Schooley Mitchell Franchise Cost, Revenue & Review 2026
- Investment
- $75K – $86K
- Disclosed sales
- $224K
- gross sales, not profit
- SBA charge-off
- 37.9%
- on 68 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Schooley Mitchell is a B2B cost-reduction consulting franchise that finds savings for businesses on telecom, utilities, and other expenses. Franchisees run an advisory practice auditing bills and negotiating with vendors, earning a share of the savings, typically home-based.
FranchiseVerdict summary · 2026
A SCHOOLEY MITCHELL franchise requires a total initial investment of $75K – $86K, including a $73K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average revenue per franchisee was $224K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 37.9% charge-off rate across 68 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $75K – $86K
- 24th pct Business Serv…
- Avg gross sales
- $224K
- Per franchisee, not per outlet
- Royalty
- 8.0%
- 33rd pct Business Serv…
- Units
- 298
- 60th pct Business Serv…
- SBA charge-off
- 37.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $75K – $86K including a $73K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $224K/year (median $132K). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 37.9% across 68 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +37 franchised outlets in the latest year (58 opened, 21 closed) (Item 20).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- 1073355 Ontario Limited
- CEO title
- President, Director of Technical Services
- Elizabeth McMillan
- Incorporated in
- Ontario, Canada
- HQ
- 1030 Erie Street, Stratford, Ontario, N4Z 0A1
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $11.8M
- vs $12.0M prior year
Overview
About
- CEO
- Elizabeth McMillan
- Founded
- 1994
- FDD year
- 2025
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost runs 40% below the typical business services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $73K | $73K | |
| Training Expenses | $500 | $2K | |
| Equipment and fixtures (in home office)not refundable | $0 | $2K | |
| Equipment and fixtures (Optional office outside of home)not refundable | $0 | $2K | |
| Security deposits, insurance, utilities, licenses, professional fees, inventory, and other prepaid expenses (in home office)not refundable | $0 | $1K | |
| Security deposits, insurance, utilities, licenses, professional fees, inventory, and other prepaid expenses (Optional office outside of home)not refundable | $0 | $2K | |
| Rent (Optional office outside of home)not refundable | $0 | $750 | |
| Office supplies (with logo)not refundable | $800 | $800 | |
| Additional Funds - 3 Monthsnot refundable | $1K | $2K | |
| Total initial investment | $75K | $86K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $75K – $86K
- Top 40% of category vs category
- Liquid capital req'd
- $1K – $2K
- Top 40% of category vs category
- Franchise fee
- $73K – $73K
- Middle of category vs category
- Royalty
- 8.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $120 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 67% below the business services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for SCHOOLEY MITCHELL until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$82K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one SCHOOLEY MITCHELL unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $224K
- Per franchisee, per year — not per outlet
- Median gross sales
- $132K
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historic Annual Secured Revenue by franchisee cohort (Full-Time vs Part-Time), quartile/decile breakdown
- Sample size
- 79 franchisees
- vs category median 37 · large
- Range (low → high)
- $55K→$3.0MCited, not corroborated — printed on page 39 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $67K→$605K
- Bottom 25% → top 25%, per franchisee
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $224K/year in gross sales. Median is $132K — top performers pull the average up, so a typical unit earns less.
Fee burden
Total ongoing fee load of 10.0% (near the Business Services median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Schooley Mitchell Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 298
- Opened
- 58
- Last reporting year
- Closed
- 21
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Ceased ops
- 45.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 37 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.
Where the owners are · Item 20 owner list
260 current owners across 37 states; 21 former (terminated, transferred or not renewed) listed separately.
- TX 31
- CA 21
- FL 18
- PA 15
- CO 12
- NY 11
- OH 11
- NC 10
- IL 9
- MA 9
- MI 9
- VA 9
- +25 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 68
- Loan volume
- $8.8M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 37.9%
- on 68 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 62.1%
- 5-yr charge-off
- 31.2%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 11
- Typical loan rate
- 8.4%
- avg rate to borrowers
- Franchised industry avg
- 36.0%
- brand above franchise avg ↑
- Jobs supported
- 134
- 1.7 per loan
- Lender concentration
- 77%
- top lender's share
Borrower mix: 97% went to startups / new businesses, 3% to established operators
Franchise vs independent — in other management consulting services, franchised businesses charge off at 36.0% vs 21.0% for independents — franchising is associated with 71% higher SBA default risk in this category.
