Bottom line
- Total investment $347K – $3.4M including a $80K franchise fee.
- Average unit revenue of $1.5M/year (median $1.3M).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 51 loans (below the industry average).
- System growing at 24.5% CAGR over 3 years with 61 total units — strong expansion trajectory.
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 VENTURE X unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 VENTURE X units return on equity?
Equity IRR · 5-yr
40.7%
5.51× MOIC
Year-1 DSCR
2.10×
EBITDA ÷ debt service
Equity required
$3.4M
on $12.0M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Venture X is a flexible workspace franchisor operating shared office, coworking, and business services facilities. Franchisees manage day-to-day operations including membership sales, facility management, community programming, and ancillary services (mail, virtual office, meeting rooms) within their protected territory.
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 · 29 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
Venture X presents moderate-to-cautious risk: lack of profitability disclosure, recent regulatory violations, slow growth, and high fee structure warrant deep validation of actual franchisee earnings and franchisor compliance culture.
Score breakdown · what drove the 51 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure limits ability to assess actual profitability; average revenue of $1.5M does not confirm franchisees achieve this
- 02MINORMultiple regulatory consent orders (2021, 2022 California; 1996 Maryland; 1998 FTC injunction against affiliate) indicate persistent compliance and sales practice violations
- 03MINORSlow unit growth (7.0% YoY on only 61 units) suggests stagnant expansion and potential market saturation or franchisee satisfaction issues
- 04MINORHigh franchise fee ($79,500) combined with broad royalty structure (greater of 6% or $1,500/month minimum) creates significant fixed cost burden before profitability
- 05MINOR35-year term is unusually long and locks franchisees into relationship with franchisor having compliance history
- 06MINOR2022 California unregistered offering violation at trade show indicates recent (not historical) regulatory lapses
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
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
VENTURE X · FDD (2025) PDF