D.P. DOUGH

Item 7 details the initial investment from $120,980 to $359,910, covering build-out, equipment, and opening costs for a single-unit in exclusive territories, often near universities. Franchise fee is $40,000 upfront, followed by 5% royalty, 1% ad fund, and $160 monthly for POS software and gift cards. Item 19 shines with average gross revenue of $764,419 and median $766,179 across units—solid for a 49-unit system, implying potential owner benefits after fees, though no profit figures are broken out. SBA data shows 9 loans averaging $240,844, but an 11.1% default rate signals some financing risks in this indulgent eats segment.

System health raises flags: from 54 locations in 2023 to 49 in 2024, a 9% contraction, with 4 terminations, 2 transfers, and just 3 projected new units. Litigation centers on royalty disputes, non-competes, and early closures with ex-franchisees. For buyers, the college-town focus delivers sticky demand for calzones and wings, but scaling might stall without broader appeal—strong sales per unit make it viable for hands-on operators, yet monitor that shrinkage before diving in.