FranchiseVerdict
Blue Nose logo
FV-00335·MODERATEExcellent86

Blue Nose

OtherFranchising since 2020Website
Investment
$16K – $56K
4th pct Other
Avg revenue
50th pct Other
Royalty
4.0%
3rd pct Other
Units
50
65th pct Other
SBA default

Bottom line

  • Total investment $16K – $56K including a $9K franchise fee, 4.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 57/100.
  • System growing at 145.0% CAGR over 3 years with 50 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Blue Nose Franchising, LLC
Incorporated in
Colorado
HQ
2548 Akron Street, Denver, Colorado 80238
Auditor
Naper CPA Group
Audited financials
Franchisor revenue
$127K
vs $245K prior year

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 Nose unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $16K–$56K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

343%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$37K
Payback
3 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Blue Nose franchisees operate small service or retail locations (exact model unclear without disclosure). Day-to-day activities likely involve customer transactions, inventory/service delivery, local marketing, and staff management within a protected territory.

CEO
Tanner Harris
Founded
2020
FDD year
2026
States available
20

Item 7 · what it costs

The Vitals

Total investment
$16K – $56K
All-in to open one unit
Liquid capital
$0 – $3K
Cash you must have on hand
Franchise fee
$9K
Royalty
4.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
50
Opened
20
Last reporting year
Closed
10
Turnover rate
20.0%
Company-owned
1
Corporate units in the system
% franchised
98%
vs corporate-owned
Net growth (yr3)
+25.6%
Net unit change last year
3-yr CAGR
+145.0%
Compounded over last 3 years
2024
49+10
Franchised units
2025
39
Franchised units
2026
20
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 23 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 23 states
Not registered

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

57
Risk · 0-100
MODERATE57 / 100

Blue Nose presents moderate-to-elevated risk due to lack of financial transparency, active franchisee litigation, small system size, and unclear cost drivers—unsuitable for passive investors requiring clear ROI benchmarks.

Score breakdown · what drove the 57 / 100 rating

  1. 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02HIGHActive litigation against franchisee for non-payment of fees suggests collection and/or profitability issues within the system
  3. 03MINOR50-unit system is relatively small; 25.6% YoY growth is healthy but base is thin, limiting data reliability and support infrastructure
  4. 04MINORWide investment range ($15,590–$56,250) with no clarification on what drives cost variance raises transparency concerns
  5. 05MINOR4% royalty appears low, potentially indicating franchisor underfunding support, training, and marketing resources

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Colorado

Item 11

Training & Operations

Classroom training
16 hrs
On-the-job training
0 hrs

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

59 numbers

Locked
(912) 777-••••
GA
(719) 214-••••
CO
(832) 921-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Blue Nose · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above