Great HarvestFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Great Harvest franchise requires a total initial investment of $298K – $980K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $948K[2]. SBA 7(a) loans show a 13.4% charge-off rate across 199 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $298K – $980K
- 59th pct Service Resta…
- Avg gross sales
- $948K
- 33rd pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 159
- 78th pct Service Resta…
- SBA default
- 13.4%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1980. Systems this mature have refined operations and brand recognition.
Franchised units fell from 169 to 159 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $298K – $980K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $948K/year (median $823K).
- Verdict A (Top Quintile) with a risk score of 43/100. SBA loan charge-off rate of 13.4% across 199 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Great Harvest Franchising, LLC
- Parent company
- Great Harvest Holdings, LLC
- Ultimate parent
- New Spring Franchise Capital II, L.P. and GH Legacy Holdings, Inc.
- CEO title
- Chief Executive Officer
- John Dikos
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 28 South Montana Street, Dillon, Montana 59725
- Auditor
- Eide Bailly
- Audited financials
- Franchisor revenue
- $6.1M
- vs $5.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Great Harvest franchisees operate neighborhood bakery-café locations focused on fresh-baked bread, pastries, and café items. Day-to-day operations involve early morning baking, managing a small retail counter, serving walk-in and wholesale customers, managing 5-15 employees, and maintaining inventory and food safety standards.
- CEO
- John Dikos
- Headquarters
- MT
- Founded
- 1980
- FDD year
- 2025
- States available
- 39
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Training Expenses | $2K | $10K | |
| Premises Deposits | $5K | $7K | |
| Leasehold Improvements | $102K | $475K | |
| Signage | $4K | $15K | |
| Furniture, Fixtures & Equipment | $85K | $315K | |
| Computer Systems | $9K | $15K | |
| Initial Inventory | $10K | $27K | |
| Grand Opening Marketing | $15K | $15K | |
| Professional Fees | $2K | $10K | |
| Licenses and Permitsnot refundable | $500 | $3K | |
| Insurancenot refundable | $3K | $5K | |
| Additional Funds - 3 months | $26K | $48K | |
| Development Fee (Multi-Unit - 2 outlets) | $45K | $45K | |
| Total initial investment | $343K | $1.0M |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$137K
14.5% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $980K
- Near category avg vs category
- Liquid capital req'd
- $26K – $48K
- Below avg, review vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 |
| Transfer fee | $26K |
| Renewal fee | $8K |
| Inventory (initial) | $10K – $27K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $948K
- Per unit, per year
- Median gross sales
- $823K
- Item 19 type
- Historical
- Sample size
- 35 units
- vs category median 28
- Range (low → high)
- $234K→$2.9M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Great Harvest Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 159
- Opened
- 3
- Last reporting year
- Closed
- 3
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -0.6%
- Net unit change last year
- 3-yr CAGR
- -5.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 10
- 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 20 · 32 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Great Harvest Franchising, Inc. filed two cases against former franchisees. Case 1 (2:22-cv-00064-BMM): Breach of contract and covenant claims settled July 31, 2023 for $17,000. Case 2 (CV-24-32-BU-BMM): Lanham Act, trademark infringement, and trade secrets violations settled May 31, 2024 for $35,329.18 ($9,996.79 gift card liability + $25,332.39 note) with Permanent Restraining Order.
Largest disclosed settlement: $35,329
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Eide Bailly
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 43 / 100 rating
- 01MINORDeclining unit count (-0.6% YoY) indicates system contraction despite reasonable average revenues
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI calculation on $298k-$980k investment
- 03HIGHMultiple active litigations (breach of contract, trademark infringement) suggest franchisor enforcement issues and franchisee disputes
- 04MINORWide investment range ($681k spread) creates uncertainty about startup costs and unit economics
- 05MINOR5% royalty on $948k average revenue yields only $47,405 annually, making profitability dependent on cost control
- 06HIGHNo going concern statement absent, which may indicate marginal franchisor financial health
- 07MINORBakery-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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population/Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 7.5 mi |
| Territory population | 50,000 |
| Online sales rights | 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 | 1 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | Beaverhead County, Montana |
| Jury trial waiver | Yes |
| Governing law | Montana |
| Litigation count | 3 |
View Item 3 litigation summary
Great Harvest Franchising, Inc. filed two cases against former franchisees. Case 1 (2:22-cv-00064-BMM): Breach of contract and covenant claims settled July 31, 2023 for $17,000. Case 2 (CV-24-32-BU-BMM): Lanham Act, trademark infringement, and trade secrets violations settled May 31, 2024 for $35,329.18 ($9,996.79 gift card liability + $25,332.39 note) with Permanent Restraining Order.
Items 10, 11
Training & Operations
- Classroom training
- 93 hrs
- On-the-job training
- 200 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 11 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Great Harvest · FDD (2025) PDF
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 $298K – $980K, 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 Great Harvest franchise owners earn?
According to Item 19 of the Great Harvest FDD, the average gross sales per unit is $948K. The median is $823K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 159 total units in the United States, including 169 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Great Harvest a good franchise to buy?
FranchiseVerdict rates Great Harvest as a A-grade franchise with a risk score of 43 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.