BeaverTailsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A BeaverTails franchise requires a total initial investment of $165K – $1.2M, including a $35K franchise fee and an ongoing 0.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $165K – $1.2M
- 23rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 0.0%
- 0th pct Service Resta…
- Units
- 2
- 10th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $165K – $1.2M including a $35K franchise fee, 0.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BeaverTails USA Inc.
- Parent company
- Les Entreprises Twin25 Inc., 1737973 Ontario Inc., and 9005-0790 Quebec Inc.
- CEO title
- President & Chief Executive Officer
- Pino Di Ioia
- CEO experience
- 2014 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 106 – 3700 Rue St-Patrick, Montreal, Quebec, Canada H4E 1A2
- Auditor
- Cummings, Keegan & Co., P.L.L.P.
- Audited financials
- Franchisor revenue
- $143K
- vs $114K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
BeaverTails franchisees operate quick-service food locations (likely pastry/snack-focused, based on brand heritage) selling the signature BeaverTails pastry product and complementary menu items. Daily operations include food preparation, customer service, inventory management, and point-of-sale transactions, with product supplied through franchisor-controlled channels.
- CEO
- Pino Di Ioia
- Founded
- 2014
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 26 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Lease Deposit, Utility Deposit and Rent - 3 months | $46K | $63K | |
| Design | $12K | $30K | |
| Engineering, Architect Plans and Development/Building Permits | $5K | $30K | |
| Construction / Build Out of Store/Premises | $150K | $400K | |
| Project Manager Fee | $8K | $15K | |
| Ventilation - HVAC and Kitchen Exhaust Ventilation System | $25K | $105K | |
| Millwork | $35K | $75K | |
| Storage room/area build out | $2K | $5K | |
| Offsite storage, if necessary | $0 | $35K | |
| Signage | $12K | $30K | |
| Equipment | $75K | $150K | |
| Equipment for Gelato/Ice Cream Program | $19K | $25K | |
| Small wares | $3K | $4K | |
| Stainless Steel Countertops | $4K | $8K | |
| Furniture (Interior only) | $2K | $6K | |
| Digital Menus | $11K | $15K | |
| Walk-in-Freezer, if applicable | $0 | $15K | |
| POS System | $6K | $10K | |
| Opening Inventory | $8K | $25K | |
| Total initial investment | $494K | $1.2M |
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
- $165K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 0.0%
- Gross Sales · typical 6–8%
- Ad fund
- USD$31.08 per case of Units
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 0.0% of gross sales |
| Technology fee | $60 |
| Training fee | $950 |
| Transfer fee | $18K |
| Renewal fee | $9K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How BeaverTails Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- 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
- 1.0%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
BeaverTails is an extremely early-stage franchise with a microscopic unit base, opaque unit economics, and a franchisor revenue model that may not align with franchisee success.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Largest disclosed settlement: $300,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cummings, Keegan & Co., P.L.L.P.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 2 existing units — critically small system with no demonstrated scalability or proven model
- 02MINORNo average revenue or net income disclosure — inability to assess unit economics or ROI potential
- 03MINORWide investment range ($165K–$1.15M) suggests inconsistent unit costs and lack of standardization
- 04MINOR0% royalty model dependent on product rebates/markups — franchisor incentives misaligned with franchisee profitability
- 05MINORNo growth trajectory provided — 2 units may be stagnant or recently launched with unproven demand
- 06MED5-year term is shorter than industry standard — higher renewal risk and limited payback window
- 07HIGHGoing concern status indicates potential financial instability at franchisor level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius / Zip Codes |
| Protected territory | Yes |
| Territory radius | 0.1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| 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
- 18 hrs
- On-the-job training
- 77 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- Panasonic / Clearview
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Panasonic / Clearview
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BeaverTails · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BeaverTails franchise?
The total investment to open a BeaverTails franchise ranges from $165K – $1.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BeaverTails franchise owners earn?
BeaverTails 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 BeaverTails's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BeaverTails (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 BeaverTails franchise locations are there?
As of their most recent FDD filing, BeaverTails has 2 total units in the United States, including 2 franchised units and 0 company-owned units.
Is BeaverTails a good franchise to buy?
FranchiseVerdict rates BeaverTails as a C-grade franchise with a risk score of 65 out of 100, 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
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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.