Bottom line
- Total investment $139K – $554K including a $65K franchise fee.
- Average unit revenue of $2.0M/year (median $1.5M). Estimated payback in 0.8 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- System growing at 23.7% CAGR over 3 years with 49 total units — strong expansion trajectory.
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 FRSTeam unit return on the cash you put in?
Unlevered ROIC · per unit
45%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 FRSTeam units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.1M purchase
Total debt
$4.9M
SBA $3.0M + senior + seller note
Overview
About
FRSTeam franchisees appear to operate field service or mobile service businesses (likely HVAC, plumbing, electrical, or similar trades based on 'Team' branding and service-model economics). Day-to-day operations involve managing technician teams, dispatching to customer locations, managing service calls, handling customer billing, and maintaining fleet/equipment.
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 · 24 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
FRSTeam shows moderate-to-high caution due to undisclosed financial performance data, franchisor going concern status, and lack of clarity on royalty minimums and unit profitability sustainability despite rapid growth.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNo Item 19 Financial Performance Representations disclosed — cannot independently verify claimed $432,786 average net income
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability or viability questions about franchisor operations
- 03MINORHigh unit growth rate (30.6% YoY) may indicate aggressive recruiting masking underlying unit profitability or retention issues
- 04MINORWide investment range ($138,875–$553,500) suggests highly variable startup costs with unclear cost drivers and ROI predictability
- 05MINORMinimum Monthly Royalty structure (greater of 6% or MMR) not specified — could create unpredictable cash flow burden in low-revenue 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
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FRSTeam · FDD (2026) PDF