Village East Gifted
Bottom line
- Total investment $33K – $168K including a $25K franchise fee, 8.5% ongoing royalty.
- Average unit revenue of $116K/year. Estimated payback in 4.1 years.
- Rated CAUTION with a risk score of 69/100.
- 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 Village East Gifted unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Village East Gifted units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$150K
on $752K purchase
Total debt
$602K
SBA $0.4M + senior + seller note
Overview
About
Village East Gifted franchisees operate gifted education and enrichment centers, likely offering tutoring, test prep, and academic programs for advanced learners. Day-to-day operations include student instruction, parent communication, curriculum delivery, and staff management in a storefront or classroom setting.
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 · 17 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extreme early-stage franchise with insufficient unit base for validation, unclear growth prospects, and heavy reliance on limited operational data from just 2 locations.
Score breakdown · what drove the 69 / 100 rating
- 01MINOROnly 2 existing units creates severe lack of validation data and suggests minimal market traction despite franchise availability
- 02MINOR8.5% royalty on average revenue of $115,731 yields only ~$9,837 annual royalties per unit, indicating royalty structure may not support franchisor sustainability
- 03MINOR21.2% net profit margin ($24,584 on $115,731) is healthy but average revenue is modest; narrow operating margin leaves little buffer for underperforming locations
- 04MINORUnknown growth trajectory with only 2 units prevents assessment of system expansion health or franchisee success rate
- 05MINORWide investment range ($33,459–$168,436) suggests highly variable startup costs; unclear what drives 5x difference between low and high end
- 06MEDNo Item 19 financial performance data disclosed; cannot validate whether the $115,731 average and $24,584 net income are realistic for new franchisees
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Village East Gifted · FDD (2022) PDF