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.
- Rated CAUTION with a risk score of 74/100.
- 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
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 Parlay Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
31%
In Yale's "attractive" band (30–60%)
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.
Item 7 · what it costs
The Vitals
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
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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 74 / 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
Item 11
Training & Operations
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Parlay Cafe · FDD (2023) PDF