Bottom line
- Total investment $77K – $116K including a $50K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $993K/year. Estimated payback in 0.3 years.
- Rated MODERATE with a risk score of 62/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 AltoCFO unit return on the cash you put in?
Unlevered ROIC · per unit
85%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 AltoCFO units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$596K
on $3.0M purchase
Total debt
$2.4M
SBA $1.5M + senior + seller note
Overview
About
AltoCFO franchisees provide fractional chief financial officer services to small and mid-market businesses, handling financial strategy, reporting, cash flow management, and controller-level functions. Franchisees typically operate as solo practitioners or small teams delivering remote/hybrid advisory services on a part-time basis to multiple client engagements. Revenue is generated through monthly retainers, project fees, or hybrid engagement models.
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 · 16 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Nascent single-unit franchise with unproven scalability, unprotected territory, and insufficient operating history to validate claimed financial performance.
Score breakdown · what drove the 62 / 100 rating
- 01MINORSingle unit franchise system with unknown growth trajectory and no expansion visibility
- 02MINORUnprotected territory creates direct competition risk and limits franchisee exclusivity
- 03MINOR10% royalty on gross revenue ($99,298 annually on average unit) is substantial drag on 38.6% net margin
- 04MINORHigh initial investment ($77K-$116K) relative to single operating unit provides no system maturity proof
- 05MEDOnly 1 disclosed unit makes financial averages statistically meaningless and impossible to validate
- 06MINOR5-year term is short for ROI recovery given $50K franchise fee + startup costs
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
AltoCFO · FDD (2023) PDF