About D Spot Dessert Cafe Franchise
D Spot Dessert Cafe is a specialty dessert restaurant franchise known for its creative, over the top dessert creations and savory comfort food menu.
The brand has carved out a niche in the dining industry by offering an Instagram worthy experience centered around indulgent treats like loaded waffles, crepes, shakes, and specialty platters.
D Spot began franchising in 2023 under D Spot Holdings USA, Inc.
D Spot Dessert Cafe Franchise Cost & Fees
Minimum Investment
$785K
Average Investment
$1.3M
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Local Advertising Minimum) and 2% of Gross Sales (Advertising Fund) | National brand fund |
| Total Investment Range | $785,250 – $1,843,300 | Includes build-out, inventory, working capital |
The investment range of $785K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% of Gross Sales (Local Advertising Minimum) and 2% of Gross Sales (Advertising Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Real Estate/Rent – 3 months | $7,000 | $60,000 |
| Insurance | $250 | $800 |
| Utilities | $800 | $4,000 |
| Initial Training | $1,000 | $10,000 |
| Hardware and Software Fee | $5,000 | $20,000 |
| Inventory | $18,000 | $60,000 |
| Furniture, Fixtures, and Equipment | $150,000 | $440,000 |
| Grand Opening | $10,000 | $10,000 |
| Licenses and Permits | $1,500 | $5,000 |
| Professional Fees | $5,000 | $10,000 |
| Memberships to Local Organizations | $200 | $2,000 |
| Construction and Real Estate Improvements | $500,000 | $1,000,000 |
| Miscellaneous Operating Costs | $5,000 | $40,000 |
| Pre-opening Staffing Costs | $2,000 | $15,000 |
| Signage | $10,000 | $50,000 |
| Uniforms | $1,500 | $3,500 |
| Security System | $3,000 | $8,000 |
| Additional Funds – 3 months | $30,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Currently not charged |
| Audit Fee | If an audit of your books is required and such an audit discloses an understatement or deficiency, you will pay the arrears, plus 50% of the arrears, plus all costs incurred in connection with such audit. |
| Additional Training Costs | Our then-current fee (which will not exceed $250 per person per day) |
| On-site Training | Estimated to range from $5,000 to $10,000 |
| Management of a Store | Will vary under circumstances |
| Promotional Programs, Gift Cards, Coupons, etc. | Will vary under circumstances |
| Non-Compliance Fee | $1,000 per occurrence, and $100 for each week such default or non-compliance remains uncured |
| Costs on Termination | Will vary under circumstances |
| Indemnification of Franchisor | Will vary under circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Overdue Amounts and Interest Rate | 18% percent per annum, or the maximum rate of interest that may be legally charged. In addition, you may be required to pay a late charge equal to 10% of each payment overdue. |
| Halal Certification | Estimated $350 per month |
| Product Purchases | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | As deemed necessary by the Franchisor, with classroom hours ranging from 8 to 12 hours and on-site hours ranging from 199 to 307 hours, depending on the cafe format. |
| Classroom Training | 8-12 hours |
| On-the-Job Training | 199-307 hours |
| Training Location | Toronto, Canada |
| Additional Training | Additional training, retraining, refresher courses, remedial training, seminars, conferences, or management/franchisee meetings may be provided or made mandatory by us, at our discretion, and at a cost to you, and where applicable, based on our then current fee (if any) for our personnel performing such training or assistance, plus other reasonable expenses, including all travel, meal and accommodation expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A specified geographic territory, typically a mile radius around the premises as outlined in Schedule A-2. |
| Description | You will operate the Store within a specified geographic territory (the “Territory”). So long as you are in full compliance with the terms and conditions of the Franchise Agreement, we will refrain from operating or granting to anyone else a Store, from premises permanently located within the Territory. We expressly reserve all rights not granted to you by the Franchise Agreement. Accordingly, nothing will prevent us, our affiliates, their respective licensees, or others, from operating or granting to someone else a franchise or license to operate, at any location outside the Territory, whether in close proximity to the Premises or otherwise, a business using the applicable Format, the Marks and/or the System; and operating or granting to someone else a franchise or license to operate, at any location, whether inside or outside the Territory, whether in close proximity to the Premises or otherwise, a business using one or more business formats other than the Format, one or more systems other than the System, and/or one or more trademarks other than the Marks, whether now or hereafter owned or licensed by us or our affiliates or licensors, or whose owners or licensors own us or our affiliates, and regardless of whether they are competitive with the System and/or the Products (the “Other Brands”); and distributing, selling, offering, or granting to someone else the right to distribute, sell or offer, the Products or similar or