16 HandlesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A 16 Handles franchise requires a total initial investment of $250K – $657K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $805K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 13 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $250K – $657K
- 46th pct Service Resta…
- Avg gross sales
- $805K
- 25th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 31
- 54th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 13 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $250K – $657K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $805K/year (median $750K).
- Verdict A (Top Quintile) with a risk score of 14/100. SBA loan charge-off rate of 0.0% across 13 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- 16 HANDLES FRANCHISING LLC
- Predecessor
- is Yo Fresh Inc
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 450 Park Avenue South, Floor 3, New York, NY 10016
- Auditor
- MUHAMMAD ZUBAIRY, CPA PC
- Audited financials
- Franchisor revenue
- $1.7M
- vs $1.9M prior year
Overview
About
16 Handles franchisees operate frozen yogurt shops, managing daily operations including serving and ring-up of self-serve frozen yogurt, topping preparation and inventory, customer service, staffing, and retail marketing. Franchisees are responsible for lease negotiations, local marketing, hiring/training employees, and maintaining brand standards across equipment maintenance and facility cleanliness.
- CEO
- Neil Hershman
- Headquarters
- NY
- Founded
- 2022
- FDD year
- 2026
- States available
- 5
FDD Item 7 · 2026 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Rent and Security Depositnot refundable | $5K | $30K | |
| Utility and Other Depositsnot refundable | $0 | $3K | |
| Architect and Design Feesnot refundable | $8K | $20K | |
| Leasehold Improvementsnot refundable | $60K | $180K | |
| Exterior Signagenot refundable | $5K | $12K | |
| Furniture, Fixtures and Equipment (Including Soft Serve Machines)not refundable | $110K | $310K | |
| Smallwaresnot refundable | $5K | $10K | |
| POS System; License Feenot refundable | $1K | $2K | |
| Back-Office Computer, Office Equipment and Suppliesnot refundable | $500 | $2K | |
| Business Licenses & Permitsnot refundable | $500 | $2K | |
| Professional Feesnot refundable | $500 | $5K | |
| Initial Inventory of Food and Paper Suppliesnot refundable | $8K | $15K | |
| Insurance (Initial 3 Months)not refundable | $1K | $3K | |
| Training Expenses (Travel and Accommodation)not refundable | $500 | $3K | |
| Grand Opening Marketingnot refundable | $10K | $10K | |
| Additional Funds (for initial period of operations)not refundable | $5K | $20K | |
| Total initial investment | $250K | $657K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$113K
14.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $250K – $657K
- Near category avg vs category
- Liquid capital req'd
- $5K – $20K
- Better than avg vs category
- Franchise fee
- $20K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Training fee | $150 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $805K
- Per unit, per year
- Median gross sales
- $750K
- Item 19 type
- gross_sales
- Sample size
- 24 units
- vs category median 28
- Range (low → high)
- $431K→$2.1M
- Cohort dispersion (min → max)
- Quartile band
- $547K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How 16 Handles Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 4
- Last reporting year
- Closed
- 2
- Turnover rate
- 6.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +6.9%
- Net unit change last year
- 3-yr CAGR
- +6.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $6.2M
- Median loan
- $225K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into 16 Handles's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 9 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 13 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
16 Handles presents caution-level risk: meaningful profitability gaps, slow growth trajectory, and lack of transparent earnings disclosure despite high capital requirements warrant careful due diligence before commitment.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · MUHAMMAD ZUBAIRY, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 14 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $804,648 average revenue claim — unable to verify profitability or validate earnings claims
- 02MEDSlow unit growth of 6.9% YoY with only 31 total units suggests limited brand momentum and potential market saturation concerns
- 03MEDHigh investment range ($249,500–$656,500) combined with undisclosed net income creates uncertainty about ROI timeline and break-even point
- 04MINORBroad territory protection language without specifics (radius, population density) may create disputes or inadequate market exclusivity
- 05MINOR6% royalty on gross sales (not net) means franchisees pay royalties even in loss-making months, increasing financial pressure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 81 hrs
- Training location
- On-site and corporate
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
48 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
16 Handles · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 16 Handles franchise?
The total investment to open a 16 Handles franchise ranges from $250K – $657K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 16 Handles franchise owners earn?
According to Item 19 of the 16 Handles FDD, the average gross sales per unit is $805K. The median is $750K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is 16 Handles's franchise failure rate?
Based on SBA 7(a) loan data, 16 Handles has a charge-off rate of 0.0% across 13 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many 16 Handles franchise locations are there?
As of their most recent FDD filing, 16 Handles has 31 total units in the United States, including 29 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is 16 Handles a good franchise to buy?
FranchiseVerdict rates 16 Handles as a A-grade franchise with a risk score of 14 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.