PURALIMA CANTINA

Item 7 lays out a steep entry: $950,328 to $1,518,338 total investment, well above typical fast-casual norms like $500K-$1M for brands such as Sweetgreen or Cava. The $64,500 franchise fee exceeds category averages around $40K-$50K, while ongoing fees hit 7% royalty plus 2% brand fund and a $850 monthly technology surcharge—pushing total outflows to 9% plus fixed costs that could strain thin margins in foodservice. With no Item 19 disclosure, you're flying blind on revenue or profitability; this omission flags higher risk, as proven earners like Chipotle freely share AUVs over $3M.

System health raises yellow flags: just one corporate location since franchising began in 2022, with only two new units projected next year amid flat growth trends. No litigation or termination data provided, but the youth of Steele Brands Holdco LLC's operation (HQ in Wayzata, MN) mirrors high-failure rates for sub-5-year food franchises, per SBA stats showing 25%+ defaults in new QSRs. For deep-pocketed operators eyeing trendy suburbs, the proprietary menu and design might differentiate, but without validated unit economics, this feels like a speculative play versus established players averaging 5-10% annual unit growth.