Border Magic Franchise Cost, Revenue & Review 2026
Formerly known as Magic One
- Investment
- $145K – $169K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Border Magic is a home services franchise that installs seamless decorative concrete landscape edging and curbing. Franchisees run local operations, managing estimates, installation, and customer accounts within a territory.
FranchiseVerdict summary · 2026
A Border Magic franchise requires a total initial investment of $145K – $169K, including a $63K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $145K – $169K
- 56th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 48th pct Home Services
- Units
- 26
- 33rd pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $145K – $169K including a $63K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 21/100 (higher is better).
- GROWTHNegative: net -6 franchised outlets in the latest year (4 opened, 10 closed) (Item 20).
- FLAG4 units terminated last reporting year (15.4% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Border Magic Franchising, LLC
- Predecessor
- Mogavero Investments, LLC / Border Magic, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Frank J. "Butch" Mogavero
- CEO experience
- 2017 yrs
- Years in role or industry
- Incorporated in
- TX
- HQ
- 2324 N. Robinson Drive, Waco, Texas 76706
- Auditor
- JRBT, PC
- Audited financials
- Franchisor revenue
- $632K
- vs $839K prior year
Overview
About
- CEO
- Frank J. "Butch" Mogavero
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2026
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost is about typical for a home services franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $63K | $63K | |
| Initial Training | $10K | $10K | |
| Site leasenot refundable | $0 | $1K | |
| BM 2000 Machinenot refundable | $10K | $10K | |
| Trailer, Equipment, Marketing, and Supplies Packagenot refundable | $50K | $50K | |
| Border Magic Upgrade Packagenot refundable | $0 | $2K | |
| Shipping Costnot refundable | $0 | $6K | |
| Vehicle lease or financingnot refundable | $0 | $2K | |
| Hand Tools/Material Handlingnot refundable | $450 | $1K | |
| Computer & Office Equipmentnot refundable | $0 | $2K | |
| Telephone/cell phonenot refundable | $0 | $750 | |
| Signagenot refundable | $50 | $200 | |
| Travel and living expenses while trainingnot refundable | $500 | $2K | |
| Insurancenot refundable | $50 | $750 | |
| Vehicle Insurancenot refundable | $35 | $500 | |
| Licensing and permitsnot refundable | $500 | $3K | |
| Legal/Accountingnot refundable | $500 | $2K | |
| Shop Assistance Feenot refundable | $7K | $7K | |
| Additional Funds (3 months)not refundable | $4K | $9K | |
| Total initial investment | $145K | $169K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $145K – $169K
- Middle of category vs category
- Liquid capital req'd
- $4K – $9K
- Top 40% of category vs category
- Franchise fee
- $63K – $63K
- Bottom third — review vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Technology fee | $65 |
| Training fee | $10K |
| Transfer fee | $8K |
| Renewal fee | $6K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Border Magic makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Border Magic unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Home Services median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -31.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services medians
How Border Magic Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 4
- Last reporting year
- Closed
- 10
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 38.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -31.6%
- Net unit change over 3 years
- 3-yr CAGR
- -31.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 4
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
- Termination rate
- 30.8%
- Franchisor-initiated terminations
- Ceased ops
- 38.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
5 current owners across 5 states.
- FL 1
- ID 1
- IL 1
- OH 1
- TX 1
Counts only, from the list the franchisor prints in Item 20; 35 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $1.5M
- Median loan
- $132K
- 50th percentile
- Charge-off rate
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 2
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 19.3%
- n=710 loans
- Jobs supported
- 53
- 3.8 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in landscaping services, franchised businesses charge off at 19.3% vs 13.3% for independents — franchising is associated with 45% higher SBA default risk in this category.
Top lenders financing Border Magic franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Border Magic from SBA 7(a) FOIA data.
- Principal loss rate
- 11.5%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.56%
- Avg chargeoff amount
- $81K
- Lender concentration
- 30.0%
- Job velocity
- 3.8 per $100K
- NAICS benchmark
- 17.7%
- NAICS 561730
- Jobs supported
- 53
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 3 | $450K | 0.0% |
| 2 | Hills Bank and Trust Company | 1 | $72K | 100.0% |
| 3 | BancFirst | 1 | $115K | 0.0% |
| 4 | JPMorgan Chase Bank, National Association | 1 | $100K | 0.0% |
| 5 | Wells Fargo Bank National Association | 1 | $176K | 100.0% |
| 6 | Frost Bank | 1 | $105K | N/A |
| 7 | Five Star Bank | 1 | $100K | 0.0% |
| 8 | Bank Five Nine | 1 | $296K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 4 | 1 | 33.3% |
| FLFlorida | 2 | 0 | -- |
| IAIowa | 1 | 1 | 100.0% |
| NCNorth Carolina | 1 | 0 | 0.0% |
| OKOklahoma | 1 | 0 | 0.0% |
| WIWisconsin | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
4 cases disclosed, all involving affiliate Boulder Designs Franchising LLC or joint filing with Border Magic. Cases include franchisee fraud claim (settled $60K), trade secret violation (settled $20K), breach of contract/non-compete (settled), and injunction/noncompete action (dismissed 2024).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · JRBT, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues for FY2025 comprise franchise fees and royalties $354,636, equipment sales $190,824, and supplies and other $86,712. FY2024 balances were restated. Auditor's report (dated March 4, 2026) includes going concern considerations; the FY2023 statements were audited by a predecessor auditor (unmodified opinion dated March 19, 2024). Company has a member's deficit of $(2,566,519) at December 31, 2025.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 21 / 100 verdict
- 01MEDUnit count declined 18.8% YoY (26 units) indicating systemic franchisee challenges or franchisor support failures
- 02MEDNo Item 19 financial performance data disclosed—inability to validate investment ROI claims or average unit economics
- 03HIGHMultiple litigation cases alleging fraud, deceptive practices, breach of fiduciary duty, and improper royalty retention suggest franchisor credibility issues
- 04MINORMinimum royalty structure ($750→$950→$1,500/month) creates $9,000–$18,000 annual fixed costs regardless of revenue generation
- 05HIGHSignificant settlements ($6,624–$60,000) paid in litigation suggest pattern of disputes over contractual obligations and transparency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 225,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas (mediation only; litigation in Waco, TX) |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 4 |
View Item 3 litigation summary
4 cases disclosed, all involving affiliate Boulder Designs Franchising LLC or joint filing with Border Magic. Cases include franchisee fraud claim (settled $60K), trade secret violation (settled $20K), breach of contract/non-compete (settled), and injunction/noncompete action (dismissed 2024).
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 28 hrs
- Training location
- Franchisor headquarters in Waco, TX or Corporate Accredited Franchise Instructor location
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks
Item 20 · call current owners
Franchisee Contacts
40 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Border Magic franchise?
The total investment to open a Border Magic franchise ranges from $145K – $169K, with an initial franchise fee of $63K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Border Magic franchise owners earn?
Border Magic makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Border Magic?
Border Magic is franchised by Border Magic Franchising, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Border Magic FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Border Magic FDD and qualifies whose outlets they describe.
What is Border Magic's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Border Magic (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Border Magic franchise locations are there?
As of their most recent FDD filing, Border Magic has 26 total units in the United States, including 26 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is Border Magic a good franchise to buy?
FranchiseVerdict rates Border Magic as a F-grade franchise with a verdict score of 21 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Border Magic, you can request corrections or provide updated information.
Other Home Services franchises
Compare similar franchise opportunities in the Home Services category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.