Bottom line
- Total investment $213K – $582K including a $60K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $820K).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
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 Abe Roofing unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Honest Abe Roofing units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.7M purchase
Total debt
$6.2M
SBA $3.9M + senior + seller note
Overview
About
Franchisees operate residential and commercial roofing service businesses, managing crews, scheduling jobs, handling customer acquisition, and overseeing installation and repair work. Daily operations include job estimation, crew coordination, material procurement, and customer relationship management within their protected territory.
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 · 7 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 Abe Roofing presents caution-level risk due to shrinking franchisee base, undisclosed profitability metrics, pending litigation, and high capital requirements relative to unproven unit economics.
Score breakdown · what drove the 57 / 100 rating
- 01MINORUnit count declining 13.3% YoY (19 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHActive litigation by franchisor against franchisee for breach and abandonment suggests operational or support issues and potential franchisor-franchisee conflict
- 03MEDNet income not disclosed in Item 19 prevents accurate ROI analysis on $212k-$582k investment despite $1.5M average revenue claim
- 04MINORHigh initial investment ($59.5k franchise fee + $212k-$582k total) with 5% royalty creates thin margins if average net income doesn't support breakeven within 2-3 years
- 05MINOR7-year term locks franchisee into relationship amid declining unit performance without clear growth trajectory
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Honest Abe Roofing · FDD (2025) PDF