THE DOAN GROUP

Item 7 lays out an unusually lean entry: $10,000 franchise fee within a total investment of $14,050-$68,000, covering training, software, and marketing startup. But ongoing fees sting at 22% royalty—far above industry norms—plus $189-$500 monthly software licenses and a reserved 0-2% brand fund. Item 19 revenue disclosure paints a skewed picture: average gross sales hit $350,355 across franchisees, yet the median lags at $106,518, signaling that a handful of outliers (likely in denser markets) inflate the mean while most operators hover lower. No net profit figures are provided, but assuming 20-30% margins post-royalties leaves slim operator take-home for many.

System health shows promise amid youth—franchising since 2020, units jumped 44% from 18 (2024) to 26 (2025), with 14 projected new openings and 6 transfers but scant closure data. This signals momentum via national insurance ties, yet high royalties could deter scaling for underperformers. For experienced appraisers eyeing protected territories, the low barrier tempts, but that revenue gap and fee load scream caution: is it a star-maker for pros or a grind for the rest? Crunch the variance before committing.