FranchiseVerdict
NrGize Lifestyle Cafe logo
FV-01799·MODERATEExcellent81

NrGize Lifestyle Cafe

Food & Beverage - Quick ServiceFranchising since 2006Website
Investment
$89K – $454K
8th pct Quick Service
Avg revenue
60th pct Quick Service
Royalty
Units
57
60th pct Quick Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $89K – $454K including a $30K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
  • 21 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Kahala Franchising, L.L.C.
Parent company
MTY Franchising USA, Inc.
Incorporated in
Arizona
HQ
9311 E. Via De Ventura, Scottsdale, Arizona 85258
Auditor
PricewaterhouseCoopers LLP
Audited financials
Franchisor revenue
$606.6M
vs $597.5M 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 NrGize Lifestyle Cafe 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: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $89K–$454K
Working capital
$
FDD reports $5K–$15K

Unlevered ROIC · per unit

41%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$116K
EBITDA margin
15.5%
Total invested
$282K
Payback
29 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

NrGize Lifestyle Cafe franchisees operate fast-casual beverage and healthy lifestyle retail locations, serving energy drinks, wellness supplements, and health-focused beverages. Day-to-day operations include inventory management, POS transactions, staff scheduling, customer service, and promotional activities to drive foot traffic and repeat business. Franchisees are responsible for local marketing, lease negotiation, and maintaining brand standards across their territory.

CEO
Eric Lefebvre
Founded
2008
FDD year
2025
States available
11

Item 7 · what it costs

The Vitals

Total investment
$89K – $454K
All-in to open one unit
Liquid capital
$5K – $15K
Cash you must have on hand
Franchise fee
$30K
Royalty
Greater of 6% of weekly Gross Sales or $150 per week
Ad fund
0.5%
typical 3–5%
Total fee load
6.5%
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
57
Opened
1
Last reporting year
Closed
1
Turnover rate
1.8%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
-5.0%
Compounded over last 3 years
2023
57±0
Franchised units
2024
57
Franchised units
2025
60
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 9 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 9 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

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

Total loans
7
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

65
Risk · 0-100
MODERATE65 / 100

NrGize presents meaningful risks due to undisclosed financials, unprotected territory, litigation history involving misrepresentation, and an opaque unit economics picture that prevents accurate ROI assessment.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINORNo Item 19 (Average Unit Volume) disclosure—inability to assess unit economics or profitability claims
  2. 02HIGHMultiple litigation matters involving breach of contract and misrepresentation allegations against franchisor
  3. 03MINORUnprotected territory creates direct competition risk from other NrGize franchisees and company-owned units
  4. 04MINORRoyalty structure ($150/week minimum) represents fixed overhead even during slow revenue periods
  5. 05MEDOnly 57 total units with unknown growth trajectory suggests limited brand recognition and system maturity
  6. 06MINORWide investment range ($89K–$454K) indicates inconsistent unit models or unclear cost structure
  7. 07MINORTwo active franchisor lawsuits against franchisees signal potential disputes over performance standards or contract terms

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
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
21
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Arizona

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
16 hrs

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

10 numbers

Locked
(585) 944-••••
NY
(401) 462-••••
RI
(267) 264-••••
PA

One-time purchase · CSV download · Validation questions included

FDD download

NrGize Lifestyle Cafe · FDD (2025) PDF

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