FranchiseVerdict
D Spot Dessert Café logo
FV-00692·CAUTIONStandard71

D Spot Dessert Café

Food & Beverage - Coffee & TeaFranchising since 2023Website
Investment
$785K – $1.8M
96th pct Coffee & Tea
Avg revenue
49th pct Coffee & Tea
Royalty
5.0%
17th pct Coffee & Tea
Units
0
0th pct Coffee & Tea
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $785K – $1.8M including a $35K franchise fee, 5.0% 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. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • 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

Legal entity
D Spot Franchising USA Inc.
Parent company
D Spot Holdings USA, Inc.
Incorporated in
Delaware
HQ
30 Bertrand Avenue, Unit C5, Toronto, Ontario Canada M1L 2P5
Auditor
Tronconi Segarra & Associates LLP
Audited financials
Franchisor revenue
$0
vs $0 prior year

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 D Spot Dessert Café unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $785K–$1.8M
Working capital
$
FDD reports $30K–$70K

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$1.4M
Payback
198 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

D Spot Dessert Café franchisees operate quick-service dessert retail locations, serving specialty cakes, pastries, coffee, and beverages. Daily operations include food preparation, inventory management, point-of-sale transactions, and customer service in a café setting, likely targeting foot traffic in shopping centers or high-visibility locations.

CEO
Samir Desai
Founded
2023
FDD year
2026
States available
0

Item 7 · what it costs

The Vitals

Total investment
$785K – $1.8M
All-in to open one unit
Liquid capital
$30K – $70K
Cash you must have on hand
Franchise fee
$35K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

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

Total units
0
Opened
0
Last reporting year
Closed
0
Company-owned
0
Corporate units in the system
2024
0±0
Franchised units
2025
0
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 4 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 4 states
Not registered

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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

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.

Score breakdown · what drove the 75 / 100 rating

  1. 01HIGHGoing Concern warning indicates franchisor financial distress or viability questions
  2. 02MINORZero operating units reported — either brand-new (unproven) or system collapsed/dormant
  3. 03MINORNo Item 19 financial performance disclosure — cannot validate $785K-$1.8M investment claims
  4. 04MINORWide investment range ($1.058M spread) suggests undefined unit economics or inconsistent buildout costs
  5. 05MED5% royalty on undisclosed average revenue makes ROI impossible to model
  6. 06MINOR10-year term is lengthy commitment to unproven, non-operating franchise system
  7. 07HIGHNo disclosed litigation does not eliminate legal/operational risk given going concern status

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Illinois

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
307 hrs

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

59 numbers

Locked
(416) 460-••••
(306) 999-••••
(647) 867-••••

One-time purchase · CSV download · Validation questions included

FDD download

D Spot Dessert Café · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above