Companies

**Executive Summary** Subway offers a globally scaled brand with a relatively low barrier to entry; however, the system is currently undergoing a significant contraction, evidenced by last year's closure of over 1,000 locations. While the franchise offers attractive initial fees, the lack of financial performance disclosures (Item 19) prevents an accurate assessment of potential unit profitability. * **Positives:** * **Massive Scale:** Operates nearly 20,000 outlets, providing established brand recognition and supply chain leverage. * **Accessible Entry:** Low franchise fee ($15,000) and a flexible investment range ($239K - $537K). * **Clean Legal Profile:** No history of litigation or bankruptcy involving the franchisor. * **Concerns:** * **System Contraction:** Network shrank significantly last year (435 openings vs. 1,054 closures). * **No Financial Transparency:** Does not provide an Item 19, leaving AUV and profitability data unknown. * **Operational Volatility:** High number of ceased operations (139) compared to terminations (30).

**Executive Summary: Subway** Subway represents a massive, mature brand with over 19,500 locations and a relatively low initial franchise fee of $15,000; however, the system is currently contracting, evidenced by the closure of over 1,000 units last year. With a total investment range of $263K to $630K and no Item 19 financial performance disclosures, potential franchisees face significant ambiguity regarding unit-level profitability. **Key Indicators:** * ✓ **Massive Scale:** High unit count and brand familiarity facilitate supply chain efficiencies. * ✓ **Litigation History:** No reported history of litigation or bankruptcy. * ⚠ **Shrinking Footprint:** Net unit loss due to over 1,000 closings suggests market saturation or operational distress. * ⚠ **Opaque Economics:** Lack of an Item 19 disclosure prevents verification of potential earnings.

McDonald’s is an established industry giant commanding a massive footprint and high unit volumes ($3.3M AUV), though it requires significant capital ($1.4M+) to enter. While franchisees benefit from the strength of a globally recognized brand, recent trends indicate a contraction in store count and elevated termination rates that warrant caution. **Key Indicators:** * ✓ **Scale & Economics:** Unmatched brand recognition with an AUV of $3.3M. * ✓ **Financial Stability:** Zero history of franchisee bankruptcies. * ⚠ **Network Contraction:** Closed 438 outlets last year (net loss of 337 locations). * ⚠ **Operator Risk:** High number of terminations (300) coupled with an active litigation history.

**Executive Summary: Jan-Pro of the Capital District** Jan-Presents a massive scale opportunity with over 8,600 outlets and a relatively low initial investment cap of $57K, though the lack of financial performance disclosures (Item 19) obscures potential earnings. The system is experiencing high volatility, evidenced by the closure of nearly 1,000 units last year and an active litigation history. While unit growth remains positive, the significant termination rate suggests potential challenges in unit-level sustainability. **Key Factors:** * ✓ **Scale & Accessibility:** Extensive footprint of 8,603 units with a franchise fee starting as low as $8,000. * ✓ **Net Growth:** System continues to expand overall, opening 1,539 new outlets in the last year. * ⚠ **Financial Opacity:** Does not provide an Item 19 earnings claim, leaving AUV and profitability unknown. * ⚠ **High Attrition & Risk:** Closed 947 outlets last year with 320 terminations and a history of litigation.

**Executive Summary: JAN-PRO Cleaning & Disinfecting** JAN-PRO offers a low-cost entry into the commercial cleaning sector, requiring a maximum initial investment of approximately $58K. While the brand demonstrates massive scale with nearly 10,000 units and aggressive expansion (adding over 1,600 outlets last year), it suffers from high instability, evidenced by 615 closures and 506 terminations during the same period. **Key Indicators:** * ✓ **Massive Scale:** High outlet count (9,974) and aggressive growth strategy (+1,646 units). * ✓ **Low Barrier to Entry:** Franchise fees range from $2K–$29K with a maximum investment cap of $58K. * ✓ **Item 19:** Financial performance representations are available. * ⚠ **High Churn:** Significant volatility with 615 closures and 506 terminations last year. * ⚠ **Undisclosed Economics:** AUV (Average Unit Volume) is not provided, obscuring potential earnings.

