--- site: "VetMyFranchise" url: https://vetmyfranchise.com/c/claude/ publisher: "VetMyFranchise" author: "VetMyFranchise Team" lastUpdated: 2026-08-20 pagesIncluded: 165 pagesTotal: 300 generatedAt: 2026-08-24T05:51:34.382Z --- # VetMyFranchise > Full markdown bundle of the top 165 of 300 pages on https://vetmyfranchise.com/c/claude/, ranked by content quality, freshness, and importance. ## About this site **Publisher:** VetMyFranchise **Author:** VetMyFranchise Team **Last updated:** 2026-08-20 **Total pages indexed:** 300 ## Pages in this bundle 1. [Franchise Due Diligence | Compare 2,000+ Franchise Opportunities & FDDs](https://vetmyfranchise.com/c/claude/) 2. [Pricing — $49 Research Report · $99 for 3-pack comparison](https://vetmyfranchise.com/c/claude/pricing) 3. [Anytime Fitness Franchise Cost 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) 4. [Anytime Fitness vs Orangetheory Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) 5. [Automotive Franchise Guide: Costs & Data (2026 FDD Analysis)](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) 6. [7-Eleven vs Circle K Franchise: Cost & Real Operator Take](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) 7. [Acai Bowl Franchise Cost 2026: 10 Brands Compared](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) 8. [7-Eleven Franchise Cost 2026: The Full Line-Item Stack](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) 9. [7 Brew Franchise Cost 2026: Item 7 and Item 19 Data](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) 10. [Anytime Fitness vs Planet Fitness: Franchise Comparison Guide](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) 11. [Best Coffee Franchises 2026: Real Item 19 Revenue Data](https://vetmyfranchise.com/c/claude/blog/best-coffee-franchises) 12. [Best Daycare & Preschool Franchises 2026: Real Costs](https://vetmyfranchise.com/c/claude/blog/best-daycare-preschool-franchises) 13. [Best Franchises for Veterans 2026: Real VetFran Discounts](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-veterans) 14. [Best Auto Repair Franchises 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) 15. [Best Outdoor Living Franchises 2026: Fence, Deck, Light](https://vetmyfranchise.com/c/claude/blog/best-outdoor-living-franchises) 16. [Best Chicken Franchises 2026: Cost + Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises) 17. [Best Recession-Proof Franchises to Buy in 2026](https://vetmyfranchise.com/c/claude/blog/best-recession-proof-franchises) 18. [Best Vending & ATM Franchise Opportunities 2026](https://vetmyfranchise.com/c/claude/blog/best-vending-atm-franchise-opportunities) 19. [Best Kitchen & Bath Remodeling Franchises 2026: Costs](https://vetmyfranchise.com/c/claude/blog/best-kitchen-bath-remodeling-franchises) 20. [Best Pilates Franchises 2026: Yoga and Barre Brands](https://vetmyfranchise.com/c/claude/blog/best-yoga-pilates-barre-franchises) 21. [Best Franchises for Multi-Unit Ownership | 2026 Picks](https://vetmyfranchise.com/c/claude/blog/best-franchises-multi-unit-ownership) 22. [Best Sandwich & Sub Franchises 2026: 23 Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises) 23. [Best Italian Food Franchises 2026: Pizza, Pasta, & More](https://vetmyfranchise.com/c/claude/blog/best-italian-food-franchises) 24. [Best Home Care Franchises 2026: Revenue per Dollar In](https://vetmyfranchise.com/c/claude/blog/best-home-care-franchises) 25. [Best HVAC Franchises 2026: Cost, Revenue, Real Data](https://vetmyfranchise.com/c/claude/blog/best-hvac-franchises) 26. [Best Garage & Concrete Coating Franchises 2026: Costs](https://vetmyfranchise.com/c/claude/blog/best-garage-concrete-coating-franchises) 27. [Best Staffing Franchises 2026: Revenue and Cost Data](https://vetmyfranchise.com/c/claude/blog/best-staffing-franchises) 28. [Best Youth Sports Franchises 2026: Cost and Revenue Data](https://vetmyfranchise.com/c/claude/blog/best-youth-sports-franchises) 29. [Crumbl vs Insomnia vs Toll House: $848K Cost, $1.09M AUV (2026)](https://vetmyfranchise.com/c/claude/blog/crumbl-vs-insomnia-vs-nestle-toll-house-franchise) 30. [Best E-2 Visa Franchises 2026: Investment and Job Data](https://vetmyfranchise.com/c/claude/blog/best-franchises-e2-visa-investors) 31. [Best Juice & Smoothie Franchises 2026: Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-juice-smoothie-franchises) 32. [Best Window Cleaning Franchises 2026: Cost + Item 19](https://vetmyfranchise.com/c/claude/blog/best-window-cleaning-franchises) 33. [Franchise Insurance & Workers' Comp: Real Annual Cost](https://vetmyfranchise.com/c/claude/blog/franchise-insurance-workers-comp-real-annual-cost) 34. [Best Lawn Care Franchises 2026: Cost + Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-lawn-care-landscaping-franchises) 35. [Franchise Due Diligence Checklist: 10 Steps + FDD Data](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) 36. [Five Guys vs Wingstop Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise) 37. [FDD Review Process and Timeline: 30-Day Plan (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan) 38. [FDD Review Cost 2026: Attorney Fees and Service Tiers](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) 39. [Laundromat Franchise Opportunities 2026: Cost & Profit](https://vetmyfranchise.com/c/claude/blog/laundromat-franchise-opportunities) 40. [Is Five Guys a Franchise? Franchise Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-five-guys-a-franchise) 41. [Franchise Costs 2026: How Much It Costs to Open a Franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) 42. [How to Research a Competitor Franchise Brand (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-research-competitor-franchise) 43. [Is Insomnia Cookies a Franchise? No — What to Buy Instead](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise) 44. [Jeff's Bagel Run Franchise Cost 2026: What's Disclosed](https://vetmyfranchise.com/c/claude/blog/jeffs-bagel-run-franchise-cost) 45. [Mathnasium vs Kumon Franchise: 2026 Tutoring Comparison](https://vetmyfranchise.com/c/claude/blog/mathnasium-vs-kumon-franchise) 46. [How to Research a Franchise Before You Buy (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise) 47. [Is Crumbl a Franchise? Yes: $849K–$1.5M to Open (2026 FDD)](https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise) 48. [How Long Until a Franchise Is Profitable? 455 FDDs, by Category](https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable) 49. [Most Profitable Franchises 2026: 660 Item 19 Medians](https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own) 50. [FDD Item 6 Other Fees: Recurring Franchise Costs Explained](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) 51. [Franchise Failure Rates 2026: Closure Data From 858 FDDs](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) 52. [Franchise Red Flags in All 23 FDD Items | Warning Guide](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items) 53. [Planet Fitness Franchise Cost 2026: $1.28M-$5.39M, Owner Pay](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) 54. [SBA Franchise Loans 2026: Worked Example + Rate Table](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) 55. [Semi-Absentee Franchise vs Owner-Operator](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) 56. [Kiddie Academy vs The Learning Experience Franchise 2026](https://vetmyfranchise.com/c/claude/blog/kiddie-academy-vs-the-learning-experience-franchise) 57. [Franchise Validation Process: How to Talk to Franchisees](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) 58. [Scooter's Coffee Franchise Cost 2026: Investment + Buyer Reality](https://vetmyfranchise.com/c/claude/blog/scooters-coffee-franchise-cost) 59. [How to Sell a Franchise: Transfer Process, Maximizing Value](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer) 60. [Take 5 vs Valvoline Franchise 2026: Cost and Revenue](https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise) 61. [Franchise Disclosure Document (FDD): All 23 Items Explained](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) 62. [Wingstop Item 19 Deep Dive 2026: AUV Distribution Explained](https://vetmyfranchise.com/c/claude/blog/wingstop-item-19-deep-dive) 63. [How to Read a Franchise Agreement: 12 Key Clauses to Know](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) 64. [Mosquito Control Franchise Cost 2026: 7 Brands Compared](https://vetmyfranchise.com/c/claude/blog/mosquito-control-franchise-buyers-guide) 65. [Wingstop Franchise Cost 2026: Investment & Profit Guide](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost) 66. [Valvoline Item 19 2026: $1.7M Franchisee Median Decoded](https://vetmyfranchise.com/c/claude/blog/valvoline-item-19-deep-dive) 67. [VetFran & Diversity Franchise Financing: Discounts & Capital](https://vetmyfranchise.com/c/claude/blog/vetfran-diversity-financing-veteran-minority-women-buyers) 68. [Top Sports Bar Franchises 2026: Cost and Revenue Compared](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) 69. [Wingstop vs Popeyes Franchise 2026: Chicken Category Comparison](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-popeyes-franchise) 70. [Is Discount Tire a Franchise? Tire Shop Options (2026)](https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise) 71. [Is Ace Hardware a Franchise? It's a Co-op (2026)](https://vetmyfranchise.com/c/claude/blog/is-ace-hardware-a-franchise) 72. [Is FedEx Office a Franchise? vs The UPS Store (2026)](https://vetmyfranchise.com/c/claude/blog/is-fedex-office-a-franchise) 73. [Is Life Time a Franchise? The Corporate Tier (2026)](https://vetmyfranchise.com/c/claude/blog/is-life-time-fitness-a-franchise) 74. [Is Dunkin' a Franchise? 