Bottom line
- Total investment $380K – $555K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $309K/year (median $295K).
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 18 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 Stride unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Stride units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.8M purchase
Total debt
$5.4M
SBA $3.4M + senior + seller note
Overview
About
Stride appears to be a service-based or retail franchise model (specific business type not provided in data). Franchisees manage daily operations, customer acquisition, service/product delivery, and staff management while paying 7% of gross sales as royalty fees to support corporate overhead and brand initiatives.
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 · 13 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
Stride is a micro-system with undisclosed profitability, potential franchisor financial distress, and insufficient unit density to validate the business model.
Score breakdown · what drove the 56 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to assess true profitability against $379k-$554k investment
- 02HIGHGoing Concern status is False — suggests franchisor financial instability or regulatory issues
- 03MINOROnly 18 units system-wide with 70% YoY growth appears inflated from very small base (likely 10-11 units prior year)
- 04MINORHigh royalty rate (7%) on modest average revenue ($309k) creates thin margin risk
- 05MINORFranchise fee ($60k) represents 15.8-18% of total investment — typical is 10-12%
- 06MINORAverage revenue of $309k with unknown profitability makes ROI calculation impossible
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Stride · FDD (2023) PDF