FranchiseVerdict
Tram Cream Coffee logo
FV-02781·CAUTIONExcellent81

Tram Cream Coffee

Food & Beverage - Coffee & TeaFranchising since 2025Website
Investment
$266K – $392K
45th pct Coffee & Tea
Avg revenue
49th pct Coffee & Tea
Royalty
6.0%
50th pct Coffee & Tea
Units
1
6th pct Coffee & Tea
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $266K – $392K including a $80K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 1 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

Legal entity
Tram Cream Coffee Franchising, Inc.
Incorporated in
California
HQ
999 Story Rd #9012 San Jose California 95122
Auditor
Michael P. Murray, CPA and Associates
Audited financials
Franchisor revenue
$0
Most recent fiscal year

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 Tram Cream Coffee unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $266K–$392K
Working capital
$
FDD reports $30K–$50K

Unlevered ROIC · per unit

22%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$369K
Payback
54 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Tram Cream Coffee franchisees operate specialty coffee retail locations, likely serving espresso drinks, specialty beverages, and light food items. Day-to-day operations involve customer service, beverage preparation, inventory management, and point-of-sale transactions within a branded cafe environment.

CEO
Tram Pham
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$266K – $392K
All-in to open one unit
Liquid capital
$30K – $50K
Cash you must have on hand
Franchise fee
$80K
Royalty
6.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

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

Total units
1
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 29 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 29 states
Not registered

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.

Total loans
1
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

This is a pre-revenue or severely undercapitalized franchisor with a single unit, no financial transparency, and going concern issues—representing extreme investment risk unsuitable for most franchisees.

Score breakdown · what drove the 75 / 100 rating

  1. 01MINOROnly 1 unit in system with unknown growth trajectory suggests minimal viability or early-stage concept with unproven model
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI assessment and raises transparency concerns
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial instability or structural issues with franchisor
  4. 04MEDHigh investment range ($266K-$392K) with 6% royalty creates breakeven risk without disclosed average unit volumes
  5. 05MEDExtremely limited franchisee base (1 unit) provides no peer validation, support network, or performance benchmarking
  6. 06MINOR10-year term is lengthy commitment for unproven system with single operating location

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population and Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
14 hrs
On-the-job training
52 hrs
POS system
Chowbus
Operating tech stack

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

29 numbers

Locked
(608) 266-••••
WI
(517) 373-••••
MI
(502) 696-••••
KY

One-time purchase · CSV download · Validation questions included

FDD download

Tram Cream Coffee · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above