Sunny On SouthFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A SUNNY ON SOUTH franchise requires a total initial investment of $755K – $2.3M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $755K – $2.3M
- 40th 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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $755K – $2.3M including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 77/100.
- 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
- Sunny on South Franchises LLC
- CEO title
- Managing Member
- Todd Tsujioka
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 13351 South Street, Cerritos, CA 90703
Overview
About
Sunny on South appears to be a restaurant or food service concept (likely sandwich/casual dining based on naming convention). Franchisees manage daily operations including food preparation, customer service, inventory management, and staff supervision while paying 6% royalties or $500 monthly minimum to the franchisor.
- CEO
- Todd Tsujioka
- Headquarters
- CA
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $100K | $150K |
| Equipment, build-out, other | $615K | $2.1M |
| Total initial investment | $755K | $2.3M |
Source: SUNNY ON SOUTH 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
- $755K – $2.3M
- Better than avg vs category
- Liquid capital req'd
- $100K – $150K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Monthly · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $20K |
| Total fee load | 7.0% 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 Sunny On South 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
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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-unit franchise with undisclosed financials, uncertain growth potential, and possible going concern issues presents extreme risk despite territorial protection.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 77 / 100 rating
- 01MINOROnly 1 existing unit with unknown growth trajectory indicates unproven system scalability
- 02MINORNo Item 19 (average revenue/net income disclosure) prevents ROI validation and suggests weak financial performance or franchisor reluctance to disclose
- 03HIGHGoing Concern flag is FALSE, meaning the franchisor may have solvency/operational viability issues
- 04MINORHigh investment range ($755K-$2.3M) paired with unvalidated revenue makes ROI timeline unclear
- 05MINORMinimum $500/month royalty on potentially low-revenue locations creates breakeven risk
- 06MINOR10-year term with $40K franchise fee locks franchisees into commitment without performance data
- 07HIGHNo litigation disclosure requirement met suggests either no disclosure obligation (younger brand) or deliberately opaque FDD
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 |
| Allowed renewalsℹ | 1 |
| Territory type | radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 6 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site at franchisee's restaurant and franchisor's facility
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- TOAST
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SUNNY ON SOUTH · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SUNNY ON SOUTH franchise?
The total investment to open a SUNNY ON SOUTH franchise ranges from $755K – $2.3M, 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 SUNNY ON SOUTH franchise owners earn?
SUNNY ON SOUTH 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 SUNNY ON SOUTH's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SUNNY ON SOUTH (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 SUNNY ON SOUTH franchise locations are there?
As of their most recent FDD filing, SUNNY ON SOUTH has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is SUNNY ON SOUTH a good franchise to buy?
FranchiseVerdict rates SUNNY ON SOUTH as a D-grade franchise with a risk score of 77 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.