Creation Coffee
Bottom line
- Total investment $264K – $598K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- Emerging franchise — only 1 year of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Creation Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Overview
About
Franchisees operate specialty coffee retail locations, likely serving espresso-based beverages, specialty brews, and potentially light food items. Day-to-day operations include inventory management, staff scheduling, customer service, product preparation, and local marketing within a protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Creation Coffee presents HIGH RISK due to a micro-system of only 4 units, going concern status, complete revenue/profitability opacity, and inability to validate unit economics before committing $264k-$597k.
Score breakdown · what drove the 75 / 100 rating
- 01MINOROnly 4 existing units with unknown growth trajectory indicates minimal market validation and system maturity
- 02HIGHGoing Concern = False signals potential financial instability or operational viability concerns at corporate level
- 03MINORNo Item 19 (Average Unit Volume) disclosure prevents ROI analysis — inability or unwillingness to share revenue data is a critical red flag
- 04MEDHigh investment ceiling ($597,500) combined with undisclosed profitability creates significant downside risk with unclear break-even timeline
- 05MINOR6% royalty on unknown gross sales revenue makes financial projections impossible — royalties could be unsustainable if unit volumes are low
- 06MEDExtremely small franchise system (4 units) suggests limited corporate resources, support infrastructure, and brand recognition
- 07MINOR10-year term with $30,000 franchise fee typical for coffee, but commitment length is substantial given unproven business model
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Creation Coffee · FDD (2025) PDF