Tom N Toms Coffee Franchise Cost, Revenue & Review 2026
- Investment
- $370K – $487K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Tom N Toms Coffee is a coffee franchise serving espresso drinks, specialty coffees, and pretzel-style breads in a cafe setting. Franchisees run the cafes, managing baristas, food prep, and counter service.
FranchiseVerdict summary · 2026
A TOM N TOMS COFFEE franchise requires a total initial investment of $370K – $487K, including a $30K franchise fee and an ongoing 4.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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 scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $370K – $487K
- 60th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 10
- 37th pct Service Resta…
- SBA charge-off
- N/A
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 $370K – $487K including a $30K franchise fee, 4.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- GROWTHNegative, pipeline stalled: 12 agreements signed but not yet open against 10 open outlets (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Tom N Toms Franchise, LLC
- Parent company
- Tom N Toms USA, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Tom N Toms Co., Ltd. (Tom N Toms Korea)
- FDD Item 1, page 10 of the 2025 FDD
- CEO title
- President and CEO
- Cheolku Lee
- Incorporated in
- California
- HQ
- 2716 W Olympic Blvd. #108, Los Angeles, CA 90006
- Auditor
- Lim and Lim Accountancy Corp.
- Audited financials
- Franchisor revenue
- $180K
- vs $180K prior year
Overview
About
- CEO
- Cheolku Lee
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 12% below 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 | $30K | $30K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $325K | $427K |
| Total initial investment | $370K | $487K |
Source: TOM N TOMS COFFEE 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
- $370K – $487K
- Middle of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- up to 2% of Gross Sales
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $15K |
| Inventory (initial) | $13K – $23K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
TOM N TOMS COFFEE makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one TOM N TOMS COFFEE 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 annual revenue, ad fund rate, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +42.9% over 3 years (2 opened, 0 closed).
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 Tom N Toms Coffee 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
- 10
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 20.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +42.9%
- Net unit change over 3 years
- 3-yr CAGR
- +42.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 12
- 1.20 per open outlet · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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
14 current owners across 3 states.
- CA 8
- TX 5
- NY 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $1.8M
- Median loan
- $475K
- 50th percentile
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (4)
- 5-yr charge-off
- Under 10 loans (4)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Multiple concerns for a tiny 10-unit system: a 2016 California regulatory administrative action (unregistered seller, untrue statements) resolved by consent order with $15K restitution and $7,500 penalty, plus no Item 19 disclosure. Regulatory-nature litigation relative to small size warrants elevated scoring.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
California Commissioner of Business Oversight v. Tom N Toms Franchise, LLC (OAH Case Nos. 2016061013 and 2016061015) - Administrative action filed May 12, 2016 alleging violations of California franchise laws including untrue statements of material facts, unregistered franchise seller, and failure to disclose material facts. Franchisor denied allegations. Settled via Final Consent Order on November 21, 2016 without admission of liability. Tom N Toms paid $15,000 restitution to franchisee, $7,500 penalties, $14,700 in attorney fees and costs, agreed to desist franchise activity until proper registration, and required franchise sellers to complete 8 hours remedial education in franchise law. Franchisor has fully complied.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Lim and Lim Accountancy Corp.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 references audited financial statements as of Dec 31 2022/2023/2024 in Exhibit H, but Exhibit H content is not present in the extracted text (image-only/not OCR'd), so no balance-sheet, income, revenue, or auditor figures could be extracted. Item 19 makes no financial performance representations. Predecessor: none (FDD states 'We have no predecessors'). Franchisor is Tom N Toms Franchise, LLC; affiliate Tom N Toms America, LLC parent revenue in 2024 was ~$383,559 (supplier sales $314,518 = 82%), but this is affiliate, not audited-franchisor figures. Development/area fee is $30,000 for first Coffeehouse + $15,000 per additional unit under the Area Development Agreement.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 51 / 100 verdict
- 01MINOR2016 CA regulatory consent order (disclosure violations)
- 02MINORNo Item 19 disclosure
- 03MINORSmall system: 10 units, all franchised
- 04MINORTurnover 0.2
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
California Commissioner of Business Oversight v. Tom N Toms Franchise, LLC (OAH Case Nos. 2016061013 and 2016061015) - Administrative action filed May 12, 2016 alleging violations of California franchise laws including untrue statements of material facts, unregistered franchise seller, and failure to disclose material facts. Franchisor denied allegations. Settled via Final Consent Order on November 21, 2016 without admission of liability. Tom N Toms paid $15,000 restitution to franchisee, $7,500 penalties, $14,700 in attorney fees and costs, agreed to desist franchise activity until proper registration, and required franchise sellers to complete 8 hours remedial education in franchise law. Franchisor has fully complied.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- INT, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: INT, Inc.
Item 20 · call current owners
Franchisee Contacts
14 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 TOM N TOMS COFFEE franchise?
The total investment to open a TOM N TOMS COFFEE franchise ranges from $370K – $487K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TOM N TOMS COFFEE franchise owners earn?
TOM N TOMS COFFEE makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns TOM N TOMS COFFEE?
TOM N TOMS COFFEE is franchised by Tom N Toms Franchise, LLC. Its parent company is Tom N Toms USA, Inc.. The ultimate parent named in the FDD is Tom N Toms Co., Ltd. (Tom N Toms Korea). Source: FDD Item 1, 2025 filing.
What is Item 19 in the TOM N TOMS COFFEE 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 TOM N TOMS COFFEE FDD and qualifies whose outlets they describe.
What is TOM N TOMS COFFEE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TOM N TOMS COFFEE (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many TOM N TOMS COFFEE franchise locations are there?
As of their most recent FDD filing, TOM N TOMS COFFEE has 10 total units in the United States, including 10 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is TOM N TOMS COFFEE a good franchise to buy?
FranchiseVerdict rates TOM N TOMS COFFEE as a B-grade franchise with a verdict score of 51 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
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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.