Bottom line
- Total investment $181K – $314K including a $40K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $518K/year (median $437K).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 23 loans (below the industry average).
- System growing at 17.1% CAGR over 3 years with 43 total units — strong expansion trajectory.
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 Three Dog Bakery unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Three Dog Bakery units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$466K
on $2.3M purchase
Total debt
$1.9M
SBA $1.2M + senior + seller note
Overview
About
Three Dog Bakery franchisees operate retail bakeries specializing in pet-themed baked goods and treats. Day-to-day operations include baking/preparing products, managing inventory, direct customer service in retail locations, and potentially staffing 3-5+ employees depending on volume.
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 · 31 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
Three Dog Bakery presents moderate-to-cautious risk: lack of profitability disclosure, going concern warnings, slow unit growth, and high relative investment make this difficult to validate without Item 19 financials.
Score breakdown · what drove the 51 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $518K average revenue claim — inability to verify profitability or net income creates transparency gap
- 02MEDModest unit growth of 10.8% YoY with only 43 locations suggests limited brand momentum and potential market saturation concerns
- 03MEDHigh initial investment range ($181K-$314K) relative to disclosed average revenue ($518K) means breakeven timeline and ROI remain unvalidated
- 04HIGHGoing Concern status is False — indicates franchisor reported going concern warnings in recent financial statements, raising operational/financial stability questions
- 05MED5.5% royalty on gross sales (not net) combined with undisclosed net income means actual profitability for franchisees is unknown
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
68 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Three Dog Bakery · FDD (2023) PDF