Great Harvest Franchise Cost, Revenue & Review 2026
- Investment
- $592K – $871K
- Disclosed sales
- $966K
- gross sales, not profit
- SBA charge-off
- 13.4%
- on 199 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Great Harvest is a bakery-cafe franchise serving fresh-milled, scratch-baked breads plus sandwiches and treats. Franchisees run neighborhood bakeries managing baking, a retail counter, and staffing, with unusual recipe freedom.
FranchiseVerdict summary · 2026
A Great Harvest franchise requires a total initial investment of $592K – $871K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $966K[2]. SBA 7(a) loans show a 13.4% charge-off rate across 199 loans[1]. FranchiseVerdict grade: B (Above 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: low - issued within the last 12 months
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $592K – $871K
- 81st pct Service Resta…
- Avg gross sales
- $966K
- 18th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 155
- 81st pct Service Resta…
- SBA charge-off
- 13.4%
- % of SBA 7(a) loans not repaid · median varies by category
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 $592K – $871K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $966K/year (median $867K).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better). SBA loan charge-off rate of 13.4% across 199 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -2 franchised outlets in the latest year (4 opened, 6 closed); 10 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Great Harvest Franchising, LLC
- Parent company
- Great Harvest Holdings, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- New Spring Franchise Capital II, L.P.
- FDD Item 1, page 6 of the 2026 FDD
- CEO title
- Chief Executive Officer
- John Dikos
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Delaware
- HQ
- 28 South Montana Street, Dillon, Montana 59725
- Auditor
- Eide Bailly LLP
- Audited financials
- Franchisor revenue
- $5.6M
- vs $6.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- John Dikos
- Headquarters
- Montana
- Founded
- 1980
- FDD year
- 2026
- States available
- 39
Can you afford it, and what does the money buy?
Entry cost runs 51% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Your Training Expenses | $2K | $10K | |
| Premises Deposits | $5K | $7K | |
| Leasehold Improvements | $270K | $375K | |
| Signage | $4K | $15K | |
| Furniture, Fixtures & Equipment | $216K | $315K | |
| Computer Systems | $2K | $4K | |
| Initial Inventory | $10K | $27K | |
| Grand Opening Marketing | $12K | $12K | |
| Professional Fees | $2K | $10K | |
| Licenses and Permits | $500 | $3K | |
| Insurance | $3K | $5K | |
| Additional Funds - 3 months | $26K | $48K | |
| Total initial investment | $592K | $871K |
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
- $592K – $871K
- Bottom third — review vs category
- Liquid capital req'd
- $26K – $48K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $800 |
| Training fee | $3K |
| Transfer fee | $30K |
| Renewal fee | $8K |
| Inventory (initial) | $10K – $27K |
| Total fee load | 7.5% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Great Harvest until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$768K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Great Harvest 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $966K
- Per unit, per year
- Median gross sales
- $867K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 95 outlets
- vs category median 19 · large
- Range (low → high)
- $360K→$2.9MCited, not corroborated — printed on page 41 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $505K→$1.6M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $966K/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 7.5% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -3.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Great Harvest 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 155
- Opened
- 4
- Last reporting year
- Closed
- 6
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.1%
- Net unit change over 3 years
- 3-yr CAGR
- -3.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 10
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 10
- 0.06 per open outlet · Item 20 Table 5
- Projected new
- 8
- Franchisor's next-year forecast
- Transfer rate
- 6.3%
- Owners selling to other franchisees
- Continuity rate
- 97.5%
- Units that stayed open
- Termination rate
- 0.6%
- Franchisor-initiated terminations
- Ceased ops
- 1.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 39 states 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.
