Sam The Concrete Man Logo

Sam The Concrete Man

Samco, LLC
https://www.samtheconcreteman.com
1-303-948-0140
6912 South Quentin Street, Suite 10, Centennial, CO 80112

Initial Investment Range

$92,750 to $150,865

Franchise Fee

$71,101

Sam the Concrete Man businesses provide concrete repairs and improvement to existing homes, including but not limited to, driveways and walkways, repairs, maintenance and sealers and/or replacing those areas with an improved installation in a mobile environment within a specified geographic area.

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Sam The Concrete Man April 1, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The audited financial statements in Item 21 reveal a significant net loss of over $1.2 million for the most recent fiscal year, a stark reversal from prior years' profits. This financial downturn follows a recent acquisition by a private equity firm, SAMCO, LLC (SAMCO). Several state regulators have required SAMCO to defer collecting initial franchise fees due to its financial condition, questioning its ability to provide promised support and services, which presents a significant risk to your investment.

Potential Mitigations

  • Your accountant must conduct a deep analysis of the audited financial statements, focusing on cash flow, debt service coverage, and the impact of the recent acquisition.
  • A business advisor should help you assess if the franchisor's resources are adequate to support the system despite the recent losses.
  • Legal counsel should review the state-mandated deferrals and their implications for your protection.
Citations: Item 1, Item 21, Exhibit B, Exhibit G

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals an extremely high rate of franchisee turnover. In the most recent year, 30 franchises ceased operations through termination or other reasons out of a system that started the year with 81 franchised outlets. This significant churn suggests potential systemic issues with the business model, franchisee profitability, or franchisor support, posing a major risk to the long-term viability of your own franchise.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees from the list in Exhibit F to understand their reasons for leaving; your attorney can help frame questions.
  • Your accountant should use this turnover data to heavily discount any positive financial performance claims made by the franchisor.
  • A business advisor can help assess if this level of churn is sustainable for the brand.
Citations: Item 20, Exhibit F

Rapid System Growth

Low Risk

Explanation

This risk was not identified. While rapid system growth can strain a franchisor's support systems, the data in Item 20 shows that the net growth of the Sam the Concrete Man system has slowed in the most recent year. The primary concern appears to be high franchisee turnover rather than an unsustainable expansion pace.

Potential Mitigations

  • Engaging a business advisor to review the franchise's historical growth and current support structure is a prudent step.
  • An accountant can help evaluate whether the franchisor's financial resources, as shown in Item 21, are aligned with their support obligations.
  • Speaking with franchisees from various opening years can provide insight into the consistency of franchisor support over time.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

While the franchisor began operations in 2013, the high franchisee turnover and recent negative financial performance following a change in control introduce risks similar to an unproven system. The business model's long-term viability under the new private equity ownership and its current financial state is not yet demonstrated, creating significant uncertainty for a new franchisee.

Potential Mitigations

  • A business advisor should help you conduct extensive due diligence on the new ownership's strategy and its potential impact on the system.
  • Your accountant must assess the franchisor's current capitalization and financial stability to determine if it can adequately support franchisees through this period of change.
  • It is advisable to ask your attorney to consider negotiating more favorable terms to compensate for the heightened risk.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The concrete repair industry is a long-established service sector, not a business based on a recent or fleeting trend. However, any business can be affected by economic cycles or shifts in housing market trends.

Potential Mitigations

  • Assessing the long-term market demand for concrete repair services in your specific geographic area with a business advisor is a wise step.
  • A financial advisor can help you evaluate the business model's resilience to potential economic downturns.
  • It is prudent to research local competition and market saturation to understand the long-term prospects.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

Item 1 discloses a change in control in October 2024 to an affiliate of a private equity firm, EMP Prime Holdings LLC. Key management personnel have been added since the acquisition. While some individuals have industry experience, the new controlling entity's experience in managing this specific franchise system is very recent, which could introduce risks related to strategic shifts and support quality.

Potential Mitigations

  • A business advisor can help you research the track record of the new private equity owner with other franchise systems.
  • It is important to speak with current franchisees about any changes in support or system direction since the acquisition.
  • An attorney should be consulted to understand any implications the change of control may have on your franchise agreement.
Citations: Items 1, 2

Private Equity Ownership

High Risk

Explanation

The franchisor was acquired by an affiliate of Eagle Merchant Partners, a private equity firm, in October 2024. Following the acquisition, the company's financials show a significant net loss. Private equity ownership often prioritizes short-term returns, which could potentially lead to increased fees, reduced franchisee support, or a quick resale of the franchise system, creating uncertainty and risk for your long-term investment.

Potential Mitigations

  • Researching the private equity firm's history with other franchise brands can provide valuable insights; a business advisor can assist with this.
  • Your attorney should review the franchise agreement for terms related to the sale or assignment of the franchise system.
  • Discussing any changes since the acquisition with current franchisees is a critical due diligence step.
Citations: Item 1, Item 21, Exhibit B

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. The FDD discloses the parent company, EMP Prime Holdings LLC, and provides the franchisor's audited financial statements as required. There is no indication that the parent company's financials are required but have been withheld.

Potential Mitigations

  • An attorney can confirm the corporate structure and ensure that all required financial disclosures for parent or affiliate entities have been properly provided.
  • If a parent company guarantees the franchisor's obligations, your accountant should review the parent's financials, if available, for financial strength.
  • A business advisor can help you understand the relationship between the franchisor and its parent company and how it might impact operations.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk does not appear to be present. In Item 1, the franchisor states, "We have no parent or predecessor entities." This statement seems to contradict the later disclosure of being an indirect subsidiary of EMP Prime Holdings LLC, but the context implies no predecessors in the sense of a prior operating system under a different name.

Potential Mitigations

  • An attorney can help clarify any ambiguities regarding the franchisor's corporate history and predecessor entities.
  • Researching the brand's history through public sources can sometimes uncover information about prior business structures; a business advisor can help.
  • Inquiring with long-term franchisees about the history of the system can provide additional context.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified. Item 3 of the FDD states, "No litigation is required to be disclosed in this Item." The absence of disclosed litigation against the franchisor is a positive factor, although it does not eliminate all potential for future disputes.

Potential Mitigations

  • An attorney can conduct public record searches to verify the absence of significant litigation that might not have been disclosed.
  • It is still prudent to ask current and former franchisees about their experiences with disputes, even if they didn't result in litigation.
  • A business advisor can help you assess the overall health of franchisor-franchisee relations through due diligence calls.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
7
1
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
6
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
3
9
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
0
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
2
4
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
9
5
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.