Dogs & Cream
Formerly known as CSG Hospitality
Bottom line
- Total investment $279K – $799K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $351K/year. Estimated payback in 17.1 years.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 2 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 Dogs & Cream unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Dogs & Cream units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$562K
on $2.8M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
Dogs & Cream is a pet-themed food service franchise, likely combining hot dogs and ice cream/frozen desserts as complementary offerings. Franchisees operate retail locations managing inventory, customer service, food preparation, and daily P&L operations while paying 5% royalties to the franchisor.
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 · 23 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
Extremely nascent franchise system with only 2 units, unverified financials, franchisor stability concerns, and thin unit-level margins create significant execution and support risk.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 2 operating units — critically small franchise system with zero visibility into growth trajectory or scalability
- 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $351K average revenue claim
- 03HIGHGoing Concern status is FALSE — indicates financial instability or uncertainty at franchisor level, raising questions about support infrastructure
- 04MINORWide investment range ($278.8K–$799.3K) suggests high variability in unit economics; unclear what drives $520K difference
- 05MINORNet profit margin only 8.97% ($31.5K on $351K revenue) is thin for a food/beverage concept, leaving little buffer for underperformance
- 06MINORRoyalty floor of $1,500/month ($18K annually) represents 5.1% of average net income — leaves minimal cash flow for franchisee reinvestment or contingencies
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Dogs & Cream · FDD (2025) PDF