Bottom line
- Total investment $90K – $589K including a $18K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 644 loans (below the industry average).
- 20 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Blimpie unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Overview
About
Franchisees operate quick-service submarine sandwich restaurants branded as Blimpie, managing food preparation, customer service, inventory, and staffing. Daily operations include sandwich preparation, point-of-sale transactions, food safety compliance, and local marketing. Franchisees typically work on-site or hire managers to oversee the business, competing in a saturated quick-service restaurant segment.
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 · 26 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
Blimpie presents high risk: a contracting system (-6.7% YoY) with undisclosed financials, active litigation across parent company MTY USA, no territory protection, and heavy royalty obligations on a declining brand—characteristics typical of franchises in distress.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-6.7% YoY with only 101 locations) suggests system contraction and weak franchisee retention
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents financial viability assessment and indicates potential franchisor concern
- 03HIGHMultiple active litigation cases involving breach of contract, misrepresentation, and FIPA violations across MTY USA portfolio suggest systemic compliance and integrity issues
- 04MINORHigh royalty burden with $300/week minimum ($15,600 annually) plus 6% of gross sales creates significant fixed costs on declining brand
- 05MINORUnprotected territory means franchisees face direct competition from other Blimpie franchisees with no geographic exclusivity
- 06HIGHGoing concern is FALSE, indicating the franchisor may have disclosed material uncertainty about business continuity
- 07MINORWide investment range ($89,780–$588,750) suggests inconsistent buildout costs and unclear capital requirements
- 08MINOR10-year term is lengthy given system's deterioration trajectory and lack of performance transparency
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Blimpie · FDD (2025) PDF