Bottom line
- Total investment $460K – $766K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.3M).
- Rated MODERATE with a risk score of 63/100.
- 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 Tap unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tap units return on equity?
Equity IRR · 5-yr
43.1%
6.00× MOIC
Year-1 DSCR
2.02×
EBITDA ÷ debt service
Equity required
$2.9M
on $11.3M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
Tap franchisees operate what appears to be a beverage or tap-based retail concept, likely managing point-of-sale operations, inventory management, customer service, and day-to-day facility management. Revenue averages $1.6M annually, suggesting moderate-to-high foot traffic volume operations requiring staff management and local marketing execution.
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
Tap presents caution-level risk due to an underdeveloped franchise system (4 units only), missing profitability disclosure, false going concern status, and unclear growth viability despite moderate unit economics.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 4 franchised units with unknown growth trajectory suggests minimal system expansion and unproven scalability
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; with $460k-$766k investment and $1.6M avg revenue, profitability is opaque
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability or operational viability questions at franchisor level
- 04MINORHigh investment-to-revenue ratio (28-47% of first-year revenue needed upfront) with 6% royalty creates narrow margin for profitability
- 05MINORExtremely small unit count (4) raises questions about franchisor sustainability, support infrastructure, and supply chain leverage
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tap · FDD (2026) PDF