Bottom line
- Total investment $604K – $760K including a $40K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- 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 Townhouse unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Overview
About
Townhouse appears to be a hospitality or residential service brand where franchisees manage operations at individual locations. Without disclosed details, franchisees likely handle day-to-day management, customer service, staffing, and local marketing while paying royalties on net revenue to the franchisor.
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 20 · 19 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
This is a pre-revenue or distressed franchise system with insufficient scale, missing critical financial disclosures, and franchisor going concern issues that present substantial investment risk.
Score breakdown · what drove the 72 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and market validation
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests weak performance data
- 03HIGHGoing Concern = False is critical red flag indicating potential financial instability or viability questions at franchisor level
- 04MEDHigh initial investment ($604k-$760k) combined with 7% royalty on undisclosed revenues creates repayment risk
- 05MINORExtremely small franchisee base (4 units) limits peer support network and increases operational isolation
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Townhouse · FDD (2026) PDF