YESCO

YESCO's track record shows steady but slowing expansion: franchising since 2011, the system peaked at 50 locations in 2024 before dipping to 49 in 2025—a 2% contraction—yet projects 4 new units ahead. Health metrics are clean, with just 1 termination, 1 non-renewal, and 1 transfer in the latest FDD year, far below industry averages for distress. Item 19 reveals strong financials for survivors: average gross revenue hit $1,086,602, though the median of $785,250 indicates variability, likely tied to territory size and sales execution in targeting commercial sign owners.

Economics demand serious capital: $50,000 franchise fee within a $65,000-$432,200 initial investment range, per Item 7, covering vehicles, tools, and software for subcontracting electricians and mechanics. Ongoing fees include the greater of $1,000 or 6% royalty, plus up to 3% national ad fund, 2% local ad, $20/month website, and software extras—potentially 10%+ of sales. Twelve SBA loans averaging $381,758 underscore lender confidence, but a 2018 litigation settlement over unpaid fees and non-compete issues with an Ontario franchisee flags enforcement risks. For hands-on operators leveraging YESCO's proprietary processes, the revenue scale justifies the outlay if they hit above-median performance; laggards face fee pressure in a maturing system.