Bottom line
- Total investment $824K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M).
- Rated STRONG with a risk score of 52/100.
- 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 Biscuit Belly unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Biscuit Belly units return on equity?
Equity IRR · 5-yr
37.2%
4.86× MOIC
Year-1 DSCR
2.23×
EBITDA ÷ debt service
Equity required
$4.3M
on $13.3M purchase
Total debt
$9.0M
SBA $5.0M + senior + seller note
Overview
About
Biscuit Belly franchisees operate casual fast-service restaurants specializing in biscuits and breakfast/comfort food offerings. Day-to-day operations include food preparation, inventory management, staff scheduling, point-of-sale management, and customer service in a quick-service format with limited seating.
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 · 8 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
Modest growth and protected territory are positive, but undisclosed net income and high investment-to-revenue ratio create profitability uncertainty that warrants careful validation.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to verify actual profitability against $824K-$1.34M investment
- 02MINORSmall franchise system with only 13 units limits brand recognition and support infrastructure scalability
- 03MEDHigh initial investment ($824K-$1.34M) relative to disclosed average revenue ($1.33M) creates tight margin for error
- 04MINOR20% YoY growth in unit count is solid but still relatively modest for franchise viability proof
- 05MINORLack of Item 19 financial performance representation increases due diligence burden on prospective franchisees
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
13 numbers
One-time purchase · CSV download · Validation questions included