Bottom line
- Total investment $119K – $260K including a $33K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $4.2M/year (median $1.8M).
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 47 loans (below the industry average).
- System growing at 41.7% CAGR over 3 years with 169 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 MISTER SPARKY unit return on the cash you put in?
Unlevered ROIC · per unit
205%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 MISTER SPARKY units return on equity?
Equity IRR · 5-yr
30.2%
3.74× MOIC
Year-1 DSCR
2.67×
EBITDA ÷ debt service
Equity required
$8.3M
on $19.0M purchase
Total debt
$10.7M
SBA $5.0M + senior + seller note
Overview
About
Mister Sparky franchisees operate as electrical service providers, handling residential and commercial electrical repairs, installations, and maintenance. Day-to-day operations include dispatching service calls, managing field technicians, customer billing/collections, and territory marketing to build recurring revenue from service agreements.
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 · 23 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
Mister Sparky presents moderate-to-cautionary risk due to missing profitability disclosures, ongoing litigation suggesting compliance issues, and an aggressive royalty floor that may pressure unit economics for smaller territories.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate ROI claims or compare to $119k-$260k investment
- 02HIGHActive litigation for sales underreporting suggests franchisor-franchisee monitoring gaps and potential revenue manipulation issues
- 03HIGHFour total litigation cases (1 pending, 3 concluded) involving trademark misuse, non-compete violations, and collections indicate systemic compliance problems
- 04MINORRoyalty structure creates perverse incentive: $1,500/month minimum means franchisees earning <$300k gross revenue pay higher effective royalty rate (6%+)
- 05MINOR18.1% YoY unit growth appears healthy but lacks context — cannot determine if units are closing or just slower additions; no disclosure of unit closures/failures
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
72 numbers
One-time purchase · CSV download · Validation questions included
FDD download
MISTER SPARKY · FDD (2024) PDF