Bottom line
- Total investment $63K – $87K including a $40K franchise fee.
- Average unit revenue of $319K/year. Estimated payback in 0.5 years.
- Rated MODERATE with a risk score of 57/100.
- Emerging franchise — only 3 years of franchising with 34 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Exit Factor unit return on the cash you put in?
Unlevered ROIC · per unit
52%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Exit Factor units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$447K
on $2.2M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
Exit Factor franchisees operate real estate marketing and signage businesses, likely providing exit-focused branding, directional signage, and property visibility solutions for commercial real estate transactions. Day-to-day operations typically involve client acquisition/retention, sign production/installation, account management, and fulfilling performance guarantees tied to real estate exit velocity metrics.
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 · 16 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Exit Factor operates under a parent company with active litigation history involving misrepresentations and regulatory violations, lacks earnings substantiation, shows no unit growth momentum, and imposes aggressive minimum royalties that constrain profitability in a stagnant system.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHParent company UFG and affiliated brands (Signarama, TGG, GCZ) involved in multiple litigation cases regarding registration violations and improper financial performance representations, suggesting systemic compliance issues
- 02MEDNo Item 19 financial performance representation disclosed despite average net income of $160,456.76 — inability or unwillingness to substantiate claimed earnings raises credibility concerns
- 03MEDStagnant unit count at 34 with unknown growth trajectory and no disclosed expansion rate — typical healthy franchises show 10-20% annual growth
- 04MINORMinimum royalty floor of $300-$900/month ($3,600-$10,800 annually) creates break-even pressure on lower-performing locations and restricts profit margins
- 05MINORRelatively low initial investment ($62,845-$86,995) paired with high average claimed net income ($160,456.76) suggests either selective reporting or unrealistic performance expectations
- 06HIGH35-year term is unusually long and locks franchisees into relationship with litigation-prone franchisor with demonstrated regulatory compliance failures
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Exit Factor · FDD (2025) PDF