Bottom line
- Total investment $82K – $138K including a $30K franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- 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 American Rounds unit return on the cash you put in?
Unlevered ROIC · per unit
58%
In Yale's "attractive" band (30–60%)
Overview
About
American Rounds franchisees operate ammunition retail and/or shooting-related service locations. Day-to-day operations likely include inventory management, customer service, point-of-sale transactions, compliance with firearms regulations, and potentially range/safety instruction services, depending on the specific business model variant.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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
American Rounds is a micro-franchise with inadequate financial disclosure, unproven unit economics, and unclear growth momentum—suitable only for investors willing to pioneer an emerging concept with significant due diligence.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 8 units system-wide indicates extremely small, unproven franchise model with minimal track record
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and raises transparency concerns
- 03MINORHigh initial investment ($81.7K–$137.5K) relative to system size creates disproportionate risk for early franchisees
- 04MINOR5-year term is shorter than industry standard (10 years), suggesting franchisor uncertainty or high turnover risk
- 05MINORUnknown unit growth trajectory suggests stagnation or inconsistent expansion messaging
- 06MED3% royalty on undisclosed gross revenue creates uncertainty about true ongoing cost burden
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
7 numbers
One-time purchase · CSV download · Validation questions included
FDD download
American Rounds · FDD (2025) PDF