Here is the executive summary for JAN-PRO Cleaning & Disinfecting: **Summary** JAN-PRO offers a low barrier to entry with franchise fees under $60K and massive scale, totaling nearly 10,000 outlets. The system is aggressively expanding, evidenced by the addition of 1,646 units last year, though prospective franchisees should scrutinize the 13% royalty rate. Stability is a potential concern given the high churn of 615 closures and 761 ceased operations during the same period. **Key Indicators** * ✓ **Scalability & Growth:** Massive existing footprint (9,974 units) with robust expansion (1,646 new units opened last year). * ✓ **Clean Legal History:** No reported history of litigation or bankruptcy. * ✓ **Financial Disclosures:** Provides an Item 19 earnings claim. * ⚠ **High Unit Churn:** Elevated closure and cessation rates (615 and 761 respectively) indicate unit viability challenges. * ⚠ **Undisclosed Economics:** AUV (Average Unit Volume) is not provided, making return on investment difficult to calculate. * ⚠ **High Royalty Burden:**

**Executive Summary: Dunkin’** Dunkin’ represents a high-volume, mature franchise opportunity with massive scale and significant unit economics, demonstrated by an AUV of $1.4M. The system is undergoing active expansion, evidenced by the opening of 344 outlets last year, though prospective franchisees must account for the high initial investment required to enter this established market. **Analysis:** * ✓ **Strong Unit Economics:** High AUV of $1.4M indicates significant potential cash flow. * ✓ **Scale & Stability:** With over 8,200 outlets and no history of litigation or bankruptcy, the brand offers a proven, stable model. * ✓ **Net Growth:** The system added a net total of 179 locations (344 openings - 165 closures) last year, signaling positive momentum. * ✓ **Transparency:** The inclusion of an Item 19 financial performance representation allows for informed decision-making. * ⚠ **High Barrier to Entry:** Total investment ranges widely from $211K to $1.8M, requiring substantial upfront capital. * ⚠ **Churn Rate:** While net growth is positive, the closure of 139 locations (Ceased Operations)

**Executive Summary: H&R Block** H&R Block offers a low-barrier entry into tax preparation with a franchise fee of only $2,000 and a total investment capped at $158K, granting access to a massive network of nearly 9,000 locations. However, the system faces headwinds, evidenced by the closure of 220 outlets in the last year and a lack of Item 19 financial performance disclosures. * **✓ Massive Scale:** Established brand with 8,921 total outlets. * **✓ Low Barrier to Entry:** Minimal franchise fee ($2K) with moderate total investment levels. * **✓ Clean Bankruptcy History:** No history of bankruptcy for the franchisor. * **⚠ High Attrition:** Network shrank significantly with 220 outlets closing last year. * **⚠ Zero Transparency:** Franchisor does not provide an Item 19 (financial performance representation). * **⚠ Legal Exposure:** History of litigation involving the brand.

**Executive Summary: 7-Eleven** 7-Eleven presents a massive scale opportunity with over 8,800 outlets and aggressive expansion (net +261 locations), distinguished by a $0 franchise fee and no recurring royalties. The financial barrier to entry is highly variable ($139K–$1.4M), though the lack of disclosed AUV makes true unit economics difficult to assess. While the brand avoids franchisee terminations and has a clean litigation history, operators face the significant operational risk of 232 locations ceasing operations last year. **Positives & Concerns:** * ✓ **Zero Upfront Fees:** No initial franchise fee or royalty payments lowers the initial capital hurdle. * ✓ **Aggressive Growth:** System continues to expand rapidly with a high volume of new openings. * ✓ **Clean Legal History:** No reported terminations, litigation, or bankruptcies within the franchise network. * ⚠ **Operational Attrition:** High number of ceased operations (232) indicates potential challenges for independent operators. * ⚠ **Opaque Financials:** Average Unit Volume (AUV) is not disclosed, making ROI projections difficult. * ⚠ **High Cost Variance:** Investment

**Executive Summary** H&R Block offers a highly accessible entry point with a low upfront franchise fee ($2K), though the total investment ranges significantly from $34K to $159K. The brand demonstrates strong stability and organic growth, evidenced by a massive footprint of over 8,600 outlets and a net positive of 72 new locations last year. However, the lack of an Item 19 earnings claim and undisclosed AUV limits visibility into unit-level financial performance, which is compounded by a history of litigation. **Key Indicators** * ✓ **Low Barrier to Entry:** Minimal franchise fee ($2K) makes this highly accessible to new operators. * ✓ **Scale & Stability:** Massive global presence (8,688 outlets) with net positive unit growth (opened 107 vs. closed 35). * ✓ **Clean Solvency:** No history of bankruptcy. * ⚠ **Financial Transparency:** No Item 19 financial performance representation and AUV is not disclosed, making revenue estimation difficult. * ⚠ **Legal Exposure:** Franchisor has a history of litigation.

Dunkin Donuts Franchising LLC offers massive scale with over 8,400 outlets and a high average unit volume of $1.3 million, though the total investment range varies widely from $200k to over $1.8 million. While the brand provides strong financial performance disclosures and avoids bankruptcy or litigation, the system is currently contracting, having closed more locations than it opened last year. This negative net growth trajectory suggests market saturation or strategic consolidation, representing a significant risk factor for potential new franchisees.

