Bottom line
- Total investment $188K – $325K including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $1.1M/year. Estimated payback in 1.2 years.
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 3 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 The Fashion Class unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Fashion Class units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.4M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
Overview
About
The Fashion Class franchisees operate fashion education/training studios, likely offering courses in design, styling, retail, or fashion entrepreneurship to consumer or professional audiences. Day-to-day operations include curriculum delivery, student enrollment management, instructor coordination, facility maintenance, and marketing to build a local student base.
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 · 17 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
Early-stage fashion education franchise with minimal unit count, absent financial disclosure, and franchisor stability concerns presents elevated risk despite positive unit-level economics.
Score breakdown · what drove the 60 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory indicates minimal scale and unproven replicability
- 02MEDNo Item 19 (Financial Performance Representations) disclosed despite $187k-$324k investment requirement raises transparency concerns
- 03HIGHGoing Concern = False suggests potential financial instability or undisclosed operational challenges at franchisor level
- 04MINORHigh royalty rate (8%) combined with moderate net margins (~20%) limits franchisee profitability cushion
- 05MINORMicro-franchise system (3 units) creates concentration risk and limits peer learning/support network
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Fashion Class · FDD (2026) PDF