KonalaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A KONALA franchise requires a total initial investment of $567K – $1.3M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $567K – $1.3M
- 36th pct Service Resta…
- Avg gross sales
- $1.7M
- 18th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
40% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $567K – $1.3M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year, with an estimated 40% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 36/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KONALA FRANCHISING LLC
- Incorporated in
- ID
- HQ
- 107 E. 7th Ave., Post Falls, ID 83854
- Auditor
- A&G LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- KONALA
- K RESTAURANT MANAGEMENT
- KONALA RE
- KONALA IP
Other brands the franchisor or its parent operates (Item 1).
Overview
About
KONALA franchisees likely operate a single-unit or multi-unit retail/food service establishment (specific industry undisclosed). Day-to-day operations include customer-facing service, inventory management, staff oversight, and compliance with brand standards while remitting 6% weekly royalties on net sales.
- CEO
- Trace Miller
- Headquarters
- ID
- Founded
- 2023
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $35K | $50K |
| Equipment, build-out, other | $492K | $1.2M |
| Total initial investment | $567K | $1.3M |
Source: KONALA 2026 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
$171K
10.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $567K – $1.3M
- Better than avg vs category
- Liquid capital req'd
- $35K – $50K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
- Payback period
- 2.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Total fee load | 8.3% of rev |
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- N/A
- Avg ebitda
- $369K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 40.2%
- Based on EBITDA / investment midpoint
- Item 19 type
- Affiliate-owned
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $1.6M→$1.8M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Konala Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $1.2M
- Median loan
- $1.2M
- 50th percentile
- Charge-off rate
- 0.0%
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Konala's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pre-mature franchise system with only 3 units, unverified financial claims, and insufficient operating history to assess true unit economics or franchisee success rates.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $300,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G LLP⚠ Going-concern note flagged
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: No
Score breakdown · what drove the 36 / 100 rating
- 01MEDOnly 3 units in system with unknown growth trajectory indicates extremely limited track record and inability to validate scalability
- 02MINORWide investment range ($567k-$1.26M) suggests inconsistent unit economics or lack of standardized buildout costs
- 03MINORNo Item 19 financial performance representations despite $1.7M average revenue claim — financial data cannot be independently verified
- 04MINORMinimal franchisee base (3 units) creates severe survivorship bias risk; inability to assess failure rate or franchisee satisfaction
- 05MINORHigh initial investment relative to system size increases per-unit scrutiny and suggests early-stage franchise with unproven model
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 |
| Allowed renewalsℹ | 2 |
| Territory type | Radius-based / Population-based |
| Protected territory | Yes |
| Territory sizeℹ | 40,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Idaho |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 147 hrs
- Training location
- On-site and off-site
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KONALA · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KONALA franchise?
The total investment to open a KONALA franchise ranges from $567K – $1.3M, 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 KONALA franchise owners earn?
According to Item 19 of the KONALA FDD, the average gross sales per unit is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is KONALA's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KONALA (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 KONALA franchise locations are there?
As of their most recent FDD filing, KONALA has 3 total units in the United States, including 0 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is KONALA a good franchise to buy?
FranchiseVerdict rates KONALA as a A-grade franchise with a risk score of 36 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.