Bottom line
- Total investment $172K – $224K including a $60K franchise fee.
- Average unit revenue of $1.5M/year (median $1.0M).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 280 loans (below the industry average).
- System growing at 60.3% CAGR over 3 years with 388 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 Mighty Dog Roofing unit return on the cash you put in?
Unlevered ROIC · per unit
65%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mighty Dog Roofing units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$890K
on $4.5M purchase
Total debt
$3.6M
SBA $2.2M + senior + seller note
Overview
About
Mighty Dog Roofing franchisees operate residential and commercial roofing repair and installation services in protected territories. Day-to-day activities include managing crews, estimating jobs, coordinating with suppliers, overseeing customer acquisition (often digital marketing), and ensuring quality control across roofing projects. Franchisees typically manage 5-15 employees and handle $1.48M average annual revenue through a combination of direct sales and insurance claim work.
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 · 32 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
Meaningful litigation risk with five pending franchisee rescission claims, absence of earnings disclosure, and modest growth despite 388 units warrant cautious due diligence before commitment.
Score breakdown · what drove the 44 / 100 rating
- 01HIGHNine total litigation actions (4 franchisor-initiated + 5 franchisee rescission claims) indicate material disputes and potential misrepresentation issues
- 02MINORNo Item 19 (Average Net Income) disclosure prevents accurate ROI assessment despite $171.5K-$224K initial investment
- 03MINORFive pending franchisee rescission lawsuits based on misrepresentation allegations suggest systemic disclosure or performance promise problems
- 04MINOR9.6% YoY unit growth is modest for a roofing services franchise; slower growth may indicate market saturation or franchisee dissatisfaction
- 05MINORTiered royalty structure with $500 minimum floor means lower-revenue franchisees pay disproportionately (up to 6% vs promised 2% at scale)
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mighty Dog Roofing · FDD (2026) PDF