Bottom line
- Total investment $119K – $198K including a $65K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $568K/year (median $544K).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Kitchen Wise unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Kitchen Wise units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$454K
on $2.3M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
Kitchen Wise franchisees operate kitchen remodeling and cabinet refacing services, managing project sales, client consultations, scheduling installations, and customer service. Day-to-day operations likely involve direct service delivery, crew management, materials procurement, and local marketing to residential clientele.
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 · 14 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
Kitchen Wise presents high risk due to rapidly contracting franchise network (-12.5% YoY), extensive litigation involving franchisor and affiliated entities, undisclosed unit economics, and going concern status—suggesting systemic operational/legal challenges and questionable franchisor stability.
Score breakdown · what drove the 59 / 100 rating
- 01MEDSystem contracting sharply: 8 units with -12.5% YoY decline indicates deteriorating franchisee success and retention
- 02HIGHSignificant litigation exposure: Multiple disclosed actions including fraud allegations, breach of contract, and trade secret misappropriation across franchisor and affiliated brands suggests systemic legal/operational issues
- 03MEDNet income not disclosed: Absence of Item 19 financial performance representation prevents verification that $568K average revenue translates to viable unit-level profitability
- 04MINORHigh minimum royalty burden: $150/week ($7,800/year) creates fixed cost floor that may be unsustainable for struggling units in declining system
- 05HIGHGoing concern status: Franchisor flagged as going concern raises questions about long-term viability, support infrastructure, and brand investment
- 06MINORHigh initial investment relative to system size: $119K-$198K franchise fee in 8-unit system with no profitability data creates significant downside risk
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Kitchen Wise · FDD (2025) PDF