Key Numbers
127
Total units open
15
Units opened last year
74
Units closed last year
-59
Net unit growth
Boxdrop Franchise
Retail FDD 2026 Founded 2019 · 7+ yrs Item 19 disclosed
Data extracted from Boxdrop's 2026 Franchise Disclosure Document, filed under FTC Rule 16 CFR 436. How we analyze FDDs →
Initial investment
$67K - $202K
Franchise fee
$14K
System size
125 (+15)
The Verdict
Quick Verdict · who it fits
Boxdrop fits owner-operators looking for a mid-scale retail concept.
✓ Strengths
- ✓Low entry fee: $13,500 (industry median: $35,000)
- ✓Discloses Item 19 financial performance
- ✓No disclosed Item 3 litigation
⚠ Risks to review
- ⚠High closure ratio: 59.2% of system per year
Key FDD Facts
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$67K - $202K
Franchise fee (Item 5)
$14K
System size (Item 20)
125 +15
Years in business
7+ yrs
Company-owned units
2
Item 3 litigation
None disclosed
Model Boxdrop's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available✓Exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
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What's inside
Franchise Overview
Costs & Fees Breakdown
Your Obligations
Franchisor Obligations
Financial Statements
Contracts Summary
Unit Economics
Network Health
Litigation Risk
Earnings Analysis
Financial Fit Analysis
Buyer Verdict
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Research, not legal advice. Use this report alongside professional legal and financial review before signing any franchise agreement.
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Competitive intelligence for franchisors →Executive Summary
Free AI summary — the first read on the filing.
AI Due Diligence Findings PREMIUM
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
Industry Benchmarks
How Boxdrop ranks against 118 Retail peers we've analyzed.
Initial investment
13th pct · of 118 peers
Franchise fee
9th pct · of 118 peers
System size
64th pct · of 118 peers
Retail industry averages
Avg investment
$247K - $707K
Avg franchise fee
$37K
Avg system size
238
Franchises analyzed
118
How Boxdrop stacks up
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Boxdrop | Disclosed | $14K | $67K - $202K | — | 125 |
| Wateria Ca Similar price | None | $30K | $134K - $203K | — | 1 |
| 7-Eleven Biggest system | Disclosed | — | $163K - $1.7M | 45–56% | 7,229 |
| Byrider Franchising Partners Top-rated in category | Disclosed | $60K | $947K - $1.6M | 1–2.5% | 81 |
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Frequently asked questions
How much does a Boxdrop franchise cost?
Boxdrop requires a $13,500 initial franchise fee and a total initial investment range of $67,000–$202,400, per the most recent FDD on file.
Who owns Boxdrop?
Boxdrop franchises are sold by BoxDrop, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
Does Boxdrop disclose financial performance (Item 19)?
Yes. Boxdrop discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
What ongoing fees does Boxdrop charge?
Franchisees pay an advertising fund contribution of Up to 2% on gross sales as defined in Item 6 of the FDD.
How many Boxdrop locations are there?
As of their 2026 FDD, Boxdrop has 125 total locations, with 15 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Does Boxdrop grant exclusive territory?
Yes. Boxdrop grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
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