Bottom line
- Total investment $378K – $530K including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 14 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 TEN SPOT unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Overview
About
THE TEN SPOT franchisees operate nail salon and beauty services locations, delivering manicures, pedicures, and related nail care treatments in a retail storefront model. Daily operations include staff scheduling, inventory management of nail products, customer service delivery, and maintaining salon hygiene and equipment standards.
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 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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 TEN SPOT presents significant caution due to a micro-franchise system (4 units), absent financial disclosures, unresolved going concern status, and high capital requirements relative to proven economics.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to validate ROI on $377.5K-$530K investment
- 02MINOROnly 4 units system-wide with 33.3% YoY growth — extremely small, unproven franchise model with minimal scale
- 03HIGHGoing Concern status is False — suggests the franchisor itself may have financial viability issues
- 04MINORHigh initial investment ($377.5K-$530K) relative to system size creates concentration risk if units fail
- 05MED6% royalty on undisclosed revenues means real ongoing costs are unknowable
- 06MED10-year term is long commitment with limited franchisee reference pool (only 4 units to contact)
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
40 numbers
One-time purchase · CSV download · Validation questions included
FDD download
THE TEN SPOT · FDD (2025) PDF