Bottom line
- Total investment $79K – $101K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $2.3M/year (median $25K). Estimated payback in 0.2 years.
- Rated STRONG with a risk score of 19/100. SBA loan default rate of 0.0% across 18 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 Renovation Sells unit return on the cash you put in?
Unlevered ROIC · per unit
354%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Renovation Sells units return on equity?
Equity IRR · 5-yr
30.4%
3.77× MOIC
Year-1 DSCR
2.65×
EBITDA ÷ debt service
Equity required
$8.1M
on $18.7M purchase
Total debt
$10.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate residential or commercial renovation/remodeling service businesses, likely managing project acquisition, contractor coordination, budgeting, and client relationships. Day-to-day activities include sales consultations, project estimation, crew supervision, quality control, and customer communication to deliver renovation projects on time and within budget.
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 · 16 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
Moderate-risk renovation services franchise with strong headline metrics but lack of franchisee-level financial transparency and aggressive growth trajectory warrant careful validation.
Score breakdown · what drove the 19 / 100 rating
- 01MINORHigh unit growth rate (29% YoY) may indicate unsustainable expansion or survivor bias in reported financials
- 02MEDFranchise fee ($50,000) represents 63% of minimum total investment, leaving limited working capital
- 03MEDNo Item 19 financial performance representations disclosed — actual franchisee results unknown
- 04MINOR7% royalty on $2.34M average revenue equals $163,800 annually, material cost not reflected in net income claim
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
Renovation Sells · FDD (2024) PDF