Bottom line
- Total investment $103K – $134K including a $59K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $308K/year (median $193K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 59 loans (below the industry average).
- System contracting at -14.2% 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 Pillar To Post unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pillar To Post units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$62K
on $308K purchase
Total debt
$246K
SBA $0.2M + senior + seller note
Overview
About
Pillar To Post franchisees operate home inspection services, conducting detailed structural, mechanical, and safety assessments for homebuyers, sellers, and real estate agents. Day-to-day work involves scheduling inspections, performing on-site evaluations, documenting findings, and delivering reports to clients. The business model relies on building relationships with real estate professionals and generating repeat customer referrals.
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 · 10 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
Declining unit count, undisclosed net income, unprotected territories, and litigation history create a CAUTION-to-HIGH RISK profile that demands deep validation before investment.
Score breakdown · what drove the 54 / 100 rating
- 01MINORUnit count declining 7.3% YoY (382 units) — shrinking franchise system indicates market saturation or franchisee dissatisfaction
- 02MINORNo average net income disclosure — opacity around profitability makes ROI assessment impossible; cannot verify if $307,908 avg revenue translates to viable income
- 03HIGHTwo litigation cases including master franchisee dispute — suggests franchisor-franchisee relationship strain and potential disputes over performance standards and renewal terms
- 04MEDHigh initial investment ($102,690–$134,290) + 7% royalties with variable monthly minimums ($0–$2,328) creates unpredictable cost structure relative to undisclosed profitability
- 05MINORNo protected territory — franchisee competes with other Pillar To Post locations and master franchisees in same area; risk of encroachment and channel conflict
- 06HIGH5-year term with no stated renewal protections — master franchisee litigation over non-renewal signals potential franchise termination/non-renewal risks
- 07HIGHGoing Concern = False — unclear what this means operationally; needs clarification on franchisor financial stability
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
88 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pillar To Post · FDD (2026) PDF