Bottom line
- Total investment $755K – $2.3M including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- 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
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 SUNNY ON SOUTH unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Overview
About
Sunny on South appears to be a restaurant or food service concept (likely sandwich/casual dining based on naming convention). Franchisees manage daily operations including food preparation, customer service, inventory management, and staff supervision while paying 6% royalties or $500 monthly minimum to the franchisor.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit franchise with undisclosed financials, uncertain growth potential, and possible going concern issues presents extreme risk despite territorial protection.
Score breakdown · what drove the 72 / 100 rating
- 01MINOROnly 1 existing unit with unknown growth trajectory indicates unproven system scalability
- 02MINORNo Item 19 (average revenue/net income disclosure) prevents ROI validation and suggests weak financial performance or franchisor reluctance to disclose
- 03HIGHGoing Concern flag is FALSE, meaning the franchisor may have solvency/operational viability issues
- 04MINORHigh investment range ($755K-$2.3M) paired with unvalidated revenue makes ROI timeline unclear
- 05MINORMinimum $500/month royalty on potentially low-revenue locations creates breakeven risk
- 06MINOR10-year term with $40K franchise fee locks franchisees into commitment without performance data
- 07HIGHNo litigation disclosure requirement met suggests either no disclosure obligation (younger brand) or deliberately opaque FDD
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
12 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SUNNY ON SOUTH · FDD (2025) PDF