Black Sheep Coffee Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Black Sheep Coffee is a specialty coffee franchise serving espresso drinks, single-origin coffee, and food. Franchisees run the cafes, managing baristas, retail coffee, and counter service.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $738K – $1.4M
- 88th pct Service Resta…
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 7.0%
- 86th pct Service Resta…
- Units
- 2
- 9th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $738K – $1.4M including a $40K franchise fee, 7.0% ongoing royalty.
- RETURNSAudited financial statements (Exhibit F) for FYE Dec 31 2024/2023/2022 are referenced but the balance sheet and statements of operations tables did not render in the extracted text; figures unavailable. Auditor report signed Irvine, California, April 23, 2025 (firm name not captured).
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Black Sheep Coffee Franchising LLC
- Parent company
- Black Sheep Coffee Inc.
- Ultimate parent
- Conilon Ltd.
- CEO title
- Co-CEO
- Eirik Holth / 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
Overview
About
- CEO
- Eirik Holth / Gabriel Shohet
- Headquarters
- FL
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 62% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 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
- Bottom third — review vs category
- Liquid capital req'd
- $105K – $155K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 7.0%
- percentage · 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 |
| Training fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $20K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Black Sheep Coffee did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Black Sheep Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
8%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited financial statements (Exhibit F) for FYE Dec 31 2024/2023/2022 are referenced but the balance sheet and statements of operations tables did not render in the extracted text; figures unavailable. Auditor report signed Irvine, California, April 23, 2025 (firm name not captured).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Black Sheep Coffee Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
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 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
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Moss Adams
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 35 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Arbitration location | Miami Dade County, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 40 hrs
- Training location
- Black Sheep Coffee shop, headquarters, or elsewhere
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
5 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 Item 19 in the Black Sheep Coffee FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Black Sheep Coffee FDD and qualifies whose outlets they describe.
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 verdict score of 35 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Black Sheep Coffee, you can request corrections or provide updated information.
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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.