Bottom line
- Total investment $527K – $2.0M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $797K/year (median $841K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 112 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 ZIGGI’S COFFEE unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ZIGGI’S COFFEE units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$637K
on $3.2M purchase
Total debt
$2.5M
SBA $1.6M + senior + seller note
Overview
About
Ziggi's Coffee franchisees operate drive-thru and/or walk-in specialty coffee shops serving premium espresso drinks, smoothies, and pastries. Day-to-day operations include managing barista staff, inventory procurement, customer service during high-traffic periods (primarily mornings), and marketing within their local market to drive comparable sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
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
Ziggi's Coffee presents moderate-to-caution risk: strong unit growth and no litigation are positive, but undisclosed profitability, unprotected territory, and aggressive expansion create visibility gaps for prospective franchisees.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in FDD — cannot validate actual profitability against $526.5K–$2M investment range
- 02MINORUnprotected territory creates direct competition risk; no exclusive geographic boundaries to defend customer base
- 03MINORWide investment range ($1.49M spread) suggests inconsistent unit economics or significant regional cost variation
- 04MINORHigh royalty burden (6%) on modest average revenue ($796.8K) reduces franchisee margins by ~$47.8K annually before taxes
- 05MINORRapid 24.6% YoY unit growth (78 units) may indicate over-saturation risk or aggressive recruitment masking unit quality issues
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
87 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ZIGGI’S COFFEE · FDD (2024) PDF