Sunny Street Café
Formerly known as Red Robin International
Bottom line
- Total investment $465K – $1.3M including a $35K franchise fee, 5.3% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Sunny Street Café unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sunny Street Café units return on equity?
Equity IRR · 5-yr
47.3%
6.94× MOIC
Year-1 DSCR
1.93×
EBITDA ÷ debt service
Equity required
$2.3M
on $10.4M purchase
Total debt
$8.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service café locations serving specialty coffee, light breakfast/lunch items, and beverages in high-traffic retail or commercial spaces. Day-to-day operations include staff scheduling, inventory management, food preparation, customer service, and local marketing—with significant labor and supply chain dependencies.
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 · 13 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
Sunny Street Café presents caution-level risk due to undisclosed profitability data, corporate going concern status, unprotected territory, and stagnant unit growth—requiring extensive franchisee validation before investment.
Score breakdown · what drove the 65 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation and profitability assessment
- 02HIGHGoing Concern status is False — indicates potential financial distress at corporate level
- 03MINORUnprotected territory creates direct competition risk from other Sunny Street franchisees
- 04MINORSmall unit count (22 locations) with unknown growth trajectory suggests stagnation
- 05MINORWide investment range ($464K-$1.3M) indicates inconsistent unit economics or hidden variables
- 06MINOR5.25% royalty + $250/week minimum ($13K annually) creates fixed cost burden on lower-revenue units
- 07MINOR10-year term is lengthy commitment with no territory protection or performance guarantees
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sunny Street Café · FDD (2025) PDF