Bottom line
- Total investment $56K – $136K including a $42K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $311K/year. Estimated payback in 0.9 years.
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 1 year of franchising with 1 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 SoCal Candle Rentals unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SoCal Candle Rentals units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$497K
on $2.5M purchase
Total debt
$2.0M
SBA $1.2M + senior + seller note
Overview
About
SoCal Candle Rentals franchisees operate a candle subscription/rental service, likely delivering decorative or specialty candles to residential or commercial customers on a recurring basis. Day-to-day operations include inventory management, customer acquisition and retention, fulfillment/delivery logistics, billing administration, and customer service for a subscription-based 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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
This is a pre-revenue-stage or severely under-performing franchise system with a single unit, unverified financials, and franchisor financial concerns that make it unsuitable for most investors.
Score breakdown · what drove the 60 / 100 rating
- 01MINOROnly 1 operating unit makes performance claims unreliable and impossible to validate system-wide trends
- 02MINORNo Item 19 financial performance representation provided—claimed $310,877 revenue is unverified single-unit data
- 03HIGHGoing Concern status is FALSE, indicating potential franchisor financial instability or viability questions
- 04MINORHigh franchise fee ($42,000) combined with wide investment range ($55.5K-$136.1K) suggests unclear startup costs and poor financial transparency
- 05MINOR7% royalty on gross sales (whichever is greater) creates unprofitable months for low-revenue periods with no apparent minimum threshold relief
- 06MINORUnknown growth trajectory with only 1 unit prevents assessment of market demand, replicability, or system viability
- 07MINORCandle rental is a niche, untested market with unclear seasonal demand volatility and customer acquisition 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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SoCal Candle Rentals · FDD (2025) PDF