FranchiseVerdict
Do it Best logo
FV-00765·MODERATEStandard67

Do it Best

OtherFranchising since 1945Website
Investment
$853K – $1.6M
91st pct Other
Avg revenue
50th pct Other
Royalty
Units
4,053
99th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $853K – $1.6M including a $9K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 41 loans (below the industry average).
  • 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

Legal entity
Do it Best Corp.
Incorporated in
Indiana
HQ
1626 Broadway Suite 100, Fort Wayne, IN 46802-4377
Auditor
CliftonLarsonAllen LLP
Audited financials
Franchisor revenue
$4.8B
vs $4.6B prior year

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 Do it Best unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $853K–$1.6M
Working capital
$
FDD reports $72K–$168K

Unlevered ROIC · per unit

8%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$1.3M
Payback
153 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Do it Best franchisees operate independent hardware retail stores serving residential and commercial customers. Daily operations include inventory management, point-of-sale transactions, customer service, and participation in the cooperative's purchasing programs and marketing initiatives. Franchisees leverage the cooperative's bulk buying power and supplier relationships while maintaining local market presence.

CEO
Daniel B. Starr
Founded
1945
FDD year
2025
States available
50

Item 7 · what it costs

The Vitals

Total investment
$853K – $1.6M
All-in to open one unit
Liquid capital
$72K – $168K
Cash you must have on hand
Franchise fee
$9K
Royalty
n/d
Ad fund
n/d

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

Total units
4,053
Opened
295
Last reporting year
Closed
161
Turnover rate
4.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+3.4%
Net unit change last year
3-yr CAGR
+3.1%
Compounded over last 3 years
2023
4,053+134
Franchised units
2024
3,919
Franchised units
2025
3,931
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 3 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

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.

Total loans
41
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

56
Risk · 0-100
MODERATE56 / 100

A mature, slow-growing hardware cooperative with escalating franchisee financial distress, opaque economics, and unprotected territories presents significant capital-at-risk for a $1M+ investment without clear profitability metrics.

Score breakdown · what drove the 56 / 100 rating

  1. 01MEDHigh investment range ($852.5K-$1.58M) with no disclosed average revenue or net income prevents ROI validation
  2. 02MINORDeclining unit growth (3.4% YoY) suggests market saturation or franchisee struggles in mature 4,053-unit system
  3. 03HIGHActive collection litigation indicates cash flow problems among franchisees and potential systemic profitability issues
  4. 04MINORUnprotected territory creates direct competition risk and cannibalization within franchise network
  5. 05MEDCritical data omissions: royalty rate unknown, franchise term unknown, no Item 19 financial performance data
  6. 06HIGHGoing Concern flag = false provides no clarity on whether FTC disclosure addressed franchisor financial stability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
4
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
No
Owner-operator
Optional
Governing law
Indiana

Item 11

Training & Operations

Classroom training
21 hrs
On-the-job training
0 hrs
POS system
Epicor Software Corporation
Operating tech stack

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

Locked
(952) 808-••••
MN
(218) 945-••••
MN
(320) 685-••••
MN

One-time purchase · CSV download · Validation questions included

FDD download

Do it Best · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above