Village InnFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Village Inn franchise requires a total initial investment of $1.1M – $2.7M, including a $35K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.9M[2]. SBA 7(a) loans show a 10.5% charge-off rate across 24 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.1M – $2.7M
- 44th pct Service Resta…
- Avg gross sales
- $1.9M
- 20th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 114
- 42nd pct Service Resta…
- SBA default
- 10.5%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
21 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $1.1M – $2.7M including a $35K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $1.8M).
- Verdict B (Above Average) with a risk score of 61/100. SBA loan charge-off rate of 10.5% across 24 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- VI BrandCo, LLC
- Parent company
- MTY Franchising USA, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- Incorporated in
- DE
- HQ
- 12701 Whitewater Drive, Suite 100, Minnetonka, Minnesota 55343-4164
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $606.6M
- vs $597.5M prior year
Overview
About
Village Inn franchisees operate casual dining restaurants serving breakfast, lunch, and dinner to families and individuals. Day-to-day operations include managing kitchen and front-of-house staff, inventory procurement, food preparation, customer service, and facility maintenance across typically 4,000-6,000 sq ft locations. Franchisees are responsible for local marketing, P&L management, and maintaining brand standards while paying 4.0% royalties on gross sales.
- CEO
- Eric Lefebvre
- Headquarters
- MN
- Founded
- 2020
- FDD year
- 2025
- States available
- 18
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $990K | $2.6M |
| Total initial investment | $1.1M | $2.7M |
Source: Village Inn 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$246K
13.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.1M – $2.7M
- Near category avg vs category
- Liquid capital req'd
- $50K – $100K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $1.8M
- Item 19 type
- net_sales
- Sample size
- 88 units
- vs category median 13 · large
- Range (low → high)
- $722K→$3.5M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Full-Service Restaurants averages
How Village Inn Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 114
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.8%
- Company-owned
- 26
- Corporate units in the system
- % franchised
- 77%
- vs corporate-owned
- Net growth (yr3)
- -3.3%
- Net unit change last year
- 3-yr CAGR
- -10.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Transfer rate
- 1.8%
- Owners selling to other franchisees
- Termination rate
- 1.8%
- Franchisor-initiated terminations
- Ceased ops
- 2.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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
- 24
- Loan volume
- $17.7M
- Median loan
- $2.9M
- 50th percentile
- Charge-off rate
- 10.5%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Village Inn's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Village Inn presents HIGH RISK due to a contracting franchise system (-3.3% YoY), substantial litigation and regulatory history, undisclosed net income figures, and a high capital requirement relative to average unit revenue in a declining casual dining segment.
Litigation (Item 3)
One concluded case involving Extreme Pita Franchising USA, Inc. (predecessor) settled for $20,000 on March 11, 2016. One concluded case involving Kahala Franchising, L.L.C. with cross-complaints filed but resolution not detailed in provided text.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
Disclosed in last 7 years
American Blue Ribbon Holdings, LLC filed Chapter 11 bankruptcy on January 27, 2020 in District of Delaware (Case 1:20-BK-10161). Plan of reorganization confirmed September 16, 2020. Final decree entered September 30, 2021; case terminated October 19, 2021.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 61 / 100 rating
- 01MEDShrinking franchise system: 114 units with -3.3% YoY decline indicates contracting brand momentum and potential market viability concerns
- 02HIGHExtensive litigation history: Multiple concluded arbitration cases involving breach of contract, misrepresentation, and franchise law violations signal franchisor credibility and governance issues
- 03MINORNo Item 19 financial disclosure: Average Net Income not provided despite $1.89M average revenue — inability or unwillingness to substantiate profitability claims
- 04MINORHigh investment-to-revenue ratio: $1.075M-$2.74M initial investment against $1.89M average revenue creates extended breakeven timeline and capital risk
- 05MINORRegulatory action history: State administrative actions for registration and disclosure violations suggest franchisor compliance problems that may disadvantage franchisees
- 06MINORDeclining unit count: -3.3% YoY contraction raises questions about unit-level economics, franchisee satisfaction, and brand relevance in casual dining market
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Litigation count | 21 |
View Item 3 litigation summary
One concluded case involving Extreme Pita Franchising USA, Inc. (predecessor) settled for $20,000 on March 11, 2016. One concluded case involving Kahala Franchising, L.L.C. with cross-complaints filed but resolution not detailed in provided text.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 495 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- Aloha Point of Sale Computer System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha Point of Sale Computer System
Item 20 · call current owners
Franchisee Contacts
73 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Village Inn · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Village Inn franchise?
The total investment to open a Village Inn franchise ranges from $1.1M – $2.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Village Inn franchise owners earn?
According to Item 19 of the Village Inn FDD, the average gross sales per unit is $1.9M. The median is $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Village Inn's franchise failure rate?
Based on SBA 7(a) loan data, Village Inn has a charge-off rate of 10.5% across 24 loans, meaning 10.5% 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 Village Inn franchise locations are there?
As of their most recent FDD filing, Village Inn has 114 total units in the United States, including 88 franchised units and 26 company-owned units. 1 new units were opened in the latest reporting year.
Is Village Inn a good franchise to buy?
FranchiseVerdict rates Village Inn as a B-grade franchise with a risk score of 61 out of 100, 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.
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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.