Puffy Cotton CandyFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Puffy Cotton Candy franchise requires a total initial investment of $130K – $323K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $464K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $130K – $323K
- 14th pct Service Resta…
- Avg gross sales
- $464K
- 7th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 2
- 10th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
63% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $130K – $323K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $464K/year, with an estimated 63% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 34/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Puffy Franchise LLC
- Incorporated in
- TN
- HQ
- 1800 Galleria Blvd. Suite 2320 Franklin, TN 37067
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $127K
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate small-format cotton candy retail kiosks or storefronts, selling colored sugar-spun confections to walk-in customers. Day-to-day work involves machine operation, flavor preparation, customer service, and inventory management. Revenue model depends entirely on foot traffic density and discretionary spending in the chosen location.
- CEO
- Brendon Curtis
- Headquarters
- TN
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Rent | $4K | $8K | |
| Leasehold Improvements | $50K | $75K | |
| Fixtures & Equipment | $2K | $3K | |
| Initial Inventory | $2K | $3K | |
| Insurance | $3K | $6K | |
| Signage | $5K | $7K | |
| Office Equipment & Supplies | $300 | $400 | |
| Computer Equipment (Hardware, Software, POS System, etc.) | $2K | $3K | |
| Pre-Opening Expenses | $5K | $8K | |
| Training | $0 | $4K | |
| Licenses & Permits | $1K | $3K | |
| Legal & Accounting | $2K | $5K | |
| Grand Opening Advertising | $500 | $2K | |
| Additional Funds - three months | $15K | $50K | |
| Total initial investment | $130K | $214K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$65K
14.0% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
4.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $130K – $323K
- Better than avg vs category
- Liquid capital req'd
- $15K – $50K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 1.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $464K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $142K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 62.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual Performance
- Sample size
- 1 units
- vs category median 28 · small
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Puffy Cotton Candy Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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.
Available to sell in · Item 12
- California
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
Puffy Cotton Candy presents high risk due to pre-growth-stage franchising (only 2 units), unverified financial claims, franchisor going concern issues, and complete lack of standardized performance data.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 34 / 100 rating
- 01MINOROnly 2 operating units with unknown growth trajectory indicates minimal system maturity and unproven scalability
- 02HIGHGoing Concern status is False, suggesting financial instability or uncertainty at franchisor level
- 03MEDNo Item 19 (Financial Performance Representations) disclosed, making revenue/profit claims unverifiable and unusually risky for prospective franchisees
- 04MINORWide investment range ($129,800–$322,900) suggests undefined buildout costs and potential for scope creep
- 05MINORExtremely small unit count (2 stores) makes financial averages statistically unreliable and vulnerable to single-unit performance swings
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 |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 102 hrs
- Training location
- On-site and off-site
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Puffy Cotton Candy · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Puffy Cotton Candy franchise?
The total investment to open a Puffy Cotton Candy franchise ranges from $130K – $323K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Puffy Cotton Candy franchise owners earn?
According to Item 19 of the Puffy Cotton Candy FDD, the average gross sales per unit is $464K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Puffy Cotton Candy's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Puffy Cotton Candy (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 Puffy Cotton Candy franchise locations are there?
As of their most recent FDD filing, Puffy Cotton Candy has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Puffy Cotton Candy a good franchise to buy?
FranchiseVerdict rates Puffy Cotton Candy as a A-grade franchise with a risk score of 34 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.