Bottom line
- Total investment $23K – $33K including a $0 franchise fee, 30.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 69/100.
- 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
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 Delux unit return on the cash you put in?
Unlevered ROIC · per unit
-166%
Negative
Overview
About
Delux franchisees operate as ride-sharing or taxi dispatch services, likely managing driver recruitment, customer acquisition, and operational logistics. Daily responsibilities include managing rides, handling customer service, coordinating drivers, and processing payments while remitting 30% of all gross fares to the franchisor regardless of profitability.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Delux presents high risk due to going concern status, predatory 30% gross royalty structure, financial opacity, zero territory protection, and anemic unit growth suggesting a contracting or struggling franchise system.
Score breakdown · what drove the 69 / 100 rating
- 01HIGHGoing Concern warning indicates franchisor financial distress or operational viability questions
- 02MEDExtreme 30% royalty rate on gross fares (not net) with no disclosed average revenue/net income makes profitability opaque and risky
- 03MINORMinimal unit growth (2.4% YoY, 128 units) suggests stagnant or declining system health
- 04MINORZero territory protection leaves franchisees vulnerable to direct competition from other franchisees
- 05MINORNo Item 19 financial disclosures prevents validation of earnings claims and franchisee profitability
- 06MINORLow initial investment ($22.5K-$32.5K) may indicate low barrier to entry but insufficient capital for sustainable operations
- 07MED5-year term is relatively short, creating renewal uncertainty and limited business planning horizon
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Delux · FDD (2025) PDF