different products, using the System and Proprietary Marks (including the Other Brands) or similar or different business systems or trademarks, at any location, whether inside or outside the Territory, whether in close proximity to the Premises or otherwise, of a temporary or permanent nature, by means of other or alternate channels of distribution, such as without limitation, by or through; (i) telephone orders, mail order, television, vending machines, electronic and digital media, or digital or virtual environments (i.e. including the internet, mobile applications and the metaverse) or catalogue sales; (ii) through catering, catering trucks, carts, mobile vehicles, and/or delivery services, including the Delivery System; (iii) supermarkets, grocery, retail, convenience, or similar stores, or as a concession, kiosk, department or as part of or in combination with any restaurant, supermarket, grocery, retail or similar establishments; or (iv) through outlets of any kind located at public or quasi-public institutions, such as without limitation, hospitals, schools, universities, colleges, correctional facilities, airports, train and/or bus stations, gas and/or service stations, highway rest stops and plazas, sports facilities, arenas, stadiums, concert halls, theatres, fairs and/or exhibitions, food court locations, office complexes and enclosed shopping malls; and advertising, sponsoring, endorsing, or otherwise promoting or advancing the System, the Marks or Other Brands at any location, whether inside or outside the Territory, in any manner whatsoever; and purchasing, merging with, acquiring or affiliating with, or being purchased or acquired by, an existing network, chain, entity or any other business, regardless of the locations or territories of such other franchise, chain, entity or other business, whether inside or outside the Territory, and operating, franchising or licensing those businesses and/or being operated, franchised or licensed by those businesses under the Marks or any other trademarks following such purchase, merger, acquisition or affiliations, regardless of location or proximity of locations or territories, whether inside or outside the Territory. You will be permitted to provide pre-arranged catering services in and only in the Territory. We may administer a delivery and/or pick-up system within an area encompassing the restaurant business and within the Territory (the “Delivery Area”), in which case you must participate in such delivery system, if and as authorized to do so by us (the “Delivery System”). For the purposes of the better operation of the Delivery System, the Delivery Area will be non-exclusive and may not be consistent in any way with the geographic limits of the Territory. The Delivery Area is subject to change by us from time to time. You may not use other channels of distribution, including the internet, catalog sales or telemarketing. You are permitted to market outside of your Territory but must service customers only from your Store location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Provide advance notice, comply with current franchise agreement, pay all amounts due to us and / or our affiliate(s) and designees, sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), provide evidence of right to remain in possession of the Premises, pay renewal fee, not be in default of any licenses for the Store and is able to renew such licenses, provide Franchisor with a complete set of financial statements and reports for the Store for the two most recently completed fiscal years, renovate Premises, and sign a general release of claims. |
| Transfer Fee | $25,000 |
| Transfer Conditions | Proposed transfer does not occur within the first 24 months following the commencement of operations of the Store; the new franchisee is not a competitor of us, the System, other brands or involved in a competing business; you provide a report of all material facts relating to the Store; we are provided with a copy of the agreement of purchase and sale between you and the proposed assignee and all related documents; you are not in default under any agreement between you and us; consent of all necessary parties to the assignment of the lease; you have settled all outstanding accounts with us; release signed by you; current agreement signed by new franchisee, which may include materially different terms than the Franchise Agreement; guaranty signed by new franchisee; new franchisee qualifies and completes initial training, new franchisee obtains all licenses, permits, and other authorizations required to operate the Store; and transfer fee paid by you or new franchisee. |
| Termination for Cause | We may terminate the Franchise Agreement if you default and do not cure within specified periods (7 days for payment, 24 hours for health/safety/license issues, 10 days for other breaches). Immediate termination for non-curable defaults such as three breaches in 24 months, failure to complete training, failure to observe lease terms, failure to develop premises, ceasing business for 5 consecutive days, unauthorized transfer, or financial incapacity (e.g., insolvency, bankruptcy, receivership, judgments over $2,500 not discharged in 20 days). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term: No involvement in competing food manufacturing or food service businesses. After termination/expiration: No involvement in a competing business within 6 miles of the territory, or 3 miles of another Store for a period of 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You and the Guarantor must devote your full time and attention to the establishment, development, and operation of the Store. If the Guarantor is unable to devote full time and attention, a manager approved by the franchisor may be appointed. If the franchisee is an entity, each individual owning a 10% or greater interest is a “Principal Owner” and must sign a personal guarantee. |
