Bottom line
- Total investment $439K – $715K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year.
- Rated CAUTION with a risk score of 70/100.
- Emerging franchise — only 1 year 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 Breadless unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Breadless units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.5M purchase
Total debt
$6.8M
SBA $4.2M + senior + seller note
Overview
About
Breadless appears to operate a specialty food/health-focused concept (likely low-carb or gluten-free bakery/café based on brand name). Franchisees manage daily retail operations including inventory management, customer service, food preparation/sourcing, and staff oversight. The exact operational model is unclear given the limited public information available.
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 · 18 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
Breadless presents HIGH RISK due to a micro-sized system (2 units), undisclosed profitability metrics, franchisor going concern issues, and unvalidated unit economics at a substantial investment level.
Score breakdown · what drove the 70 / 100 rating
- 01MEDOnly 2 existing units indicates extremely limited system validation and no proven scalability
- 02HIGHGoing Concern status is FALSE — suggests financial instability or structural issues at franchisor level
- 03MEDNet income not disclosed — impossible to assess actual profitability despite $1.06M average revenue claim
- 04MINORHigh investment range ($439K-$715K) with unproven unit economics creates significant franchisee risk
- 05HIGHNo disclosed litigation history may indicate insufficient track record rather than clean record
- 06MEDUnknown unit growth trajectory prevents assessment of system momentum or decline
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Breadless · FDD (2026) PDF