Bottom line
- Total investment $1.9M – $2.7M including a $25K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 29.0% CAGR over 3 years with 40 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 Honest unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
Honest franchisees operate wellness, lifestyle, or consumer goods retail locations (exact business model unclear from available data). Daily operations likely include inventory management, point-of-sale transactions, customer service, marketing execution, and compliance with franchisor brand standards and reporting requirements.
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 · 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
Honest presents moderate-to-high risk due to lack of financial transparency (no Item 19 data), small/slow-growing unit base, unprotected territory, and recent franchisor litigation against a franchisee.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed (average revenue and net income not provided) — impossible to assess profitability and ROI on $1.86M-$2.69M investment
- 02HIGHActive litigation against franchisee in May 2024 for breach of restrictive covenants suggests enforcement challenges and potential disputes over post-termination obligations
- 03MEDSlow unit growth of only 11.1% YoY with only 40 units total indicates limited brand momentum and market traction
- 04MINORUnprotected territory creates direct competition risk — franchisor can place additional units in your market without compensation
- 05MED5.5% royalty on undisclosed revenues creates uncertainty about actual net profitability after fees and operating costs
- 06MEDHigh initial investment ($1.86M-$2.69M) relative to small franchise system size and growth rate suggests limited economies of scale
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
49 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Honest · FDD (2025) PDF