Bottom line
- Total investment $330K – $680K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $233K/year (median $233K). Estimated payback in 9.0 years.
- Rated CAUTION with a risk score of 74/100.
- Emerging franchise — only 2 years of franchising with 13 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Gradum Gswing unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Gradum Gswing units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$280K
on $1.4M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
Gradum Gswing appears to be a golf swing analysis/instruction franchise where franchisees operate or staff golf instruction centers using proprietary swing analysis technology. Day-to-day operations likely include client golf lessons, swing analysis sessions, retail sales of golf equipment/apparel, and facility management.
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 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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
Gradum Gswing presents HIGH RISK due to franchisor going concern issues, active litigation, tiny unit count with opaque growth, and questionable unit economics relative to investment size.
Score breakdown · what drove the 74 / 100 rating
- 01HIGHGoing Concern status is False — indicates financial distress or viability concerns at franchisor level
- 02HIGHActive litigation against former franchisee for IP/confidentiality violations suggests operational or enforcement issues
- 03MINOROnly 13 units system-wide with unknown growth trajectory — unable to verify expansion momentum or franchisee success sustainability
- 04MINORNet income of $55,933 on $233,082 revenue (24% net margin) appears optimistic given 8% royalty + operating costs; no Item 19 financial performance representations provided
- 05MINORHigh investment range ($330K-$680K) combined with modest average revenue creates extended breakeven risk
- 06MINOR20-year term locks franchisees into relationship with a franchisor showing financial weakness
- 07MINORLack of transparent unit growth data suggests possible system contraction or underperformance being obscured
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Gradum Gswing · FDD (2024) PDF