FILING · MN · 2026 FDD
Qargo Coffee FDD (Franchise Disclosure Document) — 2026
The FDD is the 23-item legal disclosure every U.S. franchisor must hand you at least 14 days before you sign or pay anything (FTC Franchise Rule, 16 CFR 436). Qargo Coffee's most recent FDD tracked here is the 2026 FDD, filed with the Minnesota Department of Commerce (public CARDS portal). Registration-state filings are public records, so you can read it free, with no sign-up.
PUBLIC RECORD · FILED 2026 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $50,000 |
| ITEM 6 | Ongoing royalty | 6.0% of gross sales |
| ITEM 7 | Total initial investment | $155K–$625K |
| ITEM 3 | Disclosed litigation matters | 1 |
| ITEM 4 | Item 4 bankruptcy disclosure (franchisor, predecessor, affiliate or officer — see filing) | Yes |
| ITEM 19 | Earnings disclosure (FPR) | None — no earnings claim published |
| ITEM 20 | Outlets (fiscal 2025) | 10 franchised at year end · 1 exits (exit rate 16.7%, fiscal 2025) |
| ITEM 21 | Franchisor financial statements | Going-concern paragraph in the auditor's report — Etiendem CPA |
Etiendem CPA's report in the 2026 FDD includes a going-concern paragraph: substantial doubt about the franchisor's ability to continue; revenue rose 39% from FY2024 to FY2025, it reported a net loss in every year shown (FY2024–FY2025) and initial and development fees were 65% of FY2025 revenue.
The auditor's report on Qargo Coffee, Inc. has a "Substantial Doubt About Qargo Coffee, Inc.’s Ability to Continue as a Going Concern" section (pp. 132–133). Opinion not modified.
Revenue · FY2025
$1.4M
p. 136 · matched to statement
Net income · FY2025
−$574K
p. 136 · matched to statement
Where FY2025 revenue came from
8% royalties
65% initial / development fees
- Fiscal years covered: FY2024, FY2025 (2026 FDD, statements from p. 136)
- Statements are for: QARGO COFFEE, INC.
- Parent / owner: not identified in the statements
- The filing says (p. 132): “the Company has incurred recurring net losses, has a stockholders’ equity deficit of approximately $1.23 million as of December 31, 2025, and has limited cash reserves. These conditions, considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern”
| Fiscal year | FY2024 | FY2025 |
|---|---|---|
| Total revenue | $1.0Mp. 136 · matched to statement | $1.4Mp. 136 · matched to statement |
| Royalty revenue | $52Kp. 136 · matched to statement | $117Kp. 136 · matched to statement |
| Initial / development feesline: Development fee; Franchise fee | $827Kp. 136 | $930Kp. 136 |
| Net income (loss) | −$402Kp. 136 · matched to statement | −$574Kp. 136 · matched to statement |
| Equity (deficit) at year end | −$620Kp. 135 | −$1.2Mp. 135 |
| Cash at year end | $27Kp. 135 | $192Kp. 135 |
How to read this: royalties recur as long as franchisees trade; initial and development fees arrive only when new franchises are sold. A franchisor whose revenue leans on initial fees is funding itself by selling territories, and that revenue stops when sales slow. Under ASC 606 most franchisors recognize initial fees over the agreement term, so the line understates the cash collected in a strong selling year. Ad-fund revenue, where reported, is included in total revenue as the statements present it.
Each figure links to its page in the filed PDF. “Matched to statement” means our extraction and a second, rule-based read of the statement page agree; “extracted · not cross-checked” means the statement page is a scanned image or could not be read as text. Figures we could not place on a consistent scale are withheld, not guessed. Spotted an error? Report a correction.
Every figure above was extracted by software from the 2026 Qargo Coffee FDD as filed (figures are not individually checked by a person) and links back to that document. Fields that could not be extracted are omitted; no figure here is estimated. Extraction errors are possible: the filing controls, and FDDs are reissued annually; verify against the current issuance before relying on any number. Spotted an error? Franchisors and owners can report it via the contact on our Terms page.
Qargo Coffee FDD questions, answered
Where can I download the Qargo Coffee FDD for free?
Qargo Coffee's 2026 Franchise Disclosure Document is a public record, filed with the Minnesota Department of Commerce (public CARDS portal). It can be downloaded free from the source link on this page — no broker form, no email signup required.
What year is Qargo Coffee's most recent FDD on file?
The most recent Qargo Coffee FDD tracked here is the 2026 FDD, filed with the Minnesota Department of Commerce (public CARDS portal). Franchisors must update their FDD annually; confirm you are reading the current issuance before signing.
Does Qargo Coffee's FDD disclose earnings (Item 19)?
No — Qargo Coffee's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim.
What does Qargo Coffee's FDD Item 20 show?
In fiscal 2025, Qargo Coffee ended with 10 franchised outlets; 1 of 6 open at the start of the year left the system (exit rate 16.7%, fiscal 2025) through terminations, non-renewals, and "ceased operations — other reasons".
The Qargo Coffee validation checklist
questions built from this brand's own filings · read them all on the profile
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