True REST
Bottom line
- Total investment $415K – $1.1M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $398K/year (median $452K).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- System growing at 29.0% CAGR over 3 years with 44 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 True REST unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 True REST units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.0M purchase
Total debt
$4.8M
SBA $3.0M + senior + seller note
Overview
About
True REST franchisees operate float tank and wellness spa facilities offering sensory deprivation flotation therapy, massage, and related relaxation services. Day-to-day operations include managing float tank maintenance, scheduling customer appointments, staffing massage therapists, maintaining facility cleanliness and HVAC systems, and handling retail wellness product sales.
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 · 15 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
True REST presents extreme investment risk with a fundamentally broken unit economics model, going concern warning, and profitability that suggests franchisees are operating at near-total loss despite moderate revenue.
Score breakdown · what drove the 63 / 100 rating
- 01MINORCatastrophic profitability crisis: Average net income of only $269 on $397,787 revenue (0.07% net margin) indicates systemic business model failure
- 02HIGHGoing Concern warning from franchisor suggests financial instability and potential system collapse risk
- 03MINORMassive investment-to-profit ratio: $414,547 minimum investment requires 1,540+ years to break even at current profitability levels
- 04MEDSlow unit growth (11.1% YoY) with only 44 locations indicates limited scalability and market traction
- 05MINORNo Item 19 financial disclosures (Avg Revenue/Net Income appear unverified or worst-case scenarios)
- 06MINORHigh franchise fee ($39,950) relative to franchisee profitability suggests franchisor revenue model prioritizes upfront fees over franchisee success
- 07MINOR6% royalty on near-zero profits creates additional cash flow burden on already-drowning unit economics
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
True REST · FDD (2024) PDF