Famous Toastery
Bottom line
- Total investment $688K – $1.2M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.4M).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 9 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Famous Toastery unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Famous Toastery units return on equity?
Equity IRR · 5-yr
36.7%
4.78× MOIC
Year-1 DSCR
2.25×
EBITDA ÷ debt service
Equity required
$4.5M
on $13.5M purchase
Total debt
$9.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service breakfast and lunch restaurants featuring artisan toast, specialty sandwiches, and beverage offerings. Daily operations include food preparation, customer service, inventory management, and staff scheduling across typically limited seating (20-40 seats). Revenue depends heavily on foot traffic and delivery orders in high-density urban/suburban markets.
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 · 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).
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
Famous Toastery presents caution-level risk due to shrinking unit base, missing profitability data, and high capital requirements relative to revenue disclosure.
Score breakdown · what drove the 52 / 100 rating
- 01MINORUnit count declining 5.9% YoY (24 units) suggests system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in FDD Item 19 prevents accurate ROI calculation and profitability verification
- 03MEDHigh investment range ($687.5K-$1.2M) relative to disclosed $1.5M average revenue creates thin margin for error
- 04MINOR5% royalty on gross sales (not net) means franchisees pay fees even during unprofitable periods
- 05MEDModest unit count (24 locations) indicates limited brand recognition and smaller support infrastructure
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Famous Toastery · FDD (2024) PDF