Bottom line
- Total investment $236K – $863K including a $50K franchise fee.
- Average unit revenue of $1.4M/year (median $1.1M). Estimated payback in 0.2 years.
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
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 VaVia unit return on the cash you put in?
Unlevered ROIC · per unit
39%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 VaVia units return on equity?
Equity IRR · 5-yr
39.6%
5.31× MOIC
Year-1 DSCR
2.13×
EBITDA ÷ debt service
Equity required
$3.6M
on $12.3M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
Overview
About
VaVia franchisees operate a food/beverage or hospitality concept (specific category not disclosed) in protected territories. Day-to-day operations likely involve customer service, inventory management, staffing, and compliance with franchisor brand standards. Revenue averaging $1.37M annually suggests either quick-service food, beverage-focused retail, or multi-unit management.
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 · 12 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
VaVia presents cautionary risk due to anemic unit growth, unverified financial claims lacking Item 19 disclosure, and recent franchisee enforcement litigation suggesting underlying unit economics may not support the claimed $1.37M average revenue.
Score breakdown · what drove the 60 / 100 rating
- 01MEDMinimal unit growth (6.7% YoY) with only 17 locations suggests limited scalability and system maturity concerns
- 02HIGHRecent litigation (May 2024) shows franchisor enforcing covenants aggressively; franchisee couldn't meet payment obligations indicating potential unit economics stress
- 03HIGHNo Item 19 financial performance representation ('Going Concern: False') — franchisor provides no average unit volume data to validate the $1.37M average revenue claim
- 04MINORHigh investment range ($236K-$863K) with wide variance suggests inconsistent site requirements or hidden costs
- 05MINORRoyalty structure creates dual burden: 8% of gross sales PLUS minimum monthly fee could be punitive in slow months
- 06MINORJudgment amount ($138K) represents 2.8x the franchise fee, indicating serious unit-level profitability problems for at least one franchisee
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
VaVia · FDD (2025) PDF