MidnighTreatsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A MidnighTreats franchise requires a total initial investment of $133K – $296K, including a $30K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $485K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $133K – $296K
- 15th pct Service Resta…
- Avg gross sales
- $485K
- 8th pct Service Resta…
- Royalty
- 7.0%
- 80th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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.
Franchised units fell from 2 to 1 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $133K – $296K including a $30K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $485K/year (median $485K).
- Verdict A (Top Quintile) with a risk score of 40/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MidnighTreats Franchising, LLC
- Incorporated in
- VA
- HQ
- 11720 Plaza America Drive, Suite 100, Reston, Virginia 20190
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $28K
- vs $91K prior year
Affiliated brands
- owns and operates a MidnighTreats Shop in Reston
- is the owner of the Licensed Marks
- maintains a pr
- MidnighTreats
- MidnighTreats RTC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
MidnighTreats franchisees operate late-night food/beverage retail locations (likely desserts, snacks, or specialty treats based on brand name). Day-to-day operations include inventory management, customer service, food preparation or assembly, point-of-sale management, and evening/night shift staffing to serve the late-night market segment.
- CEO
- Johnny Nguyen
- Headquarters
- VA
- Founded
- 2024
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $93K | $236K |
| Total initial investment | $133K | $296K |
Source: MidnighTreats 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
$68K
14.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $133K – $296K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $485K
- Per unit, per year
- Median gross sales
- $485K
- Item 19 type
- Actual Sales
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $454K→$516K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How MidnighTreats Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
MidnighTreats presents elevated risk due to franchisor financial distress (going concern status), non-disclosure of profitability data, minimal system size, and questionable unit economics relative to investment required.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $30,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
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 40 / 100 rating
- 01HIGHGoing concern status is False — indicates potential financial instability at franchisor level
- 02MEDNet income deliberately not disclosed in Item 19 — prevents accurate ROI analysis and suggests underperformance
- 03MEDOnly 4 units in system with 50% YoY growth — extremely small and unproven franchise model with limited track record
- 04MINORHigh investment range ($132,900–$296,000) relative to only $484,675 average revenue creates unfavorable payback period
- 05MINOR7% royalty on gross sales is standard but painful on thin margins when net income is hidden
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 | Yes |
| 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 | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MidnighTreats · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MidnighTreats franchise?
The total investment to open a MidnighTreats franchise ranges from $133K – $296K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do MidnighTreats franchise owners earn?
According to Item 19 of the MidnighTreats FDD, the average gross sales per unit is $485K. The median is $485K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is MidnighTreats's franchise failure rate?
SBA 7(a) loan charge-off data is not available for MidnighTreats (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 MidnighTreats franchise locations are there?
As of their most recent FDD filing, MidnighTreats has 4 total units in the United States, including 2 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is MidnighTreats a good franchise to buy?
FranchiseVerdict rates MidnighTreats as a A-grade franchise with a risk score of 40 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.