Bottom line
- Total investment $167K – $253K including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $661K/year (median $442K).
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- System growing at 19.3% CAGR over 3 years with 107 total units — strong expansion trajectory.
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 Rytech unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Rytech units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$397K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
Overview
About
Rytech franchisees operate water damage restoration and mold remediation services, responding to emergency calls, managing mitigation projects, coordinating with insurance companies, and handling customer relationships. Day-to-day operations include field crew management, equipment maintenance, scheduling, and client communication in the property restoration vertical.
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 · 21 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-to-caution risk profile: undisclosed profitability metrics, recent litigation over financial practices, and unverified unit growth create meaningful due diligence gaps despite protected territory and positive going concern status.
Score breakdown · what drove the 39 / 100 rating
- 01HIGHRecent litigation (dismissed Dec 2025) involving breach of contract and advertising fund mismanagement raises governance concerns
- 02MEDAverage net income not disclosed in FDD Item 19, preventing ROI validation against $166.5k-$253.1k investment
- 03MINOR8% royalty on $660.8k average revenue equals $52.8k annual fee; profitability unclear without net income data
- 04MINOR107 units with 14.1% YoY growth is modest for a restoration franchise; unit growth trajectory unverified beyond latest period
- 05MINORHigh franchise fee ($60k) plus initial investment suggests $226.5k-$313.1k total cost with unproven payback period
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
55 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Rytech · FDD (2026) PDF