9,963 of 9,999 Are (2026)](https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-franchise) 75. [Is Petco a Franchise? Ownership Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-petco-a-franchise) 76. [Is KFC a Franchise? 99% Franchised, Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-kfc-a-franchise) 77. [Is Cracker Barrel a Franchise? Ownership (2026)](https://vetmyfranchise.com/c/claude/blog/is-cracker-barrel-a-franchise) 78. [Is Dairy Queen a Franchise? Berkshire's Chain (2026)](https://vetmyfranchise.com/c/claude/blog/is-dairy-queen-a-franchise) 79. [Is 24 Hour Fitness a Franchise? New Owner (2026)](https://vetmyfranchise.com/c/claude/blog/is-24-hour-fitness-a-franchise) 80. [Is PetSmart a Franchise? Pet Franchise Options (2026)](https://vetmyfranchise.com/c/claude/blog/is-petsmart-a-franchise) 81. [Is Enterprise a Franchise? Not in the US (2026)](https://vetmyfranchise.com/c/claude/blog/is-enterprise-a-franchise) 82. [Is Häagen-Dazs a Franchise? Shop Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-haagen-dazs-a-franchise) 83. [Is Jiffy Lube a Franchise? Cost and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-jiffy-lube-a-franchise) 84. [Is Keller Williams a Franchise? Costs and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise) 85. [Is H&R Block a Franchise? The $2,500 Question (2026)](https://vetmyfranchise.com/c/claude/blog/is-hr-block-a-franchise) 86. [Is Compass a Franchise? No, but It Owns Four (2026)](https://vetmyfranchise.com/c/claude/blog/is-compass-a-franchise) 87. [Is Domino's a Franchise? The Operator Path (2026)](https://vetmyfranchise.com/c/claude/blog/is-dominos-a-franchise) 88. [Is Goodyear a Franchise? Dealers vs Franchises (2026)](https://vetmyfranchise.com/c/claude/blog/is-goodyear-a-franchise) 89. [Is Chipotle a Franchise? 100% Company-Owned (2026)](https://vetmyfranchise.com/c/claude/blog/is-chipotle-a-franchise) 90. [Is Hertz a Franchise? Yes, in Smaller Markets (2026)](https://vetmyfranchise.com/c/claude/blog/is-hertz-a-franchise) 91. [Is Olive Garden a Franchise? Darden Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-olive-garden-a-franchise) 92. [Is Panda Express a Franchise? Only in Airports (2026)](https://vetmyfranchise.com/c/claude/blog/is-panda-express-a-franchise) 93. [Is Red Lobster a Franchise? Post-Bankruptcy Owner (2026)](https://vetmyfranchise.com/c/claude/blog/is-red-lobster-a-franchise) 94. [Is Terminix a Franchise? Rentokil's Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-terminix-a-franchise) 95. [Is Century 21 a Franchise? Under Compass Now (2026)](https://vetmyfranchise.com/c/claude/blog/is-century-21-a-franchise) 96. [Is Planet Fitness a Franchise? 90% Franchised (2026)](https://vetmyfranchise.com/c/claude/blog/is-planet-fitness-a-franchise) 97. [Is PODS a Franchise? Corporate vs Franchise Markets (2026)](https://vetmyfranchise.com/c/claude/blog/is-pods-a-franchise) 98. [Is U-Haul a Franchise? How the Dealer Program Works (2026)](https://vetmyfranchise.com/c/claude/blog/is-uhaul-a-franchise) 99. [Is Subway a Franchise? Yes: Here's How It Works (2026)](https://vetmyfranchise.com/c/claude/blog/is-subway-a-franchise) 100. [Is In-N-Out a Franchise? Family-Owned Since 1948 (2026)](https://vetmyfranchise.com/c/claude/blog/is-in-n-out-burger-a-franchise) 101. [Is Taco Bell a Franchise? 92% of US Locations Are (2026)](https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-franchise) 102. [Is Waffle House a Franchise? The Real Answer (2026)](https://vetmyfranchise.com/c/claude/blog/is-waffle-house-a-franchise) 103. [Is RE/MAX a Franchise? Office Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-remax-a-franchise) 104. [Is Whataburger a Franchise? Requirements (2026)](https://vetmyfranchise.com/c/claude/blog/is-whataburger-a-franchise) 105. [Is Texas Roadhouse a Franchise? The Numbers (2026)](https://vetmyfranchise.com/c/claude/blog/is-texas-roadhouse-a-franchise) 106. [Is The UPS Store a Franchise? Cost and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-the-ups-store-a-franchise) 107. [Is The Cheesecake Factory a Franchise? (2026)](https://vetmyfranchise.com/c/claude/blog/is-the-cheesecake-factory-a-franchise) 108. [Urgent Care Franchise Cost in 2026 (AFC Breakdown)](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) 109. [After Signing a Franchise Personal Guarantee: What Changes](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) 110. [Best Franchises for Engineers Leaving Tech 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-engineers-leaving-tech) 111. [After SBA Approval: 23 Franchise Closing Tasks Most Buyers Miss](https://vetmyfranchise.com/c/claude/blog/after-sba-approval-23-franchise-closing-tasks) 112. [Applebee's Item 19 2026: Casual Dining AUV Reality](https://vetmyfranchise.com/c/claude/blog/applebees-item-19-deep-dive) 113. [Best EV Charging Franchises 2026: Brands, Costs, Buyer Reality](https://vetmyfranchise.com/c/claude/blog/best-ev-charging-franchise-opportunities) 114. [Best Franchises for Former Federal Workers (2026)](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-laid-off-federal-workers) 115. [Baskin-Robbins Item 19 2026: $521K Median Decoded](https://vetmyfranchise.com/c/claude/blog/baskin-robbins-item-19-deep-dive) 116. [Single-Unit vs Area Developer vs Master Franchise — Which Structure Fits Your Capital?](https://vetmyfranchise.com/c/claude/blog/area-development-agreement-vs-single-unit-franchise) 117. [Aspen Dental vs Heartland Dental: Ownership Models Compared (2026)](https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise) 118. [Best Chiropractic Franchises 2026: The Joint vs 3 Rivals](https://vetmyfranchise.com/c/claude/blog/best-chiropractic-franchises) 119. [FDD Item 15 Explained: Owner Participation Rules (2026)](https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee) 120. [FDD Item 23 Receipts: Final Checklist Before You Sign](https://vetmyfranchise.com/c/claude/blog/fdd-item-23-receipts-buyer-final-checklist) 121. [Best Stretching Franchises 2026: StretchLab vs Stretch Zone](https://vetmyfranchise.com/c/claude/blog/best-stretching-franchises) 122. [Best Franchises Under $5,000 Investment 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-under-5k-investment) 123. [Best Mobile Car Wash & Detail Franchises 2026 (Real Economics)](https://vetmyfranchise.com/c/claude/blog/best-mobile-car-wash-detail-franchises) 124. [Best Food Franchises Under $250K: 12 Picks (2026)](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) 125. [Best Franchises to Own for $500K-$1M in 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-500k-to-1m-investment) 126. [Best Low-Cost Franchises Under $100K in 2026](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) 127. [Best Painting Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-painting-franchises) 128. [Best Restoration Franchises 2026: Disaster Recovery Brands](https://vetmyfranchise.com/c/claude/blog/best-restoration-disaster-recovery-franchises) 129. [Big O Tires After Mavis: Who Owns It in 2026](https://vetmyfranchise.com/c/claude/blog/big-o-tires-after-mavis-acquisition-what-franchisees-should-know) 130. [BrightStar Care vs Senior Helpers vs Always Best Care 2026](https://vetmyfranchise.com/c/claude/blog/brightstar-care-vs-senior-helpers-vs-always-best-care-franchise) 131. [Big O Tires vs Midas 2026: Owners, Cost, Item 19](https://vetmyfranchise.com/c/claude/blog/big-o-tires-vs-midas-franchise) 132. [Burger King Item 19 2026: $1.64M Median in Traditional Format](https://vetmyfranchise.com/c/claude/blog/burger-king-item-19-deep-dive) 133. [Cheapest Franchises to Start Under $10k (2026)](https://vetmyfranchise.com/c/claude/blog/cheapest-franchises-under-10k) 134. [Can You Staff a Franchise in 2026? The Labor Reality](https://vetmyfranchise.com/c/claude/blog/can-you-staff-it-franchise-labor-reality) 135. [Express Car Wash Franchise Cost in 2026](https://vetmyfranchise.com/c/claude/blog/express-car-wash-franchise-cost) 136. [Cleaning Franchise vs. Independent Cleaning Business](https://vetmyfranchise.com/c/claude/blog/cleaning-franchise-vs-independent-cleaning-business) 137. [F45 Training Item 19 2026: $407K Median Reality Check](https://vetmyfranchise.com/c/claude/blog/f45-item-19-deep-dive) 