The Modern Halo
Bottom line
- Total investment $283K – $648K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $931K/year. Estimated payback in 2.4 years.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 1 year of franchising with 2 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 Modern Halo 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 The Modern Halo units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.4M purchase
Total debt
$6.7M
SBA $4.2M + senior + seller note
Overview
About
The Modern Halo appears to be a lifestyle or wellness-focused retail/service concept. Franchisees likely manage day-to-day operations including customer service, inventory/product management, staff coordination, and brand standard compliance across a protected territory. Without disclosed business specifics, the exact operational model (retail, salon, wellness studio, etc.) remains unclear.
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 · 16 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 franchisor with going concern warning, minimal unit count, undisclosed financial performance data, and unclear expansion viability presents HIGH RISK despite solid unit-level economics.
Score breakdown · what drove the 70 / 100 rating
- 01MINOROnly 2 units in system with unknown growth trajectory suggests early-stage or stalled expansion
- 02HIGHGoing Concern status is FALSE — potential solvency or operational sustainability issues with franchisor
- 03MEDNo Item 19 financial performance data disclosed despite average unit volumes exceeding $930k
- 04MEDWide investment range ($282k–$648k) with limited unit data makes ROI projections unreliable
- 05MINORMinimal unit count creates high dependency risk — franchisor viability unclear with only 2 franchisees
- 06MINOR6% royalty on $931k average revenue = ~$56k annual fee; unclear if sustainable given net income averaging only $192k
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Modern Halo · FDD (2025) PDF