About This Portfolio
This demo portfolio spans 8 franchise opportunities across 6 categories — from insurance to industrial services to fitness — using real public FDD data where available and realistic market-range estimates where not. The portfolio is designed to show the full range of outcomes the Layer8 Franchise Evaluation Suite produces: exceptional disclosure and economics at one end, missing Item 19 and contracting systems at the other.
STRONG BUY — Score 8.0+
A home-based insurance franchise with one of the strongest Item 19 disclosures in any category — 25% profit margin on $687K average revenue. The revenue share model is unusual but franchisee-friendly: rather than a fixed royalty, the franchisee keeps a percentage of commissions earned across 100+ carriers. Low investment ($89K–$215K) relative to revenue potential makes this one of the best ROI opportunities in the portfolio. The 5.8-year payback period is exceptional. Requires sales aptitude and insurance licensing — not a passive investment.
A B2B hydraulic hose repair franchise with the highest average unit revenue in the portfolio at $1.84M. The niche category — industrial hydraulic maintenance — has virtually no direct competition and serves manufacturers, construction companies, and heavy equipment operators. The 2.1% attrition rate is exceptional and the 28-year franchising history demonstrates durability. The 4% royalty is below category average. Requires mechanical aptitude and comfort in an industrial environment, which limits the candidate pool but also limits competition for qualified buyers.
BUY — Score 6.5–7.9
A 55-year-old property restoration franchise in a recession-resistant category — revenue comes from insurance claims, not consumer spending. Climate events are driving 9.2% category growth. Very high AUV at $2.84M but requires significant operational complexity and staff management. Strong insurance carrier relationships built over decades are a meaningful competitive moat that new entrants cannot easily replicate. The 55-year track record gives the FDD credibility that emerging brands cannot match.
A residential cleaning franchise with strong unit economics — $892K average revenue on a sub-$144K investment. The pay-for-performance model creates natural incentive alignment between cleaners and the franchise: cleaners earn more when customers rate them highly. PE-backed since 2021 with active growth trajectory. Category growth of 8.3% is one of the strongest in the portfolio. The low initial investment makes this one of the most accessible high-revenue opportunities in the demo.
The world’s largest 24/7 fitness franchise with over 2,300 US locations and 22 years of franchising history. Scores strongly for transparent Item 19 disclosure, fixed monthly royalty structure ($699/month), and low 3.68% franchisee attrition. The 14.8-year payback is long but fully supportable with disclosed data. A sound choice for qualified buyers seeking a lifestyle-compatible semi-absentee fitness franchise with brand recognition in their market.
BUY WITH CAUTION — Score 5.0–6.4
A well-established food and beverage brand with 33 years of franchising history and strong brand recognition. The concern is unit economics — 9% profit margin on $524K average revenue against a high-end investment of $840K produces an 18.5-year payback. The wide investment range ($264K–$840K) adds risk. The brand has changed ownership multiple times including sale to Mideast investors in 2012. A strong brand in a growing category, but the financial case requires careful location selection and realistic expectations on returns.
NEEDS MORE INFO — Score 3.5–4.9
An emerging beauty franchise in a growing category, but with material disclosure gaps. No Item 19 means a buyer cannot verify unit economics — the franchisor is asking up to $424K without providing the financial transparency to justify that investment. The franchisor’s financials are not audited. Only 7 years in franchising with limited track record. The category growth is real, but brand risk is high: an unknown brand in a crowded market, asking for significant capital without showing its work.
A 24/7 fitness franchise that has struggled with system contraction — losing a net 180 units over three years. The absence of an Item 19 financial performance disclosure is the primary concern: without it, a buyer cannot independently verify unit economics. Franchisee reviews are mixed to negative, with multiple current operators seeking exit. The estimated 28.5-year payback period (third-party research, not FDD data) raises material viability questions. Compare with Anytime Fitness to see what the same category looks like with transparency.
Compare Brightway (discloses) vs Radiant Waxing (does not) → | Compare Anytime Fitness (discloses) vs Snap Fitness (does not) →