Prism Specialties
Bottom line
- Total investment $162K – $356K including a $84K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.4M).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
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 Prism Specialties unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Prism Specialties units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$996K
on $5.0M purchase
Total debt
$4.0M
SBA $2.5M + senior + seller note
Overview
About
Prism Specialties franchisees typically operate specialized service or manufacturing businesses (exact model varies by territory), generating average gross revenue of ~$1.66M annually. Day-to-day operations involve client service delivery, staff management, and local market development within a protected territory. The 10-year term and 7% royalty structure suggest recurring revenue model, but specific operational activities depend on franchise division.
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 · 29 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
Prism Specialties presents meaningful risk due to corporate going concern status, anemic unit growth, undisclosed profitability, and lack of transparency around actual franchisee net earnings.
Score breakdown · what drove the 52 / 100 rating
- 01HIGHGoing Concern warning indicates financial distress at corporate level despite no disclosed litigation
- 02MINORStagnant unit growth of only 1.6% YoY with 65 units suggests market saturation or franchisee struggles
- 03MEDNet Income not disclosed in Item 19 prevents ROI validation; only gross revenue ($1.66M avg) is available
- 04MINORHigh franchise fee ($84,000) combined with wide investment range ($162K-$356K) suggests inconsistent unit economics
- 05MINOR7% royalty on gross sales is aggressive when profitability data is hidden and unit growth is minimal
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
49 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Prism Specialties · FDD (2025) PDF