Hurts Donut Company (Unit)

Item 7 lays out the steep entry: $504,000 to $825,000 total investment, starting with a $35,000 franchise fee. Ongoing fees bite hard at 7% royalty plus 2% brand fund, plus fixed monthly charges totaling $719 ($500 Lunchbox, $139 Raydiant, $80 secret shopper). No Item 19 means no disclosed revenue or profit figures, forcing investors to guess on returns from 16 franchise units and 2 corporate stores—franchising since 2015 but only projecting 3 new units amid 2 transfers. This small footprint signals caution in a competitive coffee and bakery space.

SBA data screams warning: 15 loans averaging $320,973, but a 40% default rate crushes optimism. That's far above industry norms, hinting at cash flow struggles in these casual, always-open shops battling chains and independents. Low growth, high defaults, and opaque earnings paint a risky picture—proceed only if you thrive on high-stakes sweets, as the numbers suggest many haven't survived the dough.