Prepaze Academy
Bottom line
- Total investment $154K – $309K including a $39K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Prepaze Academy unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Overview
About
Prepaze Academy franchisees operate educational tutoring/test-prep centers (likely SAT/ACT preparation based on 'Prepaze' branding), managing student enrollment, instructor scheduling, curriculum delivery, and local marketing. Day-to-day operations involve student advising, tutor management, progress tracking, and facility administration within their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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
Nascent 2-unit system with opaque financials, going concern uncertainty, and undisclosed performance metrics presents material risk for $154k-$308.5k investment.
Score breakdown · what drove the 67 / 100 rating
- 01MINOROnly 2 existing units with unknown growth trajectory suggests nascent/stalled system with no proven scalability
- 02MEDNo Item 19 financial performance data disclosed despite $154k-$308.5k investment — impossible to validate ROI claims
- 03HIGHGoing Concern status is FALSE, indicating potential financial viability questions about franchisor sustainability
- 04MINORRoyalty floor of $750/month ($9,000/year) is substantial burden on small academy operations and may not align with actual revenue
- 05MEDHigh franchise fee ($39,000) relative to system size creates early cash drain with limited peer validation or support infrastructure
- 06MINOR5-year term is short for education-based franchise requiring brand establishment and student roster building
- 07HIGHNo litigation disclosed is positive, but minimal unit count limits legal/operational history to evaluate
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Prepaze Academy · FDD (2024) PDF