Togo's Franchise Cost, Revenue & Review 2026
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 $281K – $715K, including a $25K – $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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $281K – $715K
- 17th pct Service Resta…
- Avg gross sales
- $715K
- 5th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 150
- 45th pct Service Resta…
- SBA charge-off
- 17.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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
- Total investment $281K – $715K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $715K/year (median $685K), with an estimated 17% cash-on-cash return (based on EBITDA).
- Verdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 17.4% across 23 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
Corporate structure & franchisor financials
- Legal entity
- TOGO'S Franchisor, LLC
- Parent company
- Torta Operations, LLC
- Ultimate parent
- TOGO'S Holdings, LLC (majority-owned by Southfield Mezzanine Capital LP)
- 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
- $8.7M
- vs $8.2M 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 47% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $14K | $28K |
| Equipment, build-out, other | $242K | $662K |
| 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $281K – $715K
- Top 40% of category vs category
- Liquid capital req'd
- $14K – $28K
- Top 40% of category vs category
- Franchise fee
- $25K – $50K
- Top 40% of category 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 |
What do units actually make?
Average unit sales run 53% below the full-service restaurants norm.
Source: FDD 2025 · Item 19
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
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
- 16.7%
- Based on EBITDA / 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 units
- vs category median 16 · large
- Range (low → high)
- $181K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $487K→$964K
- Bottom 25% → top 25%
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 1273 Full-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: 1.4x.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants average).
Disclosure
Transparency score 10/10 — 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 Full-Service Restaurants averages
How Togo's Compares
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
- 10
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.1%
- 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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 10
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 13
- Reacquired (3yr)
- 3
- Franchisor bought back
- 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)
- 82.6%
- 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.
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.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
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)
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 56 / 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 | 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 $25K. 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 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 56 out of 100 (higher is better), 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
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.