**Executive Summary** 7-Eleven offers a massive global network with over 8,200 outlets and a $0 franchise fee, though total investments vary widely from $142K to $1.6M due to real estate costs. While the franchise benefits from high brand stability and established unit economics, recent operational data indicates a period of consolidation. **Analysis** * ✓ **Market Dominance:** Extensive footprint of 8,254 units provides immediate brand recognition and systemic stability. * ✓ **Low Barrier to Entry:** The $0 franchise fee reduces initial capital friction, making the business model accessible to a wider range of operators. * ✓ **Financial Disclosures:** The availability of an Item 19 allows for due diligence regarding unit performance. * ⚠ **Network Contraction:** The business closed more locations (316) than it opened (300) in the past year, signaling potential market saturation or strategic downsizing. * ⚠ **Capital Variance:** The massive gap between the minimum and maximum investment ($142K - $1.6M) highlights unpredictable real estate and build-out costs. * ⚠ **Legal Exposure:** A confirmed history of litigation suggests potential friction regarding franchise agreements

Taco Bell offers a massive, established platform with over 7,800 locations and positive net unit growth, making it a lower-risk option for experienced operators capable of managing a high-capital investment. The lack of Item 19 financial disclosures and missing AUV data, however, forces potential franchisees to rely heavily on external market research rather than franchisor-provided earnings performance. **Key Indicators:** * ✓ **High Growth:** Opened 202 new outlets last year against only 36 closures, indicating strong brand expansion. * ✓ **Clean History:** No reported litigation or bankruptcy history involving the franchisor. * ⚠ **Opaque Economics:** The Franchise Disclosure Agreement lacks an Item 19 (no earnings claims), requiring investors to validate unit economics independently. * ⚠ **High Barrier to Entry:** Total investment costs range from $935K to $4.3M, demanding significant upfront capital.

**Executive Summary** Taco Bell offers a massive scale opportunity with over 7,800 outlets and positive net growth, though the entry cost is significant, ranging from $935K to $4.3M. While the franchise maintains a stable legal history, the lack of financial performance disclosures (Item 19 and AUV) forces investors to rely entirely on external data to validate unit economics. **Key Indicators:** * ✓ **Scale & Growth:** High brand visibility with 7,847 total units and a net positive growth of 166 locations last year. * ✓ **Stability:** Clean risk profile with no history of litigation or bankruptcy. * ⚠ **Capital Intensity:** High barrier to entry with total investment requirements potentially exceeding $4 million. * ⚠ **Data Opacity:** High level of uncertainty due to the absence of Item 19 financial disclosures and AUV metrics.

**Executive Summary: Burger King** Burger King offers a massive global footprint with over 7,100 outlets and strong unit economics, evidenced by an AUV of $1.5M and total investment ranges that accommodate both single restaurants and large acquisitions. While the brand provides scale and financial transparency, potential franchisees should be cautious of the 95 terminations and 69 closures last year, which indicate volatility in operator performance or corporate support standards. The opportunity is financially stable with no bankruptcy history, though the wide investment variance ($230K–$4.2M) requires significant due diligence regarding asset requirements. * **Scale:** ✓ 7,100+ total outlets; Item 19 financial performance disclosure available. * **Unit Economics:** ✓ High AUV ($1.5M) relative to the 4.5% royalty rate. * **Investment:** ⚠ Extreme variance ($230K–$4.2M) suggests complex entry barriers. * **Stability:** ⚠ High churn (95 terminations, 69 closures) flags operational challenges.

**Executive Summary: Domino's Pizza** Domino’s commands massive scale with over 6,700 U.S. locations and exceptional unit economics, boasting an Average Unit Volume (AUV) of $1.4M supported by relatively low initial investment costs. However, the network is currently contracting, evidenced by a net loss of units last year driven by high termination rates and ceasing operations. Potential operators must weigh the brand's powerful cash flow potential against an active litigation history and recent signals of market saturation or operational strain. **Key Indicators:** * ✓ **Strong Unit Economics:** High $1.4M AUV compared to total investment range. * ✓ **High Accessibility:** Entry-level investment starts as low as $107K. * ✓ **Item 19 Available:** Financial performance representations are disclosed. * ⚠ **Negative Store Growth:** More units closed (290) than opened (278) last year. * ⚠ **High Franchisee Turnover:** Significant terminations (253) suggest operational friction.

