The Breakfast Club at Midtown
Bottom line
- Total investment $612K – $946K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.8M/year (median $3.8M).
- Rated MODERATE with a risk score of 60/100.
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 The Breakfast Club at Midtown unit return on the cash you put in?
Unlevered ROIC · per unit
76%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Breakfast Club at Midtown units return on equity?
Equity IRR · 5-yr
24.4%
2.98× MOIC
Year-1 DSCR
3.49×
EBITDA ÷ debt service
Equity required
$21.8M
on $38.3M purchase
Total debt
$16.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate a breakfast-focused restaurant in Midtown locations, managing food preparation, customer service, inventory, staffing, and daily operations. Revenue averaging $3.8M annually suggests a full-service or fast-casual format with significant seat count or delivery volume. Franchisees remit 5% of gross revenues to franchisor while bearing all operational costs, rent, labor, and food procurement.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Small, opaque breakfast concept with going concern issues, undisclosed profitability, and a high capital requirement relative to system maturity — high risk of franchisor instability and unmet franchisee ROI expectations.
Score breakdown · what drove the 60 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may be experiencing financial distress or operational instability
- 02MEDNet Income not disclosed — inability to assess actual profitability; average revenue of $3.8M may not translate to acceptable franchisee margins after 5% royalty, CoGS, and labor
- 03MINOROnly 5 units with unknown growth trajectory — extremely small system with no visibility into expansion plans or unit growth rate
- 04MEDHigh investment range ($611K-$945K) relative to system size — limited economies of scale and unclear unit economics
- 05MINORNo Item 19 financial performance representations — franchisor not willing to substantiate earnings claims, making ROI projections unverifiable
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.
FDD download
The Breakfast Club at Midtown · FDD (2025) PDF