Hite Digital
Bottom line
- Total investment $57K – $120K including a $50K franchise fee.
- Average unit revenue of $304K/year (median $248K).
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Hite Digital unit return on the cash you put in?
Unlevered ROIC · per unit
49%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hite Digital units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$486K
on $2.4M purchase
Total debt
$1.9M
SBA $1.2M + senior + seller note
Overview
About
Hite Digital franchisees typically provide digital marketing and web services (SEO, social media, web design) to small-to-medium businesses. Day-to-day operations likely involve client acquisition, campaign management, reporting, and service delivery—either solo or with a small team depending on scale. Revenue model appears service-based with recurring client contracts.
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 · 21 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
Hite Digital presents moderate-to-high risk due to missing profitability disclosure, unprotected territory, explosive growth trajectory without transparent unit economics, and high royalty structures that could significantly impair actual franchisee earnings.
Score breakdown · what drove the 56 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to assess actual profitability despite $304k average revenue
- 02MINORUnprotected territory creates direct competition risk; multiple franchisees in same market could cannibalize revenue
- 03MINORExtremely rapid unit growth (275% YoY) suggests either aggressive recruitment or high churn — sustainability unclear with only 16 units
- 04MINORHigh royalty burden (greater of $250/month floor OR 8% of sales) could consume 40-50% of net profits at lower revenue levels
- 05MINORFranchise fee of $49,950 represents 16% of total investment but profitability timeline unknown without Item 19 data
- 06MINORYoung system with minimal operational history; no long-term franchisee retention data available
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
Hite Digital · FDD (2022) PDF