Schooley Mitchell Franchise Cost & 2025 FDD Data
40/100
Middle tier
40 this brand55 Business Services medianlikely 36–44 (high confidence)
Higher is better · an editorial assessment, not investment advice
#2,393 of 3,069 graded brands
Why a C: Helped by unit growth, scale, legal record and transparency. Held back by financial health. See all six factors
- Total investment
- $75K – $86K
- Avg gross sales
- $224K
- 79 Full-Time Franchisees; not profit
- SBA charge-off
- 37.9%
38% SBA 7(a) loans to Schooley Mitchell owners charged off (11 of 29 resolved loans, approved since FY1991); Business Services median 14.9%. Loans approved FY2017–FY2021: 10 of 20 resolved loans charged off (50.0%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
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 · 2025 FDD
Per the 2025 FDD, a Schooley Mitchell franchise requires a total initial investment of $75K – $86K, including a $73K franchise fee. Once open, the ongoing royalty is 8.0%. Per the 2025 FDD, average gross sales per franchisee were $224K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages (Item 19: 79 Full-Time Franchisees; gross sales, not profit). SBA 7(a) loans show a 37.9% charge-off rate on 29 resolved loans. Verdict grade: C (Middle tier), an editorial assessment, not investment advice.
Sources: 2025 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
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 for the headline figures: 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
Quick verdict · vs Business Services median
Top edge: green = better than the Business Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales per franchisee of $224K/year (outlet median $132K; Item 19: 79 Full-Time Franchisees; gross sales, not profit). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 37 (58 opened, 21 closed).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
AT STAKEOne unit at the Item 7 midpoint: $10K a year in payments on assumed SBA 7(a)-style terms.You put in about $16K of your own cash and personally guarantee a $64K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- SBA 7(a) charge-off 37.9% on 29 resolved loans, loans approved since FY1991, above the Business Services median of 14.9% (39 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no supplier rebates to the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 79 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2025 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 40% below the Business Services median ($133K).
Source: FDD 2025 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask 1073355 Ontario Limited (Item 1: 1030 Erie Street, Stratford, Ontario, N4Z 0A1) and your lender what they require, and keep living costs for the first year outside the deal.
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. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
Marketing / ad fundThe filing's detailBrand-wide marketing pool. Standard and development franchises: 2% of Gross Sales/month (min $50/mo months 7-29, $100/mo month 30+). Builder franchise: 3% of Gross Sales/month, no minimum. | 2.0% of gross sales |
Technology feeThe filing's detailSoftware and Marketing Programs Fee of $120/month for proprietary sales, marketing, training software, system access, data storage, email, Pulse and other programs. | $120/month |
| Transfer fee | $5,000 |
| Renewal fee | $2,500 |
| Total fee loadabove the Business Services median of 8.5% (heavy) | 10.0% of sales |
What do units actually make?
Average gross sales are 67% below the Business Services median ($686K).
Source: FDD 2025 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Schooley Mitchell unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $224K (FDD Item 19, p.39), and the royalty and ad fund take about $22K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $10K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $80K Item 7 midpoint is a $64K loan, paid over 10 years at 10.5%: $10K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Schooley Mitchell's past SBA 7(a) loans averaged 8.4% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $16K Assumption (the part the loan does not cover of the $80K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $64K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Schooley Mitchell unit leave you each year after the loan payment?
Item 19 reports $223,544 per franchisee, not per outlet. Every other input below is for ONE unit; replace this with a single-unit figure before relying on the result.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Standard and development franchises: 2% of Gross Sales/month (min $50/mo months 7-29, $100/mo month 30+). Builder franchise: 3% of Gross Sales/month, no minimum.” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $75K to $86K
Item 7's $1K to $2K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $64K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by 1073355 Ontario Limited
Financial performance
- Range (low → high)
- $55K→$3.0M2025 FDD Item 19, p.39
- Cohort dispersion (min → max)
- Top and bottom 25%
- $67K→$605K
- Bottom group → top group: the top and bottom 25% as the filing reports them
- Transparency
- 4 / 10
- vs category median 3 / 10 (more detail than most)
Percentile ranks within Business Services
Each rank is among the Business Services brands that report that figure (the count is under each bar).
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.
Who are you contracting with?
1073355 Ontario Limited.
Item 1 (the franchisor) · 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
- latest fiscal year in the 2025 FDD; $12.0M the year before
Overview
About
- CEO
- Elizabeth McMillan
- States and territories listed
- 37
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+68 franchised outlets over the two years to 2025 (229 to 297, +29.7% in total, +13.9% a year compounded).
Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 67
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 229 in 2022 to 297 in 2024
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 3 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 3 statesNo current outlet
3 current outlets in 3 states: the 3 on the owner list, of 297 franchised at year end (Item 20). 278 former owners (terminated, transferred, not renewed or otherwise left) listed separately.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 37.9% of 29 resolved SBA 7(a) loans, above the 14.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 68
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $8.8M
- Average loan
- $129K
- loan volume divided by loans
- Charge-off rate
- 37.9%
- 11 of 29 resolved loans
- Paid in full
- 62.1%
- of resolved loans
- Recent-loan charge-off
- 31.2%
- on 16 resolved recent loans
- Lenders
- 13
- Average interest rate
- 8.4%
- Jobs reported
- 134
- Lender concentration
- 68%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. Lenders, interest rate, jobs and lender concentration cover only the 59 non-cancelled loans approved FY2018 to FY2026. How SBA charge-off rates are calculated
Benchmark: the median Business Services brand charges off 14.9% (39 brands with a published rate, same cumulative window and source). This brand is 23.0 points above it.
Borrower mix: of the 59 loans with a recorded business age, 57 (97%) went to startups or businesses under two years old and 2 (3%) to established businesses or ownership changes.
The approval-year breakdown covers 20 of the 29 resolved loans and 10 of the 11 charge-offs (FY2017 to FY2021).
SBA 7(a) · charge-off rate by approval year
Schooley Mitchell charge-off rate by loan approval year
None of these 5 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2017 | 3 | 2 | Too few |
| 2018 | 4 | 3 | Too few |
| 2019 | 5 | 2 | Too few |
| 2020 | 5 | 2 | Too early |
| 2021 | 3 | 1 | Too early |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Schooley Mitchell from SBA 7(a) FOIA loan records.
The tables below cover the 59 non-cancelled loans approved FY2018 to FY2026, the window this report’s lender, state and yearly detail is built from. The headline charge-off rate comes from the full loan file (68 loans, cumulative from fiscal 1991; the rate counts only loans that have finished), so the two can differ.
- Principal charged off (% of dollars)
- 10.7%
- Average charge-off
- $98K
- across 11 charged-off loans
- Average SBA guarantee
- 85%
- Average interest rate
- 8.4%
- Lender concentration
- 68%
- Jobs reported
- 134
- among the 59 non-cancelled loans approved FY2018 to FY2026
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| United Midwest Savings Bank National Association | ||
| 44 | $6.0M | 50.0%16 resolved |
| Celtic Bank Corporation | ||
| 6 | $875K | Too few6 resolved |
| Readycap Lending, LLC | ||
| 4 | $442K | Too few1 resolved |
| BayFirst National Bank | ||
| 2 | $207K | Too few0 resolved |
| CDC Small Business Finance Corp. | ||
| 1 | $105K | Too few0 resolved |
| Community Trust Bank, Inc. | ||
| 1 | $140K | Too few1 resolved |
| Fifth Third Bank | ||
| 1 | $43K | Too few1 resolved |
| Hanover Community Bank | ||
| 1 | $75K | Too few0 resolved |
| Manufacturers and Traders Trust Company | ||
| 1 | $180K | Too few1 resolved |
| Northern Bank and Trust Company | ||
| 1 | $50K | Too few1 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| FL Florida | 9 | N/A | Not on file |
| TX Texas | 9 | N/A | Not on file |
| CO Colorado | 4 | N/A | Not on file |
| PA Pennsylvania | 4 | N/A | Not on file |
| IL Illinois | 3 | N/A | Not on file |
| MA Massachusetts | 2 | N/A | Not on file |
| MI Michigan | 2 | N/A | Not on file |
| NC North Carolina | 2 | N/A | Not on file |
| OH Ohio | 2 | N/A | Not on file |
| VA Virginia | 2 | N/A | Not on file |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (3)
Industry context
Most of this brand’s borrowers recorded NAICS 541618 (Other Management Consulting) on their loans. Across every SBA 7(a) loan in that industry code, all approval years, franchised businesses charged off 36.0% (50 resolved loans) and independent businesses 21.0% (3,617 resolved loans). Franchising does not lower the rate in every industry.
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
A 37.9% charge-off rate means about 1 in 3 resolved SBA 7(a) loans to this brand was charged off. The approval-year chart above shows which years they came from.
What are the risks?
Main risk in the grade: financial health. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade C: Middle tier, 40/100 (category median 55); the full grade is at the top of the page.
