Cookie Plug
Formerly known as Business Alliance Associates
Bottom line
- Total investment $174K – $568K including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $303K/year (median $299K). Estimated payback in 3.4 years.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- System growing at 250.0% CAGR over 3 years with 31 total units — strong expansion trajectory.
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 Cookie Plug unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cookie Plug units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$425K
on $2.1M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
Overview
About
Cookie Plug franchisees operate retail cookie shops or kiosks, preparing and selling fresh-baked cookies and related treats to walk-in customers. Day-to-day responsibilities include managing inventory, baking, customer service, staffing, point-of-sale operations, and local marketing to drive foot traffic and repeat business.
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 · 13 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, rapidly expanding franchise with concerning going concern status, active litigation, and thin unit-level economics that require thorough validation with existing franchisees before investment.
Score breakdown · what drove the 51 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or undisclosed operational issues at corporate level
- 02HIGHTwo active litigation cases involving franchise law violations and corporate ownership disputes create legal uncertainty and reputational risk
- 03MEDHigh initial investment ($174K–$568K) paired with 7% royalty rate leaves limited margin for error; average net income of $108K yields only 35.6% net margin before accounting for rent, labor, and other overhead
- 04MINORRapid unit growth (55.6% YoY) on small base (31 units) suggests early-stage franchise with unproven unit economics and retention; high growth can mask underlying franchise satisfaction issues
- 05HIGHLitigation involving David Denker and alleged Michigan Franchise Investment Law violations suggest potential corporate compliance gaps that could expose franchisees to legal liability
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
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cookie Plug · FDD (2025) PDF