Randy's Donuts
Formerly known as Quad Queens
Bottom line
- Total investment $241K – $789K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M).
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- System growing at 140.0% CAGR over 3 years with 23 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 RANDY'S DONUTS unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 RANDY'S DONUTS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$510K
on $2.5M purchase
Total debt
$2.0M
SBA $1.3M + senior + seller note
Overview
About
Franchisees operate donut shops featuring Randy's signature offerings, managing daily production, customer service, inventory, and staffing. Day-to-day operations include early-morning donut preparation, point-of-sale management, staff scheduling, and local marketing to drive foot traffic in protected territories.
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 · 15 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
Modest growth in a small franchise system with undisclosed profitability metrics and unclear franchisor financial health creates meaningful uncertainty around ROI viability.
Score breakdown · what drove the 50 / 100 rating
- 01MEDNet income not disclosed in Item 19 — impossible to validate $240k-$788k investment ROI claims
- 02HIGHGoing Concern = False indicates potential financial instability or unclear franchisor viability
- 03MED23 units with 100% YoY growth is modest absolute growth (likely 11-12 new units) — small system with limited track record
- 04MINOR5% royalty + overhead on $1.27M avg revenue may compress margins below industry norms for QSR
- 05MINORWide investment range ($548k spread) suggests inconsistent unit economics or hidden costs not transparent in disclosure
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RANDY'S DONUTS · FDD (2025) PDF