Bottom line
- Total investment $79K – $427K including a $35K franchise fee.
- Average unit revenue of $402K/year (median $320K).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 68 loans (below the industry average).
- 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 iCode unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 iCode units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$642K
on $3.2M purchase
Total debt
$2.6M
SBA $1.6M + senior + seller note
Overview
About
iCode franchisees operate coding and STEM education centers serving K-12 students through two program models: School-based programs (in-school instruction) and Reach locations (standalone centers). Day-to-day operations include instructor hiring/training, curriculum delivery, student enrollment management, parent communications, and facility management.
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 · 26 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
iCode presents moderate-to-cautionary risk due to undisclosed profitability metrics, prior litigation over misrepresentation, high royalty rates, and a still-small franchise system with rapid but unproven growth trajectory.
Score breakdown · what drove the 42 / 100 rating
- 01MINORNo average net income disclosure despite $401,554 average revenue—prevents ROI validation and suggests profitability concerns
- 02HIGH2022 litigation alleging deceptive trade practices and misrepresentation of construction costs indicates potential disclosure issues in FDD
- 03MEDHigh royalty burden (8-12% of gross sales plus $250-$800 monthly minimums) creates thin margin vulnerability, especially if net income is undisclosed for a reason
- 04MEDStrong YoY growth (51.7%) is positive but unit base remains small (46 units)—limited scale and potential survival risk if growth stalls
- 05MINORDual program structure (School vs. Reach) with different royalty rates suggests complexity that may not be clearly explained to new franchisees
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
69 numbers
One-time purchase · CSV download · Validation questions included
FDD download
iCode · FDD (2024) PDF