Bottom line
- Total investment $123K – $474K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $549K/year (median $551K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 27 loans (below the industry average).
- System contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Deli Delicious unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Deli Delicious units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$823K
on $4.1M purchase
Total debt
$3.3M
SBA $2.1M + senior + seller note
Overview
About
Franchisees operate quick-service deli restaurants, typically preparing and serving sandwiches, salads, and prepared foods to walk-in and potentially catering customers. Day-to-day responsibilities include food preparation, inventory management, staffing, customer service, and point-of-sale operations within a 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 · 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Deli Delicious presents meaningful investment risk due to shrinking unit base, undisclosed profitability data, recent litigation, and franchisor financial concerns despite moderate average unit volumes.
Score breakdown · what drove the 52 / 100 rating
- 01MINORUnit count declining 4.5% YoY indicates system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI assessment despite $548,705 average revenue
- 03HIGHTwo litigation cases (one settled for $60,000) suggest operational or compliance issues within the system
- 04MEDHigh investment range ($122,800–$474,350) with 6% royalty creates significant financial burden relative to undisclosed profitability
- 05HIGHGoing Concern status is False, indicating potential financial instability of franchisor
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Deli Delicious · FDD (2025) PDF