Verified — real FDD extraction
SBA-eligible · directory code S0681 since 2017
Frullati Cafe & Bakery
Food & Dining · independent · est. —
Frullati Cafe & Bakery is a quick-service concept serving smoothies, sandwiches, salads, and baked goods. A franchisee operates a counter-service cafe, often in a mall or other high-traffic venue, serving shoppers and lunch customers.
Frullati Cafe & Bakery net unit count grew 0.0% from 2016–2018 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Too new to judge
Distress
14 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.
Exit rate · latest year
7.1%
vs 8.6% across 137 food & dining systems
Cost to open
$134K–$516K
Item 7 total investment range
SBA loan defaults
25.7%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2016–2018
Survival record
FDD Item 20 · outlet status by year
In fiscal 2018, 1 of 14 franchised outlets left the system — a 7.1% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2016 | 2017 | 2018 |
|---|---|---|---|
| Outlets at start | 16 | 14 | 14 |
| Opened | 0 | 0 | 1 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 1 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 2 | 0 | 0 |
| Outlets at end | 14 | 14 | 14 |
| Net change | -2 | 0 | 0 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 42 SBA-backed loans to Frullati Cafe & Bakery franchisees since 1995. Of the 35 that have resolved, 25.7% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
25.7%
9 of 35 resolved defaulted
73.2%
avg. charged-off $ ÷ approved $
18.8%
default rate × loss severity
$143,866
what recent franchisees borrowed
70 mo
approval → charge-off, defaulted loans
—
distinct banks lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO FRULLATI CAFE & BAKERY BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
Jpmorgan Chase Bank, National Association
14.6% of this brand's loans
That lender charges off 12.2% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
Too few identified operators
Does experience help here?
Not enough resolved loans to split
Computed from 42 SBA 7(a)/504 loans to Frullati Cafe & Bakery franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $30K franchise fee (Item 5) and a total investment of $134K–$516K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$134K–$516K
all-in investment range
Franchise fee (Item 5)
$30K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Frullati Cafe & Bakery with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 1 wage case against operators of this system, recovering $0 in back wages for 0 workers, including 1 child-labor case. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
1
Back wages owed
$0
Employees affected
0
Since 2020
0
1 of these cases involved child-labor violations, covering 4 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual Frullati Cafe & Bakery franchisees — separately owned businesses operating under the brand name — not Frullati Cafe & Bakery itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2008.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks riskier than 82% of systems we score.
Risk percentile
82 / 100
Loan-corroborated
Modeled SBA charge-off
17.8%
Observed SBA charge-off
25.7%
Top drivers: System size (log units) (raises) · Item 3 litigation (log) (lowers) · Share financed by high-loss lenders (raises) · Single-lender dependence (raises). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Frullati Cafe & Bakery. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Frullati Cafe & Bakery's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Frullati Cafe & Bakery franchise questions, answered from the filings
What percentage of Frullati Cafe & Bakery franchises closed last year?
In Frullati Cafe & Bakery's latest FDD Item 20 (fiscal 2018), 1 of 14 franchised outlets left the system — an annualized exit rate of 7.1% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Frullati Cafe & Bakery franchise cost?
Per Frullati Cafe & Bakery's 2019 FDD, buying in requires an initial franchise fee of $30K (Item 5) and a total initial investment of $134K–$516K (Item 7).
What royalty does Frullati Cafe & Bakery charge?
Frullati Cafe & Bakery charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2019 FDD.
Does Frullati Cafe & Bakery disclose earnings (Item 19)?
No — Frullati Cafe & Bakery's 2019 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.
How often do SBA loans for Frullati Cafe & Bakery franchises default?
Across 42 SBA-backed loans to Frullati Cafe & Bakery franchisees since 1995, 9 of the 35 that have resolved were charged off — a 25.7% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.