Bottom line
- Total investment $146K – $279K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $824K/year (median $796K).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 5 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 Silbar Security unit return on the cash you put in?
Unlevered ROIC · per unit
49%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Silbar Security units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.2M purchase
Total debt
$6.6M
SBA $4.1M + senior + seller note
Overview
About
Silbar Security franchisees operate as security service providers, likely managing installation, monitoring, and maintenance of security systems for residential and/or commercial clients. Day-to-day operations likely involve customer acquisition, technician scheduling, system monitoring/dispatch, and ongoing customer service and upselling within their protected territory.
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 · 18 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
Silbar Security presents material risk due to undisclosed profitability metrics, minimal system scale, and franchisor financial concerns, warranting extensive validation before $145K+ commitment.
Score breakdown · what drove the 60 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $824K average revenue claim
- 02MINOROnly 9 units systemwide indicates extremely small, unproven franchise system with unknown growth trajectory
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or structural issues at franchisor level
- 04MEDHigh initial investment ($145.5K-$279.4K) relative to system size creates concentration risk and limited peer support
- 05MINORRoyalty floor of $300/month means unprofitable locations still owe fees, reducing franchisee flexibility
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Silbar Security · FDD (2026) PDF