Bottom line
- Total investment $462K – $1.7M including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year. Estimated payback in 6.4 years.
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 1 year of franchising with 1 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 grown unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 grown units return on equity?
Equity IRR · 5-yr
35.4%
4.55× MOIC
Year-1 DSCR
2.31×
EBITDA ÷ debt service
Equity required
$5.0M
on $14.2M purchase
Total debt
$9.3M
SBA $5.0M + senior + seller note
Overview
About
Grown franchisees appear to operate a wellness, agriculture, or consumer goods business model (specific vertical unclear from data provided). Day-to-day responsibilities likely involve operations management, customer acquisition, and brand compliance, though with only one reference location, the operational playbook and scalability remain unvalidated.
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
Grown is a nascent or troubled franchise system with only one operating unit, going concern status, and unproven business model replicability—extremely high execution risk despite no litigation history.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 1 operating unit creates impossible validation baseline and suggests either brand failure or extremely early stage with no proven system replicability
- 02HIGHGoing Concern status (False) indicates franchisor financial distress or operational uncertainty despite disclosing average revenue of $1.78M
- 03MINORWide investment range ($461.5K–$1.66M) suggests unclear unit economics and inconsistent build-out costs across locations
- 04MINOR9.3% net margin (165K net on 1.78M revenue) is thin for a franchise system, leaving minimal buffer for 6% royalties and franchisee profitability
- 05MINORSingle unit makes the 'average' revenue and net income figures statistically meaningless and potentially misleading for projections
- 06MINORUnknown growth trajectory with only one unit indicates zero demonstrated multi-unit expansion capability
- 07MINORFranchise fee of $49.5K is low relative to total investment, suggesting franchisor may rely heavily on royalties from struggling franchisees
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
grown · FDD (2025) PDF