Bottom line
- Total investment $63K – $91K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $965K). Estimated payback in 0.4 years.
- Rated STRONG with a risk score of 36/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 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 Toes Nanny Agency unit return on the cash you put in?
Unlevered ROIC · per unit
208%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Twinkle Toes Nanny Agency units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.7M purchase
Total debt
$7.8M
SBA $4.9M + senior + seller note
Overview
About
Franchisees operate a nanny placement and staffing agency, matching vetted caregivers with families seeking in-home childcare services. Day-to-day operations include client intake, nanny recruitment/screening, background verification, ongoing placement management, and customer support. Revenue is generated through placement fees and/or ongoing service fees from families and nannies.
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 · 24 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
Moderate-risk service franchise with undisclosed unit economics, slow growth, and high initial fees relative to disclosed profitability.
Score breakdown · what drove the 36 / 100 rating
- 01MINORHigh franchise fee ($49,500) relative to average net income ($187,101) creates 3.8-year payback pressure
- 02MINORMinimal unit growth (5.9% YoY) suggests market saturation or franchisee recruitment challenges in a 20-unit system
- 03MINORNanny/childcare services are highly labor-dependent with thin margins—5% royalty on gross sales misaligns franchisor incentives from franchisee profitability
- 04MEDNo Item 19 financial performance representations disclosed—cannot independently verify the $1.08M average revenue or $187K net income claims
- 05MINORNanny placement involves regulatory compliance (background checks, insurance, liability) that varies by state; no disclosure of support infrastructure
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
33 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Twinkle Toes Nanny Agency · FDD (2025) PDF