85°C Bakery CafeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A 85°C Bakery Cafe franchise requires a total initial investment of $819K – $1.8M, including a $50K franchise fee and an ongoing 6.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $819K – $1.8M
- 94th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.5%
- 79th pct Service Resta…
- Units
- 88
- 73rd pct Service Resta…
- SBA default
- N/A
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
Franchised units fell from 6 to 3 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $819K – $1.8M including a $50K franchise fee, 6.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 61/100.
- System growing at 100.0% CAGR over 3 years with 88 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- WinStar 85C, LLC
- Parent company
- Prime Scope Trading Limited
- Ultimate parent
- Gourmet Master Co Ltd
- CEO title
- Chief Executive Officer
- Ming Hua Kuo
- CEO experience
- 6 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 1415 Moonstone, Brea, California 92821
- Auditor
- Wright Ford Young & Co.
- Audited financials
- Franchisor revenue
- $602K
- vs $1.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Gourmet Master
- is a California
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate a combination bakery and cafe serving freshly baked goods, pastries, coffee, and light meals. Daily operations include managing production of baked items, managing a front-of-house cafe with point-of-sale systems, staff scheduling, inventory management, and customer service across both retail and potentially delivery channels.
- CEO
- Ming Hua Kuo
- Headquarters
- CA
- Founded
- 2020
- 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 | $50K | $50K | |
| Licenses, Permits, Fees and Deposits | $5K | $35K | |
| Real Estate or Advance Rent and Security Deposit and other Prepaid Costs and Expenses | $9K | $50K | |
| Building Costs/Leasehold Improvements | $391K | $902K | |
| Equipment and Fixtures | $185K | $350K | |
| Signs | $13K | $25K | |
| Point of Sale System and Software | $16K | $29K | |
| Software Set Up Fee | $450 | $450 | |
| Network and Store Management Solutions | $3K | $3K | |
| Payment Processing & Online Ordering Service | $550 | $550 | |
| Insurance | $2K | $6K | |
| Opening Inventorynot refundable | $50K | $100K | |
| Expenses Incurred in Training | $30K | $90K | |
| Grand Opening Advertising | $10K | $10K | |
| Attorney's Fees and Business Consultants | $10K | $20K | |
| Background Check and Asset Verificationnot refundable | $125 | $500 | |
| Additional Funds (for the initial 3 months of operations) | $45K | $100K | |
| Total initial investment | $819K | $1.8M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $819K – $1.8M
- Below avg, review vs category
- Liquid capital req'd
- $45K – $100K
- Below avg, review vs category
- Franchise fee
- $40K – $50K
- Below avg, review vs category
- Royalty
- 6.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $90K – $150K |
| Total fee load | 7.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How 85°C Bakery Cafe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 88
- Opened
- 9
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.3%
- Company-owned
- 82
- Corporate units in the system
- % franchised
- 7%
- vs corporate-owned
- Net growth (yr3)
- +100.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Transfers (3yr)
- 0
- Projected new
- 19
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
Available to sell in · Item 12
- Hawaii
- Illinois
- Maryland
- North Dakota
- Rhode Island
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bakery-cafe franchise with strong unit expansion but critical transparency gaps on unit economics, questionable growth metrics, and no financial performance data to justify high capital requirements.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $250,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wright Ford Young & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 61 / 100 rating
- 01MEDNo Item 19 financial performance disclosure (average revenue and net income not disclosed) prevents informed ROI analysis
- 02MEDHigh initial investment range ($819k-$1.77M) with no disclosed average unit volumes to validate payback period
- 03MINOR100% YoY unit growth claim is mathematically impossible (88 units cannot grow 100% YoY) — suggests data error or misleading metric reporting
- 04MINORProtected territory provided but no information on territory size, population density, or exclusivity enforcement mechanism
- 05MINORFranchise fee ($50k) appears low relative to high unit investment, potentially indicating undercapitalization or aggressive growth prioritized over franchisee success
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 | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 234 hrs
- Training location
- Online classroom training; In-store training at 85°C Bakery Cafe in California designated by franchisor
- Ongoing training
- Required
- Field support
- 234 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Clover Mini POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover Mini POS System
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
85°C Bakery Cafe · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 85°C Bakery Cafe franchise?
The total investment to open a 85°C Bakery Cafe franchise ranges from $819K – $1.8M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 85°C Bakery Cafe franchise owners earn?
85°C Bakery Cafe does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is 85°C Bakery Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for 85°C Bakery Cafe (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many 85°C Bakery Cafe franchise locations are there?
As of their most recent FDD filing, 85°C Bakery Cafe has 88 total units in the United States, including 6 franchised units and 82 company-owned units. 9 new units were opened in the latest reporting year.
Is 85°C Bakery Cafe a good franchise to buy?
FranchiseVerdict rates 85°C Bakery Cafe as a B-grade franchise with a risk score of 61 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.
For franchisors
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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.