COOKIE ADVANTAGE

Item 7 estimates initial investment at $92,550-$171,250, including the $34,900 franchise fee, build-out, equipment, and initial inventory for a bakery shipping operation. Ongoing fees include a 6% royalty—escalating to the greater of 6% or $800 monthly after year one—plus a $100 monthly technology fee, which is standard but adds up in a low-unit system. Item 19 discloses average gross revenue of $443,348 across units, with a median of $341,967, suggesting top performers drive averages while many hover lower; no EBITDA or profit figures are provided, so operators must factor 6-7% fees and shipping costs into viability.

With only 16 franchise locations plus 8 corporate stores since 2002, growth has been modest, but 5 new units are projected, signaling franchisor confidence. However, SBA data is alarming: just 5 loans averaging $98,720, yet a 40% default rate far exceeds category norms (typically under 20%), hinting at cash flow struggles in this capital-light but competitive gifting space. For risk-tolerant investors eyeing $300K+ revenue potential in B2B sales, it merits diligence; smaller systems like this amplify both upside and execution risks.