Bottom line
- Total investment $579K – $1.2M including a $35K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.7M). Estimated payback in 4.2 years.
- Rated STRONG with a risk score of 32/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- System growing at 10000% CAGR over 3 years with 25 total units — strong expansion trajectory.
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 Spitz unit return on the cash you put in?
Unlevered ROIC · per unit
31%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Spitz units return on equity?
Equity IRR · 5-yr
33.4%
4.22× MOIC
Year-1 DSCR
2.43×
EBITDA ÷ debt service
Equity required
$6.0M
on $15.7M purchase
Total debt
$9.7M
SBA $5.0M + senior + seller note
Overview
About
Spitz franchisees operate fast-casual restaurants specializing in what appears to be Middle Eastern or Mediterranean cuisine (likely pita/kebab-based offerings). Day-to-day operations involve food preparation, customer service, inventory management, and local marketing to drive the stated $1.84M average unit volume.
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 · 5 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
Moderate-risk growth-stage franchise lacking transparent financial disclosures and operating with aggressive unit expansion; suitable for experienced operators with capital cushion but requiring thorough franchisee validation.
Score breakdown · what drove the 32 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $1.84M average revenue or $204K net income claims
- 02MINORRapid unit growth (33.3% YoY) from small base (25 units) suggests either strong traction or unsustainable expansion; sustainability unclear
- 03MINORRoyalty structure ($125/week minimum = $6,500 annually) creates fixed cost burden even if revenue drops significantly below $227K annually
- 04MEDHigh investment range ($579K–$1.15M) relative to disclosed net income ($204K) means 2.8–5.6 year ROI under ideal conditions
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Spitz · FDD (2025) PDF