Hello SugarFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hello Sugar franchise requires a total initial investment of $91K – $736K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $719K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $91K – $736K
- 6th pct Personal Care…
- Avg gross sales
- $719K
- 24th pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 108
- 36th pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty 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
The system grew 53% year-over-year. Fast growth means demand, but can strain support.
39% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $91K – $736K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $719K/year (median $566K), with an estimated 39% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 28/100.
- System growing at 210.0% CAGR over 3 years with 108 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hello Sugar Franchise, LLC
- Predecessor
- company
- Prior franchisor entity
- Incorporated in
- AZ
- HQ
- 151 N. Centennial Way, Mesa, Arizona 85201
- Auditor
- Adams + Petersen
- Audited financials
- Franchisor revenue
- $1.9M
- vs $2.9M prior year
Overview
About
Hello Sugar franchisees operate dessert/confectionery retail locations (likely sweet treats, baked goods, or specialty candies) focused on point-of-sale transactions and walk-in traffic. Day-to-day operations include inventory management, customer service, food preparation/display, and local marketing to drive foot traffic to their protected territory.
- CEO
- Brigham Dallas
- Headquarters
- AZ
- Founded
- 2021
- FDD year
- 2025
- States available
- 24
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $31K | $656K |
| Total initial investment | $91K | $736K |
Source: Hello Sugar 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$151K
21.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $91K – $736K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- The lesser of (i) Minimum Brand Fund Contribution, or (ii…
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $75 |
| Training fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $719K
- Per unit, per year
- Median gross sales
- $566K
- Avg net income
- $161K
- Cash-on-cash
- 39.0%
- Based on Net Income / investment midpoint
- Item 19 type
- Historical performance of franchised and corporate outlets
- Sample size
- 52 units
- vs category median 35
- Range (low → high)
- $418K→$1.4M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Hello Sugar Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 108
- Opened
- 35
- Last reporting year
- Closed
- 3
- Turnover rate
- 2.8%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (yr3)
- +52.5%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
- Michigan
- Minnesota
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- 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
- 15
- Loan volume
- $5.1M
- Median loan
- $337K
- average
- Charge-off rate
- N/A
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
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
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
Hello Sugar shows explosive growth without financial transparency (no Item 19), raising concerns about unit quality, sustainability, and whether advertised revenues are representative.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Adams + Petersen
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 28 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $718,919 average revenue claim
- 02MINORExplosive 52.5% YoY unit growth is unsustainable and suggests potential quality control issues or aggressive recruitment over franchisee success
- 03MINORWide investment range ($90,984–$736,250) indicates highly variable unit economics and undefined cost structure
- 04MINOR6% royalty on gross revenue (not net) means franchisees pay during unprofitable months
- 05HIGHGoing Concern = False suggests franchisor financial stability concerns, though not explicitly stated as a threat
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 | 5 years |
| Territory type | Radius/Zip codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and off-site
- POS system
- customized POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: customized POS System
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hello Sugar · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hello Sugar franchise?
The total investment to open a Hello Sugar franchise ranges from $91K – $736K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hello Sugar franchise owners earn?
According to Item 19 of the Hello Sugar FDD, the average gross sales per unit is $719K. The median is $566K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hello Sugar's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hello Sugar (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Hello Sugar franchise locations are there?
As of their most recent FDD filing, Hello Sugar has 108 total units in the United States, including 30 franchised units and 15 company-owned units. 35 new units were opened in the latest reporting year.
Is Hello Sugar a good franchise to buy?
FranchiseVerdict rates Hello Sugar as a A-grade franchise with a risk score of 28 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.