Bottom line
- Total investment $258K – $449K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $1.1M/year. Estimated payback in 1.1 years.
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 14 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 Tox unit return on the cash you put in?
Unlevered ROIC · per unit
84%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Tox units return on equity?
Equity IRR · 5-yr
27.7%
3.40× MOIC
Year-1 DSCR
2.93×
EBITDA ÷ debt service
Equity required
$11.5M
on $23.5M purchase
Total debt
$12.1M
SBA $5.0M + senior + seller note
Overview
About
The Tox appears to be a wellness/fitness concept (likely infrared sauna, cryotherapy, or detox-focused service based on name). Franchisees manage daily operations including client scheduling, facility maintenance, staff supervision, and service delivery while handling local marketing and member retention.
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 · 17 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
Extreme hypergrowth (500% YoY), going concern status, minimal operating history (14 units), and lack of financial disclosure create substantial risk despite strong unit-level profitability claims.
Score breakdown · what drove the 49 / 100 rating
- 01MINORHypergrowth (500% YoY unit expansion) is unsustainable and suggests potential quality control, support infrastructure, or market saturation issues
- 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or uncertainty about long-term viability
- 03MEDOnly 14 units total means extremely limited franchisee track record and insufficient data to validate the business model
- 04MINORNo Item 19 financial disclosures provided — cannot verify if average revenue/net income figures are representative or cherry-picked
- 05MINORHigh minimum royalty ($1,000/month) creates $12,000 annual fixed cost regardless of performance; break-even requires ~$15,000 monthly revenue at 8%
- 06MEDInvestment range ($258K–$448K) is capital-intensive with no disclosed ROI timeline or payback period
- 07MINORExplosive growth may indicate aggressive recruitment over franchisee success — classic franchise red flag
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Tox · FDD (2025) PDF