FranchiseVerdict
Softroc logo
FV-02380·MODERATEExcellent81

Softroc

OtherFranchising since 2021Website
Investment
$94K – $179K
32nd pct Other
Avg revenue
50th pct Other
Royalty
Units
25
52nd pct Other
SBA default

Bottom line

  • Total investment $94K – $179K including a $60K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Softroc Global, LLC
Parent company
Restoration 1 Franchising Holding LLC
Incorporated in
Delaware
HQ
2929 Carlisle St., Suite 100, Dallas, Texas 75204
Auditor
Huselton, Morgan & Maultsby, P.C.
Audited financials
Franchisor revenue
$111K
vs $360K prior year

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 Softroc unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $94K–$179K
Working capital
$
FDD reports $11K–$22K

Unlevered ROIC · per unit

78%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$153K
Payback
15 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Softroc franchisees appear to operate in the restoration/damage remediation space (likely water, fire, or property damage restoration based on affiliate brand context). Day-to-day operations likely involve emergency response dispatch, customer assessment, remediation project management, and vendor/insurance coordination.

CEO
Sherry Rose
Founded
2021
FDD year
2023
States available
9

Item 7 · what it costs

The Vitals

Total investment
$94K – $179K
All-in to open one unit
Liquid capital
$11K – $22K
Cash you must have on hand
Franchise fee
$60K
Royalty
Greater of (a) 7% of Collected Gross Revenue or (b) the M…
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
25
Opened
19
Last reporting year
Closed
2
Turnover rate
8.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
2021
25+17
Franchised units
2022
8
Franchised units
2023
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 21 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 21 states
Not registered

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

64
Risk · 0-100
MODERATE64 / 100

Undisclosed financials, prior regulatory settlement, unprotected territories, and unsustainable growth trajectory create material uncertainty about unit economics and franchisor stability.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDNo average revenue or net income disclosed in FDD (Item 19 missing or inadequate) — cannot validate ROI claims
  2. 02HIGHAffiliate litigation in 2014 involving unlawful franchise sale after registration lapsed suggests compliance/governance concerns
  3. 03MINORUnprotected territory creates direct competition risk — franchisees can cannibalize each other's revenue
  4. 04MEDMinimum royalty fee structure not disclosed — unknown fixed cost burden could eliminate profitability at lower revenue levels
  5. 05MINORExplosive unit growth (212.5% YoY) on only 25 units is unsustainable and may indicate recruitment-heavy model rather than organic growth
  6. 06HIGHGoing Concern = False is ambiguous — clarify whether franchisor has undisclosed financial distress

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic area (ZIP codes, boundaries, or roads)
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
10 hrs
On-the-job training
34 hrs
POS system
House Call Pro
Operating tech stack

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

34 numbers

Locked
(213) 576-••••
Suite
CA
(415) 972-••••
One Sansome Street, Suite
CA
(682) 732-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Softroc · FDD (2023) PDF

Single-page checkout · instant download · CSV export of contacts available separately above