Bottom line
- Total investment $1.8M – $3.6M including a $60K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Cloudbound unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
Cloudbound franchisees likely operate cloud infrastructure, managed services, or IT solutions businesses, providing customers with data management, migration, security, or compliance services. Day-to-day operations would involve client onboarding, technical service delivery, account management, and leveraging the franchisor's cloud technology platform or proprietary methodologies.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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
A pre-revenue franchise system with zero operating units, undisclosed financials, going concern status, and a $1.8M–$3.6M investment requirement presents extreme execution risk and unvalidated unit economics.
Score breakdown · what drove the 75 / 100 rating
- 01HIGHGoing Concern status indicates financial viability questions at corporate level
- 02MINORZero existing franchise units — no operating track record or proof of concept in franchise model
- 03MEDFinancial performance metrics (revenue/net income) completely undisclosed — unable to validate ROI claims
- 04MEDExtremely high investment range ($1.8M–$3.6M) with no corresponding disclosed average unit economics
- 05MINORUnknown unit growth trajectory prevents assessment of system momentum or market demand
- 06MED6% royalty on undisclosed revenue streams creates hidden cost exposure
- 07HIGHNo litigation disclosed but Going Concern status suggests potential unresolved disputes or structural issues
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cloudbound · FDD (2025) PDF