Patrice & AssociatesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Patrice & Associates franchise requires a total initial investment of $105K – $121K, including a $65K franchise fee and an ongoing 10.0% royalty[2]. Per the 2025 FDD, average unit revenue was $19K[2]. SBA 7(a) loans show a 33.3% charge-off rate across 97 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $105K – $121K
- 31st pct Business Serv…
- Avg gross sales
- $19K
- 0th pct Business Serv…
- Royalty
- 10.0%
- 28th pct Business Serv…
- Units
- 189
- 47th pct Business Serv…
- SBA default
- 33.3%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.2x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
33.3% of SBA loans charged off across 97 loans, above the 16% franchise average.
Franchised units fell from 189 to 171 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $105K – $121K including a $65K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $19K/year.
- Verdict C (Average) with a risk score of 68/100. SBA loan charge-off rate of 33.3% across 97 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Patrice Franchising, LLC
- Parent company
- Patrice Holdings, LLC
- CEO title
- Chief Executive Officer
- Jason C. Miller
- CEO experience
- 8 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 9112 East Verde Grove View, Suite 101-E, Scottsdale, AZ 85255
- Auditor
- LerroSarbey
- Audited financials
- Franchisor revenue
- $9.3M
- vs $8.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Patrice & Associates franchisees appear to operate a service-based business model (specific service category not identified in data provided). Daily operations likely involve client acquisition, service delivery, and compliance with brand standards, though the business model and unit economics remain unclear given the lack of disclosed financial performance data.
- CEO
- Jason C. Miller
- Headquarters
- AZ
- Founded
- 2022
- FDD year
- 2025
- States available
- 41
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $65K | $65K | |
| Initial Training Fee (Franchise Training)not refundable | $7K | $7K | |
| Initial Training Fee (Manager Training)not refundable | $0 | $4K | |
| Executive Recruiting Training & Certification Feenot refundable | $10K | $10K | |
| Microsite Feenot refundable | $7K | $7K | |
| Marketing Starter Kitnot refundable | $3K | $3K | |
| Grand Opening Marketingnot refundable | $6K | $12K | |
| Rent & Security Depositnot refundable | $0 | $1K | |
| Computer Systemnot refundable | $500 | $1K | |
| Office Equipment & Suppliesnot refundable | $300 | $500 | |
| Business Licenses, Dues & Subscriptionsnot refundable | $800 | $1K | |
| Professional Feesnot refundable | $1K | $3K | |
| Insurance (3 months' premium)not refundable | $500 | $850 | |
| Additional Funds (3 months)not refundable | $4K | $6K | |
| Total initial investment | $105K | $121K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$2K
11.0% margin
Unlevered ROIC
2%
EBITDA / total invested capital
Payback
56.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $105K – $121K
- Better than avg vs category
- Liquid capital req'd
- $4K – $6K
- Better than avg vs category
- Franchise fee
- $65K – $65K
- Near category avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $350 |
| Training fee | $7K |
| Transfer fee | $10K |
| Total fee load | 12.0% of rev |
Financial Performance
- Avg gross sales
- $19K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 189 units
- vs category median 32 · large
- Range (low → high)
- $0→$429K
- Cohort dispersion (min → max)
- Quartile band
- $0→$67K
- Bottom 25% → top 25%
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is only 0.2x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Business Services averages
How Patrice & Associates Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 189
- Opened
- 28
- Last reporting year
- Closed
- 27
- Turnover rate
- 14.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.5%
- Net unit change last year
- 3-yr CAGR
- +10.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Terminated (3yr)
- 15
- Non-renewed (3yr)
- 17
- Transfers (3yr)
- 2
- Transfer rate
- 1.1%
- Owners selling to other franchisees
- Termination rate
- 16.9%
- Franchisor-initiated terminations
- Ceased ops
- 0.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 97
- Loan volume
- $12.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 33.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 66.7%
- 5-yr charge-off
- 40.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 14
Vintage analysis
Patrice & Associates charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Patrice & Associates's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 13-year lending trend
Instant access. No subscription.
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Stagnant unit growth, litigation history involving misrepresentation/earnings non-disclosure, and absence of transparent financial data create elevated risk despite protected territory.
Litigation (Item 3)
Three cases involving Patrice & Associates Franchising, Inc. (now Patrice Franchising, LLC): (1) Mark Fischer v. PAF - fraudulent misrepresentation, negligent misrepresentation, and Minnesota Franchise Act violation; arbitration award granted 2/28/2019 awarding Fischer franchise fee refund with prejudgment interest and partial attorneys' fees. (2) Daniel Harris and Hospitality Partners, LLC v. PAF et al. - New York State Franchise Sales Act violation, common law fraud, and negligent misrepresentation; settled 7/2/2018 with $69,000 refund and mutual release. (3) PAF v. McCoury Enterprises, Inc. - franchisor seeking declaratory judgment for breach of area representative agreement including failure to solicit franchisees and submit reports; arbitration filed 12/12/2019 (status incomplete in provided text).
Largest disclosed settlement: $1
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · LerroSarbey⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 rating
- 01MEDStagnant unit growth (0.5% YoY) indicates system decline or saturation with 189 units showing minimal expansion momentum
- 02HIGHHistory of litigation including concluded misrepresentation/breach claims plus pending fraudulent inducement lawsuit alleging failure to disclose earnings
- 03MEDCritical absence of Item 19 financial performance data — average revenue of ~$19K is suspiciously low and net income entirely undisclosed, preventing ROI validation
- 04MEDHigh initial investment ($105-121K) relative to disclosed average revenue ($18,976) creates immediate profitability concerns and extended break-even timeline
- 05MINOR10% royalty on gross sales is extracted regardless of profitability, and with average net income withheld, true take-home pay is opaque
- 06MINORPending Sweeney lawsuit specifically alleges failure to disclose earnings — red flag for systemic earnings misrepresentation to franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Zip Codes |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 250,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 180 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Maricopa County, Arizona |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 4 |
View Item 3 litigation summary
Three cases involving Patrice & Associates Franchising, Inc. (now Patrice Franchising, LLC): (1) Mark Fischer v. PAF - fraudulent misrepresentation, negligent misrepresentation, and Minnesota Franchise Act violation; arbitration award granted 2/28/2019 awarding Fischer franchise fee refund with prejudgment interest and partial attorneys' fees. (2) Daniel Harris and Hospitality Partners, LLC v. PAF et al. - New York State Franchise Sales Act violation, common law fraud, and negligent misrepresentation; settled 7/2/2018 with $69,000 refund and mutual release. (3) PAF v. McCoury Enterprises, Inc. - franchisor seeking declaratory judgment for breach of area representative agreement including failure to solicit franchisees and submit reports; arbitration filed 12/12/2019 (status incomplete in provided text).
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 26 hrs
- Training location
- Virtual
- Ongoing training
- Required
- Field support
- 26 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Patrice & Associates · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Patrice & Associates franchise?
The total investment to open a Patrice & Associates franchise ranges from $105K – $121K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Patrice & Associates franchise owners earn?
According to Item 19 of the Patrice & Associates FDD, the average gross sales per unit is $19K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Patrice & Associates's franchise failure rate?
Based on SBA 7(a) loan data, Patrice & Associates has a charge-off rate of 33.3% across 97 loans, meaning 33.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Patrice & Associates franchise locations are there?
As of their most recent FDD filing, Patrice & Associates has 189 total units in the United States, including 189 franchised units and 0 company-owned units. 28 new units were opened in the latest reporting year.
Is Patrice & Associates a good franchise to buy?
FranchiseVerdict rates Patrice & Associates as a C-grade franchise with a risk score of 68 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.