Candy Cloud Franchise
Cost, fees, owner earnings, closure rate and litigation for a Candy Cloud franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Candy Cloud discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Five outlets (one affiliate, four franchised) open 6+ months Nov 2023-Nov 2024. Average monthly revenue reported. No royalty/brand fund deductions included. Limited sample size.
What a Candy Cloud franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $389,100 – $724,350 | Item 7 — franchisor's own low/high estimate |
6% royalty, 2% brand fund (up to 4%), $200-450/mo system fee, substantial ancillary fees including $100-500/day remedial training, 18% interest on late payments.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Candy Cloud system size and owner turnover
| Total outlets | 6 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
No terminations/closures in 3 years. Only 5 franchised units, 4 recently opened.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Candy Cloud worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $389,100 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Candy Cloud
The franchisor's framing: Five outlets (one affiliate, four franchised) open 6+ months Nov 2023-Nov 2024. Average mo… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Candy Cloud franchise — frequently asked
- How much does a Candy Cloud franchise cost?
- The FDD lists a total initial investment of about $389,100–$724,350, including a $40,000 initial franchise fee.
- How much do Candy Cloud franchise owners make?
- Five outlets (one affiliate, four franchised) open 6+ months Nov 2023-Nov 2024. Average monthly revenue reported. No royalty/brand fund deductions included. Limited sample size. We grade this disclosure D for honesty.
- What are the Candy Cloud franchise fees?
- Candy Cloud's FDD discloses a $40,000 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty, 2% brand fund (up to 4%), $200-450/mo system fee, substantial ancillary fees including $100-500/day remedial training, 18% interest on late payments.
- What is the Candy Cloud franchise profit margin?
- Candy Cloud does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Five outlets (one affiliate, four franchised) open 6+ months Nov 2023-Nov 2024. Average monthly revenue reported. No royalty/brand fund deductions included. Limited sample size. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Candy Cloud franchise failure rate?
- No terminations/closures in 3 years. Only 5 franchised units, 4 recently opened.
- How many Candy Cloud locations are there?
- Candy Cloud's FDD reports 6 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Candy Cloud have complaints or lawsuits?
- Candy Cloud discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Candy Cloud franchise worth it?
- It depends on the numbers, not the pitch. Candy Cloud scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Candy Cloud to similar franchises
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Source: MN CARDS 32792-202501-07 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Candy Cloud or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.