Bottom line
- Total investment $274K – $639K including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $655K/year (median $655K).
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 0 years of franchising with 4 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 Sweet Reserve unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sweet Reserve units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$524K
on $2.6M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
Overview
About
Sweet Reserve franchisees operate confectionery/dessert retail or service locations, likely involving point-of-sale operations, inventory management, customer service, and potentially product preparation. Daily operations typically include stock rotation, customer transactions, marketing execution, and compliance with brand standards.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sweet Reserve presents significant uncertainty risk due to micro-scale operations (4 units), undisclosed profitability metrics, and franchisor going concern issues that contradict growth narrative.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and unproven replicability
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI calculation despite $655K average revenue claims
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability at franchisor level
- 04MINORWide investment range ($274K-$639K) with no breakdown indicates unclear cost structure and undefined unit economics
- 05MINORExtremely small unit count limits franchisee support infrastructure and peer network validation
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sweet Reserve · FDD (2026) PDF