Bottom line
- Total investment $196K – $256K including a $60K franchise fee.
- Average unit revenue of $1.1M/year (median $884K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 90 loans (below the industry average).
- 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 Gatsby Glass unit return on the cash you put in?
Unlevered ROIC · per unit
62%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Gatsby Glass 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 $7.9M purchase
Total debt
$6.3M
SBA $4.0M + senior + seller note
Overview
About
Gatsby Glass franchisees operate retail glass and glazing shops specializing in custom glass products, storefront installation, and related services. Daily operations include customer sales, glass cutting/fabrication, installation project management, and crew supervision. The business model relies on local commercial and residential demand for custom glass solutions.
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 · 23 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
Gatsby Glass presents meaningful investment risk due to contracting unit base, unresolved parent company litigation, and absent profitability disclosures despite substantial franchise fees.
Score breakdown · what drove the 44 / 100 rating
- 01MEDUnit count declined 12% YoY (94 units, 88% retention) indicating system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation involving parent company ownership/governance raises questions about franchisor stability and leadership direction
- 03MEDNet income not disclosed in FDD Item 19 makes ROI impossible to verify; only average revenue of $1.13M provided without profitability context
- 04MEDHigh initial investment ($195k-$256k) combined with undisclosed net income creates significant financial risk for franchisees
- 05MINORMinimum royalty fee of $500/month ($6,000 annually) creates cash flow pressure for struggling locations, especially in early years
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
47 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Gatsby Glass · FDD (2025) PDF