Bottom line
- Total investment $272K – $499K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $341K/year (median $309K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 48 loans (below the industry average).
- System growing at 150.0% CAGR over 3 years with 50 total units — strong expansion trajectory.
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 Magnolia Soap and Bath Co. unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Overview
About
Franchisees operate retail bath and soap shops selling artisanal soaps, bath bombs, lotions, and related personal care products. Day-to-day operations include retail floor management, customer service, inventory management, product displays, and local marketing. Most locations are small-format brick-and-mortar or kiosk-style retail spaces.
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 · 15 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
Undisclosed profitability, pending fraud litigation, and going concern status create material uncertainty about unit economics and franchisor stability despite apparent unit growth.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability or accounting issues at franchisor level
- 02HIGHPending litigation from former franchisee alleging fraud and violations of Ohio Business Opportunity Plan Act creates legal/regulatory exposure
- 03MEDNet Income not disclosed in FDD Item 19 — impossible to validate profitability claims against $271,900–$498,500 investment range
- 04MINORPrior IP infringement lawsuit settled for $50,000 (2022) suggests product/branding vulnerability in competitive soap market
- 05MINOR67% YoY unit growth appears strong but only 50 total units indicates small, volatile system susceptible to individual closures
- 06MINOR7% royalty on gross sales with no net income data means true take-home profit is unknowable
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Magnolia Soap and Bath Co. · FDD (2025) PDF