Bottom line
- Total investment $69K – $164K including a $50K franchise fee.
- Average unit revenue of $269K/year (median $219K). Estimated payback in 1.7 years.
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
- System growing at 75.0% CAGR over 3 years with 88 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 Tippi Toes unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tippi Toes units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$485K
on $2.4M purchase
Total debt
$1.9M
SBA $1.2M + senior + seller note
Overview
About
Tippi Toes is a children's movement and dance instruction franchise. Franchisees operate studios offering classes in ballet, tap, jazz, and creative movement for toddlers and young children, generating revenue through tuition fees, recitals, and merchandise. Daily operations include teaching classes, managing student enrollments, scheduling instructors, and maintaining studio facilities.
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
Tippi Toes presents moderate-to-cautionary risk due to lack of financial disclosure transparency, undefined minimum royalty terms, and modest growth trajectory despite adequate profitability metrics.
Score breakdown · what drove the 50 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify avg revenue/net income claims
- 02MINORMinimum Royalty structure undefined — could create cash flow burden in slow months despite 7% rate
- 03MINORHigh franchise fee ($49,500) relative to startup costs creates break-even pressure before operations begin
- 04MEDModest unit growth (10.5% YoY) with only 88 units suggests niche market with limited expansion momentum
- 05MINORNet income ($68,882) leaves thin margin for error; represents only 25.6% of average revenue after all expenses
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
Tippi Toes · FDD (2026) PDF