Rise Biscuits and Donuts Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $667,850 to $882,500
• Franchise Fee: $35,000
• Royalty: 6% of gross revenue
• Marketing / Ad Fee: 2% brand fund contribution plus 3% local marketing requirement
• Key additional recurring fees: POS-related services at $870.98/month, integration services at $100/month, accounting/bookkeeping software about $250/month, annual menu board charge of $1,500, music system around $45/month
• Number of locations: 25 total outlets at year-end 2024, including 19 franchised and 6 company/affiliate-owned
• Best Fit: Owner-operator

---

The FDD estimates total initial investment at $667,850 to $882,500 for a single restaurant, including the $35,000 franchise fee. It also includes additional funds of $50,000 to $70,000, which suggests a meaningful working capital requirement beyond buildout and opening costs.

This is a high-cost restaurant franchise based on the disclosed range. The capital requirement appears consistent with a physical foodservice operation that uses equipment, technology, and ongoing staffing rather than a lighter service model.

---

• Royalty: 6% of gross revenue, deducted weekly by EFT
• Brand fund contribution: 2% of gross revenue
• Local marketing requirement: 3% of gross revenue
• Required software and related fees: currently includes $870.98/month for POS-related services, $100/month for integration services, about $250/month for accounting/bookkeeping software, and $1,500 annual menu board charge
• Music system fee: around $45/month
• Renewal fee: $5,000
• Transfer fee: $7,500
• Training fee for additional persons: $500 per trainee per day plus travel expenses
• Annual conference: expected to be $500 to $1,000 per attendee

Overall, the percentage-based fee load is material: 6% royalty + 2% brand fund + 3% local marketing = 11% of gross revenue before considering software and other fixed charges. That means the recurring fee burden should be evaluated alongside food, labor, occupancy, and delivery costs.

---

Yes, the FDD includes Item 19 financial performance information.

Franchisee-owned restaurants: gross revenue only

For 16 franchisee-owned restaurants during calendar year 2024, the FDD reports:

• Average gross revenue: $859,058.67
• Median gross revenue: $793,848.51
• High: $1,423,390.53
• Low: $429,307.66
• Number meeting or exceeding average: 7 of 16 (43.75%)

This is a fairly wide revenue range, with the high unit generating more than three times the low unit. The median is below the average, which suggests some higher-volume units pull the average upward.

Affiliate-owned restaurants: revenue plus certain operating costs and estimated franchise fees

For 5 affiliate-owned restaurants during calendar year 2024, the FDD reports gross revenue and certain cost categories:

• Gross revenue:

  • Average: $838,998.47
  • Median: $821,855.38
  • Range: $497,666.63 to $1,301,726.86

• COGS: 29.34% to 33.99% of gross revenue

• Labor: 20.59% to 34.19%

• Administrative and other reported operating costs and expenses: 8.75% to 17.94%

• Rent and CAM: 2.35% to 9.11%

• Delivery charges: 4.48% to 8.92%

• Estimated local store marketing: 3%

• Estimated brand fund: 2%

• Estimated royalty: 6%

The FDD also shows “Gross Revenues Less Actual Disclosed Operating Costs/Expenses and Estimated Fees Above” for those 5 affiliate units:

• $143,611.46 (14.73%)
• $75,380.24 (9.17%)
• $247,939.91 (19.05%)
• $45,117.25 (7.54%)
• -$68,307.70 (-13.73%)

That produces:

• Average: $88,748.23
• Median: $75,380.24
• Range: -$68,307.70 to $247,939.91

These figures show meaningful variability. At least one affiliate location was negative on this disclosed measure, while others remained positive. That spread suggests unit economics may be sensitive to sales volume and operating cost control.

Important caveats:

• Revenue is not profit.
• The affiliate table is not the same as net income because it reflects only the cost categories specifically disclosed and includes estimated franchise fees.
• The disclosure does not clearly establish whether the Item 19 figures are audited.
• The sample sizes are limited to 16 franchised units for revenue and 5 affiliate units for the cost table.

---

This is primarily a B2C restaurant model serving the public through dine-in, takeout, catering, and delivery.

Revenue appears to be a mix of repeat consumer purchases and some occasion-based sales such as catering and merchandise. Operationally, this is a location-based food business with equipment, staffing, food cost management, delivery-related expense, and required software systems. The FDD also requires personal day-to-day supervision by the franchisee or a principal.

---

Advantages

• The FDD provides actual 2024 gross revenue figures for 16 franchised restaurants.
• It also provides cost-category detail for 5 affiliate-owned restaurants, which gives some view into food, labor, occupancy, delivery, and fee pressure.
• The system had 25 total outlets at year-end 2024, up from 21 the prior year.
• The franchisee revenue sample includes units above $1.1 million and a high of $1.42 million, showing that some locations reached materially higher sales levels.

Considerations

• The initial investment of $667,850 to $882,500 is substantial.
• The ongoing percentage-based fee load totals 11% of gross revenue before software and other fixed charges.
• The model is not semi-absentee; the FDD requires full-time personal supervision and best efforts.
• Revenue dispersion is wide, from $429,307.66 to $1,423,390.53 among franchised units.
• The affiliate cost table shows one unit at negative 13.73% on the disclosed post-expense measure, indicating that weaker-performing units can be pressured by costs.

---

This franchise may fit an owner-operator prepared for a high-investment restaurant business with direct day-to-day involvement, staffing responsibility, and ongoing management of food, labor, and delivery economics.

It likely does not fit someone seeking a low-cost entry point, passive ownership, or a business with exclusive territory protection.

---

• The territory is non-exclusive, so geographic protection appears limited.
• Royalty and brand fund fees are deducted by electronic funds transfer, which can tighten cash flow if sales fluctuate.
• The business relies on several approved supplier technology services, including POS, integration, and bookkeeping software.
• Delivery charges were a notable expense in the affiliate table, ranging from 4.48% to 8.92% of gross revenue.
• The disclosure notes a cure-based default trigger for failure to pay amounts owed, with a 15-day cure period in at least one cited default provision.

---

Rise Biscuits and Donuts presents a restaurant model with meaningful disclosed revenue data, but the tradeoff is a high upfront investment, a layered fee structure, and required full-time owner involvement. The main question is whether a buyer is comfortable underwriting restaurant operating complexity and revenue variability within a non-exclusive territory.

---