Candy CloudFranchise Cost, Revenue & Review 2026
Formerly known as Cloud Kitchens
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Candy Cloud franchise requires a total initial investment of $389K – $749K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $389K – $749K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 13
- 24th pct Service Resta…
- SBA default
- N/A
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
Franchised units fell from 12 to 0 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $389K – $749K including a $40K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Historical Monthly Revenue" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 29/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CANDY CLOUD FRANCHISING LLC
- Parent company
- Candy Cloud Holdings LLC
- CEO title
- CEO
- Alex Edwards
- CEO experience
- 9 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- IL
- HQ
- 9934 N Alpine Road, Suite 100, Machesney Park, IL 61115
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $302K
- vs $753K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Candy Cloud is a specialty candy retail concept where franchisees operate small-format or kiosk-based stores selling premium candy, likely confections, and impulse-purchase sweets. Day-to-day operations include inventory management, point-of-sale transactions, merchandising displays, staff scheduling, and local marketing to drive foot traffic in mall, street-level, or high-traffic locations.
- CEO
- Alex Edwards
- Headquarters
- IL
- Founded
- 2022
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $20K |
| Equipment, build-out, other | $334K | $689K |
| Total initial investment | $389K | $749K |
Source: Candy Cloud 2025 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
- $389K – $749K
- Better than avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Training fee | $300 |
| Transfer fee | $50 |
| Renewal fee | $8K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Historical Monthly Revenue" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Full-Service Restaurants averages
How Candy Cloud Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 7
- 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
- 1
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- +140.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $4.6M
- Median loan
- $370K
- 50th percentile
- Charge-off rate
- N/A
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
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Candy Cloud's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Candy Cloud presents moderate-to-cautious risk due to undisclosed profitability metrics, aggressive growth trajectory, high royalty burden relative to disclosed revenues, and an embryonic franchise system with minimal franchisee validation pool.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 29 / 100 rating
- 01MEDNet Income not disclosed in FDD Item 19 — unable to validate profitability claims or ROI timeline
- 02MINORHigh investment-to-revenue ratio: $389K-$749K initial investment vs. $71,973 average weekly revenue creates unclear payback period
- 03MINORExplosive unit growth of 140% YoY is unsustainable and suggests either aggressive recruiting or potential instability; needs validation of unit retention rates
- 04MINOR6% royalty on gross (not net) revenue is aggressive and reduces margins; at $71,973/week, this equals ~$22,491/month in royalties alone
- 05MED13-unit system is extremely small and immature; limited operational data, high failure risk, and insufficient franchisee base for validation
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 80 hrs
- Training location
- affiliate-owned outlet in Rockford Illinois or another location; on-site at franchisee premises
- Ongoing training
- Required
- Field support
- 48 hrs/yr
- On-site visits per year
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Candy Cloud · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Candy Cloud franchise?
The total investment to open a Candy Cloud franchise ranges from $389K – $749K, 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 Candy Cloud franchise owners earn?
Candy Cloud 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 Candy Cloud's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Candy Cloud (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 Candy Cloud franchise locations are there?
As of their most recent FDD filing, Candy Cloud has 13 total units in the United States, including 12 franchised units and 1 company-owned units. 7 new units were opened in the latest reporting year.
Is Candy Cloud a good franchise to buy?
FranchiseVerdict rates Candy Cloud as a A-grade franchise with a risk score of 29 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.
For franchisors
Are you the franchisor?
If you represent Candy Cloud, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.