Tom N Toms Coffee
Bottom line
- Total investment $370K – $487K including a $30K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 TOM N TOMS COFFEE unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Overview
About
Tom N Toms Coffee franchisees operate coffee shop locations offering espresso-based beverages, pastries, and light food in a café setting. Day-to-day responsibilities include managing staff, inventory, customer service, maintaining equipment, and driving local marketing within their protected territory. Franchisees must maintain brand standards and pay 4% of gross sales as royalties to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
Tom N Toms Coffee exhibits high-risk characteristics including rapid unit contraction, regulatory violations, non-disclosure of financial performance, and apparent franchisor financial distress, making this an unsuitable investment for most franchisees.
Score breakdown · what drove the 72 / 100 rating
- 01MEDSevere unit decline of 33.3% year-over-year (from 15 to 10 units) indicates systemic failure or market exit
- 02MINORNo Item 19 financial performance disclosure (avg revenue/net income not provided) prevents informed ROI assessment
- 03MINOR2016 California franchise law violations (untrue statements, unregistered sellers, non-disclosure) demonstrate regulatory compliance failures
- 04HIGHGoing Concern = False suggests potential liquidity crisis or operational distress at franchisor level
- 05MEDHigh initial investment ($370K-$487K) combined with 4% royalty burden creates significant financial risk with undisclosed payback period
- 06MINORFinal Consent Order and $22,500 in penalties indicate franchisor was caught making misrepresentations to franchisees
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TOM N TOMS COFFEE · FDD (2025) PDF