Bottom line
- Total investment $97K – $128K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $518K/year. Estimated payback in 0.9 years.
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
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 M14Hoops unit return on the cash you put in?
Unlevered ROIC · per unit
55%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 M14Hoops units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$726K
on $3.6M purchase
Total debt
$2.9M
SBA $1.8M + senior + seller note
Overview
About
M14Hoops franchisees operate indoor basketball facilities or courts (likely youth/adult recreational league play). Day-to-day operations include facility maintenance, scheduling games/leagues, customer service, coaching/instruction, and managing membership or pay-per-play revenue streams.
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 12 · 7 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
7
states with franchisees (per FDD Item 12)
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
Early-stage, hyper-growth franchise with undisclosed financial performance data, questionable franchisor stability, and aggressive fee structure creates significant validation risk despite protected territory.
Score breakdown · what drove the 60 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if average revenue/net income figures are typical or cherry-picked
- 02MINORExtreme unit growth (600% YoY) suggests either rapid expansion or very small base (likely only ~1-2 units existed 12 months ago) — sustainability unclear
- 03HIGHGoing Concern status is FALSE — indicates franchisor may be operating without established financial stability or operational track record
- 04MINORHigh franchise fee ($49,500) relative to 10-unit system size raises questions about franchisor's business model and revenue dependency
- 05MINOR8% royalty on gross (not net) sales is aggressive and leaves little margin for error on $121k average net income across $518k revenue
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
M14Hoops · FDD (2024) PDF