Bottom line
- Total investment $298K – $603K including a $50K franchise fee.
- Average unit revenue of $415K/year (median $479K). Estimated payback in 8.0 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 42 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 MADABOLIC unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 MADABOLIC units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.8M purchase
Total debt
$7.8M
SBA $4.9M + senior + seller note
Overview
About
MADABOLIC operates fitness/wellness studios (likely boutique fitness concept based on branding) where franchisees manage day-to-day class scheduling, member retention, trainer/staff management, facility maintenance, and retail/supplement sales. Revenue is primarily membership fees and class packages, with ancillary income from personal training, merchandise, and nutritional products.
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 · 8 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
Leadership with documented litigation history involving fraud allegations and regulatory violations, combined with unprotected territory, marginal unit economics, and going concern status, creates material risk of underperformance and franchisor instability.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHCEO has pattern of litigation across multiple ventures (2015 mortgage crisis civil action, 2020 Zippy Shell arbitration for fraudulent induction and territory breach, 2023 Washington State unregistered broker consent orders)
- 02MINORNo protected territory despite high initial investment ($297.5K-$602.5K) and royalty floor of $1,500/month creating direct competition risk
- 03MINORSmall system size (30 units) with modest YoY growth (22.7%) limits brand recognition, supplier leverage, and franchisee support infrastructure
- 04MINORProfitability concern: average net income of $56,272 on $415,149 revenue (13.5% net margin) barely exceeds $18,000 annual royalty obligation, leaving minimal buffer for operational variability
- 05HIGHGoing concern notation suggests financial instability at franchisor level, potentially impacting support, marketing, and system viability
- 06MINORZippy Shell arbitration pattern suggests CEO may repeat territorial/inducement issues in current franchise system
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
51 numbers
One-time purchase · CSV download · Validation questions included
FDD download
MADABOLIC · FDD (2024) PDF