The Breakfast Club at MidtownFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Breakfast Club at Midtown franchise requires a total initial investment of $612K – $946K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $3.8M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $612K – $946K
- 37th pct Service Resta…
- Avg gross sales
- $3.8M
- 27th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 5
- 13th 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
Each dollar invested generates 4.9x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $612K – $946K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.8M/year.
- Verdict A (Top Quintile) with a risk score of 29/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Breakfast Club Franchising, Inc.
- CEO title
- Manager
- Spiro Tsaboukos
- CEO experience
- 2014 yrs
- Years in role or industry
- Incorporated in
- CA
- HQ
- 1432 West San Carlos Street, Suite 50, San Jose, California 95126
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.
- CEO
- Spiro Tsaboukos
- Headquarters
- CA
- Founded
- 2022
- 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) | $50K | $100K |
| Equipment, build-out, other | $522K | $806K |
| Total initial investment | $612K | $946K |
Source: The Breakfast Club at Midtown 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$459K
12.0% margin
Unlevered ROIC
54%
EBITDA / total invested capital
Payback
22 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $612K – $946K
- Better than avg vs category
- Liquid capital req'd
- $50K – $100K
- Better than avg vs category
- Franchise fee
- $32K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 31.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $25 |
| Training fee | $300 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Total fee load | 31.0% of rev |
At 31.0% total fee load, roughly $1186K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $3.8M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate financials
- Sample size
- 1 units
- vs category median 13 · small
- Range (low → high)
- $3.8M→$3.8M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
Revenue is 4.9x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How The Breakfast Club at Midtown Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 3
- 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
- 2
- Corporate units in the system
- % franchised
- 60%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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)
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
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.
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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population and Zip Codes |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | 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 | Yes |
| Arbitration location | San Jose, California |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 262 hrs
- Training location
- Franchisor location and on-site
- 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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Breakfast Club at Midtown franchise?
The total investment to open a The Breakfast Club at Midtown franchise ranges from $612K – $946K, 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 The Breakfast Club at Midtown franchise owners earn?
According to Item 19 of the The Breakfast Club at Midtown FDD, the average gross sales per unit is $3.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Breakfast Club at Midtown's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Breakfast Club at Midtown (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 The Breakfast Club at Midtown franchise locations are there?
As of their most recent FDD filing, The Breakfast Club at Midtown has 5 total units in the United States, including 0 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is The Breakfast Club at Midtown a good franchise to buy?
FranchiseVerdict rates The Breakfast Club at Midtown as a A-grade franchise with a risk score of 29 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.