SalesStarFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A SalesStar franchise requires a total initial investment of $206K – $242K, including a $125K franchise fee and an ongoing 10.0% royalty[2]. Per the 2025 FDD, average unit revenue was $707K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $206K – $242K
- 42nd pct Education
- Avg gross sales
- $707K
- 29th pct Education
- Royalty
- 10.0%
- 46th pct Education
- Units
- 7
- 21st pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.2x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
76% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $206K – $242K including a $125K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $707K/year, with an estimated 76% cash-on-cash return (based on P&L Bottom Line).
- Verdict D (Below Average) with a risk score of 74/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Sales Star Franchising USA, LLC
- Parent company
- Sales Star USA, Inc.
- Ultimate parent
- Sales Star Limited
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 13016 Eastfield Rd Ste B200 #203, Huntersville, NC 28078
- Auditor
- Davies, Goldstein & Associates CPA’s PLLC
- Audited financials
- Franchisor revenue
- $92K
- vs $263K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
SalesStar franchisees appear to operate a sales consulting, training, or lead generation business serving B2B clients, likely involving direct client account management, staff training delivery, and recurring revenue through consulting engagements or performance-based fees. The exact service model, client acquisition method, and ongoing operational requirements are not disclosed, making validation essential before investment.
- CEO
- Paul O’Donohue
- Headquarters
- NC
- Founded
- 2004
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing · 6 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $125K | $125K | |
| Travel and Living Expenses While Trainingnot refundable | $7K | $10K | |
| Office Rent | — | — | |
| First Month of Centralized Services Feenot refundable | $2K | $2K | |
| Computers, Software, Subscriptions, etc. | $2K | $5K | |
| Additional Funds - Three Months | $70K | $100K | |
| Total initial investment | $206K | $242K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$57K
8.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $206K – $242K
- Near category avg vs category
- Liquid capital req'd
- $70K – $100K
- Near category avg vs category
- Franchise fee
- $125K – $125K
- Below avg, review vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 15.0%
- vs 9–13% typical
- Payback period
- 1.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $5K |
| Transfer fee | $25K |
| Renewal fee | $20K |
| Total fee load | 15.0% of rev |
At 15.0% total fee load, roughly $106K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $707K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $170K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 76.2%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Statement of Performance
- Sample size
- 4 units
- vs category median 14 · small
- Range (low → high)
- $187K→$1.2M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How SalesStar Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 4
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +133.3%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SalesStar presents meaningful caution due to missing revenue disclosures, unsubstantiated net income claims, aggressive unit growth velocity, high fee structure, and complete lack of territorial protection—critical gaps that obscure true franchisee profitability.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
bankruptcy proceedings. What’s it like to be a SalesStar franchisee? Item 20 or Exhibit B lists current and former franchisees. You can contact them to ask about their experiences. What else should I know? These questions are only a few things you should look for. Review all 23 Items and all Exhibit
Audited financials (Item 21)
Yes · Davies, Goldstein & Associates CPA’s PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 74 / 100 rating
- 01MEDAverage net income of $170,408 not validated against disclosed gross revenue—Item 19 financial performance representation missing entirely
- 02MINORNo territory protection despite $205,500-$241,500 investment and 10% royalty structure creates cannibalization risk with only 7 units
- 03MINORExplosive 133.3% YoY unit growth (likely 3→7 units) may indicate unsustainable expansion or inflated projections rather than sustainable franchisee success
- 04MINORHigh franchise fee ($125,000) represents 61% of total investment with unproven unit economics and no average revenue disclosure
- 05MINOR5-year term is below industry standard (10 years common) with unprotected territory, limiting franchisee ability to build equity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Free range |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 157 hrs
- On-the-job training
- 93 hrs
- Training location
- On-site and corporate
- POS system
- SMS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SMS System
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SalesStar · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SalesStar franchise?
The total investment to open a SalesStar franchise ranges from $206K – $242K, with an initial franchise fee of $125K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SalesStar franchise owners earn?
According to Item 19 of the SalesStar FDD, the average gross sales per unit is $707K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is SalesStar's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SalesStar (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many SalesStar franchise locations are there?
As of their most recent FDD filing, SalesStar has 7 total units in the United States, including 0 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is SalesStar a good franchise to buy?
FranchiseVerdict rates SalesStar as a D-grade franchise with a risk score of 74 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.