncluded in Item 7 for the first three months.
8%Ongoing Franchise FeePercentage of Gross Sales, generally reconciled weekly.
2%Total Marketing Fees1.5% System Marketing plus 0.5% Local Marketing.
Format difference

Why do the start-up and re-sale ranges differ so much?

The two formats use different cost contracts. A Start-Up Warehouse builds the operation from separate Item 7 categories. A Re-sale Warehouse bundles the existing business value, equipment and inventory into a negotiated Purchase Price that can reach $5,000,000. The lower endpoint for a re-sale is slightly below the start-up minimum, but that does not make re-sales categorically less expensive because the upper endpoint is more than four times the start-up maximum.

Cost implication The cover states that $330,000 to $885,000 of a Start-Up Warehouse investment and $325,000 to $5,075,000 of a Re-sale Warehouse investment may be paid to the franchisor or an affiliate. That figure is not the Initial Franchise Fee. It includes other payments processed through the franchisor or its affiliates, including inventory-related payments and, for some re-sales, the business Purchase Price. Source: 2025 FDD cover and Item 7.
Item 7 investment

What is included in the Start-Up Warehouse estimate?

The Start-Up Warehouse range includes nine disclosed categories. Opening Inventory is the largest category at $250,000 to $800,000. Additional Funds of $50,000 to $150,000 are already inside the official total, so they should not be added a second time.

Franchise, site and pre-opening payments

Item 7 expenditure Amount Payment timing FDD page
Initial Franchise Fee $45,000 Signing of Franchise Agreement p. 32
Start-Up Warehouse Equipment and Supplies $42,000–$85,000 Three weeks before opening pp. 32–33
Opening Marketing Package $30,000 Three weeks before opening pp. 32–33
Travel and Living Expenses While Training $2,500–$10,000 As incurred during training pp. 32–33
Lease Deposit $5,000–$25,000 When the lease is signed pp. 32–34
Delivery Vehicle $5,000–$45,000 Before opening pp. 32–34
Miscellaneous Opening Costs $25,000–$75,000 Before opening pp. 32–34

Inventory and the first three months

Item 7 expenditure Amount Payment timing FDD page
Opening Inventory $250,000–$800,000 Three weeks before opening pp. 32–34
Rent for first three months $9,000–$49,000 Monthly pp. 32–33
Additional Funds — three months $50,000–$150,000 As incurred pp. 32–34
Total Estimated Initial Investment $463,500–$1,314,000 Excludes real estate purchase costs p. 33

Equipment disclosure has two scopes

Item 5 says the portion of Start-Up Warehouse Equipment and Supplies bought from the franchisor may cost $5,000 to $10,000. Item 7 gives the full equipment-and-supplies category as $42,000 to $85,000, including amounts paid to the franchisor, affiliates and other suppliers. The smaller Item 5 amount should not replace the broader Item 7 category.

Inventory is a continuing obligation

The $250,000 to $800,000 Opening Inventory estimate depends on anticipated volume and current market prices. After opening, the Warehouse must maintain prescribed inventory levels, stock required product lines and purchase through Approved or Designated Suppliers using the Network. Item 8 estimates that required purchases represent 80% to 100% of operating purchases.

Excluded from Item 7 The Start-Up Warehouse total assumes leased premises of roughly 6,500 to 15,000 square feet. Purchasing the building is excluded and, according to the FDD, would increase the investment dramatically. Miscellaneous Opening Costs include licenses, permits, prepaid expenses and an allowance for one year of property and liability insurance, but local amounts remain location-specific. Source: 2025 FDD, Item 7, pages 33–34.
Payment timing

When is the initial cash paid?

The Item 7 total is not paid in one installment. The largest Start-Up Warehouse payments cluster around the Franchise Agreement signing, the lease and training period, and the three-week pre-opening deadline. Item 11 says a Warehouse typically opens within 60 days after signing and payment of the Initial Franchise Fee and must open within 90 days, subject to delays and the agreement terms.

At Franchise Agreement signing.

Pay the $45,000 Initial Franchise Fee. For a Re-sale Warehouse, the $250,000 to $5,000,000 Purchase Price is also due upon signing the Franchise Agreement.

During site, lease and training work.

Pay the $5,000 to $25,000 Lease Deposit when the lease is signed, incur $2,500 to $10,000 of training travel and living expenses, and fund vehicle and miscellaneous opening costs before opening.

Three weeks before opening or transaction.

A Start-Up Warehouse pays the $42,000 to $85,000 equipment-and-supplies category, the $30,000 Opening Marketing Package and $250,000 to $800,000 of Opening Inventory. A Re-sale Warehouse pays the $30,000 Opening Marketing Package.

During the first three operating months.

