Bottom line
- Total investment $115K – $281K including a $40K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $469K/year (median $114K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
- System growing at 25.0% CAGR over 3 years with 21 total units — strong expansion trajectory.
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 Pedal Pub unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pedal Pub units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$563K
on $2.8M purchase
Total debt
$2.3M
SBA $1.4M + senior + seller note
Overview
About
Franchisees operate pedal-powered party bikes (human-powered vehicles for groups) in urban markets, managing bookings, guiding drunk/intoxicated customers through city streets, maintaining equipment, hiring/managing staff, and handling customer experience. Revenue depends on party bookings, alcohol service ancillaries, and seasonal demand.
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 · 20 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
Pedal Pub presents moderate-to-cautious risk due to unresolved litigation exposure, undisclosed profitability metrics, small system size with unknown growth, and inherent liability risks in the party bike business model.
Score breakdown · what drove the 52 / 100 rating
- 01HIGHActive litigation with pending motion to reconsider and anticipated refiling creates ongoing legal/liability exposure and potential for franchisor assessment/indemnification claims
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; $468,825 average revenue against $114,645-$281,196 investment leaves unclear profit margins after 8-10% royalties
- 03MEDSmall unit count (21 locations) with unknown growth trajectory suggests limited system maturity and scalability; no disclosure of unit growth rate raises sustainability questions
- 04MINORHigh per-unit liability risk in party/alcohol-adjacent business model creates insurance cost uncertainty and franchisee personal liability exposure
- 05MEDFranchise fee ($39,900) represents 34-35% of minimum investment with no disclosed profitability metrics to justify early payback
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
44 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pedal Pub · FDD (2024) PDF