Bottom line
- Total investment $66K – $111K including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 NiteLites unit return on the cash you put in?
Unlevered ROIC · per unit
91%
Above typical band (30–60%)
Overview
About
NiteLites franchisees appear to operate in outdoor/decorative lighting (nighttime illumination products/services). Day-to-day operations likely involve design consultation, installation, maintenance, and customer service for residential or commercial lighting systems. Franchisees would manage local sales, crew scheduling, inventory, and customer relationships within their protected territory.
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 · 15 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
NiteLites presents HIGH RISK due to collapsing unit count, absence of financial disclosures, going concern uncertainties, and litigation history in a micro-franchise system with minimal scale.
Score breakdown · what drove the 72 / 100 rating
- 01MEDSevere unit decline of 30% YoY (from ~18.6 to 13 units) indicates systemic business model or market problems
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents realistic ROI evaluation
- 03HIGHGoing Concern status is False, suggesting potential franchisor financial distress or viability questions
- 04HIGHLitigation history shows material breach judgment against franchisee in 2013; indicates enforcement aggressiveness and/or franchisee failure patterns
- 05MEDMinimum royalty fee structure with undisclosed revenue benchmarks creates opaque cost burden and cash flow risk
- 06MINORSmall system size (13 units) with rapid contraction limits support infrastructure, purchasing power, and brand recognition
- 07MINOR5-year term is relatively short, limiting franchisee ability to recoup $66K-$111K investment plus working capital
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NiteLites · FDD (2026) PDF