16 Handles
Bottom line
- Total investment $250K – $657K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $805K/year (median $750K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 19 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 16 Handles unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 16 Handles units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$483K
on $2.4M purchase
Total debt
$1.9M
SBA $1.2M + senior + seller note
Overview
About
16 Handles franchisees operate frozen yogurt shops, managing daily operations including serving and ring-up of self-serve frozen yogurt, topping preparation and inventory, customer service, staffing, and retail marketing. Franchisees are responsible for lease negotiations, local marketing, hiring/training employees, and maintaining brand standards across equipment maintenance and facility cleanliness.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
16 Handles presents caution-level risk: meaningful profitability gaps, slow growth trajectory, and lack of transparent earnings disclosure despite high capital requirements warrant careful due diligence before commitment.
Score breakdown · what drove the 49 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $804,648 average revenue claim — unable to verify profitability or validate earnings claims
- 02MEDSlow unit growth of 6.9% YoY with only 31 total units suggests limited brand momentum and potential market saturation concerns
- 03MEDHigh investment range ($249,500–$656,500) combined with undisclosed net income creates uncertainty about ROI timeline and break-even point
- 04MINORBroad territory protection language without specifics (radius, population density) may create disputes or inadequate market exclusivity
- 05MINOR6% royalty on gross sales (not net) means franchisees pay royalties even in loss-making months, increasing financial pressure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
48 numbers
One-time purchase · CSV download · Validation questions included
FDD download
16 Handles · FDD (2026) PDF