Bottom line
- Total investment $206K – $242K including a $125K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 60/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 SalesStar unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 60 / 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
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
37 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SalesStar · FDD (2025) PDF