Bottom line
- Total investment $116K – $174K including a $55K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.4M/year. Estimated payback in 0.2 years.
- Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
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 Surveillance Secure unit return on the cash you put in?
Unlevered ROIC · per unit
232%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Surveillance Secure units return on equity?
Equity IRR · 5-yr
29.9%
3.70× MOIC
Year-1 DSCR
2.70×
EBITDA ÷ debt service
Equity required
$8.6M
on $19.4M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
Overview
About
Surveillance Secure franchisees likely design, install, and maintain commercial security camera systems and monitoring services for small-to-medium businesses. Day-to-day operations involve client consultations, equipment installation/service calls, system monitoring, and customer support for CCTV infrastructure.
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 · 16 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
Extreme caution warranted: A 2-unit micro-franchise with unverified financial claims, going concern issues, and no Item 19 support represents speculative, high-risk investment with inadequate franchisor infrastructure.
Score breakdown · what drove the 71 / 100 rating
- 01MEDOnly 2 units in system with unknown growth trajectory indicates extremely limited track record and no proven scalability
- 02HIGHGoing Concern = False suggests potential financial instability or undisclosed operational challenges at franchisor level
- 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate the $622,400 average net income claim or $2.4M revenue figures
- 04MINORMassive gap between investment range ($116K-$173.7K) and claimed net income ($622K) creates unrealistic ROI expectations that warrant verification
- 05MINOR6% royalty on gross revenues (not net) compounds risk if franchisees cannot achieve projected $2.4M revenue baseline
- 06MINOR10-year term is unusually long for a 2-unit franchise with no demonstrated system stability or franchisee retention data
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Surveillance Secure · FDD (2021) PDF