Bottom line
- Total investment $547K – $1.1M including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M). Estimated payback in 4.0 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
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 Scramblers unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Scramblers units return on equity?
Equity IRR · 5-yr
39.6%
5.29× MOIC
Year-1 DSCR
2.13×
EBITDA ÷ debt service
Equity required
$3.6M
on $12.3M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
Overview
About
Scramblers franchisees operate casual dining or quick-service restaurants specializing in egg-based dishes, breakfast/brunch concepts, and related menu items. Day-to-day operations include food preparation, inventory management, staffing, and customer service in a fast-casual or full-service dining environment with typical restaurant operational demands.
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 · 8 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
Scramblers presents moderate-to-cautious risk due to undisclosed financial data, franchisor financial uncertainty, sluggish unit growth, and thin profit margins relative to capital requirements.
Score breakdown · what drove the 46 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $1.12M average revenue claim
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability or structural issues at franchisor level
- 03MEDSlow unit growth of only 7.7% YoY with just 27 locations suggests limited brand momentum or franchisee satisfaction
- 04MINORHigh investment-to-net-income ratio: $547K minimum investment against $203K average net income yields ~2.7-year payback assuming consistent performance
- 05MINOR4% royalty on gross sales (not net) creates cashflow pressure during slow periods and reduces franchisee margins
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Scramblers · FDD (2025) PDF