Bottom line
- Total investment $281K – $715K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $715K/year (median $685K). Estimated payback in 3.3 years.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 27 loans (below the industry average).
- 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
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 TOGO'S unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 TOGO'S units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.7M purchase
Total debt
$4.6M
SBA $2.9M + senior + seller note
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.
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 · 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 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
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.
Score breakdown · what drove the 64 / 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
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TOGO'S · FDD (2025) PDF