Bottom line
- Total investment $327K – $703K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $685K/year (median $685K).
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 2 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 Waffle Love unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Waffle Love units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.2M purchase
Total debt
$4.9M
SBA $3.1M + senior + seller note
Overview
About
Waffle Love franchisees operate quick-service restaurants specializing in Belgian waffles and related food items, managing daily operations including food preparation, customer service, inventory, staffing, and marketing within their protected territory. The business model depends on high foot traffic (dine-in/take-out) and impulse purchases, similar to ice cream or dessert concepts.
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 · 22 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
Waffle Love presents HIGH RISK due to ongoing litigation history, recent forced asset sale, system stagnation at 10 units, and undisclosed net income metrics that obscure true profitability against a capital-intensive investment model.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHActive litigation involving breach of fiduciary duty and conversion claims with court-appointed receiver (Feb 2022 - Oct 2024) signals governance dysfunction and potential mismanagement of franchisee funds
- 02MINORAsset seizure and forced sale to KSBW Management Inc. in October 2024 indicates franchisor financial distress and raises questions about operational continuity and support
- 03MINOROnly 10 units in system with unknown/stagnant growth trajectory suggests failed expansion model and difficulty attracting/retaining franchisees despite $685K average revenue
- 04MEDNet income not disclosed despite $685K average revenue creates opacity about actual profitability — 6% royalty on $685K yields only $41K gross, leaving significant question marks on net margins after COGS, labor, rent
- 05HIGHGoing Concern status technically true but timing coincides with litigation resolution and asset sale, suggesting financial precarity masked by technical solvency
- 06MEDHigh investment range ($326.5K-$702.5K) combined with undisclosed profitability and small unit base indicates difficulty achieving ROI within 10-year term
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
Waffle Love · FDD (2025) PDF