The Rush CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Rush Coffee franchise requires a total initial investment of $73K – $246K, including a $22K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $133K[2]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $73K – $246K
- 5th pct Service Resta…
- Avg gross sales
- $133K
- 0th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 6
- 25th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Bottom line
- Total investment $73K – $246K including a $22K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $133K/year.
- Verdict C (Average) with a risk score of 65/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Rush Coffee Franchise Group LLC
- CEO title
- Co-Founder and Managing Member
- Parsegh Oksayan
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- 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
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
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $22K | $22K |
| Working capital (3–6 mo) | $5K | $15K |
| Equipment, build-out, other | $46K | $209K |
| Total initial investment | $73K | $246K |
Source: The Rush Coffee 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
$21K
16.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
8.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $73K – $246K
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $22K – $22K
- Better than avg vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $300 |
| Transfer fee | $4K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $133K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 7 units
- vs category median 28 · small
- Range (low → high)
- $9K→$256K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 2 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How The Rush Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Velez Hardy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 01HIGHActive trademark cancellation litigation (filed Dec 2024) threatens brand identity and legal right to operate
- 02HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at franchisor level
- 03MEDNo Item 19 financial performance data disclosed — unable to validate claimed profitability or ROI projections
- 04MINORUnusual royalty structure ($500-$750/month caps) suggests franchisor may be compensating for low revenue volumes
- 05MINOROnly 6 units with 66.7% YoY growth is modest expansion and indicates small, unproven system
- 06MEDHigh investment range ($72.7K-$245.6K) without disclosed average unit volumes creates ROI uncertainty
- 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius and Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1.5 mi |
| Territory population | 250,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 60 hrs
- Training location
- onsite
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Rush Coffee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Rush Coffee franchise?
The total investment to open a The Rush Coffee franchise ranges from $73K – $246K, with an initial franchise fee of $22K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Rush Coffee franchise owners earn?
According to Item 19 of the The Rush Coffee FDD, the average gross sales per unit is $133K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Rush Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Rush Coffee (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 Rush Coffee franchise locations are there?
As of their most recent FDD filing, The Rush Coffee has 6 total units in the United States, including 3 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is The Rush Coffee a good franchise to buy?
FranchiseVerdict rates The Rush Coffee as a C-grade franchise with a risk score of 65 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.