Bottom line
- Total investment $284K – $440K including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Azal Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Overview
About
Franchisees operate specialty coffee retail locations (café or kiosk format) serving espresso-based beverages, pour-over coffee, and likely light food items. Day-to-day operations include inventory management, barista staff training, customer service, equipment maintenance, and local marketing to drive foot traffic and repeat customers.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pre-revenue franchise concept with single unit, no financial disclosure, and corporate going concern issues presents high risk of business failure and capital loss.
Score breakdown · what drove the 72 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory suggests brand is pre-revenue or failing to scale
- 02HIGHGoing Concern status is FALSE, indicating financial viability concerns at corporate level
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation
- 04MINORHigh initial investment ($283.5K-$440K) paired with unproven unit economics creates significant risk
- 05MED5% royalty on undisclosed sales means franchisee cannot model break-even or profitability
- 06MINORSingle unit means no franchisee network for support, referrals, or peer validation
- 07MED10-year term locks franchisee into unproven concept with limited exit options
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Azal Coffee · FDD (2025) PDF