Bottom line
- Total investment $112K – $175K including a $15K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $609K/year.
- Rated STRONG with a risk score of 50/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Twinkle Star Dance unit return on the cash you put in?
Unlevered ROIC · per unit
104%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Twinkle Star Dance units return on equity?
Equity IRR · 5-yr
34.8%
4.45× MOIC
Year-1 DSCR
2.34×
EBITDA ÷ debt service
Equity required
$5.2M
on $14.6M purchase
Total debt
$9.4M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate children's dance studios offering ballet, jazz, hip-hop, and contemporary classes to students ages 3-18. Day-to-day operations include scheduling instructors, managing student enrollment and retention, coordinating recitals/performances, maintaining studio facilities, and handling billing and customer service.
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 · 6 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
Early-stage dance franchise system with minimal transparency on profitability, negligible unit count, and undisclosed growth metrics creates meaningful investment uncertainty.
Score breakdown · what drove the 50 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability or ROI claims
- 02MINOROnly 8 units system-wide with unknown growth trajectory — suggests early-stage or stagnant franchise system
- 03MINORHigh investment-to-revenue ratio ($111K-$175K investment against $609K avg revenue) indicates long payback period
- 04MINOR5% royalty on gross revenues (not net) means franchisees pay during unprofitable periods
- 05MINORNo growth data provided — cannot assess system expansion or franchisee unit growth performance
- 06MINORDance studio sector faces COVID-related volatility, seasonal revenue fluctuations, and high instructor turnover
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Twinkle Star Dance · FDD (2025) PDF