Bottom line
- Total investment $163K – $300K including a $25K franchise fee.
- Average unit revenue of $672K/year. Estimated payback in 1.7 years.
- Rated STRONG with a risk score of 32/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- 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 Bobbles & Lace 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 Bobbles & Lace units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$134K
on $672K purchase
Total debt
$538K
SBA $0.3M + senior + seller note
Overview
About
Bobbles & Lace franchisees operate retail or kiosk-based specialty accessory boutiques selling hair accessories, fashion jewelry, and complementary gift items. Day-to-day operations include inventory management, point-of-sale transactions, visual merchandising, and local marketing to drive foot traffic in protected territories.
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 · 15 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
Bobbles & Lace presents moderate-to-cautious risk: strong unit growth and profitability are offset by aggressive expansion pace, opaque financial reporting, and unclear cost structure requiring deeper franchisee validation.
Score breakdown · what drove the 32 / 100 rating
- 01MINORAggressive unit growth (33.3% YoY) raises sustainability questions — typical mature franchises grow 5-15% annually
- 02MINORWide investment range ($163k-$300k) suggests inconsistent build-out costs or undefined territory sizes
- 03MINORMinimum royalty of $500/month ($6,000 annually) represents 0.9% of average net income — stress test at lower revenue
- 04MEDItem 19 financial data limited to averages with no median/range disclosure — potential outlier inflation masking underperformers
- 05HIGHNo litigation disclosed but rapid expansion increases franchise system complexity and dispute risk
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bobbles & Lace · FDD (2025) PDF