ADAM & EVE

Financials start with Item 7's initial investment range of $170,415 to $365,410, including a $30,000 franchise fee from Item 5, making it mid-tier accessible for specialty retail. Ongoing fees hit 5% royalty, 1.5% brand fund, plus a required 5% local marketing spend—totaling up to 11.5% of sales, which bites but aligns with high-margin products. Item 19 shines here: average gross revenue clocks $815,578 across franchised units, median $720,910, with estimated current-year profits ranging $473,851 to $605,974 after expenses. That's implying 58-74% margins on average sales, a standout for retail if validated by operations—low inventory risk via their management system helps.

System health shows steady expansion from 101 locations in 2023 to 107 in 2024 (+6% growth), with 10 projected new units signaling confidence amid competition. No red flags on terminations or transfers in recent FDDs, and multi-unit options plus conversions for existing stores add flexibility. For investors eyeing $500K+ bottom lines in a discreet, recession-resistant niche (adult products weather economic dips), this merits a deep dive—but validate with local demographics and tolerance for the industry's vibe.