Candy Cloud Franchise Cost, Revenue & Review 2026
Formerly known as Cloud Kitchens
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Candy Cloud is a dessert and drink franchise serving specialty shakes, boba tea, coffee, and ice cream. Franchisees run the shops, managing drink and dessert prep, inventory, and counter service.
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). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $389K – $749K
- 18th pct Service Resta…
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 6.0%
- 24th pct Service Resta…
- Units
- 13
- 16th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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 $389K – $749K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports Average Monthly Gross Sales for 7 franchised outlets (avg $71,973/mo, high $130,556/mo, low $28,875/mo) x12 = annualized figures used; separate corporate-unit figures reported (avg/high/low $106,031/mo, one unit). Figures exclude Royalty and Brand Fund Contributions.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- DATAItem 19 reports historical franchise + affiliate outlet gross sales rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- Illinois
- HQ
- 9934 N Alpine Road, Suite 100, Machesney Park, IL 61115
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $753K
- vs $302K prior year
Overview
About
- CEO
- Alex Edwards
- Headquarters
- IL
- Founded
- 2022
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $20K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Candy Cloud did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Candy Cloud unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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: 2025 FDD
Financial Performance
Item 19 reports Average Monthly Gross Sales for 7 franchised outlets (avg $71,973/mo, high $130,556/mo, low $28,875/mo) x12 = annualized figures used; separate corporate-unit figures reported (avg/high/low $106,031/mo, one unit). Figures exclude Royalty and Brand Fund Contributions.
Includes company-owned outlets
- Item 19 type
- historical franchise + affiliate outlet gross sales
- Sample size
- 7
- vs category median 18 · small
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 3 / 10
- vs category median 3 / 10 · typical
Compared against 805 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants average).
Disclosure
Item 19 reports historical franchise + affiliate outlet gross sales rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 1100.0% CAGR over 3 years across 13 units — operators are staying and new ones are joining.
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 Full-Service Restaurants averages
How Candy Cloud Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
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
- no resolved loans yet — rate needs a terminal outcome
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
- Typical loan rate
- 9.3%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- n=3,755 loans
- Jobs supported
- 159
- 4.1 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 92% went to startups / new businesses, 8% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Candy Cloud franchisees
Showing 3 of 5 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
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
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 disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
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 45 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | protected |
| 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 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Winnebago County, Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 80 hrs
- Training location
- Rockford, Illinois (or other location designated by Franchisor)
- Ongoing training
- Required
- Field support
- 6 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisor_approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Candy Cloud 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 Candy Cloud FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 45 out of 100 (higher is better), 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?
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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.