Togo's Franchise Cost, Revenue & Review 2026
- Investment
- $505K – $715K
- Disclosed sales
- $715K
- gross sales, not profit
- SBA charge-off
- 23.5%
- on 23 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Togo's is a West Coast quick-service franchise serving stacked, made-to-order deli sandwiches. Franchisees run shops managing food prep, counter service, and staffing.
FranchiseVerdict summary · 2026
A TOGO'S franchise requires a total initial investment of $505K – $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 23.5% charge-off rate across 23 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $505K – $715K
- 76th pct Service Resta…
- Avg gross sales
- $715K
- Outlet subset11th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 150
- 80th pct Service Resta…
- SBA charge-off
- 23.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $505K – $715K including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $715K/year (median $685K) (reported for a subset of outlets rather than the whole system), with an estimated 14% cash-on-cash return (based on EBITDA (4-Wall) 151,059 14.5%).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 23.5% across 23 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -13 franchised outlets in the latest year (3 opened, 16 closed); 6 signed but not yet open (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- TOGO'S Franchisor, LLC
- Parent company
- Torta Operations, LLC
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- TOGO'S Holdings, LLC (majority-owned by Southfield Mezzanine Capital LP)
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- TOGO'S Franchising LLC (2006-2007); TOGO'S Franchised Eateries LLC / TFE (2008-2009); TOGO'S Eateries, LLC (1977-2006)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Donald Glenn Lunde
- Incorporated in
- Delaware
- HQ
- 910 Campisi Way #1E, Campbell, CA 95008
- Auditor
- Holthouse | Carlin | Van Trigt LLP
- Audited financials
- Franchisor revenue
- $8.2M
- vs $8.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Donald Glenn Lunde
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 26% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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 | $441K | $638K |
| Total initial investment | $505K | $715K |
Source: TOGO'S 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $505K – $715K
- Bottom third — review vs category
- Liquid capital req'd
- $14K – $28K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Bottom third — review vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 7.3 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 |
| Inventory (initial) | $5K – $11K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 27% below the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for TOGO'S until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$631K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $151K as EBITDA (4-Wall) 151,059 14.5%. This is a disclosed figure, not our estimate — we publish no modelled profit for TOGO'S.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one TOGO'S unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $715K
- Per unit, per year
- Median gross sales
- $685K
- Avg ebitda (4-wall) 151,059 14.5%
- $151K
- Reported as EBITDA (4-Wall) 151,059 14.5% in FDD Item 19
- Cash-on-cash
- 13.6%
- Based on EBITDA (4-Wall) 151,059 14.5% / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 102 outlets
- vs category median 19 · large
- Range (low → high)
- $181K→$1.3MCited, not corroborated — printed on page 55 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $715K/year in gross sales. Revenue-to-investment ratio: 1.2x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -7.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Togo's Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 150
- Opened
- 3
- Last reporting year
- Closed
- 16
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.7%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- -7.1%
- Net unit change over 3 years
- 3-yr CAGR
- -7.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 3
- Transferred
- 13
- Reacquired
- 3
- Franchisor bought back
- Signed, not yet open
- 6
- 0.04 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
24 current owners across 4 states.
- CA 21
- AZ 1
- IL 1
- NV 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- 23.5%
- on 23 loans · 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
- Typical loan rate
- 6.1%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 385
- 6.0 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Togo's charge-off rate by loan vintage
Top lenders financing Togo's franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Togo's from SBA 7(a) FOIA data.
- Principal loss rate
- 5.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.14%
- Avg chargeoff amount
- $80K
- Lender concentration
- 30.4%
- Job velocity
- 6.0 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 385
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Bancorp Bank National Association | 7 | $2.2M | 14.3% |
| 2 | West Coast Community Bank | 4 | $965K | 0.0% |
| 3 | Stearns Bank National Association | 2 | $506K | N/A |
| 4 | Exchange Bank | 2 | $603K | N/A |
| 5 | U.S. Bank, National Association | 2 | $283K | 100.0% |
| 6 | Glacier Bank | 1 | $341K | 0.0% |
| 7 | Citizens Business Bank National Association | 1 | $236K | 0.0% |
| 8 | JPMorgan Chase Bank, National Association | 1 | $100K | 100.0% |
| 9 | United Business Bank | 1 | $575K | 0.0% |
| 10 | Bank of Hope | 1 | $213K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 21 | 4 | 25.0% |
| IDIdaho | 1 | 0 | 0.0% |
| WAWashington | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.5% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 23.5% — 47% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Two litigation matters but both concluded and immaterial relative to a 150-unit system — a $45K California consumer-law settlement and a franchisee arbitration. Very strong financials: net worth $40,009,316, net income $2,925,070, AUV $715,086. Item 19 disclosed and audited.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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 50 / 100 verdict
- 01HIGH2 concluded, low-severity litigation matters
- 02MINORVery strong net worth $40.0M, net income $2.93M
- 03MEDAUV $715,086, Item 19 disclosed
- 04MINORMild -7.1% net growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Specific location |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Santa Clara County, California (or franchisor's then-current headquarters county) |
| 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
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
- 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
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 $505K – $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. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns TOGO'S?
TOGO'S is franchised by TOGO'S Franchisor, LLC. Its parent company is Torta Operations, LLC. The ultimate parent named in the FDD is TOGO'S Holdings, LLC (majority-owned by Southfield Mezzanine Capital LP). Source: FDD Item 1, 2025 filing.
What is Item 19 in the TOGO'S FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the TOGO'S FDD and qualifies whose outlets they describe.
What is TOGO'S's franchise failure rate?
Based on SBA 7(a) loan data, TOGO'S has a charge-off rate of 23.5% across 23 loans, meaning 23.5% 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 143 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 B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent TOGO'S, you can request corrections or provide updated information.
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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.