FranchiseVerdict
ORANGE LEAF logo
FV-01839·MODERATEExcellent86

Orange Leaf

Food & Beverage - Full ServiceFranchising since 2022Website
Investment
$349K – $522K
46th pct Full Service
Avg revenue
57th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
61
75th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $349K – $522K including a $30K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 43 loans (below the industry average).
  • System contracting at -12.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
ORANGE LEAF FC, LLC
Parent company
Orange Leaf, LLC
Incorporated in
Texas
HQ
14860 Montfort Drive, Suite 150 PMB 34, Dallas, Texas 75254
Auditor
A&G LLP
Audited financials
Franchisor revenue
$1.3M
vs $1.5M 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 ORANGE LEAF 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: $349K–$522K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

25%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$113K
EBITDA margin
15.0%
Total invested
$450K
Payback
48 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

Orange Leaf franchisees operate self-serve frozen yogurt retail locations where customers fill their own cups, select toppings, and pay by weight. Day-to-day operations include managing equipment, maintaining yogurt and topping inventory, staff scheduling, cleaning, and handling point-of-sale transactions in a fast-casual QSR environment.

CEO
Sherif Mityas
Founded
2020
FDD year
2025
States available
17

Item 7 · what it costs

The Vitals

Total investment
$349K – $522K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$30K
Royalty
5.0%
Gross Revenue · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
8.0%
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
61
Opened
3
Last reporting year
Closed
3
Turnover rate
4.9%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
-12.9%
Compounded over last 3 years
2023
61±0
Franchised units
2024
61
Franchised units
2025
70
Franchised units

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

Item 20 · 30 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 · 30 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
43
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

63
Risk · 0-100
MODERATE63 / 100

HIGH RISK: Franchisor has SEC fraud history, going concern doubts, refuses to disclose financials, operates a stagnant 61-unit system, and extracted permanent securities law injunction against its leader.

Score breakdown · what drove the 63 / 100 rating

  1. 01HIGHFounder/key executive (Sherif Mityas) has SEC securities fraud judgment from 2010 with permanent injunction — indicates financial misrepresentation risk
  2. 02HIGHGoing Concern status is FALSE — suggests parent company or franchisor has material doubt about ability to continue operations
  3. 03MEDNo average revenue or net income disclosed in FDD — inability/unwillingness to provide Item 19 financial performance representation is major red flag
  4. 04MEDOnly 61 units with unknown growth trajectory — small and potentially contracting system with no disclosed unit growth data
  5. 05MEDHigh total investment ($349k-$521.5k) combined with 5% royalty on undisclosed revenue creates cash flow uncertainty
  6. 06MINOR10-year term locks franchisee into relationship with franchisor of questionable financial stability

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius or geographic area
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
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
Texas

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
36 hrs
POS system
Revel
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

74 numbers

Locked
(402) 212-••••
NE
(208) 841-••••
ID
(646) 642-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

ORANGE LEAF · FDD (2025) PDF

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