**Executive Summary** Bimbo Foods Bakeries Distribution offers a low-barrier entry with a franchise fee of only $8,000, though the total investment range varies significantly up to $606,000. The system demonstrates massive scale and aggressive expansion, evidenced by a footprint of over 6,000 units and a net gain of 348 outlets last year. However, the lack of financial performance representations (Item 19) and high termination rates signal potential business model volatility. **Positives & Concerns:** * ✓ **Massive Scale:** Operates 6,158 outlets, indicating a dominant market presence and established distribution network. * ✓ **Rapid Expansion:** Net growth of 348 units (460 openings minus 112 closures) suggests strong demand for new routes. * ✓ **Low Capital Barrier:** Accessible entry with an $8,000 franchise fee. * ⚠ **High Turnover:** 131 terminations and 92 ceased operations point to operational difficulties or franchisee distress. * ⚠ **Opaque Financials:** No AUV provided and lacks an Item 19, making it impossible to verify potential profitability. * ⚠ **Litigation History:**

**Executive Summary** Coverall Service Company operates as a massive commercial cleaning franchise with a low initial barrier to entry but exhibits severe operational instability. While the brand maintains a footprint of over 6,500 outlets, its network contracted significantly last year due to mass terminations and closures. The franchise model carries high legal and financial risks, compounded by a lack of performance data (Item 19) and minimal disclosure regarding total investment costs. * ✓ **Low Initial Cost:** Accessible franchise fee range starting at $5,000. * ✓ **Massive Scale:** Established footprint with over 6,500 total outlets. * ⚠ **High Attrition:** Shrinking unit count with over 1,150 closures last year (net loss of 464 locations). * ⚠ **Elevated Risk:** High termination rates (860), active litigation history, and a lack of earnings disclosures.

**Executive Summary** Coverall offers a low-barrier entry into the commercial cleaning sector with over 6,500 units, requiring a relatively modest initial investment between $19K and $51K. However, the system is currently contracting rapidly; the closure of 1,156 outlets last year—significantly outweighing the 689 new openings—signals potential distress within the network. Prospective franchisees should proceed with caution given the lack of financial performance disclosures (Item 19) and the recent termination of 860 franchisees. **Key Indicators** * ✓ **Low Initial Cost:** Capital requirements range from $19K to $51K, making it accessible compared to higher-cost franchises. * ✓ **Large Network:** Established footprint with over 6,500 total outlets. * ⚠ **Net Contraction:** The system shrank by net 467 units last year (1,156 closed vs. 689 opened), indicating high churn and instability. * ⚠ **High Terminations:** 860 terminations last year suggest significant friction or failure rates for franchisees. * ⚠ **No Financial Transparency:** The franchise does not provide an Item 19 (AUV

Circle K offers a massive global network with aggressive expansion (236 new outlets) and a low royalty rate of 3.0%, though it requires a significant capital investment ranging from $308K to $2.7M. However, the lack of Item 19 financial performance disclosures obscures potential profitability, making the viability of the investment difficult to assess without internal data. **Positives:** ✓ Massive Scale: 6,125 total outlets providing strong brand recognition. ✓ Expansion: Net growth of 183 units last year indicates active development. ✓ Clean History: No recent litigation or bankruptcies reported. **Concerns:** ⚠ **No Financial Disclosure:** Absence of an Item 19 makes ROI impossible to verify. ⚠ High Cost: Total investment enters the millions for larger locations. ⚠ Turnover: 53 franchises were closed or terminated last year.

**Executive Summary** Circle K presents a massive, established global network with over 6,000 locations and strong unit economics, evidenced by an AUV of $1.4M. The brand maintains a clean legal history with no litigation or bankruptcies, though the massive investment range of $308K to $5.4M creates significant capital variance. Despite high revenue potential, the system is currently experiencing a contraction in footprint, raising concerns about immediate stability and network saturation. * ✓ **Scale & Volume:** Extensive footprint with 6,063 outlets and high sales volume ($1.4M AUV). * ✓ **Clean History:** Zero litigation or bankruptcy history indicates lower operational risk. * ⚠ **Network Contraction:** System shrank by 50 units last year (335 closed vs. 285 opened). * ⚠ **Capital Variance:** Wide investment range ($308K – $5.4M) signals inconsistent facility requirements.

**Executive Summary** Wendy's offers a massive, established platform with a high-volume model ($1.9M AUV), but the financial barriers to entry are steep, ranging from $330K to nearly $3.7M per unit. The system displays aggressive expansion, evidenced by 164 new openings last year, though network churn was significant with 44 ceasing operations and 149 closures. * ✓ **Scale & Economics:** Massive footprint of nearly 6,000 units with a high average unit volume of $1.9M. * ✓ **Growth:** Active development added 164 new outlets in the last year. * ⚠ **Investment Barrier:** Total investment is highly capital intensive, spanning from $330K to $3.7M per location. * ⚠ **Churn Rate:** High network volatility with 149 closures and 44 units ceasing operations over the last year.

**Executive Summary: Wendy's** Wendy’s offers an established massive scale with 5,933 outlets and strong unit economics, boasting an impressive $2.1M AUV against a 4.0% royalty rate. While the system has significant revenue potential, the barrier to entry is high, with total investments ranging from $393K to $3.0M. The franchise network is currently contracting at an alarming rate, evidenced by 229 closures and 273 terminations last year, alongside an active litigation history that signals elevated operational risk. **Key Indicators:** * ✓ **Strong Cash Flow:** High AUV of $2.1M supports top-line revenue potential. * ✓ **Proven Model:** Large footprint and Item 19 financials indicate a mature system. * ⚠ **Network Contraction:** High churn rate with significantly more closures (229) than openings (102). * ⚠ **Franchisor Friction:** High termination counts (273) and litigation history suggest contentious franchisee relations.

