85°C Bakery Cafe Franchise Cost, Revenue & Review 2026
- Investment
- $819K – $1.8M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
85 Degrees C Bakery Cafe is a franchise pairing a fresh bakery, dozens of pastries and breads, with a specialty coffee and tea cafe. Franchisees run high-volume bakery-cafes managing production, counter service, and staffing.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $819K – $1.8M
- 89th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.5%
- 89th pct Service Resta…
- Units
- 88
- 75th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $819K – $1.8M including a $50K franchise fee, 6.5% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (4 opened, 1 closed) (Item 20).
- GROWTHSystem growing at 100.0% CAGR over 3 years with 88 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- WinStar 85C, LLC
- Parent company
- Prime Scope Trading Limited
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- Gourmet Master Co Ltd
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Ming Hua Kuo
- CEO experience
- 6 yrs
- Years in role or industry
- Incorporated in
- Delaware
- HQ
- 1415 Moonstone, Brea, California 92821
- Auditor
- Wright Ford Young & Co.
- Audited financials
- Franchisor revenue
- $1.1M
- vs $602K 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
- CEO
- Ming Hua Kuo
- Headquarters
- California
- Founded
- 2020
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 167% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 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
- Bottom third — review vs category
- Liquid capital req'd
- $45K – $100K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Bottom third — review vs category
- Royalty
- 6.5%
- 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 |
| Training fee | $30K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $50K – $100K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
85°C Bakery Cafe makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one 85°C Bakery Cafe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 100.0% CAGR over 3 years across 88 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How 85°C Bakery Cafe Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 88
- Opened
- 4
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.1%
- Company-owned
- 82
- Corporate units in the system
- % franchised
- 7%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 1
- Franchisor bought back
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).
Where the owners are · Item 20 owner list
0 current owners across 0 states; 8 former (terminated, transferred or not renewed) listed separately.
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
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 75 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California (American Arbitration Association) |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 234 hrs
- Training location
- Online (classroom) and in-store at an 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
- 15 mo
- From signing to launch
- Site selection
- franchisee (franchisor approves)
- Franchisor financing
- Not 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns 85°C Bakery Cafe?
85°C Bakery Cafe is franchised by WinStar 85C, LLC. Its parent company is Prime Scope Trading Limited. The ultimate parent named in the FDD is Gourmet Master Co Ltd. Source: FDD Item 1, 2026 filing.
What is Item 19 in the 85°C Bakery Cafe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the 85°C Bakery Cafe FDD and qualifies whose outlets they describe.
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. 4 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 A-grade franchise with a verdict score of 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent 85°C Bakery Cafe, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.