True North Restoration
Bottom line
- Total investment $115K – $233K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $985K/year (median $579K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 14 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 True North Restoration unit return on the cash you put in?
Unlevered ROIC · per unit
78%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 True North Restoration units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.8M purchase
Total debt
$7.9M
SBA $4.9M + senior + seller note
Overview
About
Franchisees operate water damage, fire damage, and mold remediation restoration services for residential and commercial properties. Day-to-day activities include emergency response dispatch, damage assessment, client communication, project coordination with crews, insurance claim support, and restoration work management. Revenue comes from restoration services (2% royalty) and ancillary reconstruction services (7% royalty).
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 · 14 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
Small, rapidly expanding restoration franchise with undisclosed profitability, going concern issues, and insufficient franchisee financial data to validate the $985K revenue claim.
Score breakdown · what drove the 49 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $985K avg revenue claim
- 02MINOR80% YoY unit growth is exceptional but only 18 total units suggests small, unproven system with high failure risk
- 03HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level
- 04MINORWide investment range ($115K-$233K, 103% variance) suggests inconsistent unit economics or undefined scope
- 05MINORTiered royalty structure (7% vs 2%) creates complexity and potential revenue disputes over service categorization
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
True North Restoration · FDD (2025) PDF