FDD Analysis 2025 FDD

KOA Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from KOA's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the KOA FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$752,150 - $13,174,425
Franchise Fee$15,000

Investment Breakdown

Transfer Fee$10,000 - $10,000
Training Expenses$500 - $3,500
Real Estate, Fixtures, Other Improvements, Equipment, and Signs$711,000 - $13,000,000
Opening Costs$10,650 - $25,000
Initial Inventory$3,000 - $30,000

+ 3 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee8% of gross sales
Marketing/Advertising Fee2% of gross sales

Other Ongoing Fees

Administrative FeeVaries
Payment Platform FeeVaries
KOA Rewards™ Program ProceedsVaries
Delinquency ChargeVaries
Audit ChargeVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$9,789/year
Disclosure Year2025
Reporting Units
Revenue VarianceLow variance (consistent performance)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

478

Total Units

-5

Net Growth (YoY)

-1.0%

Growth Rate

Franchised Units427
Company-Owned Units51

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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