Milky
Bottom line
- Total investment $208K – $400K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Milky unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Overview
About
Milky appears to be a dairy or milk-based beverage/product concept where franchisees operate retail locations. Day-to-day operations likely involve product preparation, customer service, inventory management, and point-of-sale transactions, though specific operational details are unavailable due to the brand's early stage.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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
This is a pre-revenue franchise system with going concern issues, zero operating units, undisclosed unit economics, and unproven business model—representing extreme risk unsuitable for most investors.
Score breakdown · what drove the 75 / 100 rating
- 01HIGHGoing concern warning indicates material doubt about franchisor's ability to continue operations
- 02MINORZero existing franchise units means no proven system, no reference franchisees, and unvalidated business model
- 03MEDNo disclosed average revenue or net income prevents ROI analysis and suggests franchisor cannot demonstrate unit economics
- 04MINORUnprotected territory creates direct competition risk between franchisees in same market
- 05MINORHigh initial investment ($207,500–$399,500) combined with 6% royalty creates significant break-even pressure with unknown profitability
- 06MINOR5-year term is shorter than industry standard (typically 10 years), limiting ability to recoup investment
- 07MINORFranchise fee ($35,000) appears low relative to total investment, suggesting thin franchisor capitalization
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Milky · FDD (2025) PDF