Bottom line
- Total investment $175K – $1.3M including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $658K/year (median $676K).
- Rated STRONG with a risk score of 52/100.
- 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 Ginger Ale's unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Ginger Ale's units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.6M purchase
Total debt
$5.3M
SBA $3.3M + senior + seller note
Overview
About
Ginger Ale's franchisees operate casual beverage-focused food service locations (likely cafés or quick-service restaurants emphasizing ginger ale and complementary food items). Day-to-day operations include inventory management, POS systems, customer service, local marketing, staff scheduling, and compliance with brand standards across menu, décor, and operational procedures.
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 · 3 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
Small, rapidly expanding system with non-disclosed profitability, wide cost variance, and unverified unit economics presents moderate-to-high risk for franchisee cash flow and ROI.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot verify actual profitability despite $657,787 average revenue
- 02MINORExtreme investment range ($174,851–$1,321,627) suggests inconsistent unit economics or high variability in startup costs
- 03MEDAggressive 33.3% YoY unit growth with only 12 total units indicates very small franchise system with limited track record
- 04MINOR5% royalty on gross (not net) revenues reduces margins and creates ongoing cash flow pressure for franchisees
- 05MINORWide revenue dispersion likely — average of $657,787 masks potential underperforming locations
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ginger Ale's · FDD (2025) PDF