FranchiseVerdict
Ike's Love & Sandwiches logo
FV-01280·STRONGExcellent86

Ike's Love & Sandwiches

Food & Beverage - Full ServiceFranchising since 2019Website
Investment
$141K – $614K
10th pct Full Service
Avg revenue
$706K
9th pct Full Service
Royalty
8.0%
90th pct Full Service
Units
106
84th pct Full Service
SBA default

Bottom line

  • Total investment $141K – $614K including a $80K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $706K/year (median $475K).
  • Rated STRONG with a risk score of 53/100.
  • System growing at 75.0% CAGR over 3 years with 106 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Ike’s, the Franchise, Inc.
Incorporated in
Delaware
HQ
12 Ford Street, San Francisco, California 94114
Auditor
DNJ & Associates
Audited financials
Franchisor revenue
$500K
vs $684K prior year

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 Ike's Love & Sandwiches unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $705,533
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $141K–$614K
Working capital
$
FDD reports $20K–$40K

Unlevered ROIC · per unit

22%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$92K
EBITDA margin
13.0%
Total invested
$408K
Payback
53 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Ike's Love & Sandwiches units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$847K

on $4.2M purchase

Total debt

$3.4M

SBA $2.1M + senior + seller note

Overview

About

Franchisees operate fast-casual sandwich restaurants featuring Ike's signature menu (primarily sandwiches and sides). Day-to-day operations include food preparation, inventory management, staffing, customer service, and local marketing in a QSR environment with typical lunch/dinner rushes.

CEO
Ike Shehadeh
Founded
2019
FDD year
2024
States available
3

Item 7 · what it costs

The Vitals

Total investment
$141K – $614K
All-in to open one unit
Liquid capital
$20K – $40K
Cash you must have on hand
Franchise fee
$80K
Royalty
8.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$706K
Per unit, per year
Median gross sales
$475K
Item 19 type
Gross Sales
Sample size
6 units
vs category median 15 · small
Range (low → high)
$224K$1.4M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank9th
vs Food & Beverage - Full Service peers
Investment cost rank10th
Lower investment ranks lower (better)
Royalty rate rank90th
Lower royalty = lower percentile (better)
Unit count rank84th
vs Food & Beverage - Full Service peers
Risk score rank24th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
106
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
99
Corporate units in the system
% franchised
7%
vs corporate-owned
Net growth (yr3)
+16.7%
Net unit change last year
3-yr CAGR
+75.0%
Compounded over last 3 years
2022
7+1
Franchised units
2023
6
Franchised units
2024
4
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 19 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 19 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

53
Risk · 0-100
STRONG53 / 100

Moderate-to-caution risk: Strong unit growth and revenue metrics are undermined by undisclosed net income, unprotected territory, and wide investment variance that prevent ROI validation.

Score breakdown · what drove the 53 / 100 rating

  1. 01MEDNet income not disclosed in FDD — impossible to validate actual profitability against $141K-$614K investment range
  2. 02MINORNo protected territory — direct competition from other Ike's franchisees in same market
  3. 03MEDWide investment range ($472K spread) suggests inconsistent unit economics or hidden costs not disclosed
  4. 04MINOR8% royalty on $705K avg revenue = $56,400/year in ongoing fees with no income guarantee
  5. 05MINOR106 units with 16.7% YoY growth is solid but insufficient to offset profitability opacity

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
16 hrs
On-the-job training
83 hrs

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

Locked
(518) 473-••••
NY
(503) 378-••••
OR
(702) 779-••••
NV

One-time purchase · CSV download · Validation questions included

FDD download

Ike's Love & Sandwiches · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above