Waffle LoveFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Waffle Love franchise requires a total initial investment of $327K – $703K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $685K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $327K – $703K
- 20th pct Service Resta…
- Avg gross sales
- $685K
- 4th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 10
- 21st pct Service Resta…
- SBA default
- 0.0%
- 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $327K – $703K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $685K/year (median $685K).
- Verdict D (Below Average) with a risk score of 77/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Waffle Love Franchises, LLC
- Parent company
- KSBW Management Inc.
- CEO title
- Member
- Kelsey Shepherd
- CEO experience
- 11 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- UT
- HQ
- 2322 West 500 North, Suite L, Springville, Utah 84663
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $109K
- vs $78K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Waffle Love franchisees operate quick-service restaurants specializing in Belgian waffles and related food items, managing daily operations including food preparation, customer service, inventory, staffing, and marketing within their protected territory. The business model depends on high foot traffic (dine-in/take-out) and impulse purchases, similar to ice cream or dessert concepts.
- CEO
- Kelsey Shepherd
- Headquarters
- UT
- Founded
- 2017
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $267K | $623K |
| Total initial investment | $327K | $703K |
Source: Waffle Love 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
$75K
11.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $327K – $703K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $27K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $685K
- Per unit, per year
- Median gross sales
- $685K
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $506K→$864K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Waffle Love Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 30%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
- Ceased ops
- 70.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $2.2M
- Median loan
- $2.2M
- 50th percentile
- Charge-off rate
- 0.0%
- 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
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Waffle Love's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Waffle Love presents HIGH RISK due to ongoing litigation history, recent forced asset sale, system stagnation at 10 units, and undisclosed net income metrics that obscure true profitability against a capital-intensive investment model.
Litigation (Item 3)
Brent Wight et al vs. Adam Terry et al., Case No. 220400233 (converted to 220100026), filed February 16, 2022 in Fourth Judicial District Court of Utah County. Claims include breach of fiduciary duties, conversion, breach of contract, and unjust enrichment. Receiver (CFO Solutions, LC dba Ampleo) appointed September 11, 2023. Asset sale approved October 8, 2024 and transferred October 22, 2024 to KSBW Management Inc. Fact discovery completed, settlement discussions ongoing.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
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: No
Score breakdown · what drove the 77 / 100 rating
- 01HIGHActive litigation involving breach of fiduciary duty and conversion claims with court-appointed receiver (Feb 2022 - Oct 2024) signals governance dysfunction and potential mismanagement of franchisee funds
- 02MINORAsset seizure and forced sale to KSBW Management Inc. in October 2024 indicates franchisor financial distress and raises questions about operational continuity and support
- 03MINOROnly 10 units in system with unknown/stagnant growth trajectory suggests failed expansion model and difficulty attracting/retaining franchisees despite $685K average revenue
- 04MEDNet income not disclosed despite $685K average revenue creates opacity about actual profitability — 6% royalty on $685K yields only $41K gross, leaving significant question marks on net margins after COGS, labor, rent
- 05HIGHGoing Concern status technically true but timing coincides with litigation resolution and asset sale, suggesting financial precarity masked by technical solvency
- 06MEDHigh investment range ($326.5K-$702.5K) combined with undisclosed profitability and small unit base indicates difficulty achieving ROI within 10-year term
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 | 2 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Utah County, Utah |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 1 |
View Item 3 litigation summary
Brent Wight et al vs. Adam Terry et al., Case No. 220400233 (converted to 220100026), filed February 16, 2022 in Fourth Judicial District Court of Utah County. Claims include breach of fiduciary duties, conversion, breach of contract, and unjust enrichment. Receiver (CFO Solutions, LC dba Ampleo) appointed September 11, 2023. Asset sale approved October 8, 2024 and transferred October 22, 2024 to KSBW Management Inc. Fact discovery completed, settlement discussions ongoing.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 56 hrs
- Training location
- On-site and corporate
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Waffle Love · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Waffle Love franchise?
The total investment to open a Waffle Love franchise ranges from $327K – $703K, 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 Waffle Love franchise owners earn?
According to Item 19 of the Waffle Love FDD, the average gross sales per unit is $685K. The median is $685K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Waffle Love's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Waffle Love (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 Waffle Love franchise locations are there?
As of their most recent FDD filing, Waffle Love has 10 total units in the United States, including 3 franchised units and 7 company-owned units.
Is Waffle Love a good franchise to buy?
FranchiseVerdict rates Waffle Love as a D-grade franchise with a risk score of 77 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.