Bottom line
- Total investment $387K – $1.9M including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 100 loans (below the industry average).
- System growing at 129.8% CAGR over 3 years with 144 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 HTEAO unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Overview
About
HTEAO franchisees operate [BUSINESS MODEL NOT DISCLOSED IN DATA PROVIDED]. Without disclosed revenue or income metrics, day-to-day operations and profit drivers cannot be reliably characterized. Franchisees pay 6% of gross revenue in royalties to franchisor.
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 · 12 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
Significant transparency gaps combined with going concern status and explosive growth create elevated risk; profitability data absence makes ROI assessment impossible.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to assess profitability or ROI
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability or liquidity issues at franchisor level
- 03MINORWide investment range ($387K–$1.9M spread of 392%) suggests inconsistent unit economics or unclear cost structure
- 04MINORExplosive 39.4% YoY unit growth may indicate aggressive recruitment ahead of sustainable sales infrastructure
- 05MED6% royalty on undisclosed revenue creates unpredictable franchisor cash flow and potential pressure on unit profitability
- 06HIGHNo litigation disclosed but going concern flag suggests potential hidden disputes or regulatory scrutiny
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
76 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HTEAO · FDD (2025) PDF