FranchiseVerdict
The Rush Coffee logo
FV-02701·CAUTIONExcellent86

The Rush Coffee

Food & Beverage - Coffee & TeaFranchising since 2021Website
Investment
$73K – $246K
1st pct Coffee & Tea
Avg revenue
49th pct Coffee & Tea
Royalty
5.0%
17th pct Coffee & Tea
Units
6
36th pct Coffee & Tea
SBA default

Bottom line

  • Total investment $73K – $246K including a $22K franchise fee, 5.0% 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.

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Rush Coffee Franchise Group LLC
Incorporated in
California
HQ
757 N. Twin Oaks Valley Rd., Suite 2, San Marcos, CA 92069
Auditor
Velez Hardy
Audited financials
Franchisor revenue
$46K
vs $65K prior year

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 Rush Coffee 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: $73K–$246K
Working capital
$
FDD reports $5K–$15K

Unlevered ROIC · per unit

53%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$169K
Payback
23 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

The Rush Coffee franchisees operate specialty coffee retail locations, likely featuring espresso-based beverages, specialty drinks, and grab-and-go coffee products. Day-to-day operations include managing barista staff, inventory procurement, customer service, point-of-sale management, and brand compliance within a protected territory.

CEO
Parsegh Oksayan
Founded
2021
FDD year
2025
States available
4

Item 7 · what it costs

The Vitals

Total investment
$73K – $246K
All-in to open one unit
Liquid capital
$5K – $15K
Cash you must have on hand
Franchise fee
$22K
Royalty
5.0%
Percentage and fixed monthly fee · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
6.0%
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
3
Last reporting year
Closed
1
Turnover rate
16.7%
Company-owned
1
Corporate units in the system
% franchised
83%
vs corporate-owned
Net growth (yr3)
+66.7%
Net unit change last year
3-yr CAGR
+66.7%
Compounded over last 3 years
2023
5+1
Franchised units
2024
3
Franchised units
2025
3
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

The Rush Coffee presents HIGH RISK due to active trademark litigation jeopardizing brand viability, false going concern status, absent financial disclosures, and an unproven 6-unit system lacking performance transparency.

Score breakdown · what drove the 72 / 100 rating

  1. 01HIGHActive trademark cancellation litigation (filed Dec 2024) threatens brand identity and legal right to operate
  2. 02HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at franchisor level
  3. 03MEDNo Item 19 financial performance data disclosed — unable to validate claimed profitability or ROI projections
  4. 04MINORUnusual royalty structure ($500-$750/month caps) suggests franchisor may be compensating for low revenue volumes
  5. 05MINOROnly 6 units with 66.7% YoY growth is modest expansion and indicates small, unproven system
  6. 06MEDHigh investment range ($72.7K-$245.6K) without disclosed average unit volumes creates ROI uncertainty
  7. 07MINORTrademark dispute creates legal risk of forced rebranding or system collapse if registration is cancelled

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 and Population
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Tennessee

Item 11

Training & Operations

Classroom training
20 hrs
On-the-job training
60 hrs
POS system
Square
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

12 numbers

Locked
(850) 488-••••
FL
(212) 416-••••
NY
(317) 232-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

The Rush Coffee · FDD (2025) PDF

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