Bottom line
- Total investment $174K – $400K including a $60K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $599K/year (median $343K).
- Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 4 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 VetCor unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 VetCor units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$839K
on $4.2M purchase
Total debt
$3.4M
SBA $2.1M + senior + seller note
Overview
About
VetCor franchisees operate emergency and specialty veterinary services, including general reconstruction and rebuild services following disasters or facility damage. Day-to-day operations involve providing veterinary care delivery, managing client relationships, coordinating with insurance/disaster relief entities, and handling facility reconstruction or rebuild projects with variable service lines and pricing tiers.
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 · 19 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
VetCor presents HIGH RISK due to precipitous 45.5% unit decline, pending fraud/misrepresentation litigation, undisclosed profitability data, and going concern status — suggesting a destabilizing franchise system with credibility and financial viability concerns.
Score breakdown · what drove the 69 / 100 rating
- 01MINORUnit count collapsed 45.5% YoY (15 units remaining) indicating severe system contraction and franchisee failure rate
- 02HIGHPending litigation alleging misrepresentation, fraud, and failure to provide training directly threatens franchisor credibility
- 03MEDNet income not disclosed despite $599k average revenue — lack of transparency on actual profitability suggests poor unit economics
- 04MINORDual royalty structure (4-7%) combined with $60k franchise fee and $173-400k investment creates high break-even threshold
- 05HIGHGoing concern flag indicates financial viability questions at corporate level
- 06MINORResolved lawsuit involving breach and non-compete suggests contentious franchisor-franchisee relationship history
- 07MINORNo Item 19 (financial performance representations) limits ability to validate revenue claims
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
VetCor · FDD (2024) PDF