Bottom line
- Total investment $535K – $1.1M including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $950K/year. Estimated payback in 7.3 years.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Swig unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Swig units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$380K
on $1.9M purchase
Total debt
$1.5M
SBA $1.0M + senior + seller note
Overview
About
Swig is a beverage-focused QSR franchise where franchisees operate drink-centric retail locations, likely featuring specialty beverages, smoothies, energy drinks, and related products. Day-to-day operations involve inventory management, customer service, point-of-sale transactions, staff scheduling, and marketing within their assigned territory.
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 · 22 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
Swig presents meaningful risk due to lack of performance disclosure, unprotected territory, small unit base with unknown growth, and questionable unit-level economics relative to high capital requirements.
Score breakdown · what drove the 67 / 100 rating
- 01MEDNo disclosed Item 19 (financial performance representations) limits transparency on actual franchisee profitability
- 02MINORUnprotected territory creates direct competition risk and market saturation potential within same area
- 03MEDOnly 45 units with unknown growth trajectory suggests limited brand momentum or potential contraction
- 04MINORHigh initial investment ($534k-$1.1M) against modest average net income ($113.5k) yields 4-5 year breakeven at best
- 05MED7% royalty on $950k average revenue (~$66.5k annually) combined with other operating costs may compress margins below disclosed averages
- 06HIGHNo litigation disclosed is positive, but 'Going Concern' flag indicates franchisor financial stability questions
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
27 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Swig · FDD (2023) PDF