FranchiseVerdict
RENUE® logo
FV-02140·STRONGExcellent95

Renue®

Lodging - Hotels & MotelsFranchising since 2001Website
Investment
$182K – $226K
8th pct Hotels & Mote…
Avg revenue
$658K
4th pct Hotels & Mote…
Royalty
10.0%
92nd pct Hotels & Mote…
Units
26
45th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $182K – $226K including a $75K franchise fee, 10.0% ongoing royalty.
  • Average unit revenue of $658K/year (median $400K).
  • Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Renue Systems Development Corp., Inc.
Incorporated in
Illinois
HQ
1147 North Main Street, Lombard, Illinois 60148
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$2.0M
vs $2.2M prior year

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 RENUE® unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $657,806
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $182K–$226K
Working capital
$
FDD reports $15K–$25K

Unlevered ROIC · per unit

26%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$59K
EBITDA margin
9.0%
Total invested
$224K
Payback
45 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 RENUE® units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$263K

on $1.3M purchase

Total debt

$1.1M

SBA $0.7M + senior + seller note

Overview

About

RENUE® franchisees operate wellness/skincare service centers offering treatments and products. Day-to-day operations include client consultations, administering services (likely non-invasive beauty/health treatments), managing inventory, scheduling appointments, and handling sales of related retail products.

CEO
David J. Grossman
Founded
2000
FDD year
2026
States available
16

Item 7 · what it costs

The Vitals

Total investment
$182K – $226K
All-in to open one unit
Liquid capital
$15K – $25K
Cash you must have on hand
Franchise fee
$75K
Royalty
10.0%
Percentage of Gross Sales with Monthly Minimums · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
11.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$658K
Per unit, per year
Median gross sales
$400K
Item 19 type
Historical financial information
Sample size
20 units
vs category median 100 · small
Range (low → high)
$145K$1.9M
Cohort dispersion
Transparency
7 / 5
vs category median 0 / 5 · above
Revenue rank4th
vs Lodging - Hotels & Motels peers
Investment cost rank8th
Lower investment ranks lower (better)
Royalty rate rank92th
Lower royalty = lower percentile (better)
Unit count rank45th
vs Lodging - Hotels & Motels peers
Risk score rank0th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
26
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
96%
vs corporate-owned
Net growth (yr3)
+4.2%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2024
25+1
Franchised units
2025
24
Franchised units
2026
25
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

Total loans
18
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

41
Risk · 0-100
STRONG41 / 100

Slow-growing micro-franchise with compliance history, undisclosed profitability, and mandatory minimums creating elevated investment risk in a stagnant system.

Score breakdown · what drove the 41 / 100 rating

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — unable to assess true profitability or validate the $657,806 avg revenue claim
  2. 02MEDMinimal system growth (4.2% YoY) with only 26 units suggests weak brand momentum and limited proven scalability
  3. 03MINORMonthly royalty minimums ($1,000-$2,500/year 2+) create fixed cost burden regardless of sales performance, problematic for slow-ramp locations
  4. 04MINOR2011 Washington State Consent Order indicates historical compliance issues with franchise disclosure regulations
  5. 05MINORHigh franchise fee ($74,500) relative to small system size and slow growth creates significant sunk cost risk
  6. 06HIGHGoing Concern = False not explicitly stated as positive, creating ambiguity about franchisor financial health
  7. 07MINORAverage revenue of $657,806 on $182,350-$226,200 investment yields only 2.9-3.6x payback, marginal for franchise model

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic Area
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Illinois

Item 11

Training & Operations

Classroom training
65 hrs
On-the-job training
6 hrs
POS system
QuickBooks Online
Operating tech stack

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

Locked
(214) 500-••••
TX
(505) 515-••••
NM
(858) 265-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

RENUE® · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above