Sd TechFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SD TECH franchise requires a total initial investment of $92K – $168K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $92K – $168K
- 27th pct Business Serv…
- Avg gross sales
- $2.1M
- 24th pct Business Serv…
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 2
- 6th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 16.0x in gross revenue, well above the typical 1.5-2.5x range.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $92K – $168K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.1M/year.
- Verdict A (Top Quintile) with a risk score of 34/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SD TECH International, Inc.
- CEO title
- President & Chief Executive Officer
- Wes Ulmer
- CEO experience
- 23 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 523 Med Ct., Suite 105, San Antonio, TX 78258
- Auditor
- KEZOS & DUNLAVY
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
SD TECH franchisees operate technology-focused service delivery businesses generating approximately $2.08M in gross revenue per location. Day-to-day operations likely involve client management, service delivery, and business development within a protected territory, though specific service offerings are not detailed.
- CEO
- Wes Ulmer
- Headquarters
- TX
- Founded
- 2021
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $22K | $78K |
| Total initial investment | $92K | $168K |
Source: SD TECH 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$333K
16.0% margin
Unlevered ROIC
222%
EBITDA / total invested capital
Payback
5 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $92K – $168K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Training fee | $3K |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 1 units
- vs category median 32 · small
- Range (low → high)
- $1.5M→$2.1M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 3 / 5 · typical
Compared against 360 Business Services brands
Revenue is 16.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How Sd Tech Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $150K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sd Tech's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pre-revenue-stage franchise system with only 2 units, undisclosed profitability metrics, and unproven unit economics poses substantial validation and scalability risk.
Litigation (Item 3)
No litigation is required to be disclosed in this Disclosure Document.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KEZOS & DUNLAVY⚠ Going-concern note flagged
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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 rating
- 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited operating history and system validation
- 02MEDNet income not disclosed despite $2M+ average revenue suggests franchisor may be hiding profitability concerns or unit performance is highly variable
- 03MINORHigh initial investment range ($91,650-$168,000) relative to only 2 proven locations creates unvalidated ROI model
- 04MINORMassive gap between lowest and highest investment suggests inconsistent unit economics or undefined build-out standards
- 05MINOR6% royalty on gross revenue (not net) compounds cash flow risk if unit profitability is marginal
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius or Population |
| Protected territory | Yes |
| Territory radius | 10 mi |
| Territory population | 125,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Bexar County, Texas |
| Jury trial waiver | No |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Disclosure Document.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 28 hrs
- Training location
- San Antonio, Texas
- Field support
- 28 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SD TECH · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SD TECH franchise?
The total investment to open a SD TECH franchise ranges from $92K – $168K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SD TECH franchise owners earn?
According to Item 19 of the SD TECH FDD, the average gross sales per unit is $2.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is SD TECH's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SD TECH (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many SD TECH franchise locations are there?
As of their most recent FDD filing, SD TECH has 2 total units in the United States, including 0 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is SD TECH a good franchise to buy?
FranchiseVerdict rates SD TECH as a A-grade franchise with a risk score of 34 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.