Qargo CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Qargo Coffee franchise requires a total initial investment of $279K – $625K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $279K – $625K
- 53rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 6
- 25th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $279K – $625K including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 50/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Qargo Coffee, Inc.
- Incorporated in
- DE
- HQ
- 701 Brickell Avenue, Suite 1550, Miami, FL 33131
- Auditor
- Etiendem CPA
- Audited financials
- Franchisor revenue
- $722K
- vs $1.0M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate Qargo Coffee retail locations, likely coffee and beverage service businesses serving customers in their protected territory. Day-to-day operations include inventory management, barista/staff management, customer service, and compliance with brand standards. Franchisees pay 6% royalties on gross revenue while bearing all operational costs with no disclosed profitability benchmarks.
- CEO
- Samir Shenouda
- Headquarters
- FL
- Founded
- 2020
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $179K | $475K |
| Total initial investment | $279K | $625K |
Source: Qargo Coffee 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $279K – $625K
- Near category avg vs category
- Liquid capital req'd
- $50K – $100K
- Below avg, review vs category
- Franchise fee
- $40K – $50K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Revenue · 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 |
| Technology fee | $6K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| 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 Quick-Service Restaurants averages
How Qargo Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 5
- Last reporting year
- Closed
- 1
- Turnover rate
- 16.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +200.0%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $820K
- Median loan
- $273K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Qargo Coffee presents high investment risk: recent FTC fraud settlement, non-transparent financials, micro-scale system (6 units), going concern issues, and unproven unit economics.
Audited financials (Item 21)
Yes · Etiendem CPA⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 50 / 100 rating
- 01HIGHFTC litigation in October 2024 for material misstatements about time-to-open and bankruptcy disclosures—indicates potential deceptive practices
- 02MINORNo average unit volume (AUV) or net income disclosure—inability to assess actual profitability or ROI on $278,500-$624,500 investment
- 03MEDOnly 6 units system-wide with 200% YoY growth suggests extremely small, nascent franchisor with limited track record and data reliability
- 04MINOROfficers named in FTC complaint (Mark Bastorous, Bernadette Bastorous, Samir Shenouda) raise questions about management credibility and oversight
- 05HIGHGoing concern status true—signals potential financial instability at corporate level affecting support and franchisor viability
- 06MED6% royalty rate on undisclosed revenue with no Item 19 financial performance representations limits franchisee ability to validate earnings potential
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 | 5 years |
| Territory type | Zip codes or other physical, political or natural boundaries |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 90 hrs
- POS system
- POS System Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System Software
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Qargo Coffee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Qargo Coffee franchise?
The total investment to open a Qargo Coffee franchise ranges from $279K – $625K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Qargo Coffee franchise owners earn?
Qargo Coffee 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 Qargo Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Qargo Coffee (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 Qargo Coffee franchise locations are there?
As of their most recent FDD filing, Qargo Coffee has 6 total units in the United States, including 2 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is Qargo Coffee a good franchise to buy?
FranchiseVerdict rates Qargo Coffee as a A-grade franchise with a risk score of 50 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.