Bottom line
- Total investment $65K – $76K including a $60K franchise fee.
- Average unit revenue of $686K/year (median $649K). Estimated payback in 0.4 years.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 57 loans (below the industry average).
- System contracting at -23.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Money Mailer unit return on the cash you put in?
Unlevered ROIC · per unit
154%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Money Mailer units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.5M purchase
Total debt
$5.2M
SBA $3.3M + senior + seller note
Overview
About
Money Mailer franchisees operate direct mail marketing businesses, selling targeted mailing services to local small businesses (restaurants, retail, services). Day-to-day involves sales prospecting, managing client databases, coordinating with printers/postal services, and fulfilling shared mailings across their assigned zone at capped royalty rates.
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 · 9 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
Contracting system with litigation history, no territory protection, questionable going concern status, and unverified financial claims present material risks for franchisee profitability.
Score breakdown · what drove the 59 / 100 rating
- 01MINORSystem declining sharply: -18.8% unit contraction YoY (131 units) indicates franchisee dissatisfaction or market saturation
- 02HIGHGoing Concern status is FALSE — suggests financial viability questions at corporate level
- 03HIGHLitigation history: $1M+ breach of contract dispute in 2021-2022 with fraud/deceit counterclaims raises franchisor-franchisee relationship concerns
- 04MINORNo territory protection — direct competition from other Money Mailer franchisees in same zone; capped royalty ($350/zone) suggests thin margins
- 05MINORNet income of $179K on $686K revenue (26% margin) may not justify $64.6K initial investment + ongoing royalties, especially in declining market
- 06MINORItem 19 (Financial Performance Representation) not provided — cannot validate average revenue/income claims or franchisee profitability distribution
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
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Money Mailer · FDD (2025) PDF