Sugar Sugar
Bottom line
- Total investment $162K – $421K including a $36K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $356K/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
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 Sugar Sugar unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sugar Sugar units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.7M purchase
Total debt
$4.6M
SBA $2.8M + senior + seller note
Overview
About
Sugar Sugar franchisees operate dessert-focused retail establishments (likely confectionery, frozen treats, or baked goods) in protected territories. Day-to-day operations include inventory management, staff scheduling, point-of-sale transactions, customer service, and promotional activities. Franchisees are responsible for local marketing, rent/lease management, and maintaining brand standards across product quality and store presentation.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid unit expansion masking franchisor instability, combined with undisclosed profitability and ambiguous cost structures, presents significant operational and financial risk.
Score breakdown · what drove the 57 / 100 rating
- 01MINORNo Item 19 (net income) disclosure — inability to validate profitability claims against $356K average revenue
- 02MINORExtreme unit growth (400% YoY) with only 9 units suggests either aggressive recruitment or unreliable historical data
- 03HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level
- 04MINORWide investment range ($161.7K–$420.6K) suggests inconsistent unit economics or variable market conditions
- 05MINOR6% royalty on gross (not net) revenue creates cash flow pressure, especially if net margins are thin
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sugar Sugar · FDD (2025) PDF