138. [F45 Training Franchise Cost 2026: After the Collapse](https://vetmyfranchise.com/c/claude/blog/f45-training-franchise-cost) 139. [FDD Item 17: Renewal, Termination, and Exit Provisions Decoded](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination) 140. [Dutch Bros vs Scooter's Coffee Franchise: Real 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/dutch-bros-vs-scooters-coffee-franchise) 141. [Club Pilates Item 19 2026: $969K Median Decoded](https://vetmyfranchise.com/c/claude/blog/club-pilates-item-19-deep-dive) 142. [Crumbl Item 19 Decoded: Cohort AUV Reality 2026](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) 143. [Build a Franchise Pro-Forma From Item 19 (Template)](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) 144. [Buy a Franchise With a Spouse or Partner: Structure & Risk](https://vetmyfranchise.com/c/claude/blog/buying-franchise-with-spouse-or-partner) 145. [Buying a Refranchised Corporate Franchise Location (2026)](https://vetmyfranchise.com/c/claude/blog/buying-refranchised-corporate-franchise-location) 146. [Best Midwest Franchises 2026: Data From 2,000+ FDDs](https://vetmyfranchise.com/c/claude/blog/best-franchises-midwest) 147. [Best Pet Boarding & Daycare Franchises 2026: Top 5 Compared](https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises) 148. [Franchise Attorney FDD Review Cost in 2026](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-fdd-review-cost) 149. [Franchise Break-Even Analysis: Calculate It Before You Sign](https://vetmyfranchise.com/c/claude/blog/franchise-break-even-calculation-before-you-sign) 150. [Franchise Buying FAQ: 25 Questions Answered (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-buying-faq) 151. [F45 vs Orangetheory Franchise Comparison Guide 2026](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise) 152. [FDD Amended Before Signing: The 14-Day Rule Reset Explained](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) 153. [Franchise Net Worth & Liquid Capital Requirements (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) 154. [Franchise vs Buying a Small Business: 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/franchise-vs-buying-small-business) 155. [Dunkin' Item 19 2026: $1.3M Median Across 7,010 Units Explained](https://vetmyfranchise.com/c/claude/blog/dunkin-item-19-deep-dive) 156. [Great Clips Item 19 2026: $382K Median Across 4,147 Salons](https://vetmyfranchise.com/c/claude/blog/great-clips-item-19-deep-dive) 157. [Hand and Stone Item 19 2026: $1.3M Median, P25/P75 Breakdown](https://vetmyfranchise.com/c/claude/blog/hand-and-stone-item-19-deep-dive) 158. [Crunch Fitness Franchise Cost 2026: Investment + Item 19](https://vetmyfranchise.com/c/claude/blog/crunch-fitness-franchise-cost) 159. [FDD Item 12 Territory Rights: What to Check Before Signing](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) 160. [Franchise Build-Out Costs in 2026: The Real Numbers](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay) 161. [Franchise CPA Review Before Buying: Checklist & Costs](https://vetmyfranchise.com/c/claude/blog/franchise-cpa-review-before-buying) 162. [Circle K Franchise Cost 2026: Fees, Profit & 7-Eleven Alt](https://vetmyfranchise.com/c/claude/blog/circle-k-franchise-cost) 163. [Coffee Franchise vs. Independent Coffee Shop (2026)](https://vetmyfranchise.com/c/claude/blog/coffee-franchise-vs-independent-coffee-shop) 164. [How Much Is a Five Guys Franchise? Full Cost Breakdown (2026)](https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost) 165. [Conversion Franchising: Convert Your Business to a Franchise](https://vetmyfranchise.com/c/claude/blog/conversion-franchising-convert-your-business) > **Note:** Truncated to the top 165 pages (300 total). Per-page markdown still available at https://vetmyfranchise.com/md/. --- title: "Franchise Due Diligence | Compare 2,000+ Franchise Opportunities & FDDs" type: [WebSite, Organization, FAQPage] canonical: https://vetmyfranchise.com/c/claude/ category: homepage wordCount: 2006 readingTime: 10 min crawledAt: 2026-08-20 10:59:46 lastVerified: 2026-08-20 10:59:46 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Due Diligence | Compare 2,000+ Franchise Opportunities & FDDs ## Key facts - A franchise attorney charges **$2,000–$5,000** to review one Franchise Disclosure Document. - We extract Items 5, 6, 7, 19, and 20 straight from each franchisor's legally-filed FDD, benchmark them against the category, surface the strengths, and flag the risks. - Not a mockup — a complete, Item 19-verified analysis of Panera, LLC. - ▪ SOURCE: 2024 FDDs · ITEM 7 / 19 / 3 · ILLUSTRATIVE - Free — no account Independent franchise due diligence · $49 ## Read the _fine print_ before the check. A franchise attorney charges **$2,000–$5,000** to review one Franchise Disclosure Document. We've read all **2,000+** of them — and lay out the real numbers, strengths, and risks for **$49**. Delivered in minutes · No account required · 3-pack $99 [Want proof first? See a real $49 report — start to finish →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Capital fit · live2,041 FDDs analyzed How far does your capital go? $250,000 $25k$1M+ 0of 2,041 franchises fit your budget [Find my matches →](https://vetmyfranchise.com/c/claude/find-my-franchise) Our methodology ## Every figure comes from the filing — not the brochure. We extract Items 5, 6, 7, 19, and 20 straight from each franchisor's legally-filed FDD, benchmark them against the category, surface the strengths, and flag the risks. We don't grade brands and no one pays to change what we report. **How we make money:** buyers pay for reports, and — only when you opt in to be contacted — franchise development teams pay us a referral fee for the introduction. Neither one changes our analysis, ratings, or verdicts. See our [Disclaimer](https://vetmyfranchise.com/c/claude/disclaimer) and [Privacy Policy](https://vetmyfranchise.com/c/claude/privacy). 0 FDDs analyzed 0 Disclosures per brand 0 To a full report 0 Paid placements, ever A real report · Panera, LLC ## See exactly what $49 gets you. Not a mockup — a complete, Item 19-verified analysis of Panera, LLC. You get this same depth for any of 2,000+ franchises, personalized to your capital and market. Buyer verdict · NEUTRAL Proven brand equity and a clear multi-unit path — but the unit economics need operating margins **above 15%** to justify the capital. $1.22M – $4.62M Total investment Item 7 range $2.93M Item 19 median revenue verified · n=1,084 $50,000 Franchise fee plus 5% royalty $7.35M Net worth (FDD) franchisee profile 14.7 yrs Est. payback at a 15% margin 20 yrs Agreement term Item 17 ![Panera FDD Analysis charts — radar profile, Item 19 vs category, system size over time, ownership mix, and fee load.](https://vetmyfranchise.com/c/claude/marketing/panera-report-charts.png) 13 interactive data views in the live FDD Analysis — profile radar, Item 19 vs. category, system growth, ownership mix, fee load, and more. ★ Personalized Decision Memo sample buyer: a DFW multi-unit operator, $3M capital **Neutral** — Panera offers proven brand equity and a clear multi-unit development path, but unit economics require margins above 15% to justify the capital within a reasonable payback horizon. The 5 numbers that drive it $2,541,217 Avg franchisee net sales (FY2025, 1,073 units) Your revenue ceiling — 55% of units fell below it. $4,619,880 Max total investment under an Area Development Agreement A $3M budget covers the midpoint, not the ceiling. $182,968 Combined annual royalty + ad fees (~7.2% of revenue) Due before labor, rent, or COGS — and even in a down year. $914,838 Five-year cumulative fee burden, one unit At a 15% pre-fee margin, payback runs ~14.7 years. 32 Franchisee units terminated in FY2025 (16 in Texas) Validate whether your target metro is open or contested. …the full memo continues with **“Proceed only if…”** conditions and **this week’s 3 phone calls** (with the exact questions to ask active and former franchisees). Run this exact analysis on the franchise **you're** considering — personalized to your capital and market, delivered in minutes. No subscription · Pay per analysis · Item 19 verified against the source FDD The smarter way to research ## Why VetMyFranchise? Brokers earn commissions. Raw FDD sites leave you on your own. We give you objective, structured FDD analysis — free to start. VetMyFranchiseVetMyFranchise Franchise brokersBrokers FDD filing sitesFDD sites Structured FDD analysis ✓ ✕ ✕ Side-by-side comparison ✓ ✕ ✕ No pay-for-placement in our analysis ✓ ✕ ✓ Item 19 earnings data ✓ ✕ ✓ Personalized buyer report ✓ ✕ ✕ Free to browse ✓ ✓ ✕ 2,000+ franchises ✓ ✕ ✓ Everything below is free · No account needed ## More free franchise data than anyone else. ∑ ### Free Executive Summary A plain-English AI summary of any franchise — the verdict, key facts, and questions to ask — on every one of the 2,000+ pages, no email required. ⇄ ### Side-by-Side Comparison Compare up to 4 franchises across 12 key metrics — investment, fees, units, Item 19, growth rate, and more. ▦ ### Industry Benchmarks See how a brand's fees and size rank against its category — percentile rankings built from every FDD we've read. Side by side · free ## Compare brands on the figures that matter. | Franchise | Item 19 | Investment (low–high) | Median unit rev | Royalty | Item 3 suits | | --- | --- | --- | --- | --- | --- | | Wingstop | Disclosed | $325k – $948k | $1,690,000 | 6.0% | 2 | | Tropical Smoothie Cafe | Disclosed | $315k – $662k | $1,074,000 | 6.0% | 1 | | The UPS Store | Partial | $190k – $480k | $793,000 | 5.0% | 4 | | Jan-Pro | None | $5k – $58k | — | 10.0% | 6 | ▪ SOURCE: 2024 FDDs · ITEM 7 / 19 / 3 · ILLUSTRATIVE How it works ## Three steps from curious to confident. 