The Sports Bra
Bottom line
- Total investment $304K – $889K including a $55K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 2 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 Sports Bra unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Sports Bra 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 $9.8M purchase
Total debt
$7.9M
SBA $4.9M + senior + seller note
Overview
About
The Sports Bra franchisees operate specialty retail locations focused on athletic bras and related women's sportswear, providing fitting expertise and curated product selection. Day-to-day operations include inventory management, customer fittings and consultations, staff training, and local marketing to build brand awareness in 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 · 15 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 franchise with single operating unit, undisclosed profitability metrics, and unclear growth model presents moderate-to-high validation risk despite no litigation.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 1 operating unit with unknown growth trajectory raises serious scalability concerns and limits validation data
- 02MEDNet income not disclosed despite $1.09M average revenue — unable to assess true profitability or ROI timeline
- 03MINORWide investment range ($304K-$889K) suggests inconsistent buildout costs or unclear fee structure
- 04MINOR5% royalty on gross revenue (not net) means franchisees pay royalties even in unprofitable periods
- 05MEDNo disclosed multi-unit success stories or expansion plans despite 10-year franchise term
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 Sports Bra · FDD (2025) PDF