Bottom line
- Total investment $69K – $189K including a $10K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Cupcake Heaven unit return on the cash you put in?
Unlevered ROIC · per unit
64%
Above typical band (30–60%)
Overview
About
Franchisees operate casual cupcake retail bakeries, managing daily baking/inventory, point-of-sale operations, customer service, and local marketing. Operations typically involve staffing a small storefront, managing supplier relationships, and executing standardized menu offerings 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
Cupcake Heaven presents HIGH RISK due to a micro-sized franchise system (3 units), missing financial disclosures preventing ROI validation, false going concern status, and opaque cost structures.
Score breakdown · what drove the 72 / 100 rating
- 01MEDOnly 3 franchise units operating — extremely small and potentially stagnant system with no disclosed growth trajectory
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — impossible to validate unit economics or ROI potential
- 03HIGHGoing Concern status is FALSE — suggests franchisor may have financial viability issues or operational instability
- 04MINORWide investment range ($68,600–$189,450) with no clarity on what drives cost variance — potential for hidden or escalating expenses
- 05MEDShort 3-year term limits long-term security and suggests either franchisor caution or high exit risk
- 06MED4% royalty on undisclosed revenues creates uncertainty about actual profit margins and true cost of ownership
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cupcake Heaven · FDD (2026) PDF