Bottom line
- Total investment $128K – $429K including a $19K franchise fee, 6.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- System contracting at -9.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Jreck Subs unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees operate submarine sandwich shops selling fresh subs, likely with limited customization. Daily operations include food prep, inventory management, customer service, and point-of-sale handling in a quick-service restaurant model with minimal table service or dine-in complexity.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Jreck Subs presents CAUTION-level risk due to absent financial disclosures, small undocumented unit base, territorial vulnerability, and potential corporate financial stress.
Score breakdown · what drove the 67 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or average unit economics
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level
- 03MEDOnly 28 units system-wide with unknown growth trajectory — suggests limited scale and unproven scalability
- 04MINORZero territory protection — franchisees face direct competition from other Jreck locations and cannibalization risk
- 05MINORWide investment range ($127.5K–$428.5K) without corresponding revenue transparency suggests inconsistent unit performance
- 06MED6.5% royalty on undisclosed revenues creates cash flow uncertainty for franchisees with no baseline expectations
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jreck Subs · FDD (2023) PDF