iFoam
Formerly known as HPB Foam
Bottom line
- Total investment $172K – $266K including a $15K franchise fee.
- Average unit revenue of $1.4M/year (median $1.2M).
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 136 loans (below the industry average).
- System growing at 196.6% CAGR over 3 years with 90 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 iFoam unit return on the cash you put in?
Unlevered ROIC · per unit
55%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 iFoam units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$815K
on $4.1M purchase
Total debt
$3.3M
SBA $2.0M + senior + seller note
Overview
About
iFoam franchisees operate foam insulation and spray foam application services, providing commercial and residential insulation solutions. Daily operations involve managing spray foam crews, scheduling jobs, sourcing materials, and handling client estimates and project completion.
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 · 22 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
iFoam presents HIGH RISK due to collapsing unit count (-25.9%), active fraud litigation, going concern issues, and lack of financial transparency—avoid unless substantial evidence of turnaround emerges.
Score breakdown · what drove the 64 / 100 rating
- 01MEDSevere unit decline of -25.9% YoY (90 units) signals system deterioration and franchisee dissatisfaction
- 02HIGHGoing Concern = False indicates franchisor may lack financial stability to support franchise operations
- 03HIGHActive fraud/misrepresentation lawsuit from former franchisee combined with internal ownership arbitration suggests governance dysfunction and potential credibility issues
- 04MEDNet income not disclosed despite $1.36M average revenue—lack of transparency on profitability is a major red flag
- 05MEDHigh royalty structure (greater of $3,000/month or $3 per 1,000 population) may be unsustainable given undisclosed margins and shrinking unit base
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
41 numbers
One-time purchase · CSV download · Validation questions included
FDD download
iFoam · FDD (2025) PDF