Bottom line
- Total investment $247K – $690K including a $60K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $919K).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 216 loans (below the industry average).
- System growing at 37.6% CAGR over 3 years with 194 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 PIRTEK unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PIRTEK units return on equity?
Equity IRR · 5-yr
42.5%
5.87× MOIC
Year-1 DSCR
2.04×
EBITDA ÷ debt service
Equity required
$3.0M
on $11.5M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
PIRTEK franchisees operate hydraulic hose and fluid power system retail and service centers, managing inventory, fabricating custom hoses, and providing on-site repair/maintenance services to industrial and construction clients. Day-to-day responsibilities include sales, technical service delivery, customer relationship management, and staff supervision in a capital-light but labor-dependent service model.
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 · 18 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
PIRTEK presents moderate-to-cautionary risk with solid revenue fundamentals but opaque profitability, active litigation signaling franchisee friction, and missing financial transparency required for informed ROI assessment.
Score breakdown · what drove the 42 / 100 rating
- 01MINORNo Item 19 (Average Net Income) disclosure limits profitability transparency despite $1.09M average revenue
- 02HIGHActive litigation (June 2025–January 2026) involving non-compete enforcement signals franchisee compliance/relationship issues
- 03HIGH19.8% YoY unit growth is positive but modest for a 194-unit system; retention rate unclear given litigation
- 04MINORHigh franchise fee ($59,500) relative to bottom-end investment ($247,013) creates 24% upfront cost burden
- 05MED10-year term locks franchisees into long commitment without disclosed exit multiples or buyback provisions
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
91 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PIRTEK · FDD (2026) PDF