Bottom line
- Total investment $311K – $524K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $674K/year (median $658K). Estimated payback in 2.9 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- System growing at 142.9% CAGR over 3 years with 41 total units — strong expansion trajectory.
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 3 Natives unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 3 Natives units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$404K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
Overview
About
3 Natives franchisees operate what appears to be a beverage/smoothie or açai bowl café concept, managing daily operations including customer service, inventory management, food/drink preparation, staff oversight, and local marketing. Franchisees are responsible for leasing retail space, hiring/training employees, and maintaining brand standards across menu and customer experience.
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 · 5 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
Rapid growth, undocumented financial claims, high investment-to-income ratio, and absence of verified performance data create moderate-to-high risk despite no litigation.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $673.8k average revenue or $144.2k net income figures
- 02MINORExtremely high unit growth (41.7% YoY) is unsustainable and suggests potential quality/vetting concerns or inflated projections
- 03MEDHigh initial investment range ($310.5k–$523.5k) relative to disclosed net income ($144.2k) creates 2.1–3.6 year breakeven scenario with no margin for error
- 04MINOR6% royalty on gross revenues (not net) compounds profitability pressure and creates misaligned incentives during revenue downturns
- 05MINORProtected territory claims lack specificity — undefined territory size/population could leave franchisees competing indirectly
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
3 Natives · FDD (2025) PDF