**Executive Summary: Jazzercise** Jazzercise presents a high-risk investment opportunity characterized by rapidly shrinking unit count and steep ongoing costs. While the initial buy-in is low, the franchise requires a 20% royalty cut and lacks financial performance disclosures (Item 19), making profitability difficult to gauge. The system is currently undergoing a massive contraction, with net closures exceeding 700 units last year alone. **Positives & Concerns:** * ✓ **Low Barrier to Entry:** Minimal franchise fee ($250-$1K) and low total investment cap ($22K). * ✓ **Large Established Network:** Maintains a global footprint of over 5,800 outlets. * ⚠ **Systemic Contraction:** Closed 746 outlets last year compared to only 197 openings. * ⚠ **Aggressive Fees:** 20% royalty rate is significantly higher than industry standards. * ⚠ **Zero Transparency:** Does not disclose Average Unit Volume (AUV) or financial performance representations. * ⚠ **Operational Risk:** High history of ceased operations and pending litigation.

**Executive Summary: Jackson Hewitt Tax Service** Jackson Hewitt offers a large-scale, low-barrier entry into the tax preparation sector with a modest total investment ranging from \$71K to \$105K. The system generates a low Average Unit Volume (AUV) of \$118K against a backdrop of high churn, where closures and terminations nearly match the number of new openings. **Key Positives & Concerns:** * ✓ **High Accessibility:** Low franchise fee and investment cap reduce financial barriers to entry. * ✓ **Scale & Reach:** Massive footprint of over 5,100 locations. * ✓ **Financial Transparency:** Provides Item 19 earnings disclosures. * ⚠ **Unit Economics:** AUV of \$118K raises questions about net profitability and owner salary potential. * ⚠ **High Instability:** The system shut down or terminated nearly as many units (285) as it opened (221) last year. * ⚠ **Legal Exposure:** Franchisor carries a history of litigation.

The UPS Store is a mature, high-scale franchise with a massive footprint, but prospective franchisees should proceed with caution due to a lack of performance transparency. While the brand maintains significant brand recognition and a wide range of investment entry points, negative unit growth and the absence of financial disclosures in Item 19 complicate the investment assessment. **Executive Summary:** * **Scale:** Massive presence with over 5,200 outlets. * **Investment:** Capital requirements range from $55K to $428K. **Positives & Concerns:** * ✓ **Brand Scale:** High unit count provides immediate brand visibility and established market presence. * ✓ **Capital Flexibility:** Investment range allows for varying entry levels depending on location and size. * ⚠ **Negative Growth:** System contracted recently with 188 closures against 141 openings. * ⚠ **Lack of Transparency:** Does not provide an Item 19 earnings claim or Average Unit Volume (AUV), making return on investment difficult to predict.

**Jani-King of Greater Rhode Island** offers a low barrier to entry with total investments under $38k and massive system-wide scale (4,928 outlets), though the lack of financial performance disclosures (Item 19) makes unit economics impossible to verify. The system is currently experiencing a net contraction in units, evidenced by last year's closure of 496 outlets—305 of which ceased operations—against only 453 openings. **Key Factors:** * ✓ **Low Capital Risk:** Total investment is capped at $38,000, minimizing upfront financial exposure. * ✓ **Large Scale:** The franchise maintains a massive footprint of nearly 5,000 units. * ✓ **Clean History:** No history of litigation or bankruptcy. * ⚠ **High Attrition:** The shrank by a net 43 units last year, with a high number of ceased operations (305) indicating potential unit distress. * ⚠ **No Financial Data:** The absence of an Item 19 and AUV data prevents validation of earnings potential.

**Executive Summary: Jackson Hewitt** Jackson Hewitt offers a low-barrier entry into the tax preparation sector with a moderate initial investment range of $15K–$105K and a relatively low 3% royalty rate. The brand demonstrates massive scale with over 5,000 outlets and moderate growth, though the high closure-to-opening ratio suggests significant franchise churn and operational volatility. While the availability of financial performance disclosures (Item 19) aids due diligence, prospective buyers must weigh the modest AUV ($118K) and active litigation history against the benefits of established brand recognition. * **✓ Scale & Accessibility:** Extensive footprint of over 5,100 locations and a relatively low initial investment requirement compared to major competitors. * **✓ Fees:** Lower royalty rate (3%) than many franchising models. * **⚠ Stability:** High turnover indicated by 209 closures against 221 openings; 76 terminations last year point to enforcement or franchisee failure issues. * **⚠ Risk:** Presence of litigation history and a modest AUV relative to total operational effort.

