Black Rifle Coffee Company
Bottom line
- Total investment $1.6M – $3.3M including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- System growing at 81.8% CAGR over 3 years with 37 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 Black Rifle Coffee Company unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Franchisees operate Black Rifle Coffee Company retail locations selling premium coffee products, branded merchandise, and lifestyle goods to a politically-aligned customer base. Day-to-day operations include inventory management, point-of-sale transactions, staff scheduling, local marketing, and community events in protected territories. The business model relies on brand loyalty and direct-to-consumer retail experience rather than wholesale or B2B revenue.
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 · 7 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
High capital requirement, undisclosed unit economics, multiple active disputes, and modest unit growth create significant risk without access to proven franchisee performance data.
Score breakdown · what drove the 62 / 100 rating
- 01MINORNo average unit volume (Item 19) disclosure prevents ROI validation against $1.6M-$3.3M investment
- 02HIGHMultiple active litigation cases including royalty disputes with Strategy and Execution, Inc. suggest operational/payment conflicts
- 03MINORSlow unit growth (11.1% YoY on 37 units = ~4 net new franchises annually) indicates market saturation or franchisee struggles
- 04MINORHigh initial investment ($1.6M-$3.3M) with 6% royalty creates aggressive break-even threshold requiring $27K-$55K monthly revenue
- 05HIGHLitigation involving warrant agreements and Tang Capital Partners suggests corporate governance instability and potential founder/investor conflicts
- 06HIGHGoing Concern designation is FALSE, but absence of financial transparency (no revenue/income disclosure) creates blind spot for profitability assessment
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
Black Rifle Coffee Company · FDD (2025) PDF