39
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 199
- Loan volume
- $48.7M
- Median loan
- $245K
- average
- Charge-off rate
- 13.4%
- on 199 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 96
- Defaults
- 21
Vintage analysis
Great Harvest charge-off rate by loan vintage
Top lenders financing Great Harvest franchisees
Showing 3 of 96 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Great Harvest from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Zions Bank, A Division of | 13 | $2.3M | 25.0% |
| 2 | The Huntington National Bank | 10 | $1.9M | 20.0% |
| 3 | JPMorgan Chase Bank, National Association | 9 | $1.6M | 25.0% |
| 4 | Readycap Lending, LLC | 9 | $1.8M | 66.7% |
| 5 | PNC Bank, National Association | 8 | $2.1M | 0.0% |
| 6 | Wells Fargo Bank National Association | 8 | $1.6M | 0.0% |
| 7 | Stearns Bank National Association | 7 | $1.4M | 0.0% |
| 8 | Bank of America, National Association | 6 | $230K | 0.0% |
| 9 | U.S. Bank, National Association | 6 | $1.4M | 16.7% |
| 10 | Fifth Third Bank | 5 | $1.5M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 14 | 0 | 0.0% |
| ILIllinois | 12 | 1 | 9.1% |
| MIMichigan | 12 | 1 | 16.7% |
| TXTexas | 12 | 1 | 11.1% |
| COColorado | 10 | 2 | 28.6% |
| OHOhio | 10 | 2 | 22.2% |
| WIWisconsin | 10 | 1 | 14.3% |
| IDIdaho | 9 | 1 | 14.3% |
| UTUtah | 9 | 1 | 16.7% |
| INIndiana | 8 | 1 | 20.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 13.4% — 16% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Great Harvest shows cautionary signals: declining unit growth, undisclosed profitability metrics, active litigation, and an opaque financial model that makes true ROI assessment impossible for prospective franchisees.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Two franchisor-initiated suits against former franchisees for breach of contract/trademark infringement (Golden Wheat settled for $17,000; Green settled for $9,996.79 plus $25,332.39 note); affiliate Duck Donuts Holdings entered a consent order with California DFPI paying a $5,000 penalty.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eide Bailly LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01MINORDeclining unit count (-0.6% YoY) indicates system contraction despite reasonable average revenues
- 02HIGHMultiple active litigations (breach of contract, trademark infringement) suggest franchisor enforcement issues and franchisee disputes
- 03MINOR5% royalty on $948k average revenue yields only $47,405 annually, making profitability dependent on cost control
- 04MINORNo going concern statement absent, which may indicate marginal franchisor financial health
- 05MINORBakery-café model faces intense competition and requires operational excellence in food production and customer service
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 7 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 31 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | Montana |
| Jury trial waiver | Yes |
| Governing law | Montana |
| Litigation count | 2 |
View Item 3 litigation summary
Two franchisor-initiated suits against former franchisees for breach of contract/trademark infringement (Golden Wheat settled for $17,000; Green settled for $9,996.79 plus $25,332.39 note); affiliate Duck Donuts Holdings entered a consent order with California DFPI paying a $5,000 penalty.
Items 10, 11
Training & Operations
- Classroom training
- 93 hrs
- On-the-job training
- 200 hrs
- Training location
- Dillon, Montana
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
176 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 Great Harvest franchise?
The total investment to open a Great Harvest franchise ranges from $592K – $871K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Great Harvest franchise owners earn?
According to Item 19 of the Great Harvest FDD, the average gross sales per unit is $966K. The median is $867K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Great Harvest?
Great Harvest is franchised by Great Harvest Franchising, LLC. Its parent company is Great Harvest Holdings, LLC. The ultimate parent named in the FDD is New Spring Franchise Capital II, L.P.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Great Harvest 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 Great Harvest FDD and qualifies whose outlets they describe.
What is Great Harvest's franchise failure rate?
Based on SBA 7(a) loan data, Great Harvest has a charge-off rate of 13.4% across 199 loans, meaning 13.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Great Harvest franchise locations are there?
As of their most recent FDD filing, Great Harvest has 155 total units in the United States, including 155 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is Great Harvest a good franchise to buy?
FranchiseVerdict rates Great Harvest as a B-grade franchise with a verdict score of 58 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
Are you the franchisor?
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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.