Bottom line
- Total investment $510K – $1.1M including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $493K/year (median $400K).
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 84 loans (below the industry average).
- 12 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 Rumble unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Rumble units return on equity?
Equity IRR · 5-yr
45.1%
6.43× MOIC
Year-1 DSCR
1.97×
EBITDA ÷ debt service
Equity required
$2.6M
on $10.8M purchase
Total debt
$8.3M
SBA $5.0M + senior + seller note
Overview
About
Rumble franchisees operate entertainment/hospitality venues (specific format unclear from data provided) in protected territories, generating average gross sales of $492,590 annually while paying 7% royalties to franchisor regardless of profitability. Day-to-day operations involve venue management, customer service, staff oversight, and compliance with franchisor operational 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 · 24 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
Litigation-plagued franchisor with pre-sale disclosure violations, undisclosed profitability data, and high investment requirements creates substantial risk of franchisee financial loss and legal exposure.
Score breakdown · what drove the 61 / 100 rating
- 01HIGHMultiple active lawsuits involving pre-sale disclosure violations and fraudulent inducement indicate potential systemic compliance failures and franchisor credibility issues
- 02MINORNo Item 19 (Average Unit Volume) disclosure despite $492,590 average revenue claim raises transparency concerns and makes ROI validation impossible
- 03MEDHigh initial investment ($509K-$1.14M) with undisclosed net income creates unfavorable risk/reward profile and suggests profitability may be inadequate
- 04HIGHLitigation history focusing on breach of contract and pre-sale disclosure violations suggests franchisees may have received misleading financial projections or performance claims
- 05HIGH21.7% unit growth is moderate but insufficient to offset litigation risk and lack of financial transparency; growth rate may not be sustainable
- 06MED7% royalty on gross sales (not net) is aggressive given lack of disclosed net income data, potentially making unprofitable locations unworkable
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
79 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Rumble · FDD (2025) PDF