Bottom line
- Total investment $196K – $319K including a $45K franchise fee.
- Average unit revenue of $718K/year (median $653K).
- Rated MODERATE with a risk score of 57/100.
- System growing at 148.1% CAGR over 3 years with 89 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 DRYMEDIC unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 DRYMEDIC units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$431K
on $2.2M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
Overview
About
DRYMEDIC franchisees operate emergency water mitigation and restoration services, responding to water damage claims through insurance partnerships. Day-to-day work includes equipment deployment, moisture remediation, contents restoration, and reconstruction project management. Revenue streams come from insurance claims (tiered royalties) and direct customer reconstruction work (lower royalty rate).
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 12 · 21 states 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.
21
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
Rapidly scaling franchise with non-disclosed unit profitability, high cost structure, and aggressive growth that may mask weak franchisee economics.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to verify $717,860 avg revenue translates to viable unit economics
- 02MINORExplosive 55.8% YoY unit growth (likely from low base of ~57 units) suggests aggressive recruitment; high churn risk in immature system
- 03MINORTiered royalty structure (7%→6%→5% + 3% reconstruction) with $900-$2,625/mo minimum creates complexity; franchisees earning <$150k annually may struggle with profitability
- 04MEDHigh initial investment ($196k–$319k) relative to disclosed average revenue ($717k) implies 3-4 year payback before accounting for operating expenses
- 05HIGHGoing Concern flag is FALSE but lack of Item 19 profitability data prevents stress-testing unit viability through economic downturns
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
DRYMEDIC · FDD (2025) PDF