Mr. Appliance
Formerly known as Chun Yang Tea
Bottom line
- Total investment $117K – $215K including a $64K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 210 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 Mr. Appliance unit return on the cash you put in?
Unlevered ROIC · per unit
48%
In Yale's "attractive" band (30–60%)
Overview
About
Mr. Appliance franchisees operate mobile appliance repair services, dispatching technicians to residential customer homes to diagnose and repair washers, dryers, dishwashers, refrigerators, and other appliances. Franchisees manage their own technician teams, scheduling, parts inventory, customer billing, and local marketing while paying the franchisor 5-7% royalties and adhering to brand standards and service protocols.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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
Mr. Appliance is a contracting franchise system with active fraud litigation, regulatory violations, undisclosed financials, and franchisor going concern issues—presenting material risk to new franchisees.
Score breakdown · what drove the 64 / 100 rating
- 01MEDSystem contracting sharply: -4.6% unit decline YoY suggests deteriorating franchisee performance and retention
- 02HIGHGoing concern status is FALSE, indicating potential financial instability at franchisor level
- 03HIGHMultiple litigation cases including fraud allegations (KB Industries et al.) and breach of contract disputes signal operational/support conflicts
- 04MINORNo Item 19 (financial performance) disclosure prevents validation of $116.5K-$214.8K investment ROI claims
- 05MINORAdministrative compliance violations in California and Kansas demonstrate regulatory and operational control issues
- 06MINORRelatively high franchise fee ($63,750) combined with 5-7% royalties creates high break-even threshold for declining system
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mr. Appliance · FDD (2025) PDF