FranchiseVerdict
Sunrise Shack logo
FV-02499·CAUTIONExcellent81

Sunrise Shack

Food & Beverage - Coffee & TeaFranchising since 2025Website
Investment
$236K – $605K
34th pct Coffee & Tea
Avg revenue
49th pct Coffee & Tea
Royalty
6.0%
50th pct Coffee & Tea
Units
6
36th pct Coffee & Tea
SBA default

Bottom line

  • Total investment $236K – $605K including a $40K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100.
  • 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
Sunrise Shack Franchise, LLC
Parent company
Sunrise Shack Corporation
Incorporated in
Michigan
HQ
PO Box 15554, Honolulu, HI 96830
Auditor
Citrin Cooperman & Company, LLP
Audited financials

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 Sunrise Shack unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $236K–$605K
Working capital
$
FDD reports $50K–$150K

Unlevered ROIC · per unit

14%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$520K
Payback
83 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Sunrise Shack franchisees operate quick-service food or beverage establishments (likely breakfast/morning-focused given brand name), managing daily operations including food preparation, customer service, inventory, staffing, and local marketing within a protected territory.

CEO
Travis Smith
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$236K – $605K
All-in to open one unit
Liquid capital
$50K – $150K
Cash you must have on hand
Franchise fee
$40K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
6
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
6
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0+1
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 11 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

Sunrise Shack presents extreme risk due to going concern status, micro-scale unit count, missing financial performance data, and inability to validate return on investment before committing $235K-$605K.

Score breakdown · what drove the 72 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial instability or solvency issues at corporate level
  2. 02MEDOnly 6 units system-wide suggests minimal scale, limited support infrastructure, and extremely high failure risk
  3. 03MINORNo Average Revenue or Net Income disclosure (Item 19) prevents ROI validation — cannot assess if $235K-$605K investment is recoverable
  4. 04MINORWide investment range ($369,300 spread) with no revenue benchmarks creates inability to model unit economics
  5. 05MINORUnknown growth trajectory with only 6 units raises questions about system viability and franchisee recruitment sustainability
  6. 06MEDHigh royalty rate (6%) on undisclosed revenue base means franchisees cannot predict actual profitability impact

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius/Demographics
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Hawaii

Item 11

Training & Operations

Classroom training
34 hrs
On-the-job training
46 hrs
POS system
Square Point of Sale
Operating tech stack

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

11 numbers

Locked
(401) 277-••••
Director of Depart. of Business Regulation Suite
RI
(651) 296-••••
CT
(212) 416-••••
FL

One-time purchase · CSV download · Validation questions included

FDD download

Sunrise Shack · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above