Bottom line
- Total investment $385K – $971K including a $30K franchise fee, 3.0% ongoing royalty.
- Average unit revenue of $811K/year (median $786K).
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 2 years of franchising with 3 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 Ten Thousand unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Ten Thousand units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.7M purchase
Total debt
$4.5M
SBA $2.8M + senior + seller note
Overview
About
Ten Thousand franchisees operate premium apparel/lifestyle retail locations, likely focused on high-quality clothing and accessories. Day-to-day operations include inventory management, customer service, point-of-sale transactions, merchandising, and staff management in a direct-to-consumer retail environment.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Ten Thousand presents CAUTION-level risk: a pre-growth franchise with minimal unit validation, non-disclosed profitability data, unclear franchisor financial health, and insufficient franchisee base to demonstrate replicable unit economics.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 3 franchised units with unknown growth trajectory suggests minimal system validation and high concentration risk
- 02MEDNet income not disclosed in Item 19 — cannot assess actual profitability despite $811K average revenue claim
- 03MINORWide investment range ($385K–$971K) indicates high variance in startup costs and unclear capital requirements
- 04HIGHGoing Concern flagged as False — potential financial instability or unclear franchisor viability
- 05MINORRoyalty escalation (3% to 4% Year 2+) reduces franchisee margins during critical growth phase
- 06MINORExtremely small unit count makes average revenue statistics unreliable and non-predictive
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ten Thousand · FDD (2025) PDF