Bottom line
- Total investment $142K – $189K including a $50K franchise fee.
- Average unit revenue of $1.3M/year (median $1.4M).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System growing at 48.0% CAGR over 3 years with 74 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 Shine unit return on the cash you put in?
Unlevered ROIC · per unit
67%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Shine units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.0M
on $5.1M purchase
Total debt
$4.1M
SBA $2.6M + senior + seller note
Overview
About
Shine operates in the cleaning/janitorial services sector, with franchisees typically managing residential or commercial cleaning operations. Franchisees recruit and oversee cleaning teams, manage client relationships, handle scheduling/logistics, and operate within their protected territory to build recurring revenue through service contracts.
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
Aggressive royalty structure and missing profitability disclosure create opacity around actual franchisee ROI despite reasonable unit growth and protected territories.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — cannot validate actual profitability against $141k-$189k investment
- 02MINORRoyalty structure heavily favors franchisor: $875/month minimum ($10,500/year) regardless of revenue, escalating to $1,667/month (20% APR) in year 2+
- 03HIGHLitigation history includes franchisor claims (2023 franchisee dispute + 2016 unregistered territory sale by affiliate) suggesting regulatory/compliance issues
- 04MINORStrong unit growth (32.1% YoY) is positive but system is still small (74 units), reducing brand stability and support infrastructure maturity
- 05MINORAvg revenue of $1.28M is only 9x the initial investment; at 7% royalty, franchisee pays $89,702/year to franchisor before other operating costs
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
55 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Shine · FDD (2025) PDF