Bottom line
- Total investment $351K – $506K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $3.2M/year.
- Rated MODERATE with a risk score of 60/100.
- 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 Home Frite unit return on the cash you put in?
Unlevered ROIC · per unit
112%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Home Frite units return on equity?
Equity IRR · 5-yr
26.1%
3.18× MOIC
Year-1 DSCR
3.18×
EBITDA ÷ debt service
Equity required
$15.2M
on $28.9M purchase
Total debt
$13.7M
SBA $5.0M + senior + seller note
Overview
About
Home Frite franchisees operate quick-service food establishments (likely Belgian fries/casual dining), managing daily food preparation, customer service, staffing, and POS operations. Core responsibilities include inventory management, food cost control, and local marketing to drive the reported $3.2M average revenue.
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 · 9 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
Single-unit franchise system with undisclosed profitability metrics and high capital requirements creates significant validation and scalability risk.
Score breakdown · what drove the 60 / 100 rating
- 01MINOROnly 1 franchised unit reported — indicates minimal franchise system traction and unproven scalability model
- 02MEDNet income not disclosed in FDD — impossible to validate actual profitability claims against $3.2M average revenue figure
- 03MINORHigh initial investment range ($351K-$505K) relative to single operating unit creates unvalidated ROI expectations
- 04MINOR6% royalty on gross sales (not net) means franchisee pays even during unprofitable months, increasing cash flow risk
- 05MEDNo disclosed growth trajectory — single unit could be stagnant, making franchise expansion projections speculative
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
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Home Frite · FDD (2025) PDF