Bottom line
- Total investment $80K – $99K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $6K). Estimated payback in 0.3 years.
- Rated MODERATE with a risk score of 55/100.
- Emerging franchise — only 1 year of franchising with 1 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 DDH unit return on the cash you put in?
Unlevered ROIC · per unit
222%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 DDH units return on equity?
Equity IRR · 5-yr
45.0%
6.41× MOIC
Year-1 DSCR
1.98×
EBITDA ÷ debt service
Equity required
$2.6M
on $10.9M purchase
Total debt
$8.3M
SBA $5.0M + senior + seller note
Overview
About
DDH franchisees operate a [business model not specified in data provided]. With average reported revenue of $1.36M and net income of ~$279K, franchisees manage day-to-day operations while paying tiered royalties (7%/6%/5% on increasing revenue tiers). The 10-year protected territory model suggests location-based service or retail, but core operational activities remain undefined.
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 · 4 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
Single-unit franchise system with undisclosed financials, going concern issues, and no validatable track record creates acute due diligence and execution risk.
Score breakdown · what drove the 55 / 100 rating
- 01MEDOnly 1 franchise unit disclosed — impossible to validate system viability, growth trajectory, or franchisee success patterns
- 02MINORNo Item 19 financial performance representation — average revenue and net income figures cannot be independently verified or attributed to franchisees
- 03HIGHGoing Concern status is False — suggests parent company or franchisor may have financial stability questions
- 04MEDSeverely limited franchisee pool — only one unit means zero peer validation, no comparable performance data, and high execution risk on franchisor support
- 05MINORTiered royalty structure incentivizes volume but lacks transparency on typical franchisee breakeven point relative to $79,800–$99,245 initial investment
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
DDH · FDD (2026) PDF