Bottom line
- Total investment $505K – $898K including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $4.6M/year (median $3.6M).
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 52 loans (below the industry average).
- System contracting at -5.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Generator Supercenter unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Generator Supercenter units return on equity?
Equity IRR · 5-yr
36.1%
4.68× MOIC
Year-1 DSCR
2.27×
EBITDA ÷ debt service
Equity required
$4.7M
on $13.8M purchase
Total debt
$9.2M
SBA $5.0M + senior + seller note
Overview
About
Generator Supercenter franchisees operate retail locations selling portable and stationary generators, with revenue streams from direct sales, installation services, maintenance contracts, and parts sales. Day-to-day operations involve managing inventory, conducting customer installations, performing equipment repairs, and managing service call scheduling across a 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 · 25 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
Generator Supercenter presents HIGH RISK due to contracting franchise network (-11.5% YoY), concealed profitability metrics, active litigation involving breach of franchise agreements, and a financially unstable franchisor—making unit economics and franchisee success rates impossible to validate.
Score breakdown · what drove the 56 / 100 rating
- 01MINORUnit count declining 11.5% YoY (65 units) indicates system contraction and potential franchisee dissatisfaction
- 02MINORNo Item 19 (Average Unit Volume) disclosure despite $4.6M average revenue suggests franchisor hiding profitability data
- 03HIGHActive litigation for breach of franchise agreements and trade secret misappropriation signals operational/legal conflicts
- 04MINORPrior settled trademark/unfair competition case indicates history of disputes with franchisees
- 05MEDHigh royalty burden (4-6% + $2,000 minimum monthly) on undisclosed net income creates cash flow uncertainty
- 06MEDInvestment range of $504K-$898K is substantial with no disclosed average unit profitability to justify ROI
- 07HIGH'Going Concern' marked false suggests potential financial instability in franchisor operations
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
66 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Generator Supercenter · FDD (2026) PDF