Rent is paid monthly, while $50,000 to $150,000 of Additional Funds is spent as needed on payroll, utilities, vendors, advertising, promotion and similar operating costs.

Sources: 2025 FDD, Item 7, pages 32–36; Item 11, pages 47–50.

Ongoing fees

Which fees continue after the Warehouse opens?

The three principal percentage charges are an 8% Ongoing Franchise Fee, a 1.5% System Marketing Fee and a 0.5% Local Marketing Fee, each based on Gross Sales. The FDD defines Gross Sales as amounts accrued from sales of Products and services connected with the Warehouse, adjusted for specified cross-territory deliveries, returns, credits and warranty adjustments, and excluding sales taxes and proceeds from selling used business equipment.

Fee or purchase obligation Amount or basis Due Cost interpretation
Ongoing Franchise Fee 8% of Gross Sales Weekly Payment Day Core royalty-style fee.
System Marketing Fee 1.5% of Gross Sales Weekly Payment Day Part of the disclosed 2% total marketing fees.
Local Marketing Fee 0.5% of Gross Sales Weekly Payment Day Used for marketing in the Warehouse Territory.
Technology Fee Currently $145–$165 per user/year On invoice A typical Warehouse has 2–15 accounts; annual cap is $10,000, excluding direct vendor technology charges.
Monthly Mailers Actual cost; currently $0.65 each On invoice The franchisor determines recipients and volume.
Inventory Purchases Varies by order 30 days after delivery Payments are processed through the Network and remitted to suppliers.
Call Center Fees Currently $2–$4 per call/request; cap $10 Weekly Payment Day Applies when the call center handles telephone orders or non-automated requests.
Phone System Fee $80 per agent/month On invoice A typical Warehouse has 2–20 telephone agents.
Delivery Logistics Platform Currently $70–$550/month Monthly Currently payable if the approved platform is used; a different designated platform is anticipated at $500–$2,000/month.
Electronic Procurement Fee Variable; currently generally 3% of order Monthly Applies to orders through customer electronic procurement channels, with limited exceptions.
FDD caveat Technology and distribution charges are not fully fixed. The franchisor may modify included services, increase certain charges within stated caps, pass through third-party increases and impose additional technology-related fees. A prospective franchisee should model the number of user accounts, email addresses, phone agents, deliveries and electronic orders rather than treating the 10% percentage-fee total as the complete ongoing cost burden.
Conditional obligations

Which charges depend on transactions, defaults or later events?

Item 6 contains several charges that apply only when a particular service, transaction or contract event occurs. They are not all payable by every franchisee in every period, but they can materially change cash needs.

Chain Accounts and card paymentsBilling and Collections Services are currently 3% of amounts collected for qualifying Chain Accounts, capped at 5%. Credit Card Processing is currently 3% of processed transactions, capped at 5%. A Chain Account Referral Fee may be up to $1,000, although the current charge is $0.
Marketplaces and delivery servicesShop website, transaction portal and marketplace ordering fees range from 0% to 6% of Product purchase price, with a possible mark-up capped at 20%. Approved delivery services currently cost $9.79 to $46.35 per delivery and may become required for some or all orders.
Products, containers and continuing trainingPrivate Label Products are charged at then-current prices. The Container Program Fee is $300 per container, subject to the stated purchase-price limitation. Continuing training is tuition-free, but the franchisee may reimburse third-party facility costs and trainer travel and living expenses.
Conferences, email and personal sales visitsConference registration is currently $325 per person per day and capped at $1,000 per person per day; the fee may apply even if the representative does not attend. Email access is currently $10 per month per address. If required sales visits or outbound calls are not completed, the franchisor may perform them and demand reimbursement of actual expenses.
Late payment and audit exposurePast-due amounts accrue interest at 18% per year or the highest lawful rate, whichever is lower. The Administrative Fee is $150 for the first late payment and $300 for the second and later late payments in a 12-month period, plus a $500 Late Payment Penalty. An audit can shift reasonable accounting and legal costs to the franchisee if Gross Sales were understated by more than 2%.
Renewal, transfer and defaultThe Renewal Fee is $20,000 and the Transfer Fee is $20,000. Attorneys’ Fees and Default Costs vary. If the franchisor acquires a competitor in the Territory, Acquisition Costs may be charged over 12 months and may require added vehicles, inventory, computers, phone lines and employees.
Insurance failureIf required insurance is not maintained, the franchisor may obtain coverage and charge the premium plus a 10% processing fee.

Source: 2025 FDD, Item 6, pages 20–32; renewal and transfer conditions are also summarized in Item 17, pages 61–66.

Re-sale contract

What does the Re-sale Warehouse estimate include?

