Bottom line
- Total investment $285K – $663K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $648K/year (median $664K).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- 21 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Pinkberry 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 Pinkberry units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$908K
on $4.5M purchase
Total debt
$3.6M
SBA $2.3M + senior + seller note
Overview
About
Pinkberry franchisees operate frozen yogurt retail locations, managing daily operations including product preparation, customer service, inventory management, and point-of-sale transactions. Franchisees must maintain brand standards, staff scheduling, local marketing, and facility maintenance while paying 6% royalties on all gross sales to the franchisor.
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 · 11 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
Pinkberry presents high risk due to a contracting franchise system (-6.3% YoY), undisclosed net profitability, significant litigation history including franchise law violations, and unprotected territory—creating substantial financial exposure for new franchisees in a declining brand.
Score breakdown · what drove the 63 / 100 rating
- 01MEDUnit count declined 6.3% YoY (59 units) indicating system contraction and potential market saturation or operational challenges
- 02HIGHHistory of litigation involving breach of contract, misrepresentation, and franchise law violations suggests franchisor-franchisee relationship issues and legal risk exposure
- 03MINORNo average net income disclosure despite $648K average revenue — inability or unwillingness to show profitability is a major red flag
- 04MINORUnprotected territory creates direct competition risk; franchisor can place additional units nearby, cannibalizing sales
- 05MINORHigh initial investment ($285K-$663K) combined with declining unit economics and 6% royalty burden in contracting system
- 06HIGHFranchisor litigation history including lawsuits filed against franchisees suggests enforcement-heavy approach and potential relationship deterioration
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pinkberry · FDD (2025) PDF