Bottom line
- Total investment $567K – $1.3M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year. Estimated payback in 2.5 years.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 2 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 KONALA unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 KONALA units return on equity?
Equity IRR · 5-yr
36.4%
4.72× MOIC
Year-1 DSCR
2.26×
EBITDA ÷ debt service
Equity required
$4.6M
on $13.7M purchase
Total debt
$9.1M
SBA $5.0M + senior + seller note
Overview
About
KONALA franchisees likely operate a single-unit or multi-unit retail/food service establishment (specific industry undisclosed). Day-to-day operations include customer-facing service, inventory management, staff oversight, and compliance with brand standards while remitting 6% weekly royalties on net sales.
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 · 20 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
Pre-mature franchise system with only 3 units, unverified financial claims, and insufficient operating history to assess true unit economics or franchisee success rates.
Score breakdown · what drove the 53 / 100 rating
- 01MEDOnly 3 units in system with unknown growth trajectory indicates extremely limited track record and inability to validate scalability
- 02MINORWide investment range ($567k-$1.26M) suggests inconsistent unit economics or lack of standardized buildout costs
- 03MINORNo Item 19 financial performance representations despite $1.7M average revenue claim — financial data cannot be independently verified
- 04MINORMinimal franchisee base (3 units) creates severe survivorship bias risk; inability to assess failure rate or franchisee satisfaction
- 05MINORHigh initial investment relative to system size increases per-unit scrutiny and suggests early-stage franchise with unproven model
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KONALA · FDD (2026) PDF