SCA APPRAISAL SERVICES

Item 7 lays out a franchisee-friendly entry: total investment from $18,600 to $62,250, including a $10,000 franchise fee, making it one of the lower barriers in services. Yet fees sting—50% royalty on gross (dropping to 35% in the Elite Program), no marketing fund, and up to $500 monthly per user for software. Item 19 shines with average gross revenue of $273,438 per location, suggesting healthy topline before that hefty royalty erodes margins; at 50%, you're left with roughly $136K pre-expenses, demanding tight operations to profit. The 2025 FDD's financials position SCA for efficiency-focused buyers eyeing insurance B2B stability over high-volume retail.

System metrics reveal caution: just 87 to 88 locations from 2023-2024 (+1% growth), with only 3 projected new units signaling modest expansion. Eight system transfers hint at turnover or resales, while a single arbitration (franchisee alleging breach/fraud, countered by franchisor) mars the record but isn't systemic. For buyers, probe transfer trends and elite program viability—could switching slash royalties enough to boost ROI in this tech-reliant, low-overhead model? Overall, SCA suits analytical types comfortable with B2B sales cycles, but verify local insurance demand to ensure those $273K averages hold.