How the grade is built
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.
Why a C, factor by factor
- Financial health Weighs on it, weakest dimensionAudited financials; no going-concern doubt; franchisor reported a net loss
- Unit economics NeutralAvg gross sales $224K on a $80K investment midpoint, 2.8x (gross sales, not profit)
- Unit growth Helps+68 franchised outlets over the two years to 2025 (229 to 297, +29.7% in total, +13.9% a year compounded); turnover 10.8%
- Scale Helps297 franchised units, +1 company-owned (298 in all); franchising since 2004
- Legal Helps2 matters naming the franchisor among the Item 3 matters we list (0.7 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-33 points)SBA loan record: the SBA charge-off rate (37.9% on 29 resolved loans) is between 20% and 50%, a range the score counts against a brand, so it took 15 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Score limits: a ceiling the method sets for specific risks (such as a very high SBA charge-off rate, high turnover or an auditor's going-concern doubt) took 18 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
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
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Franchisor takes supplier rebates: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Notes from the filing review · not the score inputs
- 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
Litigation case detail2 matters · Item 3
Litigation cases
The franchisor
Concluded (2)
In the Matter of Investigation by Letitia James, Attorney General of the State of New York, of Schooley Mitchell and Elizabeth McMillan
concludedGovernment or regulatory action · filed 2019 · Attorney General of the State of New York · AOD #20-033
“In the Matter of Investigation by Letitia James, Attorney General of the State of New York, of Schooley Mitchell and Elizabeth McMillan, AOD #20-033.”Page 9 of the 2025 FDD, Item 3
Claire Giroux and Mitchell Kennedy v. 1073355 Ontario Limited o/a Schooley Mitchell Telecom Consultants, Dennis Schooley and Elizabeth McMillan
settledBrought by a franchisee · filed 2016-06-23 · Ontario Superior Court of Justice · C-685-16
“Claire Giroux and Mitchell Kennedy v. 1073355 Ontario Limited o/a Schooley Mitchell Telecom Consultants, Dennis Schooley and Elizabeth McMillan, Case No. C-685-16.”Page 9 of the 2025 FDD, Item 3
Outcome: “On or about May 18, 2018, we entered into a settlement with Plaintiffs and agreed to pay Plaintiffs $100,000 plus $20,000 for costs.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | No |
| Exclusive territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Right of first refusal | Yes |
| RoFR response window | 5 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaults | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Detroit, Michigan |
| Jury trial waiver | Yes |
| Governing law | Delaware |
Items 10 (financing), 11 (training and support)
Training and 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 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · former franchisees
Franchisee contacts
Who can you call before you sign?
Former franchisees (278)
Each record has a phone number and state. 248 of 281 also name the franchisee; 248 of 281 also name a city. Our list is mostly former franchisees (terminated, transferred, not renewed or otherwise left): 278 of 281 contacts. The FDD's own Item 20 exhibit lists the current owners. Former owners can speak freely, but cannot describe how the system runs today. From the filing's Item 20 (the outlet list); the FDD itself is the free source.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Schooley Mitchell franchise?
Per the 2025 FDD, the total investment to open a Schooley Mitchell franchise ranges from $75K to $86K, with an initial franchise fee of $73K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Schooley Mitchell franchise owners earn?
According to Item 19 of the Schooley Mitchell FDD, average gross sales were $224K (79 Full-Time Franchisees; gross sales, not profit). The median is $132K. Averaged per franchisee, not per outlet - not comparable with per-outlet figures. What an owner keeps depends 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?
There is no published franchise failure rate. What is measurable is Schooley Mitchell's SBA charge-off rate: 37.9% on 29 resolved loans. Put plainly: 38% SBA 7(a) loans to Schooley Mitchell owners charged off (11 of 29 resolved loans, approved since FY1991); loans approved FY2017–FY2021: 10 of 20 resolved loans charged off (50.0%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Schooley Mitchell franchise locations are there?
Per the 2025 FDD, Schooley Mitchell has 297 franchised units and 1 company-owned (298 in all). In the latest year, the number of franchised outlets grew by 37 (58 opened, 21 closed).
Is Schooley Mitchell a good franchise to buy?
FranchiseVerdict gives Schooley Mitchell a C Verdict grade (Middle tier) with a verdict score of 40 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+68 franchised outlets over the two years to 2025: 229 to 297, +29.7% in total, +13.9% a year compounded), scale, legal record and transparency. Held back by financial health (audited financials). The “Why a C” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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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.