Bottom line
- Total investment $366K – $558K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $9.3M/year. Estimated payback in 0.5 years.
- Rated MODERATE with a risk score of 62/100.
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 Patriot Pipeline unit return on the cash you put in?
Unlevered ROIC · per unit
304%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Patriot Pipeline units return on equity?
Equity IRR · 5-yr
21.9%
2.69× MOIC
Year-1 DSCR
4.25×
EBITDA ÷ debt service
Equity required
$60.0M
on $92.8M purchase
Total debt
$32.8M
SBA $5.0M + senior + seller note
Overview
About
Patriot Pipeline franchisees likely operate industrial fluid handling, maintenance, or pipeline servicing operations, managing equipment inspections, repairs, and logistics for commercial/industrial clients. Day-to-day activities probably include field service calls, client relationship management, scheduling, inventory management, and regulatory compliance for pipeline or fluid systems.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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 pipeline services franchise with single operational unit, undisclosed going concern issues, and no financial performance data—significant execution and sustainability risk.
Score breakdown · what drove the 62 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates early-stage or stalled franchise development
- 02HIGHGoing Concern = False suggests financial instability or corporate viability concerns at franchisor level
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot validate if $9.28M avg revenue is achievable or representative
- 04MINOR$3,000/month minimum royalty (Year 2+) may be unsustainable if franchisee underperforms, creating cash flow pressure
- 05MINORHigh investment range ($365,900–$557,900) paired with single-unit system indicates unproven unit economics at scale
- 06MINOR15-year term is lengthy commitment given franchisor's apparent financial instability and single operational reference
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Patriot Pipeline · FDD (2023) PDF