Bottom line
- Total investment $440K – $607K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $519K/year.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 3 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 skoah® unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 skoah® 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 $7.8M purchase
Total debt
$6.2M
SBA $3.9M + senior + seller note
Overview
About
Skoah operates premium skincare/wellness retail locations, likely offering facials, treatments, skincare products, and spa services. Franchisees manage day-to-day operations including client booking, treatment delivery, retail sales, and staff management in upscale aesthetic/wellness environments.
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapidly contracting franchise system with critical profitability data gaps and severe unit attrition makes this a high-risk investment requiring extensive third-party validation.
Score breakdown · what drove the 67 / 100 rating
- 01MINORUnit count collapsed 33.3% YoY (from 3 to 2 units) indicating severe system contraction or franchisee failure
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims against $440k-$606k investment
- 03MEDHigh initial investment ($440k-$606k) paired with undisclosed net income creates unfavorable risk/reward profile
- 04MEDOnly 2 remaining franchise units suggests limited operational infrastructure and support capability
- 05MINOR6% royalty on $518k average revenue equals ~$31k annual royalty with unknown profitability baseline
- 06HIGHThin disclosure package (no litigation mentioned, but no financial performance data) 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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
skoah® · FDD (2023) PDF