Bottom line
- Total investment $98K – $188K including a $50K franchise fee.
- Average unit revenue of $103K/year (median $100K). Estimated payback in 0.5 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 46 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 CANOPY unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 CANOPY units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$103K
on $517K purchase
Total debt
$414K
SBA $0.3M + senior + seller note
Overview
About
Canopy franchisees operate a service-based or product-driven business model (specific operations unclear from data provided). Day-to-day activities likely involve customer acquisition, service delivery or fulfillment, staff management, and local marketing within their protected territory.
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
Canopy presents moderate-to-cautious risk due to missing financial documentation, implausible profitability claims, undisclosed royalty minimums, and slow unit growth that limits validation of franchisee success.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNo Item 19 financial performance representation (FPR) disclosed — cannot verify if avg revenue of $103,458 is typical or cherry-picked
- 02MEDMassive profitability gap: $103k avg revenue but $317k avg net income suggests data inconsistency, survivorship bias, or undisclosed costs
- 03MEDMinimum Royalty structure not disclosed — could create cash flow pressure on lower-performing locations
- 04MEDSlow unit growth (10.8% YoY) with only 46 units indicates limited brand momentum or saturation concerns
- 05MEDHigh initial investment range ($98k-$188k) relative to disclosed average revenue raises ROI and break-even timeline concerns
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CANOPY · FDD (2026) PDF