Bottom line
- Total investment $773K – $1.4M including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.5M).
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 6 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 fresh&co unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 fresh&co units return on equity?
Equity IRR · 5-yr
30.0%
3.71× MOIC
Year-1 DSCR
2.69×
EBITDA ÷ debt service
Equity required
$8.5M
on $19.3M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
Overview
About
Fresh&co franchisees operate fast-casual health-focused restaurants (likely salads, bowls, smoothies, or prepared meals) with POS systems and food preparation operations. Day-to-day involves inventory management, food prep, staffing, customer service, and managing 6% royalty payments on all gross sales regardless of profitability.
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 · 18 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
Fresh&co presents elevated risk due to franchisor going concern status, missing profitability data, and rapid expansion that may outpace system support infrastructure.
Score breakdown · what drove the 62 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $2.4M average revenue
- 02HIGHGoing Concern status indicates franchisor financial instability and potential system collapse risk
- 03MINORHigh unit growth rate (33.3% YoY) with only 16 units suggests aggressive expansion outpacing operational maturity
- 04MINORWide investment range ($772K-$1.39M) indicates inconsistent buildout costs or lack of standardization
- 05MINOR6% royalty on gross sales (not net) creates cash flow pressure if margins are thin
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
fresh&co · FDD (2024) PDF