Tapville Social
Bottom line
- Total investment $101K – $2.5M including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.4M/year.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 20 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Tapville Social unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tapville Social 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
Tapville Social operates social-focused dining and entertainment venues combining food, beverage service, and social gaming/activities. Franchisees manage daily operations including staff scheduling, inventory, customer service, and event programming to drive venue traffic and per-capita spending.
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 · 18 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
Rapidly growing young system with recent state regulatory violations, undisclosed profitability metrics, and wide investment variance presents meaningful compliance and financial transparency risks.
Score breakdown · what drove the 47 / 100 rating
- 01MINORRecent regulatory violations in Maryland (June 2024) and California (November 2021) demonstrate compliance failures and material misrepresentations to franchisees
- 02MEDNet income not disclosed in Item 19 despite $2.4M average revenue, preventing ROI assessment and suggesting potential profitability concerns
- 03MINORRapid unit growth (77.8% YoY) with only 36 total units raises sustainability questions—may indicate aggressive recruitment masking underlying unit performance issues
- 04MINORWide investment range ($100.5K–$2.5M) suggests inconsistent unit economics and difficulty standardizing franchise model across locations
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tapville Social · FDD (2025) PDF