Franchisel.com — FDD Diligence Memo
MosquitoNix - MosquitoNix Elves
Generated 2026-04-06 · 2025 FDD · Government-filed source
MosquitoNix - MosquitoNix Elves
2025 FDD Diligence Memo
Score of 15/10 driven by: low financial transparency.
Sys Health
1
Red Flags & Key Signals
More than 1 in 5 units closed or transferred. Industry benchmark is typically 5–10%. Request Item 20 detail for prior years.
Avg $1,492,244 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2025 FDD (government-filed)Item 19 discloses avg revenue of $1,492,244 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2025 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged. Closure/transfer rate of 303300% is high — industry benchmark is typically 5–10%. This warrants investigation into why franchisees are exiting.
Total Units
0
Net Growth
+0
Turnover
303300%
Year-over-Year Trends
2025 FDDOpened
+2022
Closed
-4044
Net
+0
Turnover rate: 303300% — high (industry avg 5–10%)
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2025 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Revenue type unclear
The FDD does not clearly specify whether figures are gross sales, net sales, or a profit metric. This limits comparability.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2025)
Revenue figures are from 2025 — recent and relevant.
Medium extraction confidence
Revenue figure extracted with medium confidence. Cross-check with source FDD before relying on this number.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
4044 units closed in the most recent FDD period (2022 were forced terminations). Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
Turnover rate is 303300% — above industry average. Ask existing franchisees: do they plan to renew? Would they buy this franchise again?
Look for: Unprompted enthusiasm vs. measured or reluctant responses. Ask about year-2 and year-3 revenue vs. projections.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2025 FDD filed with WI DFI (file #639065). Source: 639065-2025-MosquitoNix-MosquitoNix-Elves.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.