Bottom line
- Total investment $282K – $442K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $484K/year. Estimated payback in 2.2 years.
- Rated CAUTION with a risk score of 75/100.
- Emerging franchise — only 1 year of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Toodley Town unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Toodley Town units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$678K
on $3.4M purchase
Total debt
$2.7M
SBA $1.7M + senior + seller note
Overview
About
Toodley Town franchisees operate a children's entertainment or activity-based venue (specific service/product type not disclosed in provided data). Day-to-day operations likely involve facility management, staff supervision, customer service delivery, and marketing to local families, with revenue dependent entirely on customer volume and pricing.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage or distressed franchise system with single operating unit, going concern status, and unvalidated financial claims presenting extreme operational and financial risk.
Score breakdown · what drove the 75 / 100 rating
- 01HIGHGoing Concern status indicates potential financial distress or viability questions at franchisor level
- 02MINOROnly 1 operating unit with unknown growth trajectory suggests system is pre-revenue or collapsing
- 03MINORNo Item 19 financial performance representation limits ability to validate the $484,058 average revenue claim
- 04MINOR8% royalty on $484k revenue = $38,724/year in ongoing costs plus $282k-$442k upfront capital requirement creates high break-even threshold
- 05MEDExtremely limited franchisee base (1 unit) prevents meaningful performance validation or peer support network
- 06MEDUnknown growth indicates franchisor has not disclosed expansion plans or new unit performance trends
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
Toodley Town · FDD (2025) PDF