FranchiseVerdict
New York Fries logo
FV-01766·CAUTIONExcellent81

New York Fries

Food & Beverage - Full ServiceFranchising since 2021Website
Investment
$450K – $1.2M
59th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
4
20th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $450K – $1.2M including a $30K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • 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
Recipe Unlimited US, LLC
Parent company
Recipe Unlimited Corporation
Incorporated in
Delaware
HQ
199 Four Valley Drive, Vaughan, Ontario, Canada L4K 0B8
Auditor
KPMG LLP
Audited financials
Franchisor revenue
$1.4B
vs $1.4B prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one New York Fries unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $450K–$1.2M
Working capital
$
FDD reports $25K–$30K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$109K
EBITDA margin
14.5%
Total invested
$869K
Payback
96 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

New York Fries franchisees operate quick-service restaurants specializing in premium fries, hot dogs, and casual fast-food items, typically in high-traffic locations (malls, urban centers). Day-to-day operations include food preparation, inventory management, staff scheduling, and customer service in a counter-service model with limited seating.

CEO
Dave Colebrook
Founded
2021
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$450K – $1.2M
All-in to open one unit
Liquid capital
$25K – $30K
Cash you must have on hand
Franchise fee
$30K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
2.5%
typical 3–5%
Total fee load
8.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
4
Opened
4
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
4
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0+4
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

New York Fries presents HIGH RISK due to a near-defunct 4-unit system, multiple pending lawsuits for misrepresentation, missing financial disclosures, and unprotected territories—investors cannot assess returns or validate the business model.

Score breakdown · what drove the 72 / 100 rating

  1. 01MINOROnly 4 operating units suggests a collapsing or stalled franchise system with minimal growth trajectory
  2. 02MINORSix pending legal actions against parent company involving misrepresentation and breach of contract indicate systemic operational or disclosure issues
  3. 03MEDNo average revenue or net income disclosed (missing Item 19) prevents accurate ROI assessment on $450k-$1.2M investment
  4. 04MINORUnprotected territory creates direct competition risk—franchisees can cannibalize each other's sales in same market
  5. 05MED6% royalty on undisclosed revenue streams makes profitability modeling impossible; combined with $30k fee, margin sustainability is unclear
  6. 06MINOR10-year term with only 4 units suggests poor franchisee retention and high failure/exit rates
  7. 07HIGHParent company litigation in multiple countries (Canada, India) indicates franchise model may be fundamentally flawed or misrepresented

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
6
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
21 hrs
On-the-job training
106 hrs
POS system
Oracle
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

1 numbers

Locked
(905) 265-••••
KPMG LLP

One-time purchase · CSV download · Validation questions included

FDD download

New York Fries · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above