Bottom line
- Total investment $68K – $170K including a $49K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- System growing at 138.5% CAGR over 3 years with 64 total units — strong expansion trajectory.
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 Grand Welcome unit return on the cash you put in?
Unlevered ROIC · per unit
73%
Above typical band (30–60%)
Overview
About
Grand Welcome appears to operate a service-based franchise model (likely hospitality, property management, or customer service), where franchisees manage day-to-day operations within their protected territory. Without disclosed financials, the specific revenue model, staffing requirements, and operational complexity remain unclear to prospective investors.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
Grand Welcome presents HIGH RISK due to shrinking franchise system (-3.1% YoY), pending litigation, complete absence of financial disclosure, and questionable franchisor financial health—making unit economics impossible to validate before investing $67,750–$169,750.
Score breakdown · what drove the 61 / 100 rating
- 01MINORUnit count declining 3.1% YoY (64 units) signals system contraction and weakening franchisee satisfaction
- 02HIGHMultiple active litigation cases including pending breach of contract action indicate franchisor-franchisee relationship deterioration
- 03MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents validation of unit economics and ROI claims
- 04HIGHGoing concern status is FALSE, suggesting potential financial instability at corporate level
- 05MINORHigh franchise fee ($49,000) combined with unknown profitability creates severe risk-reward imbalance
- 06MED8% royalty on undisclosed net revenue makes it impossible to model break-even or profit scenarios
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
Grand Welcome · FDD (2025) PDF