Bottom line
- Total investment $298K – $748K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $781K/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 43 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 My Favorite Muffin unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 My Favorite Muffin units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$469K
on $2.3M purchase
Total debt
$1.9M
SBA $1.2M + senior + seller note
Overview
About
My Favorite Muffin franchisees operate bakery-café retail locations focused on freshly baked muffins and complementary beverages. Day-to-day operations include inventory management, baking/food preparation, direct customer service, staff scheduling, and local marketing. Franchisees manage P&L, rent, labor, and ingredient costs while paying 5% of gross revenues to corporate.
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 · 19 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
My Favorite Muffin presents CAUTION-to-HIGH RISK due to going concern issues, minimal system size, absent profitability data, and unprotected territories — unsuitable for most franchisees without direct validation from existing operators.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status is FALSE — suggests financial instability or unresolved operational issues at corporate level
- 02MEDNet Income not disclosed in Item 19 — unable to validate actual profitability; $781k average revenue may not translate to acceptable owner earnings
- 03MINOROnly 12 units with unknown growth trajectory — extremely small system raises questions about scalability, support infrastructure, and corporate viability
- 04MINORTerritory not protected — franchisees face direct competition from other franchisees and corporate-owned locations; market saturation risk
- 05MEDHigh investment range ($297.5k–$747.5k) relative to system size and undisclosed profitability — unfavorable risk/reward ratio
- 06MINOR5% royalty on gross revenue during potential negative cash flow periods — burdensome given lack of profitability disclosure
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
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
My Favorite Muffin · FDD (2026) PDF