Bottom line
- Total investment $32K – $45K including a $15K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $267K/year (median $267K).
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 3 years of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Blue Diamond Sales & Rentals unit return on the cash you put in?
Unlevered ROIC · per unit
95%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Blue Diamond Sales & Rentals units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$428K
on $2.1M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
Overview
About
Blue Diamond Sales & Rentals franchisees operate equipment and product rental and sales operations, likely serving construction, event, or commercial markets. Day-to-day activities typically include managing inventory, customer acquisition, equipment maintenance, rental agreements, and sales transactions across a 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 · 14 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
Extreme caution warranted: pre-revenue stage system with only 2 units, undisclosed profitability, missing Item 19, and ambiguous going concern status make this a speculative, high-risk investment with insufficient validation data.
Score breakdown · what drove the 60 / 100 rating
- 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited track record and system maturity
- 02MEDNet income not disclosed in FDD Item 19 prevents validation of profitability claims and return on investment
- 03HIGHGoing Concern notation (False) is ambiguous and suggests potential financial instability or unclear franchisor viability
- 04HIGHNo litigation disclosed is unusual for franchise system and may indicate incomplete disclosure or very early stage
- 05MINORInitial investment range ($32,100-$45,200) is modest but combined with 5-6% royalties on $267K average revenue creates tight margin scenario
- 06MINORInsufficient franchisee sample size (2 units) makes $267,276 average revenue statistic unreliable and non-predictive
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Blue Diamond Sales & Rentals · FDD (2025) PDF