NrGize Lifestyle Cafe Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
NrGize Lifestyle Cafe is a quick-service franchise serving protein smoothies, energy drinks, and supplements, often inside fitness clubs. Franchisees run the cafes, managing prep, retail supplements, and counter service.
FranchiseVerdict summary · 2026
A NrGize Lifestyle Cafe franchise requires a total initial investment of $110K – $454K, including a $30K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $110K – $454K
- 7th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 57
- 67th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $110K – $454K including a $30K franchise fee.
- RETURNSAudited consolidated financial statements are for MTY Franchising USA, Inc. (the franchisor's parent), not the franchisor entity (Kahala Franchising, L.L.C.) itself. Figures reported in thousands of US dollars; FY ended November 30, 2023 (revenue $580,280K) and 2022 (revenue $263,686K). Auditor opinion dated February 2, 2024, Montreal, Canada.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- LEGAL20 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
Corporate structure & franchisor financials
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- MTY Franchising USA, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- Kahala Franchise Corp.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 19 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP (PwC)
- Audited financials
- Franchisor revenue
- $580.3M
- vs $263.7M prior year
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 57% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown39 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional) | $14K | $30K | |
| Lease Review Fee (Traditional) | $0 | $3K | |
| Rent/Security Deposit (for 3 months) (Traditional) | $6K | $30K | |
| Travel and Living Expenses (2 persons) during training (Traditional) | $3K | $5K | |
| Real Estate (Traditional) | — | — | |
| Leasehold Improvements, Restaurant Equipment, Furniture, Small Wares, Menu Panels, Computer Hardware, Cameras, Architectural Fees, Signage, Security Devices/Software (POS System) (Traditional) | $66K | $335K | |
| PCI Compliance Costs (Traditional) | $150 | $1K | |
| Opening Inventory (food and paper) (Traditional) | $3K | $7K | |
| Business Insurance (Traditional) | $1K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $5K | $16K | |
| Grand Opening Marketing (Traditional) | $5K | $5K | |
| Depository Account (Traditional) | $3K | $3K | |
| Additional Funds - 3 month initial period (Traditional) | $5K | $15K | |
| Initial Franchise Fee (Non-Traditional) | $4K | $8K | |
| Lease Review Fee (Non-Traditional) | $0 | $3K | |
| Rent/Security Deposit (for 3 months) (Non-Traditional) | $6K | $30K | |
| Travel and Living Expenses (2 persons) during training (Non-Traditional) | $3K | $5K | |
| Real Estate (Non-Traditional) | — | — | |
| Architectural and Project Management Fees (Non-Traditional) | $10K | $20K | |
| Leasehold Improvements (Non-Traditional) | $15K | $184K | |
| Total initial investment | $352K | $1.2M |
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
- $110K – $454K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $15K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- Greater of 6% of total weekly Gross Sales or $150 per wee…
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 6% of total weekly Gross Sales or $150 per week |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $75 |
| Training fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $15K |
| Inventory (initial) | $3K – $7K |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
NrGize Lifestyle Cafe did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one NrGize Lifestyle Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
40%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited consolidated financial statements are for MTY Franchising USA, Inc. (the franchisor's parent), not the franchisor entity (Kahala Franchising, L.L.C.) itself. Figures reported in thousands of US dollars; FY ended November 30, 2023 (revenue $580,280K) and 2022 (revenue $263,686K). Auditor opinion dated February 2, 2024, Montreal, Canada.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.5% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -5.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How NrGize Lifestyle Cafe Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 57
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -5.0%
- Net unit change over 3 years
- 3-yr CAGR
- -5.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 7.0%
- Owners selling to other franchisees
- Ceased ops
- 1.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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
- $437K
- Median loan
- $77K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (6 loans) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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.
Litigation (Item 3)
20 cases disclosed involving franchisor and affiliates/predecessors. Includes concluded arbitrations and litigation for Kahala Franchising, MTY USA predecessor, SweetFrog, Famous Dave's, Papa Murphy's, Wetzel's Pretzels, VI BrandCo, BF Acquisition, Maui Wowi, and Blimpie. Two current fiscal year suits by franchisor against franchisees for breach of contract.
Largest disclosed settlement: $4,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP (PwC)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 55 / 100 verdict
- 01MINORNo Item 19 (Average Unit Volume) disclosure—inability to assess unit economics or profitability claims
- 02HIGHMultiple litigation matters involving breach of contract and misrepresentation allegations against franchisor
- 03MINORUnprotected territory creates direct competition risk from other NrGize franchisees and company-owned units
- 04MINORRoyalty structure ($150/week minimum) represents fixed overhead even during slow revenue periods
- 05MEDOnly 57 total units with unknown growth trajectory suggests limited brand recognition and system maturity
- 06MINORTwo active franchisor lawsuits against franchisees signal potential disputes over performance standards or contract terms
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | franchisee_state |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
20 cases disclosed involving franchisor and affiliates/predecessors. Includes concluded arbitrations and litigation for Kahala Franchising, MTY USA predecessor, SweetFrog, Famous Dave's, Papa Murphy's, Wetzel's Pretzels, VI BrandCo, BF Acquisition, Maui Wowi, and Blimpie. Two current fiscal year suits by franchisor against franchisees for breach of contract.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 16 hrs
- Training location
- Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ; in-store training at training restaurant in Arizona
- Time to open
- 9 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
NrGize Lifestyle Cafe · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a NrGize Lifestyle Cafe franchise?
The total investment to open a NrGize Lifestyle Cafe franchise ranges from $110K – $454K, 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 NrGize Lifestyle Cafe franchise owners earn?
NrGize Lifestyle Cafe 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 Item 19 in the NrGize Lifestyle Cafe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the NrGize Lifestyle Cafe FDD and qualifies whose outlets they describe.
What is NrGize Lifestyle Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for NrGize Lifestyle Cafe (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 NrGize Lifestyle Cafe franchise locations are there?
As of their most recent FDD filing, NrGize Lifestyle Cafe has 57 total units in the United States, including 57 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is NrGize Lifestyle Cafe a good franchise to buy?
FranchiseVerdict rates NrGize Lifestyle Cafe as a B-grade franchise with a verdict score of 55 out of 100 (higher is better), 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
Are you the franchisor?
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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.