FranchiseVerdict
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FV-02883·MODERATEExcellent81FDD 2022

Velofix

OtherFranchising since 2014Website
Investment
$170K – $203K
58th pct Other
Avg revenue
50th pct Other
Royalty
8.0%
49th pct Other
Units
99
75th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $170K – $203K including a $25K franchise fee, 8.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 66/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
  • System contracting at -26.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Velofix Holdings USA, Inc.
Parent company
1016464 B.C. LTD.
Incorporated in
Delaware
HQ
303 West 5th Avenue, Vancouver, British Columbia, Canada V5Y 1J6
Auditor
DAVIDSON & COMPANY LLP
Audited financials
Franchisor revenue
$1.3M
vs $1.1M 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 Velofix unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
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: $170K–$203K
Working capital
$
FDD reports $15K–$20K

Unlevered ROIC · per unit

48%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$204K
Payback
25 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.

Overview

About

Velofix franchisees operate mobile bicycle repair and maintenance services, typically working from a van or mobile unit that travels to customer locations. Day-to-day work involves diagnosing and repairing bikes, managing customer appointments, scheduling routes, and handling inventory of parts and tools.

CEO
Davide Xausa
Founded
2014
FDD year
2022
States available
19

Item 7 · what it costs

The Vitals

Total investment
$170K – $203K
All-in to open one unit
Liquid capital
$15K – $20K
Cash you must have on hand
Franchise fee
$25K
Royalty
8.0%
8% of Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
99
Opened
1
Last reporting year
Closed
8
Turnover rate
8.1%
Company-owned
28
Corporate units in the system
% franchised
72%
vs corporate-owned
Net growth (yr3)
-22.0%
Net unit change last year
3-yr CAGR
-26.8%
Compounded over last 3 years
2020
71-6
Franchised units
2021
91
Franchised units
2022
97
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
12
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

66
Risk · 0-100
MODERATE66 / 100

Velofix presents HIGH RISK due to significant unit contraction, financial non-disclosure, and going concern flag—franchisees lack visibility into realistic earnings potential.

Score breakdown · what drove the 66 / 100 rating

  1. 01MEDUnit count declined 22% YoY (99 units) — indicates system contraction and franchisee exits
  2. 02MEDNo average revenue or net income disclosed — impossible to assess ROI or profitability expectations
  3. 03HIGHGoing concern status is FALSE — suggests franchisor financial instability or material uncertainty
  4. 04MINORHigh initial investment ($170K–$203K) combined with no financial performance data creates blind investment
  5. 05MED8% royalty on undisclosed sales means franchisees cannot calculate break-even or cash flow scenarios

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
ZIP code(s)
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
24 hrs
On-the-job training
17 hrs
POS system
Lightspeed
Operating tech stack

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

34 numbers

Locked
(425) 435-••••
WA
(978) 880-••••
MA
(401) 855-••••
RI

One-time purchase · CSV download · Validation questions included

FDD download

Velofix · FDD (2022) PDF

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