Bottom line
- Total investment $114K – $144K including a $70K franchise fee.
- Average unit revenue of $751K/year (median $302K).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 4 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 Transworld Business Advisors unit return on the cash you put in?
Unlevered ROIC · per unit
85%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Transworld Business Advisors units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.8M purchase
Total debt
$5.4M
SBA $3.4M + senior + seller note
Overview
About
Transworld Business Advisors operates a business brokerage and advisory service, helping clients buy, sell, and value small-to-medium enterprises. Franchisees typically manage local offices, identify business buyers and sellers, facilitate transactions, and earn commissions on completed deals while providing business valuation and consulting services.
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 · 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Transworld Business Advisors presents elevated risk due to affiliate litigation history, undisclosed profitability metrics, stagnant unit growth, and royalty structures that may not align with franchisee financial viability.
Score breakdown · what drove the 46 / 100 rating
- 01HIGHLitigation history involving affiliate brands (Signarama, Great Greek, Graze Craze) regarding franchise sales practices and financial misrepresentation raises questions about corporate governance and disclosure accuracy
- 02MINORMinimal system growth (2.6% YoY) with 467 units suggests stagnation or contraction, inconsistent with a mature 35-year franchise term
- 03MEDNet income not disclosed in FDD Item 19, making it impossible to verify profitability claims or validate the $114K-$143K investment ROI
- 04MINORRoyalty structure creates misalignment: $500-$1,000 monthly minimums mean franchisees pay $6K-$12K annually even at zero revenue, creating cash flow risk
- 05MINORAverage revenue of $751K falls directly at the royalty tier threshold (10% up to $750K vs. 9% above), suggesting potential manipulation or clustering of reported figures
- 06MINOR35-year term with $69,500 upfront franchise fee is exceptionally long and expensive for a business advisory service with opaque profitability
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
Transworld Business Advisors · FDD (2026) PDF