Ultimate Sports Bar and Grill

Item 7 lays out a steep entry: $370,000 to $838,500 total investment, including a $40,000 franchise fee. Ongoing fees hit hard with 5% royalties kicking in after the first three months, 2% brand/ad fund, and unusually high $8,000-$11,000 monthly POS and software charges—far above casual dining norms where tech fees rarely exceed a few thousand. No Item 19 means no disclosed earnings, a red flag for a 2023-launched system that forces reliance on hypotheticals; average casual dining AUVs hover $1M-$1.5M, but without data, profitability stays speculative amid 60-70% food/beverage COGS.

System health signals caution: one corporate outlet, zero franchise units noted, and just one projected new unit in 2024. Franchising since 2023, it's pre-growth phase with minimal track record—no terminations or transfers to flag yet, but tiny scale amplifies execution risks like site selection in sports-hungry markets. SBA default rates aren't alarming given newness, but litigation is clean so far. For investors, this screams high-risk/high-reward: capitalize early on brand buzz if you thrive in unproven concepts, but brace for outsized fees eroding slim margins in a volatile F&B sector.