Modern Market Eatery
Bottom line
- Total investment $929K – $1.5M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.2M/year (median $2.1M). Estimated payback in 6.6 years.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Modern Market Eatery unit return on the cash you put in?
Unlevered ROIC · per unit
31%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Modern Market Eatery units return on equity?
Equity IRR · 5-yr
28.3%
3.47× MOIC
Year-1 DSCR
2.87×
EBITDA ÷ debt service
Equity required
$10.6M
on $22.3M purchase
Total debt
$11.7M
SBA $5.0M + senior + seller note
Overview
About
Modern Market Eatery franchisees operate health-focused fast-casual restaurants serving customizable bowls, salads, and nutritious prepared meals. Day-to-day operations include managing kitchen production, coordinating with suppliers, staffing front-of-house and back-of-house teams, inventory management, and marketing to drive local traffic in their protected territory.
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 · 14 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
Modern Market Eatery presents CAUTION-level risk: a micro-franchise system with undisclosed unit performance data, franchisor financial uncertainty, and high capital requirements relative to reported profitability.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 (financial performance representations) disclosed - cannot verify if $180,499 average net income is achievable or typical
- 02MINOROnly 26 units with unknown growth trajectory - extremely small system raises sustainability and support infrastructure concerns
- 03HIGHGoing Concern status is False - suggests potential financial instability at franchisor level
- 04MEDHigh initial investment ($928.5K-$1.47M) relative to disclosed net income (8-19% ROI) creates extended payback period risk
- 05MED5% royalty plus operating costs in QSR sector could compress margins below disclosed averages
- 06HIGHNo disclosed litigation but small unit count and lack of financial transparency limits due diligence confidence
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
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Modern Market Eatery · FDD (2024) PDF