Bottom line
- Total investment $180K – $311K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.7M/year. Estimated payback in 0.9 years.
- Rated MODERATE with a risk score of 64/100.
- 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 Awakenings unit return on the cash you put in?
Unlevered ROIC · per unit
48%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Awakenings units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$332K
on $1.7M purchase
Total debt
$1.3M
SBA $0.8M + senior + seller note
Overview
About
Awakenings appears to be a wellness or coffee retail concept where franchisees operate a storefront serving beverages and/or health-focused products to walk-in customers. Daily operations likely include inventory management, customer service, point-of-sale transactions, staff scheduling, and local marketing to drive foot traffic.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Awakenings presents elevated risk due to a micro-scale franchise system with unknown growth, unprotected territory, questionable franchisor viability (Going Concern = False), and a tight ROI profile that leaves minimal margin for franchisee underperformance.
Score breakdown · what drove the 64 / 100 rating
- 01MINOROnly 3 units in system with unknown/stagnant growth trajectory indicates weak franchise model scalability
- 02MINORNo territorial protection creates direct competition risk and cannibalization of franchisee revenue
- 03HIGHGoing Concern status is FALSE — suggests franchisor may have solvency or operational sustainability questions
- 04HIGHNo litigation disclosed but only 3 units limits statistical significance of this metric
- 05MINORHigh investment-to-net-income ratio ($179,845-$310,500 investment against $260,592 avg net income) yields 0.84-1.19x payback period with no cushion for underperformance
- 06MEDExtremely small franchise system (3 units) means limited data, operational maturity, and replicability validation
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.
FDD download
Awakenings · FDD (2022) PDF