FranchiseVerdict
BeaverTails logo
FV-00262·CAUTIONExcellent81

BeaverTails

Food & Beverage - Quick ServiceFranchising since 2015Website
Investment
$165K – $1.2M
28th pct Quick Service
Avg revenue
60th pct Quick Service
Royalty
0.0%
0th pct Quick Service
Units
2
9th pct Quick Service
SBA default

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.
  • Rated CAUTION with a risk score of 72/100.
  • 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

Legal entity
BeaverTails USA Inc.
Parent company
Les Entreprises Twin25 Inc., 1737973 Ontario Inc., and 9005-0790 Quebec Inc.
Incorporated in
Delaware
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.

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 BeaverTails unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $165K–$1.2M
Working capital
$
FDD reports $15K–$20K

Unlevered ROIC · per unit

21%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$143K
EBITDA margin
19.0%
Total invested
$676K
Payback
57 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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

Item 7 · what it costs

The Vitals

Total investment
$165K – $1.2M
All-in to open one unit
Liquid capital
$15K – $20K
Cash you must have on hand
Franchise fee
$35K
Royalty
0.0%
Gross Sales · typical 6–8%
Ad fund
USD$31.08 per case of Units

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

Total units
2
Opened
0
Last reporting year
Closed
0
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
2023
2±0
Franchised units
2024
2
Franchised units
2025
2
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

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

72
Risk · 0-100
CAUTION72 / 100

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.

Score breakdown · what drove the 72 / 100 rating

  1. 01MINOROnly 2 existing units — critically small system with no demonstrated scalability or proven model
  2. 02MINORNo average revenue or net income disclosure — inability to assess unit economics or ROI potential
  3. 03MINORWide investment range ($165K–$1.15M) suggests inconsistent unit costs and lack of standardization
  4. 04MINOR0% royalty model dependent on product rebates/markups — franchisor incentives misaligned with franchisee profitability
  5. 05MINORNo growth trajectory provided — 2 units may be stagnant or recently launched with unproven demand
  6. 06MED5-year term is shorter than industry standard — higher renewal risk and limited payback window
  7. 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

Territory
Radius / Zip Codes
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1.5 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
18 hrs
On-the-job training
77 hrs
POS system
Panasonic / Clearview
Operating tech stack

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

5 numbers

Locked
(514) 392-••••
The franchisor is BeaverTails USA Inc., located at
(518) 473-••••
NY
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

BeaverTails · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above