Bottom line
- Total investment $277K – $493K including a $45K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Redstraw unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Overview
About
Redstraw appears to be a beverage/restaurant concept focused on sustainable or eco-friendly products (likely reusable straw merchandising or sustainable drink service). Franchisees would manage daily operations including customer service, inventory management, supplier relationships, and local marketing, with operational oversight from a nascent 4-unit franchisor.
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 · 4 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
Early-stage system with 4 units, no financial transparency, unprotected territory, and unproven unit economics presents material risk despite absence of litigation.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 4 units system-wide indicates extremely early stage with minimal track record and limited peer learning
- 02MINORNo Item 19 financial disclosure (average revenue/net income) prevents ROI validation and profitability assessment
- 03MINORUnprotected territory creates direct competition risk and cannibalization potential within same market
- 04MINORHigh investment range ($277k-$493k) with 5% royalty creates significant break-even pressure for early franchisees
- 05MINORUnknown unit growth trajectory raises concerns about system viability and franchisee retention
- 06MINORMinimal franchise fee ($45k) relative to total investment suggests franchisor may rely on franchisee-funded growth rather than proven model
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Redstraw · FDD (2025) PDF