MidnighTreats
Bottom line
- Total investment $133K – $296K including a $30K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $485K/year (median $485K).
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 2 years of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
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 MidnighTreats unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 MidnighTreats units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$291K
on $1.5M purchase
Total debt
$1.2M
SBA $0.7M + senior + seller note
Overview
About
MidnighTreats franchisees operate late-night food/beverage retail locations (likely desserts, snacks, or specialty treats based on brand name). Day-to-day operations include inventory management, customer service, food preparation or assembly, point-of-sale management, and evening/night shift staffing to serve the late-night market segment.
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 · 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
MidnighTreats presents elevated risk due to franchisor financial distress (going concern status), non-disclosure of profitability data, minimal system size, and questionable unit economics relative to investment required.
Score breakdown · what drove the 63 / 100 rating
- 01HIGHGoing concern status is False — indicates potential financial instability at franchisor level
- 02MEDNet income deliberately not disclosed in Item 19 — prevents accurate ROI analysis and suggests underperformance
- 03MEDOnly 4 units in system with 50% YoY growth — extremely small and unproven franchise model with limited track record
- 04MINORHigh investment range ($132,900–$296,000) relative to only $484,675 average revenue creates unfavorable payback period
- 05MINOR7% royalty on gross sales is standard but painful on thin margins when net income is hidden
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
MidnighTreats · FDD (2026) PDF