Bottom line
- Total investment $117K – $193K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $7.5M/year (median $7.9M). Estimated payback in 0.1 years.
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 30 loans (below the industry average).
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 Best Choice Roofing unit return on the cash you put in?
Unlevered ROIC · per unit
396%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Best Choice Roofing units return on equity?
Equity IRR · 5-yr
28.1%
3.46× MOIC
Year-1 DSCR
2.88×
EBITDA ÷ debt service
Equity required
$10.8M
on $22.6M purchase
Total debt
$11.8M
SBA $5.0M + senior + seller note
Overview
About
Best Choice Roofing franchisees operate residential and commercial roofing installation, repair, and inspection services. Day-to-day activities include managing crews, scheduling jobs, managing customer relationships, handling materials procurement, and overseeing roofing projects from estimation through completion. Franchisees are responsible for local marketing, licensing compliance, and maintaining service quality standards across their protected territory.
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 · 32 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 expansion with active litigation and unresolved Going Concern status indicates operational instability despite strong aggregate financials; recommend extreme caution until franchisor transparency improves.
Score breakdown · what drove the 49 / 100 rating
- 01HIGHGoing Concern status is False — indicates franchisor financial distress or structural issues despite positive aggregate numbers
- 02MINORAggressive unit growth of 200% YoY is unsustainable and suggests recruitment-heavy model rather than organic profitability; high churn risk
- 03HIGHTwo active/recent litigation cases involving breach of contract and trademark disputes signal franchisor-franchisee relationship dysfunction and legal exposure
- 04MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate if $1.97M net income claim is achievable for typical franchisee
- 05MINORHigh franchise fee ($59,500) combined with 6% royalty creates significant startup burden; breakeven depends on undocumented performance data
- 06HIGHExplosive growth (63 units, 200% YoY) combined with litigation suggests system may be adding unprofitable units or experiencing early terminations
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
50 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Best Choice Roofing · FDD (2024) PDF