Black Sheep CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Black Sheep Coffee franchise requires a total initial investment of $738K – $1.4M, including a $40K franchise fee and an ongoing 7.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $738K – $1.4M
- 92nd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 7.0%
- 80th 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $738K – $1.4M including a $40K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- 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
- Black Sheep Coffee Franchising LLC
- Parent company
- Conilon Ltd.
- CEO title
- Co-Founder and Co-CEO
- Eirik Holth and Gabriel Shohet
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 2950 SW 27th Avenue, Suite 206, Miami, FL 33133
- Auditor
- Moss Adams
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Black Sheep Coffee franchisees operate specialty coffee shops serving espresso-based beverages, single-origin coffee, and food items. Day-to-day operations include managing barista staff, customer service, inventory management, and maintaining brand standards across store locations.
- CEO
- Eirik Holth and Gabriel Shohet
- Headquarters
- FL
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Lease | $11K | $50K | |
| Utility Deposit | $1K | $5K | |
| Architect Fees | $21K | $60K | |
| Construction Costs | $400K | $800K | |
| Expenses for Initial Training | $5K | $10K | |
| On-Site Opening Assistancenot refundable | $10K | $10K | |
| Business Licenses and Permits | $5K | $10K | |
| Business Insurance | $5K | $10K | |
| Initial Inventory | $5K | $10K | |
| IT, Computer Hardware & Software | $35K | $40K | |
| Furniture, Fixtures, & Equipment | $50K | $100K | |
| Signage | $20K | $50K | |
| Grand Opening Marketing Program | $5K | $10K | |
| Professional Fees | $20K | $40K | |
| Additional Funds (3 months) | $105K | $155K | |
| Total initial investment | $738K | $1.4M |
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
- $738K – $1.4M
- Below avg, review vs category
- Liquid capital req'd
- $105K – $155K
- Below avg, review vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $20K |
| Total fee load | 9.0% of rev |
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 Black Sheep Coffee 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
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $700K
- Median loan
- $700K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Black Sheep Coffee's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Black Sheep Coffee presents elevated risk due to minimal unit count, absent financial disclosure, high capital requirements, and no territory protection—insufficient data to validate franchise viability.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Moss Adams⚠ 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 75 / 100 rating
- 01MINOROnly 2 existing units with unknown growth trajectory suggests minimal proven scalability
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment for $738K-$1.4M investment
- 03MEDHigh initial investment ($738K-$1.4M) combined with 7% royalty creates significant break-even pressure without disclosed earnings
- 04MINORZero territorial protection exposes franchisee to direct competition from other Black Sheep locations
- 05MEDUnclear how franchisor supports 2-unit system; minimal infrastructure suggests limited franchisee support resources
- 06MED10-year commitment with undisclosed performance metrics creates long-term lock-in risk
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 40 hrs
- Training location
- franchisor facility and on-site
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Black Sheep Coffee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Black Sheep Coffee franchise?
The total investment to open a Black Sheep Coffee franchise ranges from $738K – $1.4M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Black Sheep Coffee franchise owners earn?
Black Sheep Coffee 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 Black Sheep Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Black Sheep Coffee (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 Black Sheep Coffee franchise locations are there?
As of their most recent FDD filing, Black Sheep Coffee has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Black Sheep Coffee a good franchise to buy?
FranchiseVerdict rates Black Sheep Coffee as a D-grade franchise with a risk score of 75 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.
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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.