Bottom line
- Total investment $99K – $325K including a $39K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Orange Shoe unit return on the cash you put in?
Unlevered ROIC · per unit
88%
Above typical band (30–60%)
Overview
About
Orange Shoe franchisees operate retail or service-based locations (specific category not detailed in provided data). Day-to-day activities likely involve customer-facing operations, inventory management, and local marketing while remitting 6.0% of gross revenues as royalties. Limited unit count and undisclosed business model make operational specifics unclear.
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 · 16 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
Orange Shoe presents a CAUTION-level risk profile: a micro-franchise with only 11 units, complete financial opacity, and no performance benchmarks to validate the $98.6K–$325K investment required.
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to assess return on $98.6K–$325K investment
- 02MINOROnly 11 units system-wide indicates minimal scale and unproven business model replicability
- 03MINORWide investment range ($226.4K spread) suggests inconsistent unit economics or undefined support
- 04MEDNo disclosed growth trajectory for 11-unit system raises sustainability concerns
- 05MINORLack of financial transparency (no avg revenue, no avg net income) prevents ROI validation
- 06MINOR10-year term with $39K upfront fee on small unit count suggests franchisor revenue dependent on franchisees rather than brand strength
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
Orange Shoe · FDD (2024) PDF