Bottom line
- Total investment $717K – $1.6M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.8M/year (median $1.7M).
- Rated MODERATE with a risk score of 65/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Wet Willie’s unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Wet Willie’s units return on equity?
Equity IRR · 5-yr
26.7%
3.27× MOIC
Year-1 DSCR
3.07×
EBITDA ÷ debt service
Equity required
$13.5M
on $26.4M purchase
Total debt
$12.9M
SBA $5.0M + senior + seller note
Overview
About
Wet Willie's operates casual beverage-focused restaurants or bars (likely daiquiri/frozen drink concept based on brand name) where franchisees manage daily operations including customer service, inventory, staffing, and local marketing. Franchisees depend on foot traffic in their protected territory and must maintain brand standards while operating independent locations.
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 · 16 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
Wet Willie's presents elevated risk due to Going Concern status, undisclosed profitability, minimal unit growth, and lack of financial transparency needed to validate the $2.78M revenue claim against actual franchisee returns.
Score breakdown · what drove the 65 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $2.78M avg revenue claim
- 02HIGHGoing Concern status indicates potential financial instability or solvency issues at corporate level
- 03MINOROnly 11 units with unknown growth trajectory suggests stagnant or contracting franchise system
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINORWide investment range ($716.5K-$1.6M) with no correlation to unit economics or market size
- 06MINORHigh royalty burden (5% of gross) with unknown profitability makes breakeven analysis impossible
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
Wet Willie’s · FDD (2023) PDF