**Executive Summary** Jani-King of Milwaukee offers a low barrier to entry with total investments under $40K, though the absence of an Item 19 earnings claim obscures potential unit economics. The system demonstrates high aggregate turnover with 403 openings offset by 277 closures and terminations, signaling a volatile "revolving door" expansion model. Potential franchisees should be mindful of the active litigation history and the lack of performance transparency before committing. * ✓ **High Scale & Accessibility:** Massive footprint of 4,872 units with a low initial investment range ($19K–$39K) and no stated royalties. * ✓ **Active Expansion:** Opened 403 new outlets in the last year, indicating strong sales and brand interest. * ⚠ **High Churn Rate:** Significant network instability evidenced by 277 closures and terminations against 403 openings. * ⚠ **Zero Transparency:** Lacks an Item 19 financial performance representation, making it impossible to verify profitability or AUV. * ⚠ **Legal Exposure:** The franchise acknowledges a history of litigation, a notable risk for prospective investors.

**Executive Summary: Health Mart** Health Mart is a massive scale pharmacy network with over 4,300 outlets and a $0 franchise fee, but the system is currently undergoing a significant contraction. The brand faces substantial structural instability, evidenced by a net loss of nearly 200 outlets last year driven by 476 terminations and the failure to provide financial performance disclosures (Item 19). **Key Indicators:** * ✓ **High Accessibility:** Low barrier to entry with $0 upfront franchise fee. * ✓ **Large Footprint:** Established network of over 4,300 locations. * ⚠ **System Contraction:** High closure rate (602) exceeded openings (405), resulting in a net loss of units. * ⚠ **Poor Franchisee Health:** 476 terminations indicate widespread operational distress or friction. * ⚠ **Low Transparency:** No Item 19 financial disclosure or AUV data provided. * ⚠ **Litigation Risk:** Brand has an active litigation history.

**Executive Summary** AFC exhibits massive scale with a low barrier to entry, evidenced by over 3,700 outlets and a franchise fee under $6,000. While the system opened a significant number of new units last year, the high closure count, lack of Item 19 financial performance disclosures, and history of litigation point to potential instability. **Key Indicators:** * ✓ **Rapid Expansion:** Opened 1,806 outlets recently, demonstrating aggressive brand growth. * ✓ **Low Cost:** Minimal franchise fee and a total investment range starting at $45,000 lower the barrier to entry. * ✓ **No Bankruptcy:** The franchisor has no history of bankruptcy. **Concerns:** * ⚠ **High Attrition:** Closed 451 outlets alongside the expansion, and 208 franchises were terminated. * ⚠ **Opaque Financials:** No Item 19 disclosure means AUV and unit profitability remain unknown. * ⚠ **Legal Risks:** The franchisor carries a history of litigation.

Great Clips offers a highly scaled, turnkey franchise opportunity with 4,427 outlets and a moderate initial investment range of $183K–$414K, generating an Average Unit Volume (AUV) of $383K. **Positives & Concerns:** * **✓ Mass Market Scale:** Extensive footprint of over 4,400 units provides strong brand recognition. * **✓ Stable Financials:** No history of litigation or bankruptcy. * **⚠ Stagnant Growth:** System size remained static last year with 98 openings offset by 89 closures and ceased operations. * **⚠ Unit churn:** High number of ceased operations (89) indicates potential retention challenges for franchisees.

Stratus Building Solutions has rapidly scaled to a massive 3,786 outlets, presenting an entry opportunity as low as $4,000 with a standard 5% royalty fee. However, the system is experiencing significant volatility, evidenced by 347 terminations and 358 closures against 1,000 new openings last year. **Analysis:** * ✓ **Scale & Growth:** Massive existing footprint (3,786 units) and aggressive expansion (1,002 openings last year). * ✓ **Low Barrier to Entry:** Initial franchise fee starts at a modest $4,000 with a capped total investment around $80K. * ⚠ **High Churn Risk:** Alarmingly high attrition with 347 terminations and 358 closures; AUV and financial performance representations (Item 19) are not disclosed. * ⚠ **Legal Exposure:** Franchisor faces active litigation history, adding risk to the operational stability.

Stratus Building Solutions demonstrates massive scale with over 3,700 outlets, having opened 1,000 units last year, though this expansion is accompanied by an exceptionally high churn rate marked by 347 terminations. With a low initial investment range and a modest AUV of $31K, the franchise offers an accessible entry point but carries significant operational risks. **Positives & Concerns:** * ✓ **Rapid Expansion:** Opened over 1,000 outlets in the last year, demonstrating strong sales and brand growth. * ✓ **High Volume of Financial Disclosures:** Possesses an Item 19, allowing for better visibility into unit economics. * ⚠ **High Attrition:** Closed 358 outlets last year, with 347 terminations signaling potential franchisee dissatisfaction or failure. * ⚠ **Low Unit Economics:** An AUV of only $31k suggests revenue potential is very limited relative to the business effort. * ⚠ **Litigation History:** The franchisor is involved in legal disputes, indicating potential business conflicts.