01 · BROWSE ### Search and compare for free Explore 2,000+ franchises. Read executive summaries, compare up to 4 side by side, and see benchmark rankings. No account — everything's open. 02 · DEEP-DIVE ### Get a personalized report Buy the full 12-section FDD analysis for $49. Sections 9–12 are personalized to your capital, location, and concerns. 03 · DECIDE ### Invest with your eyes open Walk into the conversation knowing the fees, the Item 19 math, the litigation, and the exact questions to ask the franchisor. PANERA, LLC — FROM THE FDDFY2025 filing Item 19 median unit revenue $2.93M — and 55% of units earn less Estimated payback period ~14.7 years at a 15% margin Net worth required to qualify $7.35M — FDD franchisee profile Franchisee units terminated · FY2025 32 — including 16 in Texas Pricing ## Free tools. Premium reports when you're ready. Free — no account $0 Browse every franchise, forever. - ✓Executive summaries on all 2,000+ - ✓Side-by-side comparison - ✓Industry benchmarks - ✓Questions to ask the franchisor [Start browsing](https://vetmyfranchise.com/c/claude/franchises) Most popular $49 / report The full 12-section FDD analysis. - ✓All 12 sections + Decision Memo - ✓Item 19, fees, litigation, unit economics - ✓4 sections personalized to you - ✓Delivered in minutes [Get your FDD report — $49](https://vetmyfranchise.com/c/claude/franchises) Best value $99 / 3-pack $33 each — compare three brands. - ✓3 full reports, your pick - ✓Save $48 vs single reports - ✓Best for shortlisting [Get the 3-pack — $99](https://vetmyfranchise.com/c/claude/pricing) [Not sure it's worth it? See a real $49 report, start to finish →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) A franchise attorney charges $2,000–$5,000 for an FDD review that takes days. Our report is a fast, structured research starting point — not a substitute for legal review. We recommend using it alongside professional legal advice for major investment decisions. Common questions ## Before you buy. How is this different from hiring a franchise attorney? Franchise attorneys typically charge $2,000–$5,000+ for an FDD review that takes days or weeks. VetMyFranchise gives you a structured 12-section FDD analysis in minutes for $49 — a research starting point, not a substitute for legal review. We recommend using our report alongside professional legal advice for major investment decisions. What do I get for free? Every franchise includes a free executive summary with key stats, red and green flags, and questions to ask the franchisor. You also get free access to our franchise comparison tool (up to 4 side by side) and industry benchmarks showing how each franchise ranks against peers. No account needed. What is a Franchise Disclosure Document (FDD)? An FDD is a legal document that franchisors must provide to prospective buyers. It contains 23 items covering everything from fees and litigation history to financial performance. We extract and structure the disclosures from these documents to surface the insights that matter most. What does the $49 Research Report include? A comprehensive 12-section analysis personalized to your situation — including financial fit analysis based on your capital, location-specific insights, competitive positioning with industry benchmarks, risk assessment, and red flags. How fast do I get my report? Most reports are generated and delivered to your email within minutes of purchase. You also get a secure download link that you can access anytime. How do industry benchmarks work? We analyze FDDs across 2,000+ franchises to build industry averages and percentile rankings. When you view a franchise, you see how its investment costs, fees, and system size compare to other franchises in the same industry. How much does it cost to buy a franchise? Initial franchise fees typically range from $10,000 for low-cost service brands to $75,000+ for established national chains, with [total startup investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) commonly between $75,000 and $500,000 once you add real estate, equipment, inventory, training, and working capital. Each FDD discloses the full investment range in Item 7. VetMyFranchise lets you compare the total investment range across 2,000+ franchises side by side. What is the difference between the franchise fee and the total investment? The franchise fee (disclosed in Item 5) is the one-time payment for the right to use the brand and system — typically $20,000 to $75,000. The total investment (Item 7) includes the franchise fee PLUS real estate, build-out, equipment, signage, inventory, training, insurance, and 3-6 months of working capital. A $40,000 franchise fee can easily mean $300,000+ in total cash needed to open the doors. Which franchises have the lowest startup cost? Home-services, cleaning, mobile, and online-based franchises typically have the lowest startup costs — many under $50,000 total investment when you skip retail real estate. VetMyFranchise lets you filter the 2,000+ franchise library by investment range to find concepts that fit your available capital. What is Item 19 in a Franchise Disclosure Document? Item 19 is the Financial Performance Representation — the only place in an FDD where the franchisor can disclose actual revenue or earnings figures from existing units. Disclosure is OPTIONAL: only about half of franchisors include an Item 19. When present, it usually shows average or median revenue per unit, sometimes broken down by location size or tenure. A missing Item 19 is a yellow flag — not necessarily disqualifying, but you should ask the franchisor why. What is a royalty rate in franchising? The royalty rate (disclosed in Item 6) is the ongoing percentage of gross revenue you pay to the franchisor for the duration of your agreement. Typical royalties range from 4% to 8% of gross sales, paid weekly or monthly. There may also be a separate ad fund contribution (often 1% to 3%) on top of the royalty. Higher royalties demand higher unit economics to make sense for the franchisee. Do I need a lawyer to buy a franchise? Yes — you should always have a franchise attorney review the FDD and Franchise Agreement before signing. VetMyFranchise gives you a structured breakdown of every FDD section so you can identify the issues to discuss with your attorney, but it does not replace legal review. Most franchise attorneys charge $2,000 to $5,000 for a full FDD review. Can veterans get discounts on franchise fees? Many franchisors offer veteran discounts on the initial franchise fee — commonly 10% to 25% off, sometimes higher. Programs vary widely; the discount is disclosed in Item 5 of the FDD. The International Franchise Association maintains a VetFran directory of participating brands. VetMyFranchise reports surface fee discounts where they appear in the FDD. How do I evaluate whether a franchise is a good investment? Look at the full picture: total investment vs. your available capital, royalty and ad-fund rates against industry medians, system size and growth trend (Item 20), litigation history (Item 3), and any financial performance disclosed in Item 19. Talk to existing franchisees from the Item 20 contact list — they will tell you what really happens after you sign. VetMyFranchise structures all of this into a single 12-section deep-dive report. ## Frequently Asked Questions ### How is this different from hiring a franchise attorney? Franchise attorneys typically charge $2,000–$5,000+ for an FDD review that takes days or weeks. VetMyFranchise gives you a structured 12-section FDD analysis in minutes for $49 — a research starting point, not a substitute for legal review. We recommend using our report alongside professional legal advice for major investment decisions. ### What do I get for free? Every franchise includes a free executive summary with key stats, red and green flags, and questions to ask the franchisor. You also get free access to our franchise comparison tool (up to 4 side by side) and industry benchmarks showing how each franchise ranks against peers. No account needed. ### What is a Franchise Disclosure Document (FDD)? An FDD is a legal document that franchisors must provide to prospective buyers. It contains 23 items covering everything from fees and litigation history to financial performance. We extract and structure the disclosures from these documents to surface the insights that matter most. ### What does the $49 Research Report include? A comprehensive 12-section analysis personalized to your situation — including financial fit analysis based on your capital, location-specific insights, competitive positioning with industry benchmarks, risk assessment, and red flags. ### How fast do I get my report? Most reports are generated and delivered to your email within minutes of purchase. You also get a secure download link that you can access anytime. ### How do industry benchmarks work? We analyze FDDs across 2,000+ franchises to build industry averages and percentile rankings. When you view a franchise, you see how its investment costs, fees, and system size compare to other franchises in the same industry. ### How much does it cost to buy a franchise? Initial franchise fees typically range from $10,000 for low-cost service brands to $75,000+ for established national chains, with total startup investment commonly between $75,000 and $500,000 once you add real estate, equipment, inventory, training, and working capital. Each FDD discloses the full investment range in Item 7. VetMyFranchise lets you compare the total investment range across 2,000+ franchises side by side. ### What is the difference between the franchise fee and the total investment? The franchise fee (disclosed in Item 5) is the one-time payment for the right to use the brand and system — typically $20,000 to $75,000. The total investment (Item 7) includes the franchise fee PLUS real estate, build-out, equipment, signage, inventory, training, insurance, and 3-6 months of working capital. A $40,000 franchise fee can easily mean $300,000+ in total cash needed to open the doors. ### Which franchises have the lowest startup cost? Home-services, cleaning, mobile, and online-based franchises typically have the lowest startup costs — many under $50,000 total investment when you skip retail real estate. VetMyFranchise lets you filter the 2,000+ franchise library by investment range to find concepts that fit your available capital. ### What is Item 19 in a Franchise Disclosure Document? Item 19 is the Financial Performance Representation — the only place in an FDD where the franchisor can disclose actual revenue or earnings figures from existing units. Disclosure is OPTIONAL: only about half of franchisors include an Item 19. When present, it usually shows average or median revenue per unit, sometimes broken down by location size or tenure. A missing Item 19 is a yellow flag — not necessarily disqualifying, but you should ask the franchisor why. ### What is a royalty rate in franchising? The royalty rate (disclosed in Item 6) is the ongoing percentage of gross revenue you pay to the franchisor for the duration of your agreement. Typical royalties range from 4% to 8% of gross sales, paid weekly or monthly. There may also be a separate ad fund contribution (often 1% to 3%) on top of the royalty. Higher royalties demand higher unit economics to make sense for the franchisee. ### Do I need a lawyer to buy a franchise? Yes — you should always have a franchise attorney review the FDD and Franchise Agreement before signing. VetMyFranchise gives you a structured breakdown of every FDD section so you can identify the issues to discuss with your attorney, but it does not replace legal review. Most franchise attorneys charge $2,000 to $5,000 for a full FDD review. ### Can veterans get discounts on franchise fees? Many franchisors offer veteran discounts on the initial franchise fee — commonly 10% to 25% off, sometimes higher. Programs vary widely; the discount is disclosed in Item 5 of the FDD. The International Franchise Association maintains a VetFran directory of participating brands. VetMyFranchise reports surface fee discounts where they appear in the FDD. ### How do I evaluate whether a franchise is a good investment? Look at the full picture: total investment vs. your available capital, royalty and ad-fund rates against industry medians, system size and growth trend (Item 20), litigation history (Item 3), and any financial performance disclosed in Item 19. Talk to existing franchisees from the Item 20 contact list — they will tell you what really happens after you sign. VetMyFranchise structures all of this into a single 12-section deep-dive report. --- title: "Pricing — $49 Research Report · $99 for 3-pack comparison" type: [Product, FAQPage, BreadcrumbList, Organization, WebSite, CollectionPage] canonical: https://vetmyfranchise.com/c/claude/pricing category: pricing wordCount: 1224 readingTime: 6 min crawledAt: 2026-08-20 10:57:38 lastVerified: 2026-08-20 10:57:38 site: https://vetmyfranchise.com/c/claude/ --- # Pricing — $49 Research Report · $99 for 3-pack comparison ## Product details - **Brand:** VetMyFranchise - **Price:** USD 49 - **Availability:** InStock ## Key facts - Professional research that compresses 40 hours of FDD reading into a structured 12-section analysis personalized to your capital and location. - Five different ways to research a franchise before you sign. - The franchise broker model is structured the same way the residential mortgage broker model used to be: the buyer pays nothing, and the seller (the franchisor) pays the broker a commission — typically **40–50% of the franchise fee** on every closed sale. - 12 sections of buyer-focused analysis. - Is $49 enough to make a $200K franchise decision? Pricing ## $49 per franchise. _$99 to compare 3._ Professional research that compresses 40 hours of FDD reading into a structured 12-section analysis personalized to your capital and location. Bring it to your validation calls, your franchise attorney, and your own decision. We do the diligence work that consumes **80%** of an attorney engagement — so you spend less on the parts only a lawyer can do. No subscription · Pay per franchise or per pack · Delivered in minutes [See a real sample report before you buy →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Plans ## Pay per franchise. No subscription. Single report $49 / franchise For buyers focused on one brand. - ✓Full 23-Item FDD analysis - ✓Item 19 financial deep-dive + benchmarks - ✓Litigation + contract-risk review - ✓Validation-call question scripts - ✓Personalized to your capital + experience - ✓Delivered in minutes [Browse 2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises) Best for shoppers $99 / 3 reports $33 each — save 33%. For buyers comparing 2–3 finalists. - ✓Everything in the single report, ×3 - ✓Side-by-side comparison view - ✓Cross-brand cohort benchmarking - ✓Pick any 3 brands — switch later - ✓Pays for itself if it filters out one bad fit [Start a 3-pack comparison](https://vetmyfranchise.com/c/claude/buy/3-pack) [Not sure what you get? See a real $49 report, start to finish →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) No subscription. Pay per franchise or per pack. Reports stay accessible forever via your secure download link. The market, side by side ## $49 vs the rest of the market. Five different ways to research a franchise before you sign. We are not a replacement for any of them — we are the research layer that makes the others cheaper or unnecessary. The hidden cost ## Why "free" brokers aren't free. The franchise broker model is structured the same way the residential mortgage broker model used to be: the buyer pays nothing, and the seller (the franchisor) pays the broker a commission — typically **40–50% of the franchise fee** on every closed sale. A $50,000 franchise fee includes $20,000–$25,000 going to the broker who introduced you. That money still comes out of your deal — it is bundled into the franchise fee the franchisor charges you. More importantly, brokers are paid **only when you sign**. That gives them a structural incentive to sell, not to advise. A broker who tells you "this brand had 18 unit closures last fiscal year, look elsewhere" gets paid nothing. A broker who pushes you toward the franchisor's preferred candidate gets the full commission. Our report is paid by you, which means it works for you. We have no financial relationship with any franchisor in our library. Every red flag, every Item 19 cohort comparison, every "this brand is in the bottom 25th percentile on growth" — that analysis is the same whether you sign or not. Inside the report ## What's in a $49 Research Report. 12 sections of buyer-focused analysis. Designed to be brought to your validation calls and your franchise attorney — not a substitute for either. 01 ### Executive Summary Investment range, growth trajectory, key risks at a glance. 02 ### All 23 FDD Items Covered Item-by-item analysis from franchisor background through financial statements. 