American Kolache Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
American Kolache is a quick-service franchise serving Czech-style kolaches with sweet and savory fillings, plus coffee. Franchisees run the cafes, managing baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A American Kolache franchise requires a total initial investment of $233K – $371K, including a $39K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $233K – $371K
- 33rd pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 9
- 35th 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 avg · 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 $233K – $371K including a $39K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 discloses no average of any kind — it lists each of the seven restaurants individually by name and year (printed p.43-44), of which three are franchised and four affiliate-owned. The figure previously shown was the 2023 gross sales of the single affiliate-owned Ballwin, Missouri restaurant.
- RISKVerdict A (Strongest tier), verdict score 64/100 (higher is better).
- DATAItem 19 reports Individual location gross sales by outlet rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- American Kolache, LLC
- Ultimate parent
- None
- CEO title
- Managing Member
- Russell Clark
- CEO experience
- 2017 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MO
- HQ
- 14786 Manchester Road, Ballwin, MO 63011
- Auditor
- Troutt Beeman & Co., P.C.
- Audited financials
- Franchisor revenue
- $410K
- vs $336K prior year
Overview
About
- CEO
- Russell Clark
- Headquarters
- MO
- Founded
- 2017
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 54% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown24 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $39K | $39K | |
| Lease Deposit | $2K | $4K | |
| Utility Deposit | $0 | $800 | |
| Rent (3 months) | $6K | $9K | |
| Utilities (3 months) | $2K | $2K | |
| Architect & Engineer Fees | $6K | $8K | |
| Leasehold Improvements | $75K | $125K | |
| Signage | $5K | $12K | |
| Furniture and Fixtures | $4K | $6K | |
| Third Party Delivery Fees (3 months) | $9K | $39K | |
| Computer Equipment | $12K | $14K | |
| Miscellaneous Equipment & Supplies | $3K | $5K | |
| Equipment | $44K | $61K | |
| Initial Inventory | $4K | $6K | |
| Uniforms | $750 | $750 | |
| Business License & Permits | $2K | $3K | |
| Professional Fees | $1K | $2K | |
| Technology Fee (3 months) | — | — | |
| Internet Service (3 months) | $450 | $600 | |
| Insurance | $3K | $4K | |
| Total initial investment | $233K | $371K |
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
- $233K – $371K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $15K
- Top 40% of category vs category
- Franchise fee
- $39K – $39K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · 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 | $0 |
| Training fee | $4K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $4K – $6K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
American Kolache did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one American Kolache unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within the 30–60% "attractive franchise" band
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: 2024 FDD
Financial Performance
Item 19 discloses no average of any kind — it lists each of the seven restaurants individually by name and year (printed p.43-44), of which three are franchised and four affiliate-owned. The figure previously shown was the 2023 gross sales of the single affiliate-owned Ballwin, Missouri restaurant.
Company-owned outlets only - not franchisee performance
- Item 19 type
- Individual location gross sales by outlet
- Sample size
- 7
- vs category median 20 · small
- Range (low → high)
- $207K→$1.0M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 782 Quick-Service Restaurants brands
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 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports Individual location gross sales by outlet rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth of +400.0% over 3 years (2 opened, 0 closed).
Multi-unit rate
Only 3% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How American Kolache Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 3.3%
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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.
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 loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.2M
- Median loan
- $157K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (6 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
American Kolache is a micro-franchise system with opaque unit economics and extreme scale volatility that makes financial projections unreliable.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Troutt Beeman & Co., P.C.
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: Yes
Score breakdown · what drove the 64 / 100 verdict
- 01MINORExtremely small system (9 units) with high volatility risk — 66.7% YoY growth is mathematically unstable at this scale (likely 3-6 unit swings)
- 02MEDHigh investment-to-revenue ratio unknown — $233k-$370k initial investment with no disclosed average revenue creates blind ROI analysis
- 03MEDYoung franchise system with limited track record — cannot assess long-term viability or franchisee survival rates
- 04MED6% royalty on undisclosed sales creates uncertainty — franchisees cannot model cash flow or profitability scenarios
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 20,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | St. Louis County, MO |
| Jury trial waiver | No |
| Governing law | MO |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 199 hrs
- Training location
- Affiliate-owned restaurant in St. Louis metropolitan area
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
American Kolache · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a American Kolache franchise?
The total investment to open a American Kolache franchise ranges from $233K – $371K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do American Kolache franchise owners earn?
American Kolache 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 Item 19 in the American Kolache 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 American Kolache FDD and qualifies whose outlets they describe.
What is American Kolache's franchise failure rate?
SBA 7(a) loan charge-off data is not available for American Kolache (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 American Kolache franchise locations are there?
As of their most recent FDD filing, American Kolache has 9 total units in the United States, including 5 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is American Kolache a good franchise to buy?
FranchiseVerdict rates American Kolache as a A-grade franchise with a verdict score of 64 out of 100 (higher is better), 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
Are you the franchisor?
If you represent American Kolache, you can request corrections or provide updated information.
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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.