Bottom line
- Total investment $472K – $1.1M including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $410K/year (median $406K). Estimated payback in 8.8 years.
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 3 years of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Wagbar unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Wagbar units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$738K
on $3.7M purchase
Total debt
$3.0M
SBA $1.8M + senior + seller note
Overview
About
Wagbar franchisees operate a full-service casual dining establishment serving wagyu beef-focused entrees, sides, and beverages. Day-to-day operations include inventory management, food preparation, table service, kitchen supervision, staffing, and local marketing to drive customer traffic and repeat business.
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 · 15 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
Single-unit system with unverified financial claims, going concern warning, and investment costs that may take 5+ years to recoup — extreme difficulty assessing franchise viability.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 1 unit disclosed — impossible to validate system viability or growth trajectory; suggests either new system or severe contraction
- 02HIGHGoing Concern status FALSE — franchisor may have financial instability or operational risk that undermines support
- 03MINORHigh investment-to-revenue ratio: $472k-$1.1M required but average unit generates only $410k revenue (potential 15-year payback period)
- 04MINORWide investment range ($675k spread) indicates unclear cost structure and difficulty predicting actual franchise costs
- 05MINORNo Item 19 financial performance data publicly available — cannot independently verify the $92k net income claim
- 06MINORModest 22.5% net margin ($92k net on $410k revenue) leaves thin margin for error, debt service, and franchisor royalties
- 07MINOR6% royalty on adjusted gross sales is standard but compounds profitability pressure given narrow margins
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wagbar · FDD (2024) PDF