D Spot Dessert Café Franchise Cost, Revenue & Review 2026
- Investment
- $1.0M – $1.8M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
D Spot Dessert Café is a dessert franchise serving homemade ice cream, cakes, pastries, and savory bites. Franchisees run the cafes, managing dessert prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A D Spot Dessert Café franchise requires a total initial investment of $1.0M – $1.8M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.0M – $1.8M
- 93rd pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $1.0M – $1.8M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 6 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- D Spot Franchising USA Inc.
- Parent company
- D Spot Holdings USA, Inc.
- FDD Item 1, page 6 of the 2025 FDD
- Ultimate parent
- D Spot Holdings Inc. (Ontario)
- FDD Item 1, page 6 of the 2025 FDD
- CEO title
- President and Director
- Samir Desai
- Incorporated in
- DE
- HQ
- 30 Bertrand Avenue, Unit C5, Toronto, Ontario Canada M1L 2P5
- Auditor
- TSA CPA (Williamsville, NY)
- Audited financials
Affiliated brands
- D Spot Holdings
- the Canadian franchisor of Stores
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Samir Desai
- Headquarters
- DE
- Founded
- 2023
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 193% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Real Estate/Rent – 3 months | $24K | $60K | |
| Insurance | $250 | $800 | |
| Utilities | $1K | $4K | |
| Initial Training | $3K | $10K | |
| Hardware and Software Fee | $10K | $20K | |
| Inventory | $40K | $60K | |
| Furniture, Fixtures, and Equipment | $210K | $440K | |
| Grand Opening | $10K | $10K | |
| Licenses and Permits | $2K | $5K | |
| Professional Fees | $5K | $10K | |
| Memberships to Local Organizations | $200 | $2K | |
| Construction and Real Estate Improvements | $550K | $1.0M | |
| Miscellaneous Operating Costs | $20K | $40K | |
| Pre-opening Staffing Costs | $5K | $15K | |
| Signage | $20K | $50K | |
| Uniforms | $2K | $4K | |
| Security System | $5K | $8K | |
| Additional Funds – 3 months | $60K | $70K | |
| Total initial investment | $1.0M | $1.8M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.8M
- Bottom third — review vs category
- Liquid capital req'd
- $60K – $70K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Training fee | $10K |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Inventory (initial) | $40K – $60K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
D Spot Dessert Café makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one D Spot Dessert Café unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 7.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 Quick-Service Restaurants medians
How D Spot Dessert Café Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Company-owned
- 0
- Corporate units in the system
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 6
- Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Where the owners are · Item 20 owner list
2 current owners across 2 states.
- NJ 1
- TX 1
Counts only, from the list the franchisor prints in Item 20; 41 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
D Spot presents extreme risk due to zero operating units, going concern warning, and complete absence of financial performance data, making this an unvalidated investment in a potentially distressed franchisor.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · TSA CPA (Williamsville, NY)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements for fiscal year ended December 31, 2024 (and inception March 7, 2023 to December 31, 2023). Sales were $0 in both periods; franchisor began franchising in 2023 and reported no franchise fee revenue ($0 recognized; deferred revenue/deposits of $145,250 at 12/31/2024). Royalty revenue is 5.0% of net sales. Going concern note included; shareholder's deficit reported.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 41 / 100 verdict
- 01MINORZero operating units reported — either brand-new (unproven) or system collapsed/dormant
- 02MED5% royalty on undisclosed average revenue makes ROI impossible to model
- 03MINOR10-year term is lengthy commitment to unproven, non-operating franchise system
- 04MEDNo disclosed litigation does not eliminate legal/operational risk given going concern status
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 6 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois |
| Jury trial waiver | No |
| Governing law | State where Store is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 307 hrs
- Training location
- Toronto, Canada
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a D Spot Dessert Café franchise?
The total investment to open a D Spot Dessert Café franchise ranges from $1.0M – $1.8M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do D Spot Dessert Café franchise owners earn?
D Spot Dessert Café makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns D Spot Dessert Café?
D Spot Dessert Café is franchised by D Spot Franchising USA Inc.. Its parent company is D Spot Holdings USA, Inc.. The ultimate parent named in the FDD is D Spot Holdings Inc. (Ontario). Source: FDD Item 1, 2025 filing.
What is Item 19 in the D Spot Dessert Café 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 D Spot Dessert Café FDD and qualifies whose outlets they describe.
What is D Spot Dessert Café's franchise failure rate?
SBA 7(a) loan charge-off data is not available for D Spot Dessert Café (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.
Is D Spot Dessert Café a good franchise to buy?
FranchiseVerdict rates D Spot Dessert Café as a C-grade franchise with a verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.