FranchiseVerdict
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FV-01654·CAUTIONExcellent91

Mobius

Formerly known as Mobi Jack's

Education - Children's ProgramsFranchising since 2023Website
Investment
$1.9M – $4.8M
95th pct Children's Pr…
Avg revenue
$1.7M
52nd pct Children's Pr…
Royalty
7.0%
29th pct Children's Pr…
Units
1
6th pct Children's Pr…
SBA default

Bottom line

  • Total investment $1.9M – $4.8M including a $40K franchise fee, 7.0% ongoing royalty.
  • Average unit revenue of $1.7M/year. Estimated payback in 9.7 years.
  • Rated CAUTION with a risk score of 70/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Mobius Franchising, LLC
Parent company
Mobius Learning Academy, Inc.
Incorporated in
Arkansas
HQ
8313 West Pleasant Grove Road, Bentonville, Arkansas 72713
Auditor
Roos & McNabb CPA's
Audited financials
Franchisor revenue
$0
vs $0 prior year
⚠ Going-concern note
Disclosed in FDD 2026
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Mobius unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,670,977
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $1.9M–$4.8M
Working capital
$
FDD reports $100K–$250K

Unlevered ROIC · per unit

7%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$234K
EBITDA margin
14.0%
Total invested
$3.6M
Payback
182 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Mobius units return on equity?

Edit assumptions

Equity IRR · 5-yr

41.6%

5.69× MOIC

Year-1 DSCR

2.07×

EBITDA ÷ debt service

Equity required

$3.2M

on $11.7M purchase

Total debt

$8.5M

SBA $5.0M + senior + seller note

SBA 7(a) request ($5.8M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Mobius franchisees likely operate a service-based or technology-enabled business model (specific vertical unknown from data provided). Day-to-day operations involve client acquisition, service/product delivery, managing 7% gross sales royalties to franchisor, and maintaining territory compliance within a protected geographic area.

CEO
Kathryn Bartelt
Founded
2023
FDD year
2026
States available
1

Item 7 · what it costs

The Vitals

Total investment
$1.9M – $4.8M
All-in to open one unit
Liquid capital
$100K – $250K
Cash you must have on hand
Franchise fee
$40K
Royalty
7.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical
Payback period
9.7 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.7M
Per unit, per year
Median gross sales
Item 19 type
Company-owned
Sample size
1 units
vs category median 16 · small
Range (low → high)
$1.6M$1.7M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank52th
vs Education - Children's Programs peers
Investment cost rank95th
Lower investment ranks lower (better)
Royalty rate rank29th
Lower royalty = lower percentile (better)
Unit count rank6th
vs Education - Children's Programs peers
Risk score rank85th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
0%
vs corporate-owned
2024
0±0
Franchised units
2025
0
Franchised units
2026
0
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

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

70
Risk · 0-100
CAUTION70 / 100

Mobius presents HIGH RISK due to a nascent single-unit system with unvalidated unit economics, extreme capex variability, and inadequate profitability relative to investment required.

Score breakdown · what drove the 70 / 100 rating

  1. 01MINOROnly 1 unit in system with unknown growth trajectory indicates early-stage/unproven model with no performance benchmarks
  2. 02MINORMassive investment range ($1.9M-$4.8M) suggests highly variable buildout costs and unclear unit economics
  3. 03MINORNet income of $349K represents only 20.9% net margin on $1.67M revenue—below healthy franchise standards and may not justify capex
  4. 04MINORSingle data point makes avg revenue/income metrics statistically meaningless for forecasting franchisee returns
  5. 05MINOR5-year term is short for franchise model; suggests franchisor hasn't committed to long-term partner relationships
  6. 06MEDNo Item 19 financial performance data disclosed (Avg Revenue/Net Income appear franchisee-reported, not FDD-certified)

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius/Boundary
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Arkansas

Item 11

Training & Operations

Classroom training
45 hrs
On-the-job training
23 hrs
POS system
Procare Software
Operating tech stack

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

Locked
(559) 226-••••
UT
(360) 902-••••
UT
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Mobius · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above