FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for AROMA JOE’S.
Based on 2023 FDD · 1 filing in corpus
This page is using 2023 FDD source data. Verify the franchisor's current FDD before relying on costs, fees, or Item 19.
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a AROMA JOE’S franchise shows an estimated initial investment of $501K – $959K. Reported owner economics show $22K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $25K franchise fee · 10.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
AROMA JOE’S requires a total initial investment of $501K to $959K (midpoint approximately $730K), with an initial franchise fee of $25K. The ongoing fee burden is 10.5% (8% royalty plus 2.5% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2023 FDD, the median revenue for AROMA JOE’S locations is $878K. The implied franchisee EBITDA is approximately $22K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 3.0% with a payback period of approximately 33.3 years.
AROMA JOE’S operates approximately 13 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2023 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2014-2018). 10 loans across 2 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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