FranchiseVerdict
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FV-02470·MODERATEExcellent86

Stricklands

Food & Beverage - Ice Cream & DessertsFranchising since 2002Website
Investment
$340K – $596K
80th pct Ice Cream & D…
Avg revenue
59th pct Ice Cream & D…
Royalty
6.0%
27th pct Ice Cream & D…
Units
4
19th pct Ice Cream & D…
SBA default

Bottom line

  • Total investment $340K – $596K including a $25K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Strickland’s Marketing Corp.
Incorporated in
Ohio
HQ
PO Box 1116, Cuyahoga Falls, OH 44223
Auditor
Oles + Associates
Audited financials
Franchisor revenue
$53K
vs $118K 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 Stricklands 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: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $340K–$596K
Working capital
$
FDD reports $18K–$45K

Unlevered ROIC · per unit

14%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$68K
EBITDA margin
9.0%
Total invested
$499K
Payback
89 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

Stricklands franchisees operate what appears to be a retail or service-based business model, though specific operations are not detailed in available data. Day-to-day activities likely involve inventory management, customer service, and sales operations within a protected territory. The business model generates reported net income averaging $406,684 annually, though operational specifics and revenue sources remain unclear.

CEO
L. Scott Margroff
Founded
2002
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$340K – $596K
All-in to open one unit
Liquid capital
$18K – $45K
Cash you must have on hand
Franchise fee
$25K
Royalty
6.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical
Payback period
1.2 yrs
From v3 / Item 19

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
4
Opened
2
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
7.7%
Net growth (yr3)
+100.0%
Net unit change last year
3-yr CAGR
+100.0%
Compounded over last 3 years
2023
4+2
Franchised units
2024
2
Franchised units
2025
2
Franchised units

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).

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 · 5 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

65
Risk · 0-100
MODERATE65 / 100

Stricklands presents significant caution-level risk due to an extremely small unit base, undisclosed revenue metrics, questionable net income figures, and franchisor going concern issues that prevent meaningful due diligence.

Score breakdown · what drove the 65 / 100 rating

  1. 01MEDOnly 4 units in system with no historical growth data — extremely small franchise with limited track record and scaling proof
  2. 02MINORAverage net income of $406,684 appears inflated relative to $339,500-$596,000 investment range — suggests either cherry-picked data or unsustainable margins
  3. 03MINORNo average revenue disclosure despite net income provided — opacity on top-line performance prevents ROI validation and raises data integrity concerns
  4. 04HIGHGoing Concern status is FALSE — suggests potential financial instability or viability questions with the franchisor
  5. 05MEDFranchise fee of only $25,000 with high investment range ($339,500-$596,000) indicates bulk of capital goes to buildout with limited franchisor skin-in-the-game
  6. 06MINOR100% YoY unit growth mathematically meaningless with 4-unit system — could represent adding 1-2 units; insufficient data to demonstrate system viability

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius/Area
Protected territory
Yes
Initial term
15 years
Renewal term
15 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
5 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Ohio

Item 11

Training & Operations

Classroom training
6 hrs
On-the-job training
34 hrs
POS system
Clover POS
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

12 numbers

Locked
(415) 972-••••
One Sansome Street, Suite
CA
(360) 902-••••
WA
(330) 929-••••
OH

One-time purchase · CSV download · Validation questions included

FDD download

Stricklands · FDD (2025) PDF

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