Bottom line
- Total investment $68K – $110K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $804K/year. Estimated payback in 0.4 years.
- Rated STRONG with a risk score of 50/100.
- 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 Pacific Perks unit return on the cash you put in?
Unlevered ROIC · per unit
137%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pacific Perks units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
Overview
About
Pacific Perks is a café-style beverage and food concept focused on coffee, specialty drinks, and light fare. Franchisees manage daily operations including beverage preparation, customer service, inventory management, and point-of-sale transactions, likely in a retail or standalone location.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit, unproven franchise system with unverified financial claims and no documented growth — high uncertainty regarding scalability and true franchisee economics.
Score breakdown · what drove the 50 / 100 rating
- 01MEDOnly 1 unit disclosed — no system growth data or comparable locations to validate the $804K average revenue claim
- 02MINORNo Item 19 financial performance representation provided — the $804K revenue and $222K net income figures cannot be independently verified
- 03MINORSingle-unit franchise system creates survivorship bias risk and questions whether this model is scalable or franchiseable
- 04MINOR6% royalty on gross revenues with high initial investment ($67.8K–$109.5K) may compress margins if actual revenue underperforms the single-unit benchmark
- 05MINORUnknown growth trajectory — no disclosure of expansion plans, pipeline, or reasons why the system has remained at 1 unit
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
Pacific Perks · FDD (2025) PDF