Bottom line
- Total investment $132K – $257K including a $35K franchise fee.
- Average unit revenue of $1.2M/year (median $1.3M).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 30 loans (below the industry average).
- System contracting at -86.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 PayMore unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PayMore units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$244K
on $1.2M purchase
Total debt
$975K
SBA $0.6M + senior + seller note
Overview
About
PayMore franchisees typically operate money services businesses, including bill payment processing, money transfer services, check cashing, and possibly prepaid financial products. Day-to-day operations involve customer transactions, regulatory compliance, cash management, and point-of-sale system management across what may be single or multi-unit locations.
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 · 23 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
PayMore presents HIGH RISK due to a collapsing franchise network (60% unit decline), undisclosed profitability metrics, lack of territory protection, and going concern issues that raise questions about franchisor viability and franchisee ability to sustain operations.
Score breakdown · what drove the 59 / 100 rating
- 01MINORUnit count collapsed 60% YoY (58 units remaining) — indicates severe system deterioration
- 02MINORNo net income disclosure — unable to assess actual franchisee profitability despite $1.2M average revenue
- 03MINORNo territory protection — franchisees face direct competition from other PayMore locations
- 04MINORHigh ongoing royalty floor of $1,000/month (~$12,000 annually) with no guaranteed minimum revenue
- 05MEDSubstantial investment range ($131,750-$256,500) with no disclosed Item 19 financial performance data
- 06HIGHGoing Concern status is False — potential financial instability at franchisor level
- 07MINOR15-year term locks franchisees into declining system with minimal flexibility
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
53 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PayMore · FDD (2025) PDF