The Covery
Formerly known as Junior's Wellness
Bottom line
- Total investment $260K – $383K including a $43K franchise fee.
- Average unit revenue of $709K/year.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 6 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 The Covery unit return on the cash you put in?
Unlevered ROIC · per unit
44%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Covery units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.9M purchase
Total debt
$7.9M
SBA $5.0M + senior + seller note
Overview
About
The Covery operates as a B2B software/services platform providing fraud detection and risk management solutions to e-commerce and fintech clients. Franchisees likely manage client relationships, deliver platform implementation, provide ongoing support, and handle local sales and account management within their protected 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 · 7 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
This early-stage fraud prevention franchise lacks disclosed profitability metrics, has minimal system size, and imposes substantial fixed royalty obligations that could strain franchisee cash flow.
Score breakdown · what drove the 53 / 100 rating
- 01MEDNet Income not disclosed in FDD Item 19 — cannot assess true profitability or ROI against $259.5k-$382.5k investment
- 02MEDOnly 9 units system-wide with modest 12.5% YoY growth suggests limited scale and unproven unit economics
- 03MINORHigh royalty floor of $2,500/month ($30k annually) creates cash flow pressure on underperforming locations
- 04MINORSignificant gap between average revenue ($708.5k) and royalty obligations (6.75% + floor) — unclear net income after all costs
- 05MINORSmall franchise system increases risk of franchisor viability and support infrastructure
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Covery · FDD (2025) PDF