Bottom line
- Total investment $206K – $440K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $771K/year.
- Rated STRONG with a risk score of 53/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 BAKE CHEESE TART unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BAKE CHEESE TART units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$771K
on $3.9M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
Overview
About
Franchisees operate retail bakery/café locations specializing in Japanese-style cheese tarts and baked goods, managing daily production, food safety compliance, POS operations, and customer service. Day-to-day responsibilities include inventory management, staff scheduling, food preparation/quality control, and retail sales in a fast-casual or quick-service format.
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 · 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 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
Extremely limited franchisee base (1 unit) combined with undisclosed net income and wide investment range creates significant due diligence gaps and unproven franchise economics.
Score breakdown · what drove the 53 / 100 rating
- 01MINOROnly 1 franchised unit reported — indicates minimal system growth and unproven franchise model scalability
- 02MEDNet income not disclosed in FDD Item 19 — impossible to assess actual profitability or validate $771k average revenue claim
- 03MEDHigh initial investment range ($205k-$440k) relative to disclosed average revenue with unknown profit margins creates ROI uncertainty
- 04MINOR5% royalty on gross revenues (not net) is favorable, but lacks transparency on actual franchisee take-home after CoGS and labor
- 05MINORSingle unit makes validation nearly impossible — cannot compare performance across multiple locations or market conditions
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BAKE CHEESE TART · FDD (2025) PDF