Bottom line
- Total investment $175K – $200K including a $50K franchise fee.
- Average unit revenue of $375K/year (median $393K). Estimated payback in 1.8 years.
- Rated STRONG with a risk score of 32/100. SBA loan default rate of 0.0% across 14 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 Wise Coatings unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Wise Coatings units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$300K
on $1.5M purchase
Total debt
$1.2M
SBA $0.7M + senior + seller note
Overview
About
Wise Coatings franchisees operate commercial and industrial protective coating application services, including epoxy flooring, corrosion prevention, and specialty finishes. Day-to-day operations involve job estimation, crew management, equipment maintenance, customer service delivery, and compliance with safety/environmental standards. Revenue is generated through on-site coating projects for industrial, commercial, and residential clients.
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 · 21 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
Rapid expansion and high fixed royalty minimums in a small, young system present growth sustainability and profitability risk despite positive unit economics.
Score breakdown · what drove the 32 / 100 rating
- 01MINORRoyalty structure with $1,500–$3,000 monthly minimums creates high fixed costs ($18,000–$36,000 annually) that exceed 5% revenue share for locations generating under $360,000–$720,000
- 02MINOR62.5% YoY unit growth is exceptionally rapid and difficult to sustain; typical healthy growth is 10–20%; suggests possible aggressive recruitment over retention
- 03MINORSmall system size (27 units) increases vulnerability to key franchisee exits and market concentration risk
- 04MEDNo Item 19 financial performance representations disclosed; reliance on 'average' figures ($375K revenue, $105K net income) lacks transparency on median, range, or survival rates
- 05HIGHLimited litigation disclosure history for rapidly expanding system; insufficient track record to assess franchisor support quality and dispute resolution patterns
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wise Coatings · FDD (2025) PDF