Bottom line
- Total investment $521K – $1.0M including a $43K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $760K/year (median $658K). Estimated payback in 10.1 years.
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 3 years of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.
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 SixFour3 unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SixFour3 units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.8M purchase
Total debt
$5.5M
SBA $3.4M + senior + seller note
Overview
About
SixFour3 franchisees appear to operate a service or retail business generating average revenues of $760K annually. Without disclosed details, the specific daily operations remain unclear—requiring urgent clarification on whether franchisees manage storefronts, provide field services, offer consulting, or another model.
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 · 16 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
SixFour3 presents material risk due to minimal unit count, franchisor financial instability indicators, thin franchisee margins, and lack of financial transparency—suitable only for capital-patient investors with strong operational experience.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory indicates minimal scale and unproven replicability
- 02HIGHGoing Concern = False suggests potential financial instability or uncertainty about franchisor's viability
- 03MINORNet income of $76,240 on $760,286 revenue (10% net margin) is thin; 6% royalty eats 60% of net profit
- 04MINORNo Item 19 financial performance representations limits ability to validate actual franchisee profitability claims
- 05MINORHigh investment range ($520K-$1M+) relative to 10% average net income creates extended breakeven timeline
- 06HIGHUndisclosed litigation history combined with Going Concern status raises transparency concerns
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SixFour3 · FDD (2025) PDF