Bottom line
- Total investment $279K – $478K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $607K/year.
- Rated MODERATE with a risk score of 65/100.
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 Del's Popcorn Shop unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Del's Popcorn Shop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$425K
on $2.1M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
Overview
About
Del's Popcorn Shop franchisees operate small-format snack retail locations specializing in popcorn products. Day-to-day operations include preparing and selling fresh popcorn, managing inventory, handling point-of-sale transactions, and maintaining store cleanliness. Franchisees are responsible for local marketing, staffing, and customer service in their protected territory.
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 · 16 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
Early-stage franchise with only 2 units, undisclosed profitability, and franchisor going concern issues presents significant unproven-model risk despite protected territory.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 2 units in system with unknown growth trajectory indicates nascent/stagnant franchise model
- 02MEDNet income not disclosed in Item 19 prevents ROI validation against $279k-$478k investment
- 03HIGHGoing Concern status is FALSE — suggests financial instability or structural concerns with franchisor
- 04MINORMassive gap between average revenue ($606k) and investment range suggests highly variable unit economics
- 05MED6% royalty on undisclosed net income makes it impossible to model actual franchisee profitability
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Del's Popcorn Shop · FDD (2023) PDF