Break Coffee Co.
Bottom line
- Total investment $103K – $146K including a $60K franchise fee, 12.0% ongoing royalty.
- Average unit revenue of $152K/year (median $142K). Estimated payback in 1.9 years.
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 1 year of franchising with 9 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Break Coffee Co. unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
Break Coffee Co. franchisees operate specialty coffee retail locations, likely serving espresso-based beverages, specialty drinks, and café items. Day-to-day operations include inventory management, barista labor scheduling, customer service, point-of-sale management, and maintaining brand standards across a protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, litigious system with going concern issues, unverified financials, high royalties relative to margins, and unclear growth prospects — elevated risk for capital loss.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may face operational or financial viability issues
- 02MINOROnly 9 units with unknown growth trajectory — minimal scale and unclear system expansion
- 03HIGHActive litigation (2024) involving non-compete enforcement suggests franchisor aggressively polices agreements and potential franchisee conflicts
- 04MED12% royalty on gross sales is high relative to net margin (~44% net income suggests 56% operating costs) — leaves limited cushion
- 05MINORNo Item 19 financial performance representations — cannot independently verify claimed $151,804 avg revenue or $66,805 net income
- 06MINORHigh initial investment ($102.5K–$146K) combined with unknown unit performance creates ROI uncertainty
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Break Coffee Co. · FDD (2025) PDF