03 ### Item 19 Financial Deep-Dive Median revenue, cohort breakdowns, what disclosed performance actually means for you. 04 ### Litigation Risk Analysis Item 3 lawsuits broken down by pattern, severity, and what they signal about the franchisor. 05 ### Unit Economics & Break-even Modeled cash flow and time-to-profitability ranges based on disclosed data. 06 ### Contract Risk (Items 17 + 22) Renewal terms, termination triggers, transfer rights, post-term non-competes flagged. 07 ### Industry Benchmarks Investment, fees, growth — percentile rankings against same-industry peers. 08 ### Support Obligations (Item 11) What the franchisor is legally required to provide vs. what they say they provide. 09 ### Personalized Sections Tailored to your capital, target market, experience, and timeline. 10 ### Red & Green Flags Specific items to ask about during validation calls and discovery day. 11 ### Validation Call Scripts Questions for existing franchisees that get past surface-level answers. 12 ### Decision Framework A structured "what to do next" based on what the FDD reveals — not a substitute for legal/financial advice. Common questions ## Questions about pricing. Is $49 enough to make a $200K franchise decision? No — and we do not pretend it is. The report is research, not a final decision. It compresses the 40 hours of FDD reading and benchmarking that every serious buyer should do before they spend money on an attorney or CPA review. You bring the report to your validation calls (we include the questions to ask), to your franchise attorney (we surface the contract risks they should focus on), and to your own decision. We are the first 80% of due diligence, not the last 20%. When should I buy the 3-pack instead of a single report? The 3-pack is $99 — $33 per report — and is built for buyers actively comparing 2–3 brands they are seriously considering. If you have already narrowed to one brand and just want diligence on it, the $49 single report is enough. If you are still torn between several finalists, the 3-pack saves you $48 versus buying three singles — and it pays for itself many times over if it filters out one bad-fit franchise. What does "free brokers" actually mean? Franchise brokers (FranNet, FranChoice, IFPG, others) charge buyers nothing because they are paid by the franchisor — typically 40–50% of the franchise fee per closed sale. That money still comes out of your deal; it is bundled into the franchise fee the franchisor charges you. More importantly, brokers are paid only when you sign, which gives them a structural incentive to sell rather than advise. Our report is paid by you, which means we work for you. Can I use this report instead of an attorney? No. The report covers the analytical work — understanding the FDD, benchmarking against the industry, surfacing red flags, modeling unit economics. A franchise attorney is still the right call for contract negotiation and state-specific legal advice (especially in registration states or relationship-statute states). The report makes your attorney engagement faster and cheaper because you arrive prepared with the right questions. How is this different from FDD filing databases? Filing databases (California DFPI, Wisconsin DFI, others) give you the raw 200–400 page legal document. That is the input. Our report is the output — structured analysis, industry benchmarks, financial-performance modeling, and buyer-focused red flags. You can do the analysis yourself; most buyers underestimate how long it takes (40+ hours per FDD) and miss the cohort comparison that makes individual numbers meaningful. What if my franchise is not in your library? We cover 2,000+ active franchise systems with FDD data already extracted. If a brand you are evaluating is not in the library, contact us — we can typically add a system within 7–14 days for an active buyer. The price stays the same. How fast do I get the report? Most reports are generated and delivered to your email within minutes of purchase. The franchise data is already extracted; we assemble your personalized analysis on demand. You also receive a secure download link you can revisit anytime. ## Ready to research your next franchise? $49 per franchise. $99 for a 3-pack comparison. Bring it to your validation calls and your attorney. ## Frequently Asked Questions ### Is $49 enough to make a $200K franchise decision? No — and we do not pretend it is. The report is research, not a final decision. It compresses the 40 hours of FDD reading and benchmarking that every serious buyer should do before they spend money on an attorney or CPA review. You bring the report to your validation calls (we include the questions to ask), to your franchise attorney (we surface the contract risks they should focus on), and to your own decision. We are the first 80% of due diligence, not the last 20%. ### When should I buy the 3-pack instead of a single report? The 3-pack is $99 — $33 per report — and is built for buyers actively comparing 2–3 brands they are seriously considering. If you have already narrowed to one brand and just want diligence on it, the $49 single report is enough. If you are still torn between several finalists, the 3-pack saves you $48 versus buying three singles — and it pays for itself many times over if it filters out one bad-fit franchise. ### What does "free brokers" actually mean? Franchise brokers (FranNet, FranChoice, IFPG, others) charge buyers nothing because they are paid by the franchisor — typically 40–50% of the franchise fee per closed sale. That money still comes out of your deal; it is bundled into the franchise fee the franchisor charges you. More importantly, brokers are paid only when you sign, which gives them a structural incentive to sell rather than advise. Our report is paid by you, which means we work for you. ### Can I use this report instead of an attorney? No. The report covers the analytical work — understanding the FDD, benchmarking against the industry, surfacing red flags, modeling unit economics. A franchise attorney is still the right call for contract negotiation and state-specific legal advice (especially in registration states or relationship-statute states). The report makes your attorney engagement faster and cheaper because you arrive prepared with the right questions. ### How is this different from FDD filing databases? Filing databases (California DFPI, Wisconsin DFI, others) give you the raw 200–400 page legal document. That is the input. Our report is the output — structured analysis, industry benchmarks, financial-performance modeling, and buyer-focused red flags. You can do the analysis yourself; most buyers underestimate how long it takes (40+ hours per FDD) and miss the cohort comparison that makes individual numbers meaningful. ### What if my franchise is not in your library? We cover 2,000+ active franchise systems with FDD data already extracted. If a brand you are evaluating is not in the library, contact us — we can typically add a system within 7–14 days for an active buyer. The price stays the same. ### How fast do I get the report? Most reports are generated and delivered to your email within minutes of purchase. The franchise data is already extracted; we assemble your personalized analysis on demand. You also receive a secure download link you can revisit anytime. --- title: "Anytime Fitness Franchise Cost 2026: Real Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-15 dateModified: 2026-07-25 keywords: anytime-fitness-franchise, franchise-cost, fitness-franchise, gym-franchise, franchise-item-19, brand-analysis canonical: https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost about: anytime-fitness-franchise category: blog wordCount: 2179 readingTime: 11 min crawledAt: 2026-08-20 11:02:52 lastVerified: 2026-08-20 11:02:52 site: https://vetmyfranchise.com/c/claude/ --- # Anytime Fitness Franchise Cost 2026: Real Item 19 Data ## Summary Anytime Fitness franchise cost 2026: investment $539K-$905K, fee $42,500, median revenue $398,982 with 75th-percentile clubs at $746,996. Real Item 19 quartile data and what it means for first-time buyers. ## Key facts - The $539K low end of the Item 7 range is a small-format inline club in a low-cost market with a landlord allowance covering most of the buildout. - The 2026 FDD reports financial performance on 1,656 franchised centers using AF Coaching that were open and operating for the full 12-month period ended February 28, 2026, out of 2,271 franchised clubs. - The 2026 FDD discloses royalty of up to 8% of gross revenue and a brand fund contribution of $900 per month, or $10,800 a year. - The brand works for a specific buyer profile. - Before signing, work through this list against the actual FDD you receive from the franchisor: Quick answer An Anytime Fitness franchise costs $539,329 to $905,482 per the 2026 FDD Item 7, including a $42,500 franchise fee. Royalty runs up to 8% of gross revenue