Bottom line
- Total investment $54K – $218K including a $30K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $320K/year (median $320K). Estimated payback in 2.7 years.
- Rated MODERATE with a risk score of 58/100.
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 GROOMBAR unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 GROOMBAR units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$544K
on $2.7M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
Franchisees operate grooming salons providing haircuts, styling, and grooming services for men. Day-to-day operations include managing barber/stylist staff, scheduling appointments, maintaining facility cleanliness and sanitation, ordering supplies, and delivering customer service in a retail environment.
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 · 24 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
Micro-brand with minimal unit count, unverified financial claims, and unproven growth trajectory presents moderate-to-caution risk despite no litigation and protected territory.
Score breakdown · what drove the 58 / 100 rating
- 01MEDOnly 7 units system-wide with no disclosed growth trajectory suggests limited brand traction and market validation
- 02MEDNo Item 19 (Financial Performance Representations) disclosed—cannot independently verify the $320,063 average revenue claim
- 03MINORModest average net income of $50,531 on $320k revenue (15.8% margin) may not justify $53.8k-$218.5k initial investment depending on unit placement
- 04MINORTiered royalty structure (8% down to 5%) incentivizes growth but indicates franchisor may struggle with profitability at lower volumes
- 05MED10-year term is lengthy commitment for a micro-brand with unproven system scalability and limited peer network
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
27 numbers
One-time purchase · CSV download · Validation questions included
FDD download
GROOMBAR · FDD (2025) PDF