Frank & Furter’s
Bottom line
- Total investment $351K – $875K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $642K/year (median $729K).
- Rated MODERATE with a risk score of 60/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Frank & Furter’s unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Frank & Furter’s units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.5M purchase
Total debt
$4.4M
SBA $2.7M + senior + seller note
Overview
About
Frank & Furter's franchisees operate casual dining or food service establishments (likely hot dog/specialty sausage-focused given the brand name) serving customers directly, managing inventory, staff, food preparation, and day-to-day operations. Franchisees are responsible for local marketing, customer service, and maintaining brand standards across their protected territory.
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 · 7 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
Micro-franchise with opaque profitability data, unclear unit growth, and limited operating history—suitable only for investors who can validate earnings independently with existing franchisees.
Score breakdown · what drove the 60 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and potentially stagnant or shrinking franchise
- 02MEDNet income not disclosed in FDD Item 19 prevents validation of profitability claims and actual franchisee earnings
- 03MINORWide investment range ($351k-$874k) indicates high variability in startup costs with unclear cost drivers
- 04MED6% royalty on net sales is relatively high given small system size and limited corporate support infrastructure
- 05HIGHNo disclosed litigation history combined with only 3 units raises questions about transparency and potential undisclosed disputes
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
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Frank & Furter’s · FDD (2025) PDF