Bottom line
- Total investment $872K – $1.8M including a $59K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $926K/year.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Serotonin unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Serotonin units return on equity?
Equity IRR · 5-yr
38.0%
5.00× MOIC
Year-1 DSCR
2.19×
EBITDA ÷ debt service
Equity required
$4.1M
on $13.0M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
Overview
About
Serotonin appears to be a mental health, wellness, or behavioral health service franchise (likely telehealth, therapy services, or wellness clinics based on brand name). Franchisees manage client/patient intake, service delivery or coordination, billing, and compliance with healthcare/wellness regulations. Day-to-day involves client scheduling, service administration, staff management, and regulatory adherence.
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 · 6 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
Early-stage franchise with explosive growth claims, opaque profitability metrics, and high investment requirements creates moderate-to-significant due diligence and ROI validation risk.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed despite $926K average revenue — unable to assess actual profitability and validate 7% royalty impact
- 02MINORExplosive 300% YoY unit growth (9 to 11 units) is mathematically inconsistent with claimed 11 total units — suggests data inconsistency or aggressive/unsustainable expansion claims
- 03MEDHigh initial investment range ($872K-$1.8M) with no disclosed net income creates significant ROI uncertainty and payback period risk
- 04MINORMinimum $2,500 monthly royalty floor ($30K annually) represents 3.2% of average revenue baseline, compressing margins for newer/slower locations
- 05MINOROnly 11 total units across system limits track record data, peer support network, and supplier negotiating power
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Serotonin · FDD (2026) PDF