Roosters Men’s Grooming Center
Bottom line
- Total investment $266K – $432K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $487K/year (median $462K).
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- 16 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Roosters Men’s Grooming Center unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Roosters Men’s Grooming Center units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.8M
on $8.8M purchase
Total debt
$7.0M
SBA $4.4M + senior + seller note
Overview
About
Roosters operates men's grooming centers providing haircuts, beard grooming, and related services in a barbershop/salon format. Franchisees manage daily operations including staffing barbers/stylists, inventory management, customer service, and local marketing while paying ongoing royalties and following brand standards.
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 · 14 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
Roosters presents HIGH RISK due to a contracting 9.2% declining unit base, extensive litigation including fraud allegations, undisclosed profitability, unprotected territory, and a pattern of franchisor-franchisee disputes that questions management credibility and unit viability.
Score breakdown · what drove the 72 / 100 rating
- 01MINORSystem declining 9.2% YoY (70 units) indicates contracting franchise network and potential market saturation or operational issues
- 02MEDNo average net income disclosed despite average revenue of $487k — suggests either poor unit economics or franchisor unwilling to disclose weak profitability data
- 03HIGHMultiple litigation categories including fraud counterclaims, misrepresentation claims during sales, and arbitrations alleging illegal financial performance representations indicate pattern of franchisor-franchisee disputes
- 04MINORUnprotected territory creates direct competition risk — franchisor can open competing locations or award multiple franchises in same market
- 05MEDHigh royalty escalation (4% to 6%) on undisclosed net income creates cash flow risk; at $487k revenue, 6% = $29,226 annual royalty with unknown profit margins
- 06HIGHGoing Concern status is False, though context unclear — requires immediate clarification on franchisor financial stability
- 07HIGHPOS vendor technology litigation suggests operational/systems problems affecting franchisee businesses
- 08MINORConsumer class action regarding credit card data on receipts indicates compliance/security failures with legal exposure for franchisees
- 09MINORFranchise fee of $39,500 plus $265,690-$432,390 total investment is substantial for declining system with unproven unit economics
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Roosters Men’s Grooming Center · FDD (2025) PDF