SHACK SHINE

Financially, Item 7 pegs total investment at $162,550-$283,800, covering the $40,000 franchise fee, vehicles, equipment like pressure washers, and initial marketing. Ongoing fees hit 16% of sales—8% royalty plus 8% for sales, marketing, and technology—higher than many peers, potentially squeezing margins in a seasonal business. Item 19 shines with average gross revenues of $518,396 and median $429,104 across existing units, implying strong top-line potential from services like window washing and holiday lights; assuming 20-30% expenses typical for field services, EBITDA could reach $100K-$150K for top performers, but no profit data is given to confirm.

System health shows vulnerability: from 31 locations in 2023 to 23 in 2024—a 26% drop—alongside 6 terminations, 2 non-renewals, and just 1 transfer per the FDD's Item 20 table. Franchising since 2016 with headquarters in Vancouver, BC, it has attracted 10 SBA loans averaging $189,140, indicating lender confidence despite the dip. For investors, high revenues tempt, but contraction signals possible oversaturation or operational hurdles in residential cleaning; scrutinize recent FDD projections for openings to gauge recovery before committing.