Bottom line
- Total investment $75K – $263K including a $73K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $224K/year (median $132K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 108 loans (below the industry average).
- System growing at 29.7% CAGR over 3 years with 298 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 SCHOOLEY MITCHELL® unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SCHOOLEY MITCHELL® units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$268K
on $1.3M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
SCHOOLEY MITCHELL franchisees operate as telecommunications and utility cost reduction consultants, analyzing client bills and negotiating lower rates with service providers. Day-to-day activities include client acquisition, contract analysis, rate negotiation, and ongoing account management. Revenue is typically generated through commissions from savings achieved for clients.
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 · 20 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
SCHOOLEY MITCHELL presents elevated risk due to going concern flag, regulatory history, unprotected territory, undisclosed profitability metrics, and a cost structure that may not support adequate franchisee returns.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial viability issues at corporate level
- 02MEDNo Average Net Income disclosed — inability to validate ROI claims or profitability benchmarks
- 03HIGHTwo separate regulatory/litigation cases involving misrepresentation and disclosure violations — compliance risk pattern
- 04MINORUnprotected territory — direct competition possible from other franchisees in same market
- 05MINORHigh initial investment ($73K-$262K) relative to average revenue ($223.5K) creates tight margin for error
- 06MINOR8% royalty on gross sales is structurally problematic if net margins are compressed
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SCHOOLEY MITCHELL® · FDD (2025) PDF