The Straw Modern Milkshakes
Bottom line
- Total investment $68K – $585K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Straw Modern Milkshakes unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees operate fast-casual milkshake retail locations focusing on premium, customizable blended beverages. Day-to-day operations include inventory management of fresh ingredients, customer service, equipment maintenance, and marketing within protected territory to drive walk-in and potentially delivery sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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
Single-unit system with unproven model, absent financial disclosures, franchisor going concern issues, and no franchisee track record presents extreme risk of total loss.
Score breakdown · what drove the 75 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory suggests brand is either brand new, stalled, or failing to attract franchisees
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents investors from validating ROI claims or unit economics
- 03HIGHGoing Concern designation indicates the franchisor itself may have financial viability issues, raising questions about support and sustainability
- 04MINORWide investment range ($67.5K–$584.5K) suggests either highly variable build-outs or unclear cost structure that could hide additional expenses
- 05MINOROnly 1 operating unit means zero credible franchisee references and no proof of replicable business model
- 06MED6% royalty on undisclosed revenue creates opacity; combined with lack of financials, franchisees cannot forecast actual profitability
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Straw Modern Milkshakes · FDD (2025) PDF