Milkshake FactoryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Milkshake Factory franchise requires a total initial investment of $510K – $773K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $716K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $510K – $773K
- 33rd pct Service Resta…
- Avg gross sales
- $716K
- 5th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 14
- 25th 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 2023. 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.
21% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $510K – $773K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $716K/year, with an estimated 21% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 48/100.
- 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
- Milkshake Factory Franchise, LLC
- Parent company
- Edwards MSF Holdings, LLC and FW-MSF Holdings, LLC
- Incorporated in
- DE
- HQ
- 106 E. Liberty Street, Suite 310, Ann Arbor, Michigan 48104
- Auditor
- DoerenMayhew
- Audited financials
- Franchisor revenue
- $119K
- vs $900K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- 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.
Overview
About
Franchisees operate quick-service beverage retail locations specializing in premium milkshakes and frozen drinks. Day-to-day operations include ingredient prep, blending/serving customer orders, point-of-sale management, inventory control, staffing, and local marketing to drive foot traffic and repeat business.
- CEO
- Dana Edwards Manatos
- Headquarters
- MI
- Founded
- 2022
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $15K | $40K |
| Equipment, build-out, other | $435K | $673K |
| Total initial investment | $510K | $773K |
Source: Milkshake Factory 2025 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
$72K
10.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $510K – $773K
- Better than avg vs category
- Liquid capital req'd
- $15K – $40K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 4.7 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 | $4K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $716K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $135K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 21.1%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 9 units
- vs category median 13
- Range (low → high)
- $532K→$923K
- Cohort dispersion (min → max)
- Quartile band
- $532K→$923K
- Bottom 25% → top 25%
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Milkshake Factory Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 4
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 29%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 4
- 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 · 13 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 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $3.2M
- Median loan
- $586K
- 50th percentile
- Charge-off rate
- N/A
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
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Milkshake Factory's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Milkshake Factory presents moderate-to-cautionary risk: a micro-franchise system with thin unit profitability, undisclosed growth metrics, and high capital requirements relative to demonstrated returns.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $110,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DoerenMayhew⚠ 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: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 48 / 100 rating
- 01MINOROnly 14 units system-wide with unknown/stagnant growth trajectory raises scalability and viability concerns
- 02MINORNet income of $89,973 on $716,078 revenue (12.6% net margin) is thin; 6% royalty + operating costs leave minimal cushion
- 03MINORHigh initial investment range ($510K–$773K) against modest profitability creates extended breakeven period and elevated financial risk
- 04MEDNo Item 19 financial performance representations disclosed; cannot validate franchisor's average revenue/income claims independently
- 05MINORSmall franchise system (14 units) limits peer benchmarking, support infrastructure, and brand recognition leverage
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 | 2 |
| Territory type | Radius or Population based |
| Protected territory | Yes |
| Territory sizeℹ | 75,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| 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
- 85 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Milkshake Factory · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Milkshake Factory franchise?
The total investment to open a Milkshake Factory franchise ranges from $510K – $773K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Milkshake Factory franchise owners earn?
According to Item 19 of the Milkshake Factory FDD, the average gross sales per unit is $716K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Milkshake Factory's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Milkshake Factory (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 Milkshake Factory franchise locations are there?
As of their most recent FDD filing, Milkshake Factory has 14 total units in the United States, including 0 franchised units and 10 company-owned units. 4 new units were opened in the latest reporting year.
Is Milkshake Factory a good franchise to buy?
FranchiseVerdict rates Milkshake Factory as a A-grade franchise with a risk score of 48 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.