CANDY CLOUD

Item 7 in the 2025 FDD pegs total investment at $389,100-$724,350 for a turnkey mall-based beverage outpost slinging boba, shakes, coffee, and ice cream treats. That covers $40,000 franchise fee, buildout, equipment, and initial inventory, with ongoing hits of 6% royalty, 2% brand fund, plus $200-$450 monthly internal system fee. Item 19 discloses strong top-line performance: average gross revenue $908,292 and median $923,940 across 5 franchised units and 1 corporate location, suggesting solid foot traffic in high-traffic spots. Subtract fees and costs, and EBITDA could hit 15-20% in mature stores based on similar concepts, though unvetted here.

System health shows a fledgling brand with 5 franchises since 2022, 1 company store, and 14 projected new units signaling aggressive growth plans from Machesney Park, IL HQ. Twelve SBA loans averaging $323,483 reflect lender confidence and franchisee financing ease, but the tiny footprint means limited track record—zero terminations or transfers noted yet. For risk-tolerant investors eyeing beverages, the revenue punch per unit tempts, yet early-stage scale-up demands vigilance on supply chain and mall lease volatility; proven mall performers thrive here if execution nails the customizable drink hype.