Bottom line
- Total investment $185K – $337K including a $60K franchise fee.
- Average unit revenue of $160K/year (median $124K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 78 loans (below the industry average).
- System growing at 787.5% CAGR over 3 years with 144 total units — strong expansion trajectory.
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 DonutNV unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 DonutNV units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$224K
on $1.1M purchase
Total debt
$894K
SBA $0.6M + senior + seller note
Overview
About
DonutNV franchisees operate quick-service donut shops, managing daily production, retail counter sales, staffing, and inventory. Operations typically include early-morning production shifts, customer service during peak breakfast/coffee hours, and point-of-sale management in street-level or mall locations.
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 · 29 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
DonutNV presents elevated risk due to undisclosed profitability metrics, going concern warning, aggressive expansion without validated unit economics, and high capital requirements relative to disclosed revenue.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $159,707 average revenue
- 02HIGHGoing concern status is FALSE — indicates franchisor financial stability uncertainty or structural issues
- 03MINORHigh initial investment ($184,930–$337,250) with fixed $750/month royalty regardless of sales performance creates cash flow risk
- 04MINORAggressive unit growth (44.9% YoY) may indicate oversaturation, unsustainable recruitment, or poor unit retention masking closures
- 05MINORFranchise fee ($59,500) represents 32% of minimum investment — high upfront cost relative to startup capital
- 06MINORProtected territory claims lack specificity — no data on territory size, population density, or exclusivity enforcement
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
DonutNV · FDD (2025) PDF