FranchiseVerdict
Crimson Coward logo
FV-00664·MODERATEExcellent81

Crimson Coward

Food & Beverage - Full ServiceFranchising since 2020Website
Investment
$319K – $608K
39th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.5%
86th pct Full Service
Units
13
47th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $319K – $608K including a $35K franchise fee, 6.5% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
  • 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

Legal entity
Crimson Coward, Inc.
Incorporated in
California
HQ
8041 Florence Ave., Ste. 206, Downey, California 90240
Auditor
Ranjeet Koirala CPA PC
Audited financials
Franchisor revenue
$235K
vs $481K prior year

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 Crimson Coward unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $319K–$608K
Working capital
$
FDD reports $40K–$60K

Unlevered ROIC · per unit

22%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$113K
EBITDA margin
15.0%
Total invested
$513K
Payback
55 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Crimson Coward franchisees operate [BUSINESS MODEL NOT DISCLOSED IN PROVIDED DATA]. Daily operations likely involve customer-facing service delivery, inventory/supply management, and local marketing execution within a protected territory.

CEO
Ali Hijazi
Founded
2020
FDD year
2025
States available
6

Item 7 · what it costs

The Vitals

Total investment
$319K – $608K
All-in to open one unit
Liquid capital
$40K – $60K
Cash you must have on hand
Franchise fee
$35K
Royalty
6.5%
Gross Revenues · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

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

Total units
13
Opened
6
Last reporting year
Closed
1
Turnover rate
7.7%
Company-owned
1
Corporate units in the system
% franchised
92%
vs corporate-owned
Multi-unit owners
11.1%
Net growth (yr3)
+71.4%
Net unit change last year
3-yr CAGR
+140.0%
Compounded over last 3 years
2023
12+5
Franchised units
2024
7
Franchised units
2025
5
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 5 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 5 states
Not registered

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.

Total loans
4
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Early-stage franchise with minimal unit count, undisclosed financial performance, and franchisor going concern issues creates significant validation and sustainability risk.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation
  2. 02HIGHGoing Concern status is False, indicating potential financial instability at franchisor level
  3. 03MINOROnly 13 units in system with 71.4% YoY growth appears unsustainable and suggests very small base
  4. 04MEDHigh investment range ($318.5k–$607.5k) with no disclosed profitability benchmarks creates opacity
  5. 05MED6.5% royalty on undisclosed revenues limits ability to forecast actual take-home profits

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
10 hrs
On-the-job training
11 hrs
POS system
Toast
Operating tech stack

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

Locked
(949) 215-••••
Faisal Sheikh Ovais Sheikh
CA
(540) 380-••••
Naveed Javed
VA
(714) 591-••••
Nabil A. Asad Mahous Makhkouf Sofyan Ayoub Saidups
CA

One-time purchase · CSV download · Validation questions included

FDD download

Crimson Coward · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above