Turning Point
Bottom line
- Total investment $959K – $1.6M including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.7M).
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 100.0% CAGR over 3 years with 30 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 Turning Point unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Turning Point units return on equity?
Equity IRR · 5-yr
31.7%
3.96× MOIC
Year-1 DSCR
2.54×
EBITDA ÷ debt service
Equity required
$7.0M
on $17.2M purchase
Total debt
$10.2M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate Turning Point locations, likely a service-based or retail business model requiring significant upfront capital investment. Day-to-day operations involve managing staff, serving customers/clients, handling inventory or service delivery, and maintaining compliance with franchisor standards while paying 5% of gross sales in ongoing royalties.
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 · 20 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
Emerging franchise with aggressive expansion, undisclosed profitability metrics, and high capital requirements relative to revenue poses significant financial validation risk.
Score breakdown · what drove the 64 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate ROI on $959k-$1.583M investment
- 02MINOR100% YoY unit growth (30 units) suggests either brand-new system or aggressive expansion masking retention issues
- 03MINORHigh investment-to-revenue ratio: $959k entry cost against $1.72M average revenue requires 56%+ of revenues just to break even in Year 1
- 04HIGHGoing Concern status is FALSE — may indicate franchisor financial instability or accounting red flags
- 05HIGHNo litigation disclosed but reputational risk unknown for emerging brand with rapid unit growth
- 06MINOR5% royalty + overhead on $1.72M revenue leaves thin margins; profitability dependent on cost structure not provided
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Turning Point · FDD (2025) PDF