plus a flat $900 per month brand fund contribution. Item 19 reports median revenue of $398,982 across 1,656 reporting clubs for the 12 months ended February 28, 2026, with the 75th percentile at $746,996. ## [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) 2026 at a Glance [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) is the largest fitness franchise in the world by unit count: more than 5,000 clubs across over 40 countries. Generic “franchise cost” pages routinely get the math wrong on it, mostly because the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) moved the numbers and almost nobody updated. The investment floor rose. The franchise fee nearly doubled. The royalty converted from a flat monthly fee to a percentage of revenue. And the Item 19 disclosure gives buyers exactly the quartile data they need to model a realistic outcome, not just an average. Item 7 reports total initial investment in the range of **$539,329 to $905,482**. The franchise fee sits at $42,500, below Orangetheory’s $59,950 but no longer the outlier it was in earlier cycles. Royalty is the number to get right: the 2026 FDD discloses **up to 8% of gross revenue**, plus a brand fund contribution of **$900 per month**. Earlier FDD cycles used a flat monthly royalty instead, which is why so many cost pages still quote a fixed few-hundred-dollar figure. That range puts [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) in the middle tier of [what it costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) across industries. The brand has been owned by Self Esteem Brands (which is owned by Roark Capital) since 2017. That ownership structure matters for any buyer doing FDD diligence: it puts [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) in the [private-equity franchisor category](https://vetmyfranchise.com/c/claude/blog/private-equity-vs-founder-led-franchisor-risk), with the system-wide standards push and tech-fee bundling that goes with it. ## Item 7: Where the Money Actually Goes The $539K low end of the Item 7 range is a small-format inline club in a low-cost market with a landlord allowance covering most of the buildout. The $905K high end is a freestanding metro build with no landlord work. Almost no first-time operator builds at either extreme. | Line Item | Low | High | | --- | --- | --- | | Initial franchise fee | $42,500 | $42,500 | | Build-out / leasehold improvements | $80,000 | $230,000 | | Equipment package | $130,000 | $240,000 | | Computer + tech / security | $25,000 | $45,000 | | Signage | $7,500 | $25,000 | | Furniture, fixtures, supplies | $10,000 | $30,000 | | Insurance | $1,500 | $5,000 | | Grand opening marketing | $20,000 | $40,000 | | 3 months working capital | $115,000 | $130,000 | | Real estate deposits + misc | $107,000 | $118,000 | | Total Item 7 range | $539,329 | $905,482 | The line items most buyers underestimate are working capital and the equipment package. [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) allows operators to choose between several equipment vendors and package sizes. Going with the high-end package adds $80K-$100K to the build cost without proportionally increasing member acquisition. Working capital at $115K is the realistic floor; if you’re building in a metro where landlord work is heavy, plan on $130K minimum to carry the club through the first 6-9 months of negative cash flow. ## Item 19: The Quartile Data Most Cost Guides Skip The 2026 FDD reports financial performance on 1,656 franchised centers using AF Coaching that were open and operating for the full 12-month period ended February 28, 2026, out of 2,271 franchised clubs. That is one of the largest reporting samples in any fitness franchise FDD on file, but it is a franchisor-selected subset, and roughly 600 clubs sit outside it. Ask why. | US franchised clubs | Total Revenue | | --- | --- | | 75th percentile | $746,996 | | Median | $398,982 | | 25th percentile | $233,169 | The number to internalize is the **3.2x spread** between the 75th and 25th percentiles. A $746,996 club running at the brand’s typical 15-16% net margin generates roughly $112,000-$120,000 of pre-debt-service cash flow. A $233,169 club at the same margin produces $35,000-$37,000, below the cost of operator time for most full-time franchisees, and well below SBA debt-service coverage for a typical $500K loan. Item 19 separately reports averages, but the median is the more useful number. The average is pulled up by a small handful of very high-revenue clubs in dense urban markets. Most buyers will operate in suburban strip-mall locations where median is the realistic anchor, and even then, the brand’s franchisee network skews to operators who have been building toward top-quartile performance for several years. For the broader discussion of why median should anchor your underwriting and not average, see our [Item 19 median vs average survivorship-bias guide](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias). ## The Royalty Math: 8% Plus a Flat Brand Fund The 2026 FDD discloses royalty of up to 8% of gross revenue and a brand fund contribution of $900 per month, or $10,800 a year. The percentage royalty scales with you in both directions; the brand fund does not. Total franchisor cost therefore falls as a share of revenue as the club grows: | Annual Revenue | Royalty (8%) | Brand fund | Total | % of Revenue | | --- | --- | --- | --- | --- | | $233,169 (25th percentile) | $18,653 | $10,800 | $29,453 | 12.6% | | $398,982 (median) | $31,919 | $10,800 | $42,719 | 10.7% | | $746,996 (75th percentile) | $59,760 | $10,800 | $70,560 | 9.4% | | $1,000,000 | $80,000 | $10,800 | $90,800 | 9.1% | That 8% puts [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) level with Orangetheory on royalty rate and above [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) at 7%. Earlier FDD cycles disclosed a flat monthly royalty instead of a percentage, which is why cost guides across the web still quote a fixed few-hundred-dollar figure. If a page you are reading says the royalty is a flat monthly fee, it is working from stale disclosure. The flat brand fund is where the structure bites at the bottom of the distribution. A club at $233,169 pays the same $10,800 as a club at three times the revenue, pushing total franchisor cost to 12.6% of sales on the thinnest margins in the system. That is the scenario to underwrite, not the median. ## 5,000-Location Saturation: What It Actually Means [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) has 1% year-over-year unit growth in the US. In the franchise industry that is a strong signal of market saturation. New territories in attractive suburban markets are scarce. New clubs increasingly open in secondary or tertiary markets, in markets where the brand cannibalizes itself with another nearby Anytime Fitness, or as resales from operators who couldn’t make it work. This affects diligence in two specific ways: **Territory diligence is harder.** When you ask the franchisor for territory availability in your target metro, ask explicitly: are there any closed locations within 5 miles of the territory I’m considering? Closed clubs often signal a market dynamic that will affect you. The 2026 FDD will list closures in Item 20; cross-reference that list against the territories you’re considering. **Resales are the more interesting opportunity.** Top-quartile clubs that come up for resale often go for 1.5-2.5x SDE (seller’s discretionary earnings), meaning a $747K-revenue club with $112K SDE might transact at $170K-$280K plus assumption of equipment. Compared to a $539K-$905K new build, that’s a fundamentally different risk profile. The diligence question shifts from “will this club ramp to median?” to “why is this seller exiting at this price?” For the full framework on evaluating a franchise resale, see our [resale franchise due diligence guide](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide). ## Who Anytime Fitness Fits — And Who It Doesn’t The brand works for a specific buyer profile. It does not work for the others. **Fits well:** Operator-buyers with $250K-$450K liquid who want a single-unit franchise with manageable buildout and intend to be hands-on for the first 18-24 months. Multi-unit operators in second-ring suburban markets who can run 3-5 clubs in a cluster with shared management and marketing. Fitness-industry operators stepping into ownership for the first time, where domain expertise compensates for the smaller revenue ceiling. **Doesn’t fit:** Absentee buyers building a $500K SBA-financed new club with a manager running the floor: the median-club margins won’t support the debt service. Buyers in already-saturated metros where every attractive territory is taken. First-time franchisees expecting a passive cash-flow business. Anytime Fitness requires active marketing, retention work, and personal trainer relationships to clear the bottom-quartile threshold. If you’re trying to decide whether Anytime Fitness fits your specific profile, take our [60-second franchise quiz](https://vetmyfranchise.com/c/claude/find-my-franchise): it filters against capital, location, and operating preference simultaneously. ## The Diligence Checklist for an Anytime Fitness FDD Before signing, work through this list against the actual FDD you receive from the franchisor: 1. **Item 5 + Item 7 cross-check.