Vintage analysis
Schooley Mitchell charge-off rate by loan vintage
Top lenders financing Schooley Mitchell franchisees
Showing 3 of 13 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Schooley Mitchell from SBA 7(a) FOIA data.
- Principal loss rate
- 10.7%
- Avg SBA guarantee
- 85%
- Avg interest rate
- 8.36%
- Avg chargeoff amount
- $98K
- Lender concentration
- 76.8%
- Job velocity
- 1.7 per $100K
- NAICS benchmark
- 36.4%
- NAICS 541618
- Jobs supported
- 134
Top SBA lendersTop lender holds 77% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 46 | N/A | N/A |
| 2 | Readycap Lending, LLC | 4 | N/A | N/A |
| 3 | BayFirst National Bank | 2 | N/A | N/A |
| 4 | Manufacturers and Traders Trust Company | 1 | N/A | N/A |
| 5 | CDC Small Business Finance Corp. | 1 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 9 | 0 | -- |
| TXTexas | 9 | 0 | -- |
| COColorado | 4 | 0 | -- |
| PAPennsylvania | 4 | 0 | -- |
| ILIllinois | 3 | 0 | -- |
| MAMassachusetts | 2 | 0 | -- |
| MIMichigan | 2 | 0 | -- |
| NCNorth Carolina | 2 | 0 | -- |
| OHOhio | 2 | 0 | -- |
| VAVirginia | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 37.9% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 37.9% — 137% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
298-unit consulting franchisor with a net loss of -$417,332 and thin net worth of $740,342. Two litigation matters: a franchisee rescission case (Ontario, settled CAD $100K) and an NY Attorney General investigation. Elevated turnover of 10.77%. Multiple concerns: losses, regulatory investigation, and franchisee misrepresentation history.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Claire Giroux and Mitchell Kennedy v. 1073355 Ontario Limited et al. (2016) - former franchisee alleged misrepresentation/Arthur Wishart Act violations; Ontario Superior Court ordered rescission and damages/costs; settled 2018 for CAD $100,000 plus $20,000 costs. Also, NY Attorney General investigation (2019) into unregistered franchise sales in New York; resolved via Assurance of Discontinuance, $12,000 penalty, rescission offer to affected franchisee.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORNet income -$417,332, thin net worth $740,342
- 02MINORNY Attorney General investigation plus franchisee rescission/misrepresentation settlement
- 03MINORElevated turnover 10.77%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 200,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 5 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Detroit, Michigan |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
Claire Giroux and Mitchell Kennedy v. 1073355 Ontario Limited et al. (2016) - former franchisee alleged misrepresentation/Arthur Wishart Act violations; Ontario Superior Court ordered rescission and damages/costs; settled 2018 for CAD $100,000 plus $20,000 costs. Also, NY Attorney General investigation (2019) into unregistered franchise sales in New York; resolved via Assurance of Discontinuance, $12,000 penalty, rescission offer to affected franchisee.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Pulse
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Pulse
Item 20 · call current owners
Franchisee Contacts
281 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SCHOOLEY MITCHELL franchise?
The total investment to open a SCHOOLEY MITCHELL franchise ranges from $75K – $86K, with an initial franchise fee of $73K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SCHOOLEY MITCHELL franchise owners earn?
According to Item 19 of the SCHOOLEY MITCHELL FDD, the average gross sales per unit is $224K. The median is $132K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns SCHOOLEY MITCHELL?
SCHOOLEY MITCHELL is franchised by 1073355 Ontario Limited. Source: FDD Item 1, 2025 filing.
What is Item 19 in the SCHOOLEY MITCHELL FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the SCHOOLEY MITCHELL FDD and qualifies whose outlets they describe.
What is SCHOOLEY MITCHELL's franchise failure rate?
Based on SBA 7(a) loan data, SCHOOLEY MITCHELL has a charge-off rate of 37.9% across 68 loans, meaning 37.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many SCHOOLEY MITCHELL franchise locations are there?
As of their most recent FDD filing, SCHOOLEY MITCHELL has 298 total units in the United States, including 297 franchised units and 1 company-owned units. 58 new units were opened in the latest reporting year.
Is SCHOOLEY MITCHELL a good franchise to buy?
FranchiseVerdict rates SCHOOLEY MITCHELL as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.