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
RANDY'S DONUTS franchisees operate quick-service donut retail shops, managing daily operations including production, inventory, staffing, and customer service. Franchisees handle food preparation (or oversee it), point-of-sale transactions, marketing at the unit level, and compliance with brand standards while paying 5% of weekly gross sales as royalties 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 · 8 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
While RANDY'S DONUTS shows revenue promise, lack of net income transparency, franchisor going concern issues, and atypical unit growth pattern create material uncertainty about actual franchisee profitability and franchisor stability.
Score breakdown · what drove the 50 / 100 rating
- 01MINORNo net income disclosure in Item 19 — unable to validate actual profitability despite $1.27M average revenue
- 02HIGHGoing Concern status is FALSE — suggests financial instability or operational uncertainty at franchisor level
- 03MEDWide investment range ($240.5K–$788.5K) indicates inconsistent unit economics or hidden costs not transparently disclosed
- 04MED100% YoY unit growth (23 units) is suspicious — either brand is brand new, data is incomplete, or growth is unsustainable
- 05MINOR5% royalty on gross sales (not net) means franchisees pay royalties even during loss months
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RANDY’S DONUTS · FDD (2025) PDF