Bottom line
- Total investment $179K – $1.8M including a $25K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $948K/year (median $926K).
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 33 loans (below the industry average).
- System growing at 26.3% CAGR over 3 years with 120 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Aroma Joe's unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Overview
About
Franchisees operate coffee and beverage retail shops, likely drive-through or quick-service formats, focusing on specialty coffee drinks, smoothies, and grab-and-go food items. Day-to-day responsibilities include inventory management, staff scheduling, POS operations, quality control, and local marketing to drive the $947,675 average unit volume.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Aroma Joe's presents meaningful profitability opacity and territorial vulnerability, offset partially by no litigation and modest growth, warranting deep franchisee validation before investment.
Score breakdown · what drove the 53 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents accurate ROI validation despite $947,675 average revenue
- 02MINORUnprotected territory creates direct competition risk and cannibalization within same market
- 03MINORMassive investment range spread ($178,700–$1,825,221) indicates inconsistent unit economics or hidden cost variables
- 04MINORModest 7.1% YoY unit growth suggests slowing momentum in franchise recruitment/retention
- 05MINOR8% royalty on gross sales (not net) penalizes operators during low-margin periods
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
72 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Aroma Joe's · FDD (2025) PDF