Narwhal’s Crafted
Bottom line
- Total investment $884K – $1.9M including a $35K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $2.0M/year (median $2.0M).
- Rated MODERATE with a risk score of 65/100. 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 Narwhal’s Crafted unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Narwhal’s Crafted units return on equity?
Equity IRR · 5-yr
41.2%
5.62× MOIC
Year-1 DSCR
2.08×
EBITDA ÷ debt service
Equity required
$3.3M
on $11.8M purchase
Total debt
$8.5M
SBA $5.0M + senior + seller note
Overview
About
Narwhal's Crafted franchisees operate craft beverage retail locations (likely coffee, smoothies, or specialty drinks based on brand positioning) focusing on artisanal preparation and customer experience. Day-to-day operations include inventory management, staff scheduling, point-of-sale transactions, and maintaining brand-standard product quality across a 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 · 4 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
Early-stage franchise with critical transparency gaps (no profitability data, going concern issues) and unproven unit economics across minimal 3-unit system creates elevated financial risk.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and unproven replicability
- 02MEDNet income not disclosed in FDD Item 19 prevents accurate ROI assessment and profitability validation
- 03HIGHGoing Concern status is FALSE — indicates franchisor may have solvency or operational sustainability issues
- 04MINORHigh investment range ($884K-$1.86M) with only 3 operating units creates disproportionate risk exposure
- 05MED8% royalty on $1.97M average revenue equals ~$157K annual fees with no disclosed path to profitability
- 06MINORExtremely small unit count limits ability to validate performance claims or obtain reliable franchisee references
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Narwhal’s Crafted · FDD (2025) PDF