FranchiseVerdict
TWS Temporary Wall Systems logo
FV-02826·STRONGExcellent86

TWS Temporary Wall Systems

Formerly known as Temp Walls

OtherFranchising since 2021Website
Investment
$153K – $366K
52nd pct Other
Avg revenue
$2.6M
44th pct Other
Royalty
Units
110
77th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $153K – $366K including a $60K franchise fee.
  • Average unit revenue of $2.6M/year. Estimated payback in 0.3 years.
  • Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 159 loans (below the industry average).
  • No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Temp Walls Franchise Management, LLC
Parent company
HFB HoldCo, LLC
Incorporated in
North Carolina
HQ
107 Parr Drive, Huntersville, North Carolina 28078
Auditor
Davies, Goldstein & Associates CPA’s PLLC
Audited financials
Franchisor revenue
$58K
vs $1.9M prior year

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 TWS Temporary Wall Systems unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,604,765
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $153K–$366K
Working capital
$
FDD reports $15K–$30K

Unlevered ROIC · per unit

129%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$365K
EBITDA margin
14.0%
Total invested
$282K
Payback
9 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 TWS Temporary Wall Systems units return on equity?

Edit assumptions

Equity IRR · 5-yr

30.8%

3.82× MOIC

Year-1 DSCR

2.62×

EBITDA ÷ debt service

Equity required

$7.8M

on $18.2M purchase

Total debt

$10.5M

SBA $5.0M + senior + seller note

SBA 7(a) request ($9.1M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

TWS franchisees operate in the modular wall partition and temporary barrier space, serving commercial construction, event management, and office reconfiguration projects. Daily operations involve client acquisition, job estimation, installation/removal of temporary wall systems, and equipment maintenance. Revenue scales with project volume and geographic market penetration.

CEO
Jeffrey Dudan
Founded
2021
FDD year
2024
States available
22

Item 7 · what it costs

The Vitals

Total investment
$153K – $366K
All-in to open one unit
Liquid capital
$15K – $30K
Cash you must have on hand
Franchise fee
$60K
Royalty
The greater of: (i) 8% of your Gross Revenue; or (ii) the…
Ad fund
3.0%
typical 3–5%
Total fee load
11.0%
vs 9–13% typical
Payback period
0.3 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$2.6M
Per unit, per year
Median gross sales
Item 19 type
Affiliate-owned location
Sample size
1 units
vs category median 20 · small
Transparency
9 / 5
vs category median 3 / 5 · above
Revenue rank44th
vs Other peers
Investment cost rank52th
Lower investment ranks lower (better)
Royalty rate rank70th
Lower royalty = lower percentile (better)
Unit count rank77th
vs Other peers
Risk score rank12th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
110
Opened
100
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
2022
110+100
Franchised units
2023
10
Franchised units
2024
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 16 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

Total loans
159
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

49
Risk · 0-100
STRONG49 / 100

Rapidly scaling temporary wall systems franchise with unprotected territories, opaque financial claims, and inflexible royalty structure presents meaningful growth sustainability and profitability concerns.

Score breakdown · what drove the 49 / 100 rating

  1. 01MINORUnprotected territory creates direct competition risk with other franchisees and company-owned locations
  2. 02MINORExtreme unit growth (1000% YoY) suggests either new brand launch instability or unsustainable expansion; difficult to validate true performance
  3. 03MINORHigh royalty floor (greater of 8% or minimum monthly fee) provides no relief during revenue downturns, impacting cash flow
  4. 04MINORInvestment range spans 138% ($153k-$366k) indicating high variability in startup costs and unclear build-out requirements
  5. 05MEDNo Item 19 financial performance representations limits ability to verify the disclosed $801k average net income claim
  6. 06MINOR10-year term is longer than industry standard (5-7 years typical), locking franchisee into relationship with unproven brand

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Designated Territory
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
21 hrs
On-the-job training
17 hrs

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

21 numbers

Locked
(518) 473-••••
NY
(503) 378-••••
OR
(804) 371-••••
VA

One-time purchase · CSV download · Validation questions included

FDD download

TWS Temporary Wall Systems · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above