KeyGlee
Bottom line
- Total investment $125K – $274K including a $100K franchise fee.
- Average unit revenue of $24.3M/year. Estimated payback in 0.2 years.
- Rated MODERATE with a risk score of 61/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 KeyGlee unit return on the cash you put in?
Unlevered ROIC · per unit
1441%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 KeyGlee units return on equity?
Equity IRR · 5-yr
21.0%
2.59× MOIC
Year-1 DSCR
4.66×
EBITDA ÷ debt service
Equity required
$147.9M
on $218.4M purchase
Total debt
$70.5M
SBA $5.0M + senior + seller note
Overview
About
KeyGlee franchisees appear to operate music education or performance-related services (based on brand name) serving students or consumers seeking music instruction, lessons, or entertainment. Day-to-day operations likely involve scheduling client sessions, delivering personalized instruction or services, managing student/client relationships, and handling administrative/billing functions.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
KeyGlee presents elevated risk due to explosive unit growth, unprotected territory, high fixed royalty obligations, unclear franchisor viability, and lack of financial performance substantiation.
Score breakdown · what drove the 61 / 100 rating
- 01MINORExtreme unit growth of 278.3% YoY suggests either aggressive recruitment or high churn; unsustainable expansion raises sustainability questions
- 02MINORNo territory protection creates direct competition risk and cannibalization between franchisees in same market
- 03MINORHigh royalty floor of $5,250/month ($63,000 annually) represents 5.5% of average franchise net income, creating significant fixed cost burden
- 04HIGHGoing Concern status FALSE is concerning; unclear if this indicates franchisor financial distress or data error requiring clarification
- 05MEDFranchise fee of $100,000 combined with $124,800-$274,050 total investment is substantial relative to disclosed average net income of $1.13M across all 97 units
- 06MINORItem 19 Financial Performance Representations absent; cannot validate if average revenue/income figures are achievable or representative of typical unit
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
71 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KeyGlee · FDD (2022) PDF