Bottom line
- Total investment $258K – $674K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.1M).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 50 loans (below the industry average).
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 Grain & Berry unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Grain & Berry units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$927K
on $4.6M purchase
Total debt
$3.7M
SBA $2.3M + senior + seller note
Overview
About
Franchisees operate fast-casual, health-focused food concepts (likely acai bowls, smoothies, grain-based dishes) in retail/high-traffic locations, managing daily POS operations, staff, inventory, and customer service. Day-to-day responsibilities include food prep oversight, labor scheduling, marketing execution, and P&L management across a standardized menu.
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 · 6 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
Grain & Berry shows growth momentum but lacks transparent profitability disclosure and exhibits concerning corporate financial reporting gaps that warrant deep validation before investment.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNet Income not disclosed in Item 19 — unable to validate profitability claims against $1.16M average revenue
- 02MINORWide investment range ($258K–$673.5K) suggests high variability in unit economics and startup costs
- 03MINORRapid 40% YoY unit growth may indicate aggressive recruitment outpacing sustainable unit performance
- 04HIGHNo 'Going Concern' statement filed — potential financial stability questions at corporate level
- 05MED6% royalty on undisclosed net income creates opacity around actual franchisee take-home profitability
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Grain & Berry · FDD (2024) PDF