Bottom line
- Total investment $123K – $242K including a $55K franchise fee.
- Average unit revenue of $331K/year (median $263K).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 40 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 PatchMaster unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PatchMaster units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$331K
on $1.7M purchase
Total debt
$1.3M
SBA $0.8M + senior + seller note
Overview
About
PatchMaster franchisees operate drywall repair and wall restoration services in protected local service areas (LSAs). Day-to-day operations include estimating damage, performing patch/texture work, managing crews, scheduling appointments, and handling customer service for residential and light commercial properties.
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 · 22 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
PatchMaster presents moderate-to-cautionary risk due to missing profitability disclosure, opaque royalty mechanics, prior regulatory issues, and high capital requirements relative to revenue visibility.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNet income not disclosed in FDD despite average revenue of $330,653 — inability to validate profitability claims
- 02MINORComplex royalty structure (greater of 9% on first $150k or minimum monthly fee) creates unpredictable cost burden — needs clarification on actual franchisee payments
- 03MINOR2014 regulatory settlement in Virginia for operating without registration — suggests compliance management gaps, though resolved
- 04MEDHigh initial investment ($54,500 franchise fee + $122,950–$242,450 total) relative to disclosed revenue without net income transparency
- 05MEDModerate unit growth (21.5% YoY) is healthy but system is still small (133 units) — limited scale economics and peer learning
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
49 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PatchMaster · FDD (2025) PDF