BlimpieFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Blimpie franchise requires a total initial investment of $90K – $589K, including a $18K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 30.0% charge-off rate across 659 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $90K – $589K
- 2nd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 101
- 42nd pct Service Resta…
- SBA default
- 30.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
30.0% of SBA loans charged off across 659 loans, above the 16% franchise average.
Franchising since 1977. Systems this mature have refined operations and brand recognition.
The system contracted 6% year-over-year. Investigate why units are closing.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $90K – $589K including a $18K franchise fee, 6.0% 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 74/100. SBA loan charge-off rate of 30.0% across 659 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- MTY Franchising USA, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 2018 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $263.7M
- vs $597.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 1977
- FDD year
- 2025
- States available
- 24
FDD Item 7 · 2025 filing · 34 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional) | $10K | $18K | |
| Rent/Security Deposit (three months) (Traditional) | $3K | $15K | |
| Travel and Living Expenses during Training (Traditional) | $3K | $8K | |
| Real Estate (Traditional) | — | — | |
| Lease Review Fee (Traditional) | $0 | $3K | |
| Architectural Fees (Traditional) | $10K | $20K | |
| Construction Costs / Leasehold Improvements (Traditional) | $100K | $312K | |
| Restaurant Equipment, Furniture, Small Wares, Menu Boards and Interior Signage (Traditional) | $80K | $128K | |
| Exterior Signage (Traditional) | $8K | $17K | |
| Computer Hardware, Software (POS System) (Traditional) | $3K | $5K | |
| PCI Compliance Costs (Traditional) | $0 | $1K | |
| Opening Inventory (food and paper) (Traditional) | $4K | $6K | |
| Grand Opening Marketing Fee (Traditional) | $10K | $10K | |
| Business Insurance (Traditional) | $1K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $5K | $19K | |
| Depository Account (Traditional) | $3K | $3K | |
| Additional Funds - 3 month initial period (Traditional) | $15K | $20K | |
| Initial Franchise Fee (Non-Traditional) | $6K | $10K | |
| Rent/Security Deposit (three months) (Non-Traditional) | $3K | $15K | |
| Travel and Living Expenses during Training (Non-Traditional) | $3K | $8K | |
| Total initial investment | $344K | $965K |
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
- $90K – $589K
- Better than avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $6K – $18K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $75 |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $9K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Blimpie Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 101
- Opened
- 1
- Last reporting year
- Closed
- 8
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.7%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- -6.5%
- Net unit change last year
- 3-yr CAGR
- -14.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- Transfer rate
- 4.9%
- Owners selling to other franchisees
- Termination rate
- 7.9%
- Franchisor-initiated terminations
- Ceased ops
- 3.0%
- Units that stopped operating
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 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 659
- Loan volume
- $92.8M
- Median loan
- $90K
- 50th percentile
- Charge-off rate
- 30.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 69.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 183
- Defaults
- 160
Vintage analysis
Blimpie charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Blimpie's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 30.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
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.
Litigation (Item 3)
Two concluded litigation matters disclosed: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., et al. (King County, WA Superior Court, Case No. 15-2-15120-7) - filed June 22, 2015, alleging FIPA violations and misrepresentation; settled March 11, 2016 for $20,000; dismissed March 16, 2016. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (Los Angeles County, CA Superior Court, Case No. BC572565) - filed February 17, 2015, alleging breach of contract and unjust enrichment; cross-complaint filed by Kahala; bench trial June 15-16, 2016; Kahala awarded judgment and $205,000 in attorneys' fees; settled June 19, 2017 for $75,000 plus forgiveness of $130,000 in damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 74 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | franchisee_state |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
Two concluded litigation matters disclosed: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., et al. (King County, WA Superior Court, Case No. 15-2-15120-7) - filed June 22, 2015, alleging FIPA violations and misrepresentation; settled March 11, 2016 for $20,000; dismissed March 16, 2016. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (Los Angeles County, CA Superior Court, Case No. BC572565) - filed February 17, 2015, alleging breach of contract and unjust enrichment; cross-complaint filed by Kahala; bench trial June 15-16, 2016; Kahala awarded judgment and $205,000 in attorneys' fees; settled June 19, 2017 for $75,000 plus forgiveness of $130,000 in damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 60 hrs
- Training location
- Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, training store in Arizona or other designated locations
- Field support
- 60 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Blimpie · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Blimpie franchise?
The total investment to open a Blimpie franchise ranges from $90K – $589K, with an initial franchise fee of $18K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Blimpie franchise owners earn?
Blimpie 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 Blimpie's franchise failure rate?
Based on SBA 7(a) loan data, Blimpie has a charge-off rate of 30.0% across 659 loans, meaning 30.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Blimpie franchise locations are there?
As of their most recent FDD filing, Blimpie has 101 total units in the United States, including 97 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Blimpie a good franchise to buy?
FranchiseVerdict rates Blimpie as a D-grade franchise with a risk score of 74 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.