Bottom line
- Total investment $234K – $421K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $674K/year. Estimated payback in 3.0 years.
- Rated STRONG with a risk score of 53/100.
- 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 Sip Fresh unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sip Fresh units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$943K
on $4.7M purchase
Total debt
$3.8M
SBA $2.4M + senior + seller note
Overview
About
Franchisees operate fresh juice, smoothie, and beverage retail locations, managing daily POS operations, inventory, staffing, and customer service in a quick-service format. Day-to-day duties include ingredient prep, blending/serving beverages, managing cash flow, staff scheduling, and maintaining health/safety compliance in small footprint locations.
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 · 3 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sip Fresh presents moderate-to-significant risk as an underdeveloped 4-unit franchise with high capital requirements, modest unit economics, and unproven scalability.
Score breakdown · what drove the 53 / 100 rating
- 01MEDOnly 4 units system-wide indicates extremely limited track record and network effects; no disclosed growth trajectory raises scalability concerns
- 02MINORHigh investment range ($233k-$420k) against modest average net income ($110k) yields 2-4 year payback period with significant leverage risk
- 03MINOR6% royalty on gross sales (not net) combined with typical COGS for beverage business (~35-40%) may compress margins below sustainability threshold
- 04MEDNo Item 19 financial performance representations disclosed; averages may not reflect typical franchisee experience and could mask underperforming units
- 05MINORMinimal franchise system size limits support infrastructure, purchasing power, marketing reach, and peer network compared to established brands
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sip Fresh · FDD (2025) PDF