Bottom line
- Total investment $214K – $366K including a $38K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.9M/year.
- Rated MODERATE with a risk score of 67/100.
- Emerging franchise — only 2 years 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 Coast Supply Co. unit return on the cash you put in?
Unlevered ROIC · per unit
75%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Coast Supply Co. units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $10.0M purchase
Total debt
$8.0M
SBA $5.0M + senior + seller note
Overview
About
Coast Supply Co. appears to operate in the supply distribution or retail sector, likely serving a specific geographic or customer niche. Franchisees manage inventory, customer relationships, and local operations while paying 6% of weekly gross revenue in royalties to the franchisor.
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 · 14 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
Coast Supply Co. presents HIGH RISK due to a critically underdeveloped 2-unit system, undisclosed profitability, questionable franchisor financial health, and insufficient disclosure data to validate unit economics.
Score breakdown · what drove the 67 / 100 rating
- 01MINOROnly 2 units in entire system indicates minimal franchise success and unproven scalability
- 02MEDNet income not disclosed despite $1.9M average revenue — suggests poor profitability or disclosure avoidance
- 03HIGHGoing Concern status is FALSE — indicates potential franchisor financial instability or legal/operational issues
- 04MINORUnknown unit growth trajectory with only 2 units suggests stagnation or recent contraction
- 05MINORHigh initial investment ($213.5K-$365.5K) relative to tiny system size creates disproportionate risk
- 06MINOR6% royalty on weekly gross (not net) means ongoing fees regardless of profitability
- 07MINORMinimal disclosure in FDD (Item 19 financials absent) prevents accurate ROI modeling
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coast Supply Co. · FDD (2025) PDF