Bottom line
- Total investment $207K – $369K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $946K/year (median $692K). Estimated payback in 1.4 years.
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 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
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 PURAIR unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 MODERN PURAIR units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.6M purchase
Total debt
$6.1M
SBA $3.8M + senior + seller note
Overview
About
Modern PURAIR franchisees operate commercial and residential air purification service businesses, focusing on installation, maintenance, and monitoring of air quality systems. Franchisees manage customer acquisition, service delivery, equipment maintenance, and recurring subscription revenue models. Day-to-day operations likely involve field service visits, customer support, and inventory management of purification equipment.
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
Litigation-plagued Canadian franchisor with zero visible franchisees, going concern issues, and aggressive fee structure relative to profitability creates high-risk investment profile.
Score breakdown · what drove the 60 / 100 rating
- 01HIGHActive litigation in Canada involving $450,000+ in claims against parent company and CEO regarding breach of contract and misrepresentation
- 02MINORZero reported franchise units with unknown growth trajectory raises questions about system viability and franchisee recruitment/retention
- 03MINORHigh initial investment ($206,930-$368,500) relative to average net income ($211,161) creates thin margin for error with 1-year payback assumption
- 04HIGHGoing Concern status indicates parent company financial distress or operational uncertainty
- 05MINOR7% royalty on $946,465 average revenue ($66,252 annually) plus franchise fee creates high fixed costs against modest net income
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
MODERN PURAIR · FDD (2025) PDF