| Required Suppliers | You must purchase for use or sale at your Store those food products used in or sold at your store (“Products”) and other services or products we designate from us, our designees or from other suppliers we approve. We or our designees may be the designated or sole source of supply for certain services and products. As of the date of this disclosure document, you must purchase cakes from us or our designee. Currently, Gordon Food Service, Inc. (“GFS”) is our approved distributor for various products from many suppliers. These products currently include all products and all other goods and services used in the Store, including without limitation, all raw and other ingredients or beverage products, ingredients, inventory, restaurant accessories, equipment, point of sale materials, software, technology, marketing or promotional items and materials, suppliers, clothing, hats, and kitchen equipment (including, without limitation, containers, dishes, glassware, take-out materials, cutlery, furniture, napkins, placemats and uniforms) and services. |
| Supply Restrictions | You must use in the operation of your store and the preparation and sale of Products, all plates, food containers, napkins, straws, bags, cups, menus and other paper goods, promotional, packaging, point of sale materials, and like articles of a brand, size, shape, quality and style designated by us, which bear such reproductions of the Marks as we may specify and all art work and reproductions used must conform to specifications established by us. You must maintain a minimum inventory of certain designated products, as specified by us from time to time. We may discontinue or limit the supply of, or make changes or alterations to, or add new or additional types of items to, the inventory of products which you must maintain. Currently, you must use only those service providers, manufacturers, brands or types of fixtures, equipment (including without limitation, computer hardware and software, communications, electronics, cash register, surveillance or security, and POS Systems), and signs that we have designated. You must purchase designated brands or types of fixtures, equipment and signs only from suppliers designated by us, which may include or be limited to us or our affiliates. |
| Franchisor Revenue from Suppliers | We and our affiliates may receive rebates from designated suppliers. During D Spot Canada’s last fiscal year, D Spot Canada generally received rebates ranging from 3% to 6% of franchisees’ or our purchase price. We and our affiliates may use and allocate such rebates in any manner that we determine. During our last fiscal year ending December 31, 2023, we did not collect any revenue as a result of United States franchisees’ and licensees’ purchases of products and services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. If you secure a business loan backed by the Small Business Administration (SBA), we will execute with you the mandated SBA Addendum to the Franchise Agreement. |
D Spot Dessert Cafe Franchise Earnings — Item 19
D Spot Dessert Cafe does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
D Spot Dessert Cafe does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
D Spot Dessert Cafe Litigation & Risk Flags
Clean Litigation RecordD Spot Dessert Cafe has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
D Spot Dessert Cafe System Growth
Total Units
0
Franchised
0
Company-Owned
0
D Spot Dessert Cafe currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 3 states: IL, MI, NY
Franchisor Financials (Item 21)
0
Net Income
$-32,727
Total Assets
$41K
Audited by TSACPA for year ending December 31, 2023.
D Spot Dessert Cafe Franchise — FAQ
The total investment to open a D Spot Dessert Cafe franchise ranges from $785,250 to $1,843,300, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
D Spot Dessert Cafe charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% of Gross Sales (Local Advertising Minimum) and 2% of Gross Sales (Advertising Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the D Spot Dessert Cafe Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from D Spot Dessert Cafe to ensure you have the most up-to-date version.
D Spot Dessert Cafe does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
D Spot Dessert Cafe has been franchising since 2023. The FDD shows an investment range of $785,250-$1,843,300, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $785,250 to $1,843,300 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from D Spot Dessert Cafe and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with D Spot Dessert Cafe or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com