LYTEbiteFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A LYTEbite franchise requires a total initial investment of $293K – $500K, including a $20K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $293K – $500K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 0
- 0th 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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $293K – $500K including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LYTEbite, LLC
- CEO title
- Chief Executive Officer
- Ryan Sipp
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- AZ
- HQ
- 890 N. 54th St., Suite A-2, Chandler, AZ, 85226
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
LYTEbite franchisees operate fast-casual food/beverage locations (appears to be health-focused or tech-enabled dining based on brand name). Day-to-day operations likely involve point-of-sale management, food preparation/ordering, staff scheduling, inventory management, and customer service in a standalone or co-branded location.
- CEO
- Ryan Sipp
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $20K | $20K | |
| Real Estate - Lease Payments (1 month plus security deposit) | $16K | $26K | |
| Architectural Fee | $7K | $10K | |
| Technology & POS System | $7K | $12K | |
| Equipment, Fixtures, and Furnishings | $41K | $86K | |
| Small Wares | $6K | $10K | |
| Leasehold Improvements | $40K | $115K | |
| Local Utilities | $700 | $2K | |
| Signage | $6K | $11K | |
| Start-Up Inventory | $8K | $12K | |
| Staffing & Payroll | $9K | $15K | |
| Uniforms | $500 | $1K | |
| Insurance | $4K | $7K | |
| Licenses & Permits | $2K | $3K | |
| Professional Services | $3K | $5K | |
| Travel Expenses for Training | $1K | $4K | |
| Grand Opening Advertising | $3K | $3K | |
| Additional Funds (3 months) | $120K | $160K | |
| Total initial investment | $293K | $500K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $293K – $500K
- Better than avg vs category
- Liquid capital req'd
- $120K – $160K
- Near category avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $310 |
| Training fee | $250 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How LYTEbite Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
LYTEbite presents HIGH RISK due to zero operating franchises, going concern status, missing financial disclosures, and unproven unit economics despite requiring $293k–$500k investment.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 57 / 100 rating
- 01MINORZero existing franchise units despite established brand — indicates system failure or pre-launch status
- 02HIGHGoing concern warning is present — franchisor may face financial viability issues
- 03MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims
- 04MINORHigh investment range ($293k-$500k) with no performance benchmarks creates significant downside risk
- 05MINORUnknown unit growth trajectory — cannot assess market traction or franchisee success rates
- 06MED5% royalty on undisclosed revenues — franchisees cannot project actual take-home profitability
- 07HIGHNo disclosed litigation but going concern flag suggests underlying operational distress
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 5 mi |
| Online sales rightsℹ | 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 | 30 days |
| Mandatory arbitration | No |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 32 hrs
- Training location
- Franchisee's store
- Field support
- 96 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LYTEbite franchise?
The total investment to open a LYTEbite franchise ranges from $293K – $500K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LYTEbite franchise owners earn?
LYTEbite does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is LYTEbite's franchise failure rate?
SBA 7(a) loan charge-off data is not available for LYTEbite (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.
Is LYTEbite a good franchise to buy?
FranchiseVerdict rates LYTEbite as a B-grade franchise with a risk score of 57 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.