Bottom line
- Total investment $170K – $344K including a $50K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $418K/year. Estimated payback in 1.8 years.
- Rated MODERATE with a risk score of 58/100.
- 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 Bright Brothers unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bright Brothers units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$376K
on $1.9M purchase
Total debt
$1.5M
SBA $0.9M + senior + seller note
Overview
About
Bright Brothers franchisees operate service-based or product-based locations (business model unspecified in data). Daily operations likely include customer acquisition, service delivery/fulfillment, staff management, and local marketing. With only 3 units and no territorial protection, franchisees face direct competition from other Bright Brothers locations in adjacent markets.
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 · 7 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
Micro-franchise system with minimal operating history, unprotected territories, and unvalidated financials creates significant execution and market saturation risk despite positive unit-level profitability claims.
Score breakdown · what drove the 58 / 100 rating
- 01MEDOnly 3 units system-wide indicates extremely limited track record and network effects; no disclosed growth trajectory raises sustainability concerns
- 02MINORUnprotected territory creates direct competition risk — multiple franchisees could canibalize revenue within same market
- 03MINORHigh investment-to-unit ratio ($170k-$343k) against only 3 existing locations suggests either premium positioning without proof or inflated costs
- 04MINORItem 19 financial data shows only 3 data points — statistically insufficient to validate claimed $417k average revenue; potential selection bias toward top performer(s)
- 05MINOR6.5% royalty on gross revenue (not net) means franchisee pays even during unprofitable months; combined with $50k upfront fee creates aggressive fee structure
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
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bright Brothers · FDD (2025) PDF