Parlay Cafe Franchise Cost, Revenue & Review 2026
- Investment
- $203K – $459K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Parlay Cafe is a hybrid franchise combining a coffee cafe with shared workspace, offering coffee and food alongside VIP lounges, phone booths, and conference rooms. Franchisees run the cafes, managing food and beverage, memberships, and facilities.
FranchiseVerdict summary · 2026
A Parlay Cafe franchise requires a total initial investment of $203K – $459K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $203K – $459K
- 8th pct Service Resta…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 25th pct Service Resta…
- Units
- 1
- 1st pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · 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 $203K – $459K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 25/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Parlay, Inc.
- CEO title
- Founder/CEO
- Donald J Mastrangelo
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 49851 Flightline Way, Aguanga CA 92536
- Auditor
- Omar Alnuaimi, CPA
- Audited financials
- Franchisor revenue
- $24K
- Most recent fiscal year
Overview
About
- CEO
- Donald J Mastrangelo
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise feenot refundable | $30K | $30K | |
| Site Selection feenot refundable | $5K | $5K | |
| Training feenot refundable | $15K | $15K | |
| Rent and Lease Security Deposit | $2K | $11K | |
| Utilities | $500 | $1K | |
| Leasehold Improvementsnot refundable | $25K | $150K | |
| Market Introduction Programnot refundable | $1K | $3K | |
| Furniture, Fixtures, and Equipmentnot refundable | $75K | $150K | |
| Computer Systemsnot refundable | $2K | $3K | |
| Insurancenot refundable | $1K | $3K | |
| Signagenot refundable | $10K | $15K | |
| Office Expensesnot refundable | $1K | $2K | |
| Inventorynot refundable | $5K | $10K | |
| Licenses and Permitsnot refundable | $500 | $2K | |
| Dues and Subscriptionsnot refundable | $1K | $2K | |
| Professional Fees (lawyer, accountant, etc.)not refundable | $1K | $3K | |
| Travel, lodging and meals for initial trainingnot refundable | $3K | $6K | |
| Additional funds (for first 3 months)not refundable | $25K | $50K | |
| Total initial investment | $203K | $459K |
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
- $203K – $459K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $15K |
| Transfer fee | $15K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Parlay Cafe makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Parlay Cafe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 8.0% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 Full-Service Restaurants medians
How Parlay Cafe Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 13
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Consent order with California Commissioner of the Department of Financial Protection and Innovation (March 22, 2022) regarding participation in The Franchise Show in Pasadena on October 8-9, 2021 while franchise offering registration was not active. Paid $2,500 fine.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Omar Alnuaimi, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financials for Parlay Inc. for year ended December 31, 2022. Revenue is "Consulting Revenue" of $24,037 (no franchise royalty/franchise-fee revenue line broken out). Net loss of $33,229. Single-year audited statement only.
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 25 / 100 verdict
- 01MINOROnly 1 operating unit signals minimal or failed franchise expansion despite offering since unknown date
- 02MINORNo average revenue or net income disclosure (Item 19) prevents accurate ROI assessment and suggests poor unit performance
- 03MINORRegulatory violation in March 2022 (unlicensed franchise show participation + $2,500 fine) indicates compliance gaps and potential enforcement risk
- 04MINORUnprotected territory creates direct competition risk from other franchisees or franchisor-operated locations
- 05MEDHigh initial investment range ($202,950–$459,200) combined with 6% royalty on undisclosed revenue creates profitability uncertainty
- 06MINOR10-year term is long given single-unit track record and lack of proven unit economics
- 07MINORAbsence of growth trajectory (1 unit) suggests failed sales/support model or business model issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| 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 | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Aguanga, California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 1 |
View Item 3 litigation summary
Consent order with California Commissioner of the Department of Financial Protection and Innovation (March 22, 2022) regarding participation in The Franchise Show in Pasadena on October 8-9, 2021 while franchise offering registration was not active. Paid $2,500 fine.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 22 hrs
- Training location
- Temecula, CA or franchisee location
- Ongoing training
- Optional
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Clover POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover POS
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Parlay Cafe franchise?
The total investment to open a Parlay Cafe franchise ranges from $203K – $459K, 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 Parlay Cafe franchise owners earn?
Parlay Cafe makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Parlay Cafe?
Parlay Cafe is franchised by Parlay, Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Parlay 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 Parlay Cafe FDD and qualifies whose outlets they describe.
What is Parlay Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Parlay 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 Parlay Cafe franchise locations are there?
As of their most recent FDD filing, Parlay Cafe has 1 total units in the United States.
Is Parlay Cafe a good franchise to buy?
FranchiseVerdict rates Parlay Cafe as a F-grade franchise with a verdict score of 25 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.