BLUE MOON ESTATE SALES

Item 7 lays out the entry: franchise fee of $57,000 pushes total initial investment to $57,015-$113,325, covering training, inventory, and marketing startup. Ongoing fees from Item 6 include 5.5% royalty, 1% ad fund, plus fixed monthly costs totaling $670-$1,000—like $180 for estatesales.net, POS software, payroll, and insurance—making total outflows predictable but additive. Item 19 delivers the earnings insight: average gross revenue hit $282,243 across mature units, but median at $204,018 signals top performers inflate the mean, with no bottom-quartile or profit figures disclosed, so EBITDA likely varies wildly after 30-35% fees and variable costs like staffing for sales events.

System health from Item 20 reveals contraction from 151 locations in 2023 to 124 in 2024—a stark 18% drop—despite 22 projected new units, alongside 9 terminations, 13 transfers, and termination-focused litigation. SBA stats show 10 loans averaging $111,750 with a 10% default rate, suggesting accessible financing but elevated risk compared to stabler systems. For investors eyeing business services, the low barrier pairs with solid top-line potential if you nail client acquisition in downsizing markets, but the shrinkage and median revenue gap demand scrutinizing local competition and your sales hustle before committing.