Casa de CorazonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Casa de Corazon franchise requires a total initial investment of $916K – $4.3M, including a $70K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $916K – $4.3M
- 65th pct Education
- Avg gross sales
- $2.4M
- 42nd pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 8
- 22nd pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education 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
21% cash-on-cash return. Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $916K – $4.3M including a $70K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.7M), with an estimated 21% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 53/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Casa Franchising, LLC
- Incorporated in
- MN
- HQ
- 6301 Wayzata Blvd., St. Louis Park, MN 55416
- Auditor
- Thoresen Diaby Helle Condon & Dodge, Inc.
- Audited financials
- Franchisor revenue
- $800K
- vs $832K prior year
Overview
About
Casa de Corazon franchisees operate what appears to be a restaurant, hospitality, or consumer-facing service business generating ~$2.4M in annual revenue per unit. Day-to-day operations likely involve staff management, customer service, inventory/supply chain, compliance with brand standards, and local marketing. Franchisees remit 7% of gross revenue as ongoing royalties to corporate.
- CEO
- Natalie Standridge
- Headquarters
- MN
- Founded
- 2016
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $150K | $250K |
| Equipment, build-out, other | $696K | $3.9M |
| Total initial investment | $916K | $4.3M |
Source: Casa de Corazon 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$338K
14.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $916K – $4.3M
- Near category avg vs category
- Liquid capital req'd
- $150K – $250K
- Near category avg vs category
- Franchise fee
- $70K – $70K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 4.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $705 |
| Transfer fee | $70K |
| Renewal fee | $8K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg net income
- $533K
- Cash-on-cash
- 20.5%
- Based on Net Income / investment midpoint
- Item 19 type
- Historical Revenues and Expenses
- Sample size
- 8 units
- vs category median 14
- Range (low → high)
- $1.2M→$3.3M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How Casa de Corazon Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (yr3)
- +33.3%
- Net unit change last year
- 3-yr CAGR
- +33.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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
- $16.9M
- Median loan
- $1.5M
- 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
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Casa de Corazon's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 5-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
Caution-to-High Risk: Undercapitalized brand (8 units) with active litigation, unverified financial claims, and no Item 19 substantiation creates material uncertainty around unit viability and franchisor reliability.
Audited financials (Item 21)
Yes · Thoresen Diaby Helle Condon & Dodge, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 53 / 100 rating
- 01HIGHActive litigation by former franchisee alleging defamation, duress, and Franchise Act violations creates legal and reputational risk
- 02MINORHigh investment range ($916K-$4.2M) with only 8 units systemwide indicates unproven unit economics and scaling challenges
- 03MINOR33.3% YoY unit growth from extremely small base (8 units) is not statistically meaningful and suggests inconsistent franchisee recruitment
- 04HIGHNo Item 19 financial performance representations (Going Concern = False) prevents validation of claimed $453K average net income
- 05MINOR7% royalty on $2.4M average revenue extracts $168K annually; combined with overhead, franchisee profitability claims are unverifiable
- 06MINORLawsuit alleging settlement agreement nullification and CEO misconduct suggests potential franchisor credibility and governance issues
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 | Radius or Household based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- POS system
- SmartCare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SmartCare
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Casa de Corazon · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Casa de Corazon franchise?
The total investment to open a Casa de Corazon franchise ranges from $916K – $4.3M, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Casa de Corazon franchise owners earn?
According to Item 19 of the Casa de Corazon FDD, the average gross sales per unit is $2.4M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Casa de Corazon's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Casa de Corazon (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 Casa de Corazon franchise locations are there?
As of their most recent FDD filing, Casa de Corazon has 8 total units in the United States, including 3 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Casa de Corazon a good franchise to buy?
FranchiseVerdict rates Casa de Corazon as a A-grade franchise with a risk score of 53 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.