Bottom line
- Total investment $232K – $513K including a $225K franchise fee, 9.8% ongoing royalty.
- Average unit revenue of $1.1M/year (median $747K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 29 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 Crestcom unit return on the cash you put in?
Unlevered ROIC · per unit
30%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Crestcom units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$723K
on $3.6M purchase
Total debt
$2.9M
SBA $1.8M + senior + seller note
Overview
About
Crestcom franchisees operate management and leadership training delivery services, providing corporate training programs to business clients. Day-to-day activities include conducting workshops, delivering customized training curriculum, managing client relationships, and generating revenue through training program fees. Franchisees typically work with established corporate clients to develop and implement leadership development initiatives.
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 · 10 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
Crestcom presents moderate-to-caution risk due to missing profitability data, slow unit growth, and lack of transparency on actual franchisee earnings relative to substantial capital investment.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo average net income disclosed in Item 19 — unable to assess actual profitability or ROI despite $1.11M avg revenue
- 02MINORModest unit growth of 8.0% YoY with only 27 total units suggests slow system expansion and potential market saturation concerns
- 03MEDHigh royalty rate of 9.75% combined with undisclosed net income creates uncertainty about franchisee take-home earnings
- 04MINORWide investment range ($231K-$512K, 122% variance) indicates inconsistent territory costs and unclear capital requirements
- 05MINORZero franchise fee unusual for $231K+ investment — may indicate weak demand, system maturity issues, or hidden ongoing costs
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Crestcom · FDD (2025) PDF