The Re-sale Warehouse range includes six categories. Its defining cost is the $250,000 to $5,000,000 Purchase Price, which includes business value, equipment and inventory. Because those assets are bundled into the Purchase Price, the re-sale table should not be combined with the Start-Up Warehouse equipment or Opening Inventory categories.

Item 7 expenditure Amount Payment timing FDD reference
Re-sale Initial Franchise Fee $45,000 Signing of Franchise Agreement p. 35
Purchase Price $250,000–$5,000,000 Upon signing Franchise Agreement p. 35
Opening Marketing Package $30,000 Three weeks before transaction pp. 35–36
Travel and Living Expenses While Training $2,500–$10,000 During training pp. 35–36
Rent for first three months $9,000–$49,000 Monthly p. 35
Additional Funds — three months $50,000–$150,000 As incurred pp. 35–36
Total Estimated Initial Investment $386,500–$5,284,000 Depends primarily on Purchase Price p. 36
Buyer verification The FDD does not convert the Purchase Price into separate values for inventory, equipment, customer accounts or goodwill. A re-sale buyer should reconcile the transaction documents, asset schedule, inventory count and working-capital needs to avoid assuming that the $250,000 to $5,000,000 Purchase Price resolves every post-closing cash requirement.
Financing terms

Does the franchisor finance the initial investment?

1-800-Radiator Franchisor SPV LLC does not offer financing directly. Item 10 says an affiliate may, in its sole discretion, finance all or part of the purchase price for a qualified buyer, either alongside or instead of SBA or conventional financing. The disclosed affiliate terms are a 1- to 9-year amortization period, 7% to 9% APR and no prepayment penalty.

Amount financed
Up to the entire purchase price, subject to the affiliate’s discretion, credit review and negotiated terms.
Security
A security interest may cover furniture, fixtures, equipment, inventory, licenses, permits, accounts and other business assets; principal owners may have to guarantee the debt.
Default
The unpaid balance may accelerate, collection costs may be charged, and the rate may rise to the lesser of 18% or the maximum lawful rate. A financing default can also be a Franchise Agreement default.
External lending
The FDD mentions SBA and conventional financing but does not promise approval. The SBA 7(a) loan program is an official reference for eligible uses such as working capital, equipment and changes of ownership.

Source: 2025 FDD, Item 10, pages 44–47.

Capital qualification

Is a liquid-capital or net-worth minimum disclosed?

No specific Liquid Capital, Net Worth or Non-Borrowed Funds threshold appears in the reviewed 2025 FDD cost Items. That omission matters: the $463,500 to $1,314,000 Start-Up Warehouse range and the $386,500 to $5,284,000 Re-sale Warehouse range are investment estimates, not statements that the same amount must be held as cash.

Total Initial Investment
The Item 7 range for establishing or acquiring the Warehouse, including the disclosed three-month Additional Funds allowance.
Liquid Capital
Cash or cash-like resources available to invest. The current FDD does not state a minimum threshold.
Net Worth
Assets minus liabilities. The current FDD does not state a minimum threshold, and Net Worth is not the same as available cash.
Additional Funds
$50,000 to $150,000 for payroll, utilities, vendors, advertising, promotion and similar costs during the first three months. The FDD does not expressly identify owner compensation as included.

What should be verified before relying on the range?

Confirm whether the proposed transaction is a Start-Up Warehouse or Re-sale Warehouse and use only that Item 7 table.
Obtain the current inventory model and supplier pricing because Opening Inventory and ongoing required purchases are major cost drivers.
Reconcile Warehouse size, lease deposit, rent, permits, insurance and vehicle needs to the approved Territory and site.
Calculate user accounts, email addresses, phone agents, call-center usage, delivery activity and electronic procurement volume for recurring technology and transaction charges.
For a re-sale, separate the Purchase Price into business value, equipment and inventory and confirm what working capital remains necessary after closing.
Check current state registration records where applicable. California provides official franchise regulation resources and the FRANSES filing system; a state record is not a substitute for the franchisor’s current FDD.
Decision synthesis

What is the most important cost takeaway?

A prospective U.S. franchisee should plan around the correct 2025 format range: $463,500 to $1,314,000 for a Start-Up Warehouse or $386,500 to $5,284,000 for a Re-sale Warehouse. The Start-Up Warehouse range is driven mainly by Opening Inventory, equipment and supplies, premises costs and three months of Additional Funds. The Re-sale Warehouse range is driven mainly by the negotiated Purchase Price.

The $45,000 Initial Franchise Fee is only one component. After opening, the disclosed percentage fees total 10% of Gross Sales before fixed technology charges, required inventory purchases, transaction fees, delivery costs and conditional obligations. The FDD does not disclose a Liquid Capital or Net Worth minimum, so the unresolved capital question is how much uncommitted cash and financing capacity will remain after the initial payments and the first three months of operating expenses.







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