Bottom line
- Total investment $480K – $949K including a $45K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.1M/year. Estimated payback in 2.8 years.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Dae Gee unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Dae Gee units return on equity?
Equity IRR · 5-yr
47.1%
6.88× MOIC
Year-1 DSCR
1.93×
EBITDA ÷ debt service
Equity required
$2.3M
on $10.5M purchase
Total debt
$8.1M
SBA $5.0M + senior + seller note
Overview
About
Dae Gee franchisees operate a food/beverage concept (likely Korean cuisine based on brand name) serving customers through counter-service or casual dining operations. Day-to-day responsibilities include inventory management, food preparation/quality control, staff scheduling, customer service, and local marketing—typical for a single-unit restaurant franchise.
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 · 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).
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
Dae Gee presents caution-level risk due to micro-scale system, opaque unit growth, and unvalidated financial projections without franchisee performance disclosures.
Score breakdown · what drove the 53 / 100 rating
- 01MEDOnly 6 units system-wide indicates minimal scale, limited peer support network, and unproven replicability
- 02MEDNo disclosed unit growth history despite 10-year franchise model suggests stagnation or undisclosed closures
- 03MINORHigh capital requirement ($479k-$948k) against only 6 operating units creates survivorship uncertainty
- 04MINOR27% net margin reported seems optimistic without Item 19 financial disclosures to validate claims
- 05MINORUnknown franchise fee justification ($45k) for brand with no demonstrable franchise development track record
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Dae Gee · FDD (2024) PDF