Bottom line
- Total investment $166K – $310K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $155K/year (median $148K).
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 93 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 ARCpoint Labs unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ARCpoint Labs units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$217K
on $1.1M purchase
Total debt
$866K
SBA $0.5M + senior + seller note
Overview
About
ARCpoint Labs franchisees operate drug testing and occupational health screening centers. Day-to-day operations include administering urine/hair/saliva tests, breath alcohol tests, and DOT physicals for employers; managing CLIA compliance and sample chain-of-custody; handling client billing and lab coordination; and staffing testing centers with certified technicians. Most revenue derives from corporate workplace testing programs and pre-employment screening contracts.
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 · 27 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
ARCpoint Labs presents HIGH RISK: a contracting franchise system with pending litigation over disclosure practices, no verified unit economics, and unprotected territories that expose franchisees to internal competition.
Score breakdown · what drove the 61 / 100 rating
- 01MEDSystem contraction: 10.1% unit decline YoY (128 units) signals franchisee failure or underperformance
- 02MINORNo Item 19 financial disclosure despite $154,694 average revenue claim — cannot independently verify profitability
- 03HIGHActive litigation on disclosure inadequacy and non-compete enforcement suggests franchisor-franchisee relationship deterioration
- 04MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's revenue
- 05MINORLow average revenue ($154,694) against $165,700+ investment requires 2+ years to break even at 7% royalty burden
- 06HIGHGoing concern status FALSE is ambiguous — clarify if franchisor or franchisees at risk
- 07MINORHigh initial investment ($310,420 at top end) with no transparent path to stated $154,694 revenue
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
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ARCpoint Labs · FDD (2025) PDF