Perkins Restaurant and Bakery
Bottom line
- Total investment $579K – $3.6M including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $2.0M/year (median $1.9M).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- System contracting at -8.4% 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 Perkins Restaurant and Bakery unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Perkins Restaurant and Bakery units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.0M purchase
Total debt
$6.4M
SBA $4.0M + senior + seller note
Overview
About
Franchisees operate casual full-service restaurants with integrated bakeries, managing daily operations including food service, baking, kitchen staff, and customer experience across breakfast, lunch, and dinner dayparts. Typical locations range from standalone buildings to strip centers, requiring significant real estate and working capital investment with 24/7 or extended-hour operational models.
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 · 25 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
Perkins faces declining unit economics, undisclosed profitability, employment litigation exposure, and unclear financial viability, creating meaningful risk for new franchisees entering a contracting system.
Score breakdown · what drove the 52 / 100 rating
- 01MINORDeclining unit count (-4.4% YoY) indicates system contraction and potential franchisee struggles
- 02MINORNo Item 19 (Net Income) disclosure prevents assessment of actual profitability despite $1.99M average revenue
- 03HIGHMaterial employment litigation against predecessor franchisor (PMC) involving wage/hour violations and PAGA claims signals potential operational/compliance risks
- 04MINORHigh investment range ($579K-$3.58M) with 4% royalty requires substantial revenue to achieve acceptable returns
- 05MINOR20-year term is lengthy commitment for declining franchise with unproven current profitability metrics
- 06HIGHSuccessor franchisor liability exposure unclear given litigation tied to predecessor operations
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
86 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Perkins Restaurant and Bakery · FDD (2026) PDF