Bottom line
- Total investment $349K – $557K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M). Estimated payback in 2.3 years.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Happy Mixer unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Happy Mixer units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$662K
on $3.3M purchase
Total debt
$2.6M
SBA $1.7M + senior + seller note
Overview
About
The Happy Mixer franchisees likely operate a beverage-focused establishment (cocktails, smoothies, mixed drinks, or similar) where daily operations involve inventory management, customer service, bartending/mixing, POS management, and staff supervision. Revenue of $1.1M annually suggests a small-to-mid sized venue operation, potentially retail or hospitality-based.
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 · 14 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
The Happy Mixer is a pre-growth stage franchise with minimal unit count, undisclosed financial performance standards, and franchisor stability concerns that warrant deep validation before commitment.
Score breakdown · what drove the 63 / 100 rating
- 01MEDOnly 3 units operating with unknown growth trajectory suggests extremely limited system validation and scaling risk
- 02HIGHGoing Concern = False indicates potential financial instability or operational uncertainty at franchisor level
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot verify if $194,523 avg net income is achievable or representative
- 04MINORHigh investment-to-net-income ratio: $348,925–$556,700 investment against $194,523 avg net income = 1.8–2.9 year payback assuming no other costs
- 05MEDMicro-franchise system (3 units) means limited operational history, no proven replicable model, and franchisor may lack resources to support franchisees
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 Happy Mixer · FDD (2025) PDF