Bottom line
- Total investment $166K – $291K including a $65K franchise fee, 3.5% ongoing royalty.
- Average unit revenue of $5.3M/year.
- Rated MODERATE with a risk score of 64/100.
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 OLO Builders unit return on the cash you put in?
Unlevered ROIC · per unit
296%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 OLO Builders units return on equity?
Equity IRR · 5-yr
24.6%
3.01× MOIC
Year-1 DSCR
3.45×
EBITDA ÷ debt service
Equity required
$20.8M
on $36.9M purchase
Total debt
$16.1M
SBA $5.0M + senior + seller note
Overview
About
OLO Builders franchisees operate residential or light commercial construction operations, managing projects from bidding through completion. Day-to-day activities include job site supervision, crew management, customer relations, and quality control while remitting 3.5% royalties on all revenues to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage builder franchise with critical transparency gaps (no Item 19, undisclosed net income, going concern status), minimal unit count, and high capital requirement relative to unsubstantiated earnings potential.
Score breakdown · what drove the 64 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $5.27M system average — inability or unwillingness to substantiate individual unit performance is a major transparency red flag
- 02MINOROnly 6 units in system with 20% YoY growth suggests extremely early-stage franchise with minimal track record and unproven scalability
- 03HIGHGoing Concern = False indicates potential financial instability or uncertainty at corporate level, raising franchisor viability questions
- 04MEDNet Income not disclosed — combined with missing Item 19, franchisees cannot validate actual profitability claims or ROI potential
- 05MINORHigh initial investment ($166K-$291K) paired with no earnings disclosure creates severe risk-reward imbalance
- 06MEDTiny unit count (6) means limited historical data; any failed unit represents 17% system contraction
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
OLO Builders · FDD (2022) PDF