Bottom line
- Total investment $436K – $854K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $979K/year (median $850K). Estimated payback in 3.2 years.
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 3 years of franchising with 4 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 Facialworks unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Facialworks units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $7.8M purchase
Total debt
$6.3M
SBA $3.9M + senior + seller note
Overview
About
Facialworks franchisees operate skincare treatment centers offering facial services, likely including chemical peels, microdermabrasion, extractions, and retail skincare product sales. Daily operations involve client consultations, treatment delivery, sanitization protocols, inventory management, and sales of premium skincare products to build recurring revenue.
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 · 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
Micro-franchise system with undisclosed growth, unverified financials, and franchisor stability concerns presents elevated risk despite no litigation history.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and unproven expansion model
- 02HIGHGoing Concern status is FALSE — suggests financial instability or uncertainty at franchisor level
- 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if $979k average revenue or $201k net income are achievable
- 04MINORHigh investment range ($435k–$853k) relative to small unit count raises unit economics questions
- 05MINOR6% royalty on gross (not net) means franchisee pays even during unprofitable months
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Facialworks · FDD (2024) PDF