Bottom line
- Total investment $881K – $1.5M including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.6M).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 20 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 Pause unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pause units return on equity?
Equity IRR · 5-yr
24.8%
3.03× MOIC
Year-1 DSCR
3.41×
EBITDA ÷ debt service
Equity required
$19.8M
on $35.5M purchase
Total debt
$15.6M
SBA $5.0M + senior + seller note
Overview
About
Pause appears to be a wellness or lifestyle services franchise based on brand positioning. Franchisees likely operate retail/service locations serving customers seeking wellness, fitness, mental health, or lifestyle products/services, handling daily operations, customer acquisition, staff management, and local marketing within their protected territory.
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 · 17 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
Pause presents material investment risk due to franchisor going concern status, micro-scale system of 8 units, undisclosed profitability data, and unclear growth trajectory—fundamentals required for franchisee success are not transparent.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status indicates financial distress or operational instability at franchisor level
- 02MEDOnly 8 units system-wide suggests minimal scale, limited support infrastructure, and high failure risk
- 03MEDNet income not disclosed in Item 19 prevents ROI validation — cannot verify if $1.54M average revenue generates acceptable profit after 7% royalties and operating costs
- 04MINORHigh initial investment range ($880K–$1.53M) creates significant exposure with unproven unit economics
- 05MINORUnknown unit growth trajectory indicates stagnant or declining system; no evidence of expansion or franchisee success replication
- 06MINORMinimal franchise fee ($60K) relative to total investment suggests franchisor relies heavily on royalties, creating misaligned incentives
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
Pause · FDD (2025) PDF