Bottom line
- Total investment $31K – $63K including a $15K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $72K/year (median $84K).
- Rated MODERATE with a risk score of 62/100.
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 IRIS Environmental Laboratories unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 IRIS Environmental Laboratories units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$143K
on $717K purchase
Total debt
$574K
SBA $0.4M + senior + seller note
Overview
About
IRIS Environmental Laboratories franchisees operate testing and environmental compliance services, likely conducting water, soil, air, or industrial sampling/analysis for commercial, municipal, or regulatory clients. Day-to-day activities include client acquisition, field sampling, laboratory analysis (or coordination with third-party labs), report generation, and regulatory compliance documentation.
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 · 7 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
Small, opaque system with undisclosed profitability metrics, escalating royalties, and uncertain growth creates meaningful risk despite protected territory and reasonable franchise fee.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $71,703 average revenue
- 02MINOROnly 10 units system-wide with unknown growth trajectory — insufficient scale and expansion data raises sustainability concerns
- 03MINOREscalating royalty structure (5%-7%) combined with $250-$750 monthly minimums creates cash flow pressure for slower-growth franchisees
- 04MINORLow average revenue ($71,703) relative to $31,300-$62,510 total investment suggests 44-87% first-year payback period assumption with no Item 19 support
- 05HIGHGoing Concern status 'False' suggests potential financial instability or recent restructuring of franchisor operations
- 06MED5-year term with protected territory but minimal unit count indicates limited network support and peer-learning resources
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
9 numbers
One-time purchase · CSV download · Validation questions included
FDD download
IRIS Environmental Laboratories · FDD (2023) PDF