Bottom line
- Total investment $190K – $406K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $293K/year (median $295K). Estimated payback in 4.8 years.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
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 Flour Power unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Flour Power units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$352K
on $1.8M purchase
Total debt
$1.4M
SBA $0.9M + senior + seller note
Overview
About
Flour Power franchisees operate bakery/café concepts focused on flour-based products (baked goods, pastries, possibly prepared foods). Day-to-day operations include baking, food preparation, customer service, inventory management, and point-of-sale transactions in a retail storefront environment.
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 · 8 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
A small, stagnant franchise system with undisclosed going concern issues, vague unit economics, and no financial performance substantiation presents elevated risk despite protected territory and no litigation.
Score breakdown · what drove the 56 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may have financial/operational viability issues
- 02MINOROnly 16 units system-wide with unknown growth trajectory suggests stagnation or contraction
- 03MINORWide investment range ($189,900–$406,000) indicates inconsistent unit economics or lack of standardization
- 04MINORMinimum royalty of $325/week ($16,900 annually) creates fixed cost burden even for underperforming locations
- 05MINORNo Item 19 financial performance disclosure limits ability to validate the $62,178 avg net income claim
- 06MINORHigh royalty rate (8%) combined with minimum adds significant overhead pressure on $62K net income
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Flour Power · FDD (2024) PDF