BEAVERTAILS

Item 7 lays out the steep upfront costs: total investment ranges from $494,200 to $1,152,000, covering build-out for permanent stores or mobile trailers, equipment like fryers and topping stations, initial inventory, and three months' operating capital. The $35,000 franchise fee gets you rights to the brand, training in Montreal, site selection help, and ops manuals. Ongoing fees stand out—no royalty payments or ad fund percentages, just a flat ~$25.50 USD per case of 192 units sold, plus insurance and minor variables, keeping expenses predictable but tying ads to volume.

Item 19 earnings disclosure? Absent, which is a red flag for a system stuck at 2 locations from 2022 to 2023 (0% growth), despite franchising since 2015. No data on AUVs, profits, or benchmarks means buyers fly blind on returns—critical when French fries, poutine, and drinks pad the menu but competition from ice cream giants looms. Flat fees help margins if sales pop, yet zero expansion and dual Canadian/Ontario parents signal caution; this might suit a passionate foodie with deep pockets for a niche play, but scaling looks dormant.