ORIZABA'S

Item 7 lays out the financial entry: total investment ranges from $499,700 to $883,200, including a $30,000 franchise fee (Item 5). Ongoing fees hit hard with 5% royalties—escalating to the greater of 5% of gross sales or $4,000 monthly after the first three months—plus 2% brand fund and $1,509 in fixed monthly charges for LMS ($175), technology ($200), and POS/software ($1,134). Item 19 shines brightly here, reporting average gross revenue of $1,482,210 and median of $1,288,971 across its three franchised units, suggesting strong top-line potential in competitive markets. Yet, with only four locations total (one corporate) and a -25% contraction from 2022 to 2023, system health feels fragile—no projected openings disclosed, and high revenues may reflect limited, high-performing outliers rather than scalable proof.

SBA data amplifies the risks: just two loans on record averaging $249,500, but a shocking 100% default rate signals franchisees struggling to service debt despite those revenue numbers—possibly due to slim margins after fees and operating costs in a cutthroat industry. No Item 19 profit data means estimating EBITDA requires caution; at typical 10-15% restaurant margins, net could hover $150K-$220K, but defaults hint at lower reality. For investors eyeing multi-unit potential via area developments, the youth (franchising since 2018) and shrinkage scream high-risk/high-reward—proceed only if you can fund without SBA and validate those revenues firsthand.