Parlay CafeFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $203K – $459K
- 10th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 1
- 2nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $203K – $459K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 64/100.
- 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
- 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
- $0
- Most recent fiscal year
Overview
About
Parlay Cafe appears to be a coffee/beverage and sports betting or gaming-adjacent cafe concept based on the brand name. Franchisees would manage daily cafe operations including inventory management, staff scheduling, customer service, food/beverage preparation, and point-of-sale transactions, likely with an entertainment or wagering component. The specific operational model and revenue drivers are unclear due to limited public information.
- CEO
- Donald J Mastrangelo
- Founded
- 2020
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing · 20 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 | |
| Initial fees for two to four additional units (ADA)not refundable | $70K | $140K | |
| Miscellaneous expenses (ADA)not refundable | $1K | $5K | |
| Total initial investment | $274K | $604K |
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
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · 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 |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Parlay Cafe Compares
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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single operating unit, regulatory compliance issues, going concern status, and complete lack of unit economics disclosure indicate this is a high-risk, likely struggling franchise system with franchisor financial instability.
Litigation (Item 3)
Consent order with California Commissioner of the Department of Financial Protection and Innovation on March 22, 2022, regarding participation in The Franchise Show in Pasadena, California on October 8-9, 2021. Violation of California franchise rule due to inactive franchise offering registration. Fine of $2,500 paid.
Largest disclosed settlement: $2,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Omar Alnuaimi, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 64 / 100 rating
- 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
- 04HIGHGoing Concern = False indicates financial instability or accounting problems at franchisor level
- 05MINORUnprotected territory creates direct competition risk from other franchisees or franchisor-operated locations
- 06MEDHigh initial investment range ($202,950–$459,200) combined with 6% royalty on undisclosed revenue creates profitability uncertainty
- 07MINOR10-year term is long given single-unit track record and lack of proven unit economics
- 08MINORAbsence of growth trajectory (1 unit) suggests failed sales/support model or business model issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Territory type | Radius |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Aguanga, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Consent order with California Commissioner of the Department of Financial Protection and Innovation on March 22, 2022, regarding participation in The Franchise Show in Pasadena, California on October 8-9, 2021. Violation of California franchise rule due to inactive franchise offering registration. Fine of $2,500 paid.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 22 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- Clover POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover POS
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Parlay Cafe · FDD (2023) PDF
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 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 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, including 0 franchised units and 1 company-owned units.
Is Parlay Cafe a good franchise to buy?
FranchiseVerdict rates Parlay Cafe as a C-grade franchise with a risk score of 64 out of 100, 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
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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.