Bottom line
- Total investment $211K – $326K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $440K/year.
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 2 years 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 House of Core unit return on the cash you put in?
Unlevered ROIC · per unit
44%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 House of Core units return on equity?
Equity IRR · 5-yr
44.4%
6.27× MOIC
Year-1 DSCR
1.99×
EBITDA ÷ debt service
Equity required
$2.7M
on $11.0M purchase
Total debt
$8.3M
SBA $5.0M + senior + seller note
Overview
About
House of Core appears to be a boutique fitness or wellness studio (likely core/pilates-based given the name) where franchisees operate a membership-driven fitness facility. Day-to-day operations likely include class instruction, member management, facility maintenance, marketing, and staff supervision in a studio environment.
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 · 5 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
High-risk opportunity with critical transparency gaps: a single-unit system, undisclosed profitability, franchisor going concern issues, and escalating royalties create substantial uncertainty about franchisee ROI and franchisor stability.
Score breakdown · what drove the 63 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may have financial viability issues or undisclosed structural problems
- 02MEDNet Income not disclosed — inability to assess actual profitability despite $439K average revenue; royalty escalation to 9% by year 6 could compress margins significantly
- 03MEDOnly 1 unit in system — suggests either brand is brand new, failed to scale, or data is incomplete; impossible to validate growth trajectory or system health
- 04MINORRoyalty structure escalates 80% (5% to 9%) — franchisee profitability deteriorates materially in years 4-6, creating retention/sustainability risk
- 05HIGHNo litigation disclosed but Going Concern is FALSE — suggests potential undisclosed disputes, regulatory issues, or franchisor financial stress
- 06MINORUnknown unit growth — no historical AUV trends, no disclosure of openings/closures; cannot assess market viability
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
House of Core · FDD (2025) PDF