Bottom line
- Total investment $116K – $241K including a $50K franchise fee.
- Average unit revenue of $698K/year (median $418K). Estimated payback in 1.0 years.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- System growing at 26.1% CAGR over 3 years with 58 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 Keyrenter Property Management unit return on the cash you put in?
Unlevered ROIC · per unit
50%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Keyrenter Property Management units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.3M purchase
Total debt
$5.0M
SBA $3.1M + senior + seller note
Overview
About
Keyrenter franchisees operate property management businesses serving residential landlords and property owners. Day-to-day operations include tenant acquisition and screening, lease administration, rent collection, maintenance coordination, accounting/financial reporting, and tenant dispute resolution. Franchisees generate revenue through management fees (typically 8-12% of monthly rents collected) and ancillary services, building a local client portfolio within their 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 · 24 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
Keyrenter presents moderate-to-cautionary risk due to active fraud/breach litigation, unprotected territory enabling cannibalization, slow unit growth relative to system size, and high fee burden on modest profitability metrics.
Score breakdown · what drove the 47 / 100 rating
- 01HIGHActive litigation alleging fraud and breach of contract involving customer claims against franchisee operations raises quality control and liability concerns
- 02MINORNo protected territory creates direct competition risk and potential for system cannibalization as the 58-unit network grows
- 03MINORModest unit growth (7.4% YoY) combined with only 58 total units suggests slower expansion than typical high-performing franchises, questioning market demand
- 04MINORHigh royalty structure (up to 7% of gross revenue) combined with franchise fee ($50k) and startup costs ($116-241k) creates significant break-even pressure on average net income of $177k
- 05MINORNo Item 19 financial performance representation limits ability to validate claimed average revenue ($697k) and net income figures independently
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
67 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Keyrenter Property Management · FDD (2025) PDF