Break Coffee Co. Franchise Cost, Revenue & Review 2026
- Investment
- $98K – $141K
- Disclosed sales
- $215K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Break Coffee Co. is a B2B franchise that supplies and services office coffee machines, premium beans, and beverage systems for workplaces. Franchisees run local operations, managing accounts, deliveries, and machine service.
FranchiseVerdict summary · 2026
A Break Coffee Co. franchise requires a total initial investment of $98K – $141K, including a $60K franchise fee and an ongoing 12.0% royalty[2]. Per the 2026 FDD, average unit revenue was $215K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $98K – $141K
- 5th pct Service Resta…
- Avg gross sales
- $215K
- 0th pct Service Resta…
- Royalty
- 12.0%
- 95th pct Service Resta…
- Units
- 11
- 39th 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 median · 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 $98K – $141K including a $60K franchise fee, 12.0% ongoing royalty.
- RETURNSAverage unit revenue of $215K/year (median $195K). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 46/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed); 1 signed but not yet open (Item 20).
- EARLYEmerging franchise: only 1 year of franchising with 11 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Break Coffee Co Franchising LLC
- Parent company
- Westside Xpresso Delight LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- XD USA Holdings LLC / Westside XD, LLC (via Westside Xpresso Delight LLC)
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- XD Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Joshua Kovacs
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Delaware
- HQ
- 155 2nd Street, Jersey City, New Jersey 07302
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Joshua Kovacs
- Headquarters
- New Jersey
- Founded
- 2023
- FDD year
- 2026
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 75% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $10K | $40K |
| Equipment, build-out, other | $28K | $42K |
| Total initial investment | $98K | $141K |
Source: Break Coffee Co. 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $98K – $141K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $40K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 12.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 63.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 12.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $49 |
| Transfer fee | $3K |
| Inventory (initial) | $500 – $1K |
| Total fee load | 63.0% of rev |
At 63.0% total fee load, roughly $135K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 78% below the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Break Coffee Co. until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$144K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Break Coffee Co. unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $215K
- Per unit, per year
- Median gross sales
- $195K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 7 outlets
- vs category median 19 · small
- Range (low → high)
- $14K→$503KCited, not corroborated — printed on page 33 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $215K/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 63.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -11.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How Break Coffee Co. Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 1
- 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
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (3-yr)
- +12.5%
- Net unit change over 3 years
- 3-yr CAGR
- -11.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.09 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 11.1%
- Franchisor-initiated terminations
- Ceased ops
- 11.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
Where the owners are · Item 20 owner list
9 current owners across 6 states.
- NY 4
- FL 1
- IL 1
- NC 1
- NJ 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
XD Franchising LLC v. Stuart Mills (AAA Case No. 01-24-0006-6292), filed July 22, 2024. Franchisor obtained a preliminary injunction (Aug 19, 2024) against a former franchisee for operating a competing business in violation of non-compete provisions; settled Oct 29, 2024 with Mills paying $8,915.38 and selling the competing business assets to the franchisor for $100.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
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 46 / 100 verdict
- 01MINOROnly 9 units with unknown growth trajectory — minimal scale and unclear system expansion
- 02HIGHActive litigation (2024) involving non-compete enforcement suggests franchisor aggressively polices agreements and potential franchisee conflicts
- 03MED12% royalty on gross sales is high relative to net margin (~44% net income suggests 56% operating costs) — leaves limited cushion
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 63.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 2,000 |
| 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 | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 31 |
| Curable defaultsℹ | 23 |
| Mandatory arbitration | Yes |
| Arbitration location | New Jersey (Hudson County, or AAA offices; franchisor may elect franchisee's home county for arbitration hearings) |
| Governing law | New Jersey |
| Litigation count | 1 |
View Item 3 litigation summary
XD Franchising LLC v. Stuart Mills (AAA Case No. 01-24-0006-6292), filed July 22, 2024. Franchisor obtained a preliminary injunction (Aug 19, 2024) against a former franchisee for operating a competing business in violation of non-compete provisions; settled Oct 29, 2024 with Mills paying $8,915.38 and selling the competing business assets to the franchisor for $100.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 0 hrs
- Training location
- Jersey City, New Jersey or New York, New York (or another location the franchisor specifies)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Customer Management Platform (CMP) - proprietary cloud-based system; Quickbooks recommended for bookkeeping
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Customer Management Platform (CMP) - proprietary cloud-based system; Quickbooks recommended for bookkeeping
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Break Coffee Co. franchise?
The total investment to open a Break Coffee Co. franchise ranges from $98K – $141K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Break Coffee Co. franchise owners earn?
According to Item 19 of the Break Coffee Co. FDD, the average gross sales per unit is $215K. The median is $195K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Break Coffee Co.?
Break Coffee Co. is franchised by Break Coffee Co Franchising LLC. Its parent company is Westside Xpresso Delight LLC. The ultimate parent named in the FDD is XD USA Holdings LLC / Westside XD, LLC (via Westside Xpresso Delight LLC). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Break Coffee Co. 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 Break Coffee Co. FDD and qualifies whose outlets they describe.
What is Break Coffee Co.'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Break Coffee Co. (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 Break Coffee Co. franchise locations are there?
As of their most recent FDD filing, Break Coffee Co. has 11 total units in the United States, including 9 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is Break Coffee Co. a good franchise to buy?
FranchiseVerdict rates Break Coffee Co. as a B-grade franchise with a verdict score of 46 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.