ORANGE LEAF FC, LLC Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $349,000 to $521,500
• Franchise Fee: $30,000
• Royalty: 5% of gross revenue
• Marketing / Ad Fee: 3% of gross revenue for traditional stores, currently contributed to the Brand Development Fund; local marketing spend of 1% is recommended, not required
• Key additional recurring fees: POS system maintenance about $250/month; customer feedback tool about $50/month if implemented
• Number of locations: 61 franchised U.S. stores as of December 29, 2024; 1 company-owned store shown in Item 20
• Best Fit: Owner-operator or ownership group with an on-premises managing owner

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The estimated initial investment ranges from $349,000 to $521,500, with a midpoint around $435,250. That places this in a relatively high startup-cost band for a single retail food unit.

Major cost drivers appear to include the buildout and opening of a traditional store, which the disclosure says typically occupies 1,000 to 1,300 square feet, plus equipment, POS setup, opening support, and working capital. The initial franchise fee is $30,000, and the estimate also includes additional funds of $5,000 to $10,000.

The disclosure also references alternate franchise fee amounts in some contexts, including lower fees tied to other formats or arrangements, but it does not clearly establish that those alternatives apply to a standard traditional single-store purchase. For a typical traditional store review, $30,000 is the clearest base franchise fee.

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• Royalty fee: 5% of gross revenue, paid weekly
• Marketing allocation (traditional store): 3% of gross revenue, paid weekly
• Recommended local marketing: 1% of gross revenue, recommended but not required
• POS system maintenance: approximately $250 per month
• Customer feedback tool: approximately $50 per month if implemented
• Interest on overdue amounts: lesser of 1.5% per month or the highest legal rate
• Late charges: 18% per year or highest amount allowed by law, calculated weekly
• Training for additional people: currently $1,500 per person
• Opening assistance for additional support: $1,500 per diem plus travel, lodging, and dining costs in certain cases

The core recurring fee load is moderate on paper: 5% royalty plus 3% marketing allocation for a traditional store, before any recommended local marketing spend and technology-related charges. The broader fee structure can become heavier if a franchisee needs extra training, additional opening support, or incurs promotional and supplier-related costs.

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Yes, the FDD includes Item 19 revenue data, but it is sales data only, not profit data.

As of December 29, 2024, there were 61 franchised ORANGE LEAF stores in the United States, all traditional stores. Of those, 57 stores had operated for at least 11 of the 12 accounting periods between January 1, 2024 and December 29, 2024 and were included in the revenue presentation.

Item 19 revenue figures

Top 25% of traditional stores (14 stores):

• Average annual unit volume: $706,905
• Median annual unit volume: $662,911
• Range: $557,902 to $980,071

Bottom 25% of traditional stores (15 stores):

• Average annual unit volume: $210,130
• Median annual unit volume: $235,735
• Range: $52,755 to $321,735

The spread is substantial. The lowest store in the bottom quartile reported $52,755, while the highest store in the top quartile reported $980,071. That suggests outcomes can differ materially by location and execution.

The disclosure does not provide a full-system average or median for all 57 included stores, and it does not provide profit, margin, labor cost, occupancy cost, or EBITDA figures. So while the revenue data is useful for understanding sales dispersion, it does not establish whether a store is profitable.

The disclosure states that some stores achieved these sales levels and that individual results may differ. The disclosure does not clearly state in the extracted figures whether the Item 19 numbers are audited.

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This is primarily a B2C retail food service model. Revenue is generated from in-store consumer purchases of frozen yogurt, smoothies, shakes, cakes, treats, beverages, and related items.

Revenue is mostly transaction-based, though repeat customer behavior may matter in practice. Operationally, this appears to be a storefront business with on-premises supervision requirements, foodservice staffing, designated supplier purchasing, POS infrastructure, and participation in system promotions and loyalty-related programs when required.

The disclosure also notes that traditional stores may operate in either a full-serve or self-serve model. A non-traditional format is described, but as of the Item 19 date there were zero non-traditional stores in operation.

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Advantages

• Item 19 includes actual revenue figures for 57 operating traditional stores, giving a concrete view of sales levels at different quartiles.
• The brand had 61 franchised stores operating in the U.S. as of December 29, 2024.
• Core percentage fees for a traditional store are clearly stated at 5% royalty and 3% marketing allocation.
• The disclosure describes a defined traditional-store format, including typical size and product mix.

Considerations

• Initial investment of $349,000 to $521,500 is significant for a single-unit food retail concept.
• Revenue variation is wide, with a large gap between top- and bottom-quartile stores.
• Item 19 reports revenue only; it does not show profit or store-level expenses.
• The territory is non-exclusive, which can limit geographic protection.
• The system’s franchised outlet count declined from 82 in 2022 to 70 in 2022 year-end, then 61 in 2023 year-end, and remained 61 in 2024.

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This franchise may fit someone prepared for a retail foodservice operation with meaningful upfront capital needs and a requirement for on-premises supervision by a managing owner. It may also fit operators comfortable with location-driven performance variability.

It likely does not fit buyers seeking a low-cost entry point, a clearly passive ownership structure, or a business where the FDD demonstrates profit rather than just revenue.

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• The franchise territory is described as non-exclusive.
• Franchisees must buy proprietary products and certain ingredients from a designated supplier.
• Franchisees must participate, at their expense, in designated promotions, loyalty programs, prize promotions, meal deals, test marketing programs, and similar campaigns; the disclosure states there is no limit to the number or related costs of such programs that may be required.
• Renewal requires signing the then-current franchise agreement, which may contain materially different terms.
• The initial franchise term is 10 years, which creates a long commitment relative to the capital required.

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ORANGE LEAF presents a retail food model with a meaningful startup investment and a clear sales range from Item 19, but the disclosed results show wide dispersion between higher- and lower-performing stores. The main tradeoff is straightforward: buyers get actual revenue benchmarks from a mature store base, but they must weigh that against non-exclusive territory, required operational involvement, and the fact that revenue figures do not establish profitability.

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