Bottom line
- Total investment $85K – $145K including a $47K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 KLAPPENBERGER & SON unit return on the cash you put in?
Unlevered ROIC · per unit
53%
In Yale's "attractive" band (30–60%)
Overview
About
Klappenberger & Son franchisees likely operate a service or product-based business (specific category unclear from data provided). Daily operations presumably involve customer service delivery, inventory management if applicable, and local market sales activities under the Klappenberger brand.
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 20 · 3 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
A declining 11-unit franchise system with undisclosed financial performance, going concern warnings, and aggressive fee structure presents substantial risk of franchisee failure and franchisor collapse.
Score breakdown · what drove the 72 / 100 rating
- 01MINORDeclining unit count: 11 total units with -10% YoY contraction indicates system shrinkage and potential market viability issues
- 02MEDNo financial disclosure: Average revenue and net income not disclosed in Item 19, preventing franchisee ROI validation and earnings claims substantiation
- 03HIGHGoing concern status is FALSE: Suggests financial instability at franchisor level, raising questions about support, marketing fund solvency, and long-term viability
- 04MEDHigh initial franchise fee relative to unit count: $47,000 franchise fee with only 11 units indicates limited brand recognition and smaller support infrastructure
- 05MINORTiered royalty structure creates misaligned incentives: Lower 4% rate only applies above $1M revenue—a threshold most failing franchisees may never reach
- 06MEDExtended 10-year term locks franchisees into struggling system with limited exit flexibility
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
7 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KLAPPENBERGER & SON · FDD (2026) PDF