Bottom line
- Total investment $471K – $891K including a $55K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $862K/year (median $857K). Estimated payback in 3.9 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 90 loans (below the industry average).
- System growing at 206.2% CAGR over 3 years with 57 total units — strong expansion trajectory.
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 Toastique unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Toastique units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.9M purchase
Total debt
$5.5M
SBA $3.4M + senior + seller note
Overview
About
Toastique franchisees operate fast-casual healthy beverage and smoothie bowl concepts, focusing on fresh-pressed juices, açai bowls, and nutritional drinks. Daily operations involve inventory management of perishable ingredients, POS operations, customer service, and managing 3-10 employees in 1,000-1,500 sq ft retail locations. The model emphasizes high-margin specialty drinks with limited food prep and quick transaction times.
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 20 · 28 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Toastique presents moderate-to-high risk due to active fraud litigation, absent financial disclosures, questionable corporate financial health, and heavy reliance on aggressive growth to offset potential franchisee attrition.
Score breakdown · what drove the 54 / 100 rating
- 01HIGHActive litigation and arbitration with former franchisee alleging fraud and deceptive trade practices creates legal and reputational risk
- 02HIGHGoing concern status is FALSE, indicating potential financial instability at corporate level despite positive unit-level economics
- 03MINORRapid unit growth (63.3% YoY) may indicate aggressive recruitment masking underlying franchisee satisfaction or retention issues
- 04MINORHigh initial investment ($471k-$891k) combined with 6% royalty creates significant break-even threshold requiring sustained $862k+ annual revenue
- 05MINORItem 19 financial performance data absent (no Item 19 disclosure), limiting ability to verify claimed $172k average net income across system
- 06HIGHSingle litigation case represents meaningful percentage of small 57-unit system, suggesting potential operator/franchisor relationship problems
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.
Franchisee contacts
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Toastique · FDD (2026) PDF