Bottom line
- Total investment $73K – $112K including a $55K franchise fee.
- Average unit revenue of $951K/year (median $857K). Estimated payback in 0.4 years.
- Rated STRONG with a risk score of 37/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- System growing at 633.3% CAGR over 3 years with 44 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 Ideal Siding unit return on the cash you put in?
Unlevered ROIC · per unit
93%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Ideal Siding units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$951K
on $4.8M purchase
Total debt
$3.8M
SBA $2.4M + senior + seller note
Overview
About
Ideal Siding franchisees operate residential siding installation and replacement businesses, managing sales, customer acquisition, project estimation, and installation teams. Day-to-day activities include customer consultations, material sourcing, crew scheduling, and quality control on home exterior projects across a 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 · 18 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
Moderate-to-caution risk: Rapid expansion, regulatory history, opaque royalty minimums, and lack of earnings substantiation require deep validation with current franchisees before commitment.
Score breakdown · what drove the 37 / 100 rating
- 01MINORSecurities compliance violation in Washington (2022) indicates regulatory oversight gaps and potential franchisee protection issues in other states
- 02MINORRoyalty structure with undefined 'Minimum Royalty' starting month 7 lacks transparency—actual costs to franchisees unclear
- 03MINOR144% YoY unit growth is unsustainably high and suggests aggressive recruitment over retention; typical healthy growth is 10-20% YoY
- 04MINORAverage net income of $232K on $950K revenue (24.4% margin) appears inflated—likely skewed by top performers; median data not provided
- 05MINORNo Item 19 (financial performance representations) available—franchisor provides no substantiated earnings claims to validate FDD averages
- 06MED44-unit system is small; limited franchisee network for due diligence and higher franchisor dependency risk
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
37 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ideal Siding · FDD (2025) PDF