Bottom line
- Total investment $197K – $371K including a $45K franchise fee, 0.0% ongoing royalty.
- Average unit revenue of $437K/year. Estimated payback in 5.0 years.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
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 Bubbly Paws unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bubbly Paws units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.4M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
Overview
About
Bubbly Paws appears to be a pet wellness or grooming franchise where franchisees operate retail/service locations serving pet owners. Day-to-day operations likely involve customer service, pet handling, inventory management, and staff supervision, with revenue averaging $436,620 annually.
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 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
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
Small, financially unstable franchisor with limited system validation, thin margins, and going concern issues present meaningful investment risk despite protected territory.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHGoing Concern status is False — indicates financial instability or viability questions at franchisor level
- 02MINOROnly 5 units system-wide with unknown growth trajectory — suggests stagnant or contracting franchise system
- 03MEDNo Item 19 financial performance representations disclosed — cannot validate if $436,620 average revenue is achievable or typical
- 04MINORNet profit margin of only 13.1% ($57,344 on $436,620) is thin and may not support $197k-$371k initial investment ROI within reasonable timeframe
- 05MINOREscalating royalty structure (0% → 3% → 6%) could squeeze profitability in years 2-3 when cash flow is critical
- 06MINORMinimal franchise system size (5 units) creates higher franchisor dependency risk and reduced purchasing power/support infrastructure
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bubbly Paws · FDD (2023) PDF