Bottom line
- Total investment $233K – $553K including a $35K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $877K/year (median $877K). Estimated payback in 1.2 years.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 22 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 Cookie Co. unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cookie Co. units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$526K
on $2.6M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
Overview
About
Cookie Co. franchisees operate cookie retail locations, likely selling fresh-baked or specialty cookies to walk-in customers. Day-to-day operations include food preparation, inventory management, point-of-sale transactions, customer service, and local marketing.
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 · 9 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
Going concern status combined with minimal unit growth, unverified financial claims, and high investment relative to net income creates substantial risk for franchise failure or franchisor collapse.
Score breakdown · what drove the 61 / 100 rating
- 01HIGHGoing Concern Warning: Franchisor flagged as going concern indicates potential financial distress or sustainability questions at corporate level
- 02MINORStagnant Unit Count: Only 12 units with unknown growth trajectory suggests minimal system expansion and potential market saturation or performance issues
- 03MEDMissing Item 19 Financial Data: No Item 19 disclosure prevents verification of claimed $877K average revenue and $337K net income figures
- 04MINORHigh Investment-to-Net-Income Ratio: $232.5K-$552.5K investment against $337K average net income means 9-16 month payback at best, with significant downside risk
- 05MINORTiny Franchise System: 12 units is extremely small, limiting operational support infrastructure and indicating early-stage or struggling system
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cookie Co. · FDD (2023) PDF