** Confirm the $42,500 franchise fee matches Item 5 and the total investment line items in Item 7 add up to the published range. Discrepancies are rare but worth verifying. 2. **Item 19 reporting sample.** Verify the sample size (currently 1,656 US clubs) and the time period. If the sample drops materially in the next FDD update, that’s a signal. 3. **Item 20 closures by year.** Pull the multi-year trend, not just the most recent year. The pattern matters more than any single year. 4. **Item 17 termination triggers.** Anytime Fitness’s franchise agreement allows the franchisor to terminate for specific operational standards failures. Have your attorney walk through the cure-period language line by line. 5. **Item 11 system services.** The brand sells equipment-replacement programs, tech bundles, and member-acquisition tools through Item 11 vendors. Some are mandatory, some optional. Know which are which before signing. 6. **Territory radius and protected market.** Get the actual protected-territory definition in writing. Anytime Fitness territories are typically defined by a radius from the club, not by population or zip code. > **The $49 VetMyFranchise Research Report** walks through all 23 FDD items on the current Anytime Fitness disclosure, including Item 19 quartile math, Item 20 closure trend, and the specific clauses worth flagging for your franchise attorney. [Get the Anytime Fitness diligence report →](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) ## Anytime Fitness vs the Field For buyers comparing Anytime Fitness against other gym franchises, the head-to-head decisions usually come down to capital available and operating preference: | Brand | Investment | Median Revenue | Royalty Model | | --- | --- | --- | --- | | Anytime Fitness | $539K-$905K | $398,982 | 8% + $900/mo | | Planet Fitness | $1.5M-$5.1M | ~$2.5M (avg) | 7% of sales | | Crunch Fitness | $304K-$2.6M | Varies by format | 5% of sales | | F45 Training | $277K-$378K | Varies materially | 7% of sales | For the side-by-side on the two most-compared brands, see [Anytime Fitness vs Planet Fitness](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise). Anytime Fitness wins on capital efficiency and royalty structure; [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) wins on top-line economics if you can finance the box. Our [Planet Fitness franchise cost guide](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) prices exactly what that box costs, and what owners net from it. If you’re weighing Anytime Fitness against the boutique-studio path, read [Anytime Fitness vs Orangetheory](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise): they target different members, demand different operator profiles, and produce very different unit economics. If you’re seriously comparing 3 fitness brands head-to-head, the $99 [3-Pack Comparison](https://vetmyfranchise.com/c/claude/buy/3-pack) gives you full 12-section reports on all three for $33 per brand — the same depth on every finalist, structured for a true side-by-side read. For a category-level overview and side-by-side comparisons, see [Best Fitness Franchises Under $200K (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Anytime Fitness numbers with you. We'll email you the **Anytime Fitness FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Anytime Fitness data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) anytime-fitness-franchisefranchise-costfitness-franchisegym-franchisefranchise-item-19brand-analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to open an Anytime Fitness franchise? Anytime Fitness reports a total initial investment of $539,329 to $905,482 in its 2026 FDD Item 7. The most common build is an inline strip-mall club around 4,000-6,000 square feet, which typically lands between the $539,329 floor and the roughly $722,000 midpoint of the range. The franchise fee is $42,500. The wide range reflects market-specific build-out costs, landlord allowances, and the size of the equipment package selected. ### What is the average revenue of an Anytime Fitness club? Item 19 of the 2026 FDD reports a median total revenue of $398,982 across 1,656 reporting US franchised clubs for the 12-month period ended February 28, 2026. The 75th percentile is $746,996 and the 25th percentile is $233,169. The spread between them (a 3.2x gap) is what most cost guides don't make clear. ### Is Anytime Fitness profitable for new franchisees in 2026? Top-quartile clubs running at the brand's typical 15-16% net margin generate roughly $112,000-$120,000 of pre-debt-service cash flow. Median clubs at the same margin produce about $60,000-$64,000, which is below the threshold where most owner-operators feel the investment was worth their time. The brand works financially when you cluster multiple clubs in adjacent territories, not as a single-unit play. ### How long until an Anytime Fitness franchise breaks even? Plan on 18-30 months to break even on a single-club Anytime Fitness build, depending on opening-month membership ramp, local competition, and the size of the SBA loan stack. Total franchisor cost falls from about 12.6% of sales at the 25th percentile to about 10.7% at the median, because the $900 monthly brand fund is flat while only the 8% royalty scales. Clubs that stall under $250K in year one often struggle for years. ### What is the failure rate of Anytime Fitness franchises? Anytime Fitness does not publish a unit closure rate as a standalone statistic. Item 20 of the current FDD discloses the number of franchised clubs that were terminated, transferred, or ceased operations during each of the prior three fiscal years. Net unit growth in the US is approximately 1% annually, which signals that closures and openings are roughly balanced, a sign of market maturity rather than rapid expansion or contraction. Closure rates concentrate in over-saturated metros and bottom-quartile-performing clubs. ### What is the difference between Anytime Fitness and Planet Fitness as franchises? Anytime Fitness is a 24/7 key-fob-access neighborhood gym in 4,000-6,000 sq ft of strip-mall space, $539K-$905K total investment, and $398,982 median revenue. Planet Fitness is a 22,000+ sq ft high-traffic retail box at $1.5M-$5.1M total investment and ~$2.5M average revenue. They aren't competing for the same buyer: Anytime Fitness fits a first-franchise operator with $250K-$450K liquid; Planet Fitness is a multi-unit retail-real-estate play for buyers with $1M+ liquid. --- title: "Anytime Fitness vs Orangetheory Franchise Comparison 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-25 dateModified: 2026-07-25 keywords: anytime fitness, orangetheory, fitness franchise, franchise comparison, gym franchise canonical: https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise about: anytime fitness category: blog wordCount: 2562 readingTime: 13 min crawledAt: 2026-08-20 11:02:54 lastVerified: 2026-08-20 11:02:54 site: https://vetmyfranchise.com/c/claude/ --- # Anytime Fitness vs Orangetheory Franchise Comparison 2026 ## Summary Anytime Fitness vs Orangetheory franchise: verified 2026 FDD investment, franchise fees, Item 19 revenue medians, unit counts, and which fitness brand fits which buyer. ## Key facts - Most guides on this comparison still describe Anytime Fitness as a $200,000 gym and Orangetheory as a $1. - The mistake most buyers make is treating both brands as gym franchises. - The capital comparison is worth doing at the line level, because the two ranges now overlap. - The Item 19 numbers tell the operating story, and Anytime Fitness’s quartiles make it the more transparent of the two. - Run the fee math on each brand’s own median and the picture sharpens. Quick answer Anytime Fitness costs $539,329 to $905,482 to open and Orangetheory costs $764,577 to $1,104,920, per their 2026 FDDs. Orangetheory posts a $750,643 median revenue against Anytime Fitness's $398,982. Anytime Fitness runs semi-absentee across 2,271 clubs; Orangetheory needs live coaches in 1,209 studios. ## Anytime Fitness vs Orangetheory: The Verified 2026 Numbers Most guides on this comparison still describe Anytime Fitness as a $200,000 gym and Orangetheory as a $1.5 million studio. Both 2026 FDDs say otherwise. The capital gap has narrowed to roughly $225,000 at the floor, which changes the decision from a capital-tier question into an operating-model question. | Metric (2026 FDD) | Anytime Fitness | Orangetheory | | --- | --- | --- | | Total investment (Item 7) | