Ike's Love & SandwichesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Ike's Love & Sandwiches franchise requires a total initial investment of $141K – $614K, including a $80K franchise fee and an ongoing 8.0% royalty[2]. Per the 2024 FDD, average unit revenue was $706K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $141K – $614K
- 5th pct Service Resta…
- Avg gross sales
- $706K
- 5th pct Service Resta…
- Royalty
- 8.0%
- 44th pct Service Resta…
- Units
- 106
- 42nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
The system grew 17% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $141K – $614K including a $80K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $706K/year (median $475K).
- Verdict A (Top Quintile) with a risk score of 28/100.
- 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.
- CEO title
- Principal Officer
- Ike Shehadeh
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 12 Ford Street, San Francisco, California 94114
- Auditor
- DNJ & Associates
- Audited financials
- Franchisor revenue
- $500K
- vs $684K prior year
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
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $80K | $80K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $41K | $494K |
| Total initial investment | $141K | $614K |
Source: Ike's Love & Sandwiches 2024 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
$56K
8.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $141K – $614K
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $80K – $80K
- Near category avg vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $3K – $15K |
| Total fee load | 10.0% of rev |
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 13 · small
- Range (low → high)
- $224K→$1.4M
- Cohort dispersion (min → max)
- Quartile band
- $224K→$1.3M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Ike's Love & Sandwiches Compares
Unit growth
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
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
- Ceased ops
- 1.0%
- Units that stopped operating
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).
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
- Illinois
- New York
- Rhode Island
- Virginia
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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $600,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DNJ & Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 28 / 100 rating
- 01MEDNet income not disclosed in FDD — impossible to validate actual profitability against $141K-$614K investment range
- 02MINORNo protected territory — direct competition from other Ike's franchisees in same market
- 03MEDWide investment range ($472K spread) suggests inconsistent unit economics or hidden costs not disclosed
- 04MINOR8% royalty on $705K avg revenue = $56,400/year in ongoing fees with no income guarantee
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| 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 | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | San Francisco County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- 83 hrs
- Training location
- headquarters, existing restaurant, or franchisor-designated location
- Ongoing training
- Required
- Field support
- 112 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ike's Love & Sandwiches · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ike's Love & Sandwiches franchise?
The total investment to open a Ike's Love & Sandwiches franchise ranges from $141K – $614K, with an initial franchise fee of $80K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ike's Love & Sandwiches franchise owners earn?
According to Item 19 of the Ike's Love & Sandwiches FDD, the average gross sales per unit is $706K. The median is $475K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ike's Love & Sandwiches's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ike's Love & Sandwiches (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 Ike's Love & Sandwiches franchise locations are there?
As of their most recent FDD filing, Ike's Love & Sandwiches has 106 total units in the United States, including 4 franchised units and 99 company-owned units. 1 new units were opened in the latest reporting year.
Is Ike's Love & Sandwiches a good franchise to buy?
FranchiseVerdict rates Ike's Love & Sandwiches 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.
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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.