Togo'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A TOGO'S franchise requires a total initial investment of $281K – $715K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $715K[2]. SBA 7(a) loans show a 17.4% charge-off rate across 23 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $281K – $715K
- 16th pct Service Resta…
- Avg gross sales
- $715K
- 5th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 150
- 44th pct Service Resta…
- SBA default
- 17.4%
- system-wide median varies by category
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
Franchised units fell from 154 to 143 over 3 years. Investigate why operators are leaving.
30% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $281K – $715K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $715K/year (median $685K), with an estimated 30% cash-on-cash return (based on EBITDA).
- Verdict F (Bottom Quintile) with a risk score of 93/100. SBA loan charge-off rate of 17.4% across 23 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -7.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TOGO’S FRANCHISOR, LLC
- Parent company
- Torta Operations, LLC
- Ultimate parent
- Southfield Mezzanine Capital LP
- CEO title
- Chief Executive Officer
- Donald Glenn Lunde
- Incorporated in
- DE
- HQ
- 910 Campisi Way #1E, Campbell, CA 95008
- Auditor
- Holthouse | Carlin | Van Trigt LLP
- Audited financials
- Franchisor revenue
- $8.7M
- vs $8.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
TOGO'S franchisees operate quick-service sandwich shops, managing daily food prep, customer service, inventory, staffing, and point-of-sale operations. They rely on the corporate loyalty program (Tribe Rewards) for customer retention and participate in mandatory brand promotion fund contributions. Franchisees handle local marketing while corporate manages system-wide promotions.
- CEO
- Donald Glenn Lunde
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $14K | $28K |
| Equipment, build-out, other | $217K | $638K |
| Total initial investment | $281K | $715K |
Source: TOGO'S 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
$72K
10.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $281K – $715K
- Better than avg vs category
- Liquid capital req'd
- $14K – $28K
- Better than avg vs category
- Franchise fee
- $25K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 3.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $8K |
| Renewal fee | $15K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $715K
- Per unit, per year
- Median gross sales
- $685K
- Avg ebitda
- $151K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 30.3%
- Based on EBITDA / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 102 units
- vs category median 13 · large
- Range (low → high)
- $181K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $487K→$964K
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Togo's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 150
- Opened
- 3
- Last reporting year
- Closed
- 10
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.7%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- -8.3%
- Net unit change last year
- 3-yr CAGR
- -7.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 13
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 8.7%
- Owners selling to other franchisees
- Termination rate
- 4.0%
- Franchisor-initiated terminations
- Ceased ops
- 6.7%
- 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 23
- Loan volume
- $6.4M
- Median loan
- $293K
- 50th percentile
- Charge-off rate
- 17.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 76.5%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 4
Vintage analysis
Togo's charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Togo's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
TOGO'S presents high risk due to shrinking franchise system, going concern status, disclosed litigation, territorial exposure, and lack of Item 19 financial substantiation despite mid-tier investment requirements.
Litigation (Item 3)
Two matters disclosed: (1) State of California v. TOGO'S Eateries, LLC - concluded August 8, 2017 regarding loyalty program point calculation rounding; TOGO'S paid $45,000 in penalties and costs, notified customers, and offered refunds/additional points. (2) Cohen entities and affiliated franchisees v. TOGO'S Eateries, LLC - arbitration filed November 10, 2020 alleging breach of contract, breach of good faith, fraud, and unfair competition related to sales and promotion fund management; settled January 2022 with TOGO'S paying $145,000 and agreeing to potential 5-year franchise extension at no cost.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Holthouse | Carlin | Van Trigt LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 93 / 100 rating
- 01MINORDeclining unit count (-8.3% YoY with 150 units) signals contraction and potential franchisee attrition
- 02HIGHGoing Concern status is FALSE, indicating potential financial viability questions at corporate level
- 03HIGHMultiple litigation cases including California state judgment and franchisee arbitration suggest operational/management disputes
- 04MINORNo Item 19 financial disclosure limits transparency on actual franchisee profitability claims
- 05MINORUnprotected territory creates cannibalization risk and unfair competition from other TOGO'S locations
- 06MINOR5% royalty on $715K avg revenue = $35,750/year in fees with only ~$151K net income (23.6% margin) leaves slim cushion
- 07MINORHigh investment range ($280K-$715K) paired with declining unit economics raises ROI concerns
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Specific location |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
Two matters disclosed: (1) State of California v. TOGO'S Eateries, LLC - concluded August 8, 2017 regarding loyalty program point calculation rounding; TOGO'S paid $45,000 in penalties and costs, notified customers, and offered refunds/additional points. (2) Cohen entities and affiliated franchisees v. TOGO'S Eateries, LLC - arbitration filed November 10, 2020 alleging breach of contract, breach of good faith, fraud, and unfair competition related to sales and promotion fund management; settled January 2022 with TOGO'S paying $145,000 and agreeing to potential 5-year franchise extension at no cost.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 160 hrs
- Training location
- On-site and corporate
- POS system
- Toast POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS system
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TOGO'S · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TOGO'S franchise?
The total investment to open a TOGO'S franchise ranges from $281K – $715K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TOGO'S franchise owners earn?
According to Item 19 of the TOGO'S FDD, the average gross sales per unit is $715K. The median is $685K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is TOGO'S's franchise failure rate?
Based on SBA 7(a) loan data, TOGO'S has a charge-off rate of 17.4% across 23 loans, meaning 17.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many TOGO'S franchise locations are there?
As of their most recent FDD filing, TOGO'S has 150 total units in the United States, including 154 franchised units and 7 company-owned units. 3 new units were opened in the latest reporting year.
Is TOGO'S a good franchise to buy?
FranchiseVerdict rates TOGO'S as a F-grade franchise with a risk score of 93 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.