Stratus Building Solutions offers a low initial capital investment with high scalability, rapidly expanding its footprint by over 1,000 units last year despite a network-wide attrition rate of nearly 10%. However, the franchise's aggressive unit growth coincides with a lack of financial performance disclosures (Item 19) and a history of litigation. **Investment Snapshot** * ✓ **Low Barrier to Entry:** Total investment starts as low as $0 with a franchise fee cap of $69K. * ✓ **Massive Scale:** Operates a vast network of 3,786 outlets. **Risk Assessment** * ⚠ **High Churn:** High volatility is evident in recent closures and terminations (358 units). * ⚠ **No Financial Transparency:** Does not disclose Average Unit Volume (AUV), making profitability impossible to verify. * ⚠ **Legal History:** The franchise has a history of litigation, signaling potential operational or franchisee disputes.

Here is the executive summary for the AFC franchise opportunity: AFC demonstrates massive scale with rapid expansion, opening 1,806 units last year despite a low barrier to entry ($1K fee, $251K max investment). However, the closure of 451 outlets during the same period raises significant red flags regarding unit viability and franchisee support. **Key Positives & Concerns:** * ✓ **High Accessibility:** Low initial franchise fee ($1K–$6K) allows for easy entry into the system. * ✓ **Aggressive Expansion:** System is experiencing rapid growth in total unit count. * ⚠ **High Attrition:** The closure of 451 outlets alongside 208 terminations indicates potential instability or failure rates for new operators. * ⚠ **Zero Transparency:** The absence of Item 19 financial performance representations and an undisclosed AUV makes unit economics impossible to verify pre-sale. * ⚠ **Legal History:** Presence of litigation suggests potential franchisor-franchisee conflicts.

**Executive Summary: KFC** KFC offers massive global brand recognition and strong unit economics with an AUV of $1.3M, but it faces notable headwinds. While the system maintains a vast footprint of over 3,600 outlets, the brand is currently contracting, evidenced by a net loss of 155 locations last year driven by high terminations. * ✓ **Strong Unit Economics:** AUV of $1.3M supports the high capital investment ($1.9M–$3.8M). * ✓ **Brand Stability:** Zero bankruptcies and long-term market presence. * ⚠ **System Contraction:** Net loss of 155 units in the last year. * ⚠ **Franchisee Relations:** High terminations (151) and a history of litigation indicate potential friction or operational challenges.

**Executive Summary: Sonic** Sonic presents a massive-scale opportunity with high unit volumes ($1.7M AUV) and a reasonable royalty rate (2%), though entry requires significant capital ($348K–$3.5M). The system demonstrates solid stability with zero terminations and no history of litigation or bankruptcy, supporting high-volume operations. * **Scale & Economics:** Operates 3,552 outlets with strong sales volume and a favorable 2% royalty structure. * **Growth:** Expanded by 89 locations last year with zero terminations, indicating strong franchisee support. * **Investment:** High barrier to entry due to substantial total investment requirements. * **Concerns:** ⚠️ High closure count (57) and ceased operations (6) suggest potential market saturation or unit cannibalization.

RE/MAX is an established global brand with a massive footprint of over 3,500 outlets and a low 1% royalty fee, offering a relatively low barrier to entry with total investments ranging from $43K to $236K. However, the system faces significant headwinds, evidenced by a net unit contraction—closing 247 locations while opening only 180 last year—and a lack of Item 19 financial performance disclosures. * **✓ Scale & Fees:** High outlet count (3,546) and a competitive 1% royalty rate. * **✓ Clean History:** No recent litigation or bankruptcy history reported. * **⚠ Shrinking Network:** Negative unit growth (net loss of 67 locations) with 110 terminations. * **⚠ Data Transparency:** No Item 19 provided, obscuring potential earnings for new franchisees.

Sonic is an established legacy brand with significant scale and strong unit economics (AUV: $1.6M), requiring a substantial initial investment of $669K to over $3M. However, the network is currently contracting, evidenced by a net loss of 60 units last year due to 68 ceased operations and 12 terminations. * **Scale & Unit Economics:** Extensive footprint of 3,461 locations with high average revenue volume. * **Financial Health:** No history of litigation or bankruptcy, and Item 19 performance data is provided. * **⚠ Network Decline:** Franchise closures nearly tripled new openings, indicating significant churn or instability.

Snap-on offers a massive established network with a relatively low franchise fee, though the total capital requirement is significant. The system currently faces a contraction phase, evidenced by last year's closure of 242 outlets exceeding the 191 openings, and despite having a financial performance representation, unit economics remain undisclosed. * **✓ Established Scale:** Extensive footprint of 3,428 total outlets providing immediate brand recognition. * **✓ Accessible Entry:** Low franchise fee ($8K - $16K) lowers the initial barrier to entry. * **✓ Item 19:** Provides some financial performance data to prospective buyers. * **⚠ Negative Growth:** Net unit loss of 51 outlets last year indicates system-wide contraction or churn. * **⚠ Opaque Economics:** AUV is not disclosed, making return on investment difficult to predict. * **⚠ Legal Exposure:** History of litigation presents potential operational risks.

**Executive Summary** Vision Source stands as a massive network of 3,330 locations, offering optometrists a low-barrier entry path with no franchise fee and a modest 2.5% royalty, though the lack of an Item 19 financial performance representation obscures potential earnings. The network demonstrates exceptional stability with zero reported terminations, ceased operations, or litigation history. However, the absence of AUV data makes it difficult to validate the return on investment for the required $100K–$450K capital outlay. **Key Indicators** * ✓ **Scale & Stability:** Extensive footprint of 3,330 outlets with zero recent terminations or closures. * ✓ **Low Fixed Costs:** No initial franchise fee and a 2.5% royalty rate reduce operational overhead. * ✓ **Clean History:** No record of litigation or bankruptcy within the system. * ⚠ **Lack of Transparency:** Does not provide an Item 19, leaving Average Unit Volume (AUV) and unit economics unverified.

Papa Johns offers an established global brand with high sales volume ($1.1M AUV) and a low 5% royalty rate, requiring a total investment ranging from $111K to over $850K. However, the system is currently experiencing flat growth, evidenced by last year's closure of 116 locations against 112 openings. Potential investors must also weigh the history of litigation and the variability in investment costs against the company's significant scale. **Key Metrics & Analysis:** * ✓ **Strong Unit Economics:** High Average Unit Volume ($1.1M) supports potential revenue potential. * ✓ **Manageable Royalty:** 5.0% royalty rate is competitive for the pizza sector. * ✓ **Item 19 Available:** Financial performance representations are provided for due diligence. * ⚠ **Stagnant Growth:** System size was essentially flat last year (112 opened vs. 116 closed). * ⚠ **Churn Risk:** 26 units ceased operations, and 116 were closed, indicating some unit distress. * ⚠ **Legal Exposure:** Franchisor has a history of litigation.

TWR Car & Limo offers a scalable, low-entry transportation model with over 3,200 outlets and a total investment cap of roughly $108k. However, the opportunity presents a significant data risk due to the lack of an Item 19 financial performance representation and undisclosed average unit volumes. ✓ **Scale & Stability:** Extensive network of 3,244 outlets with zero reported terminations or closures in the prior period. ✓ **Accessible Entry:** Franchise fees range from $0 to $32k, requiring a moderate total capital investment ($57k–$108k). ✓ **Financial Health:** No history of bankruptcies. ⚠ **Lack of Transparency:** No Item 19 or Average Unit Volume (AUV) data, making unit economics impossible to verify. ⚠ **Legal Exposure:** The franchisor has a history of litigation.

**Executive Summary** DQ Grill & Chill® offers a massive global footprint with over 3,100 outlets and impressive unit economics demonstrated by an AUV of $1.4M, though success requires a substantial initial investment ranging from $1.5M to $2.4M. However, potential investors should approach with caution due to recent network contraction, evidenced by the closure of 83 locations last year compared to only 53 openings, alongside a notable history of litigation. **Key Metrics & Sentiment:** ✓ **Scale & Volume:** High brand awareness with 3,109 total outlets and strong average sales (AUV: $1.4M). ✓ **Financial Health:** Zero bankruptcies and Item 19 financial disclosures are available. ⚠ **Network Contraction:** Shrinking footprint; 30 more units closed than opened in the last year. ⚠ **Capital Intensive:** Requires significant upfront capital ($1.5M+), and the company faces ongoing litigation.

**Executive Summary: Popeyes Louisiana Kitchen** Popeyes represents a massive-scale opportunity with strong unit economics, evidenced by a high $1.9M AUV and robust network growth of over 160 new outlets annually. The franchise demonstrates exceptional stability with zero terminations, though the massive investment range ($471K–$3.9M) and history of litigation require careful due diligence regarding site selection and legal support. **Key Indicators:** * **✓ High Revenue Potential:** Strong AUV of $1.9M indicates significant cash flow capability. * **✓ Expansion:** Net positive growth with 165 new openings outweighing 31 closures. * **✅ Franchisee Health:** Zero terminations last year suggests the franchisor supports operators effectively. * **⚠️ High Capital Barrier:** Top-end investment costs reach nearly $4M, requiring substantial liquid capital. * **⚠️ Legal Exposure:** A history of litigation is a notable risk factor for potential owners.