Binghamton HOTS
Bottom line
- Total investment $142K – $253K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $702K/year.
- Rated CAUTION with a risk score of 69/100.
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 Binghamton HOTS unit return on the cash you put in?
Unlevered ROIC · per unit
55%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Binghamton HOTS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.4M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
Overview
About
Binghamton HOTS appears to be a fast-casual restaurant or food service concept, likely involving counter service, food preparation, and customer-facing operations. Franchisees manage daily operations including inventory, staff scheduling, food quality control, and local marketing to drive foot traffic and sales in 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 · 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a nascent, financially opaque single-unit franchise system with concerning going concern indicators and no demonstrated scalability or franchisee profitability validation.
Score breakdown · what drove the 69 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial distress or instability at corporate level
- 02MINOROnly 1 unit in system — extreme lack of scalability, no franchise network momentum, high risk of system collapse
- 03MEDNet Income not disclosed — inability to verify actual profitability claims; only gross revenue of $701,719 is available
- 04MINORNo growth trajectory data — single unit provides no evidence of system expansion or franchisee success replication
- 05MINORHigh investment range relative to single-unit data — $141,775–$253,075 investment with unverified profitability metrics
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Binghamton HOTS · FDD (2023) PDF