Bottom line
- Total investment $267K – $657K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.3M/year. Estimated payback in 1.2 years.
- Rated MODERATE with a risk score of 60/100.
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 Schmackary’s unit return on the cash you put in?
Unlevered ROIC · per unit
48%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Schmackary’s units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.0M purchase
Total debt
$5.6M
SBA $3.5M + senior + seller note
Overview
About
Schmackary's franchisees operate retail bakery/confectionery shops specializing in indulgent baked goods and sweets, managing daily production, customer service, inventory, and local marketing. Operations involve food handling compliance, staffing management, and point-of-sale transactions in a high-traffic retail environment.
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 · 16 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
Single-unit franchise with undisclosed corporate financial health and no performance data validation presents material risk despite attractive per-unit economics.
Score breakdown · what drove the 60 / 100 rating
- 01MEDOnly 1 franchised unit disclosed — system shows no meaningful growth or expansion despite franchise model
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability or operational challenges at corporate level
- 03MINORNo Item 19 financial performance representations — cannot validate if $400k net income claim is typical or outlier
- 04MINORWide investment range ($266k–$656k) suggests high variability in startup costs with unclear cost drivers
- 05MINOR6% royalty on gross revenue (not net) creates pressure during low-margin periods typical in food retail
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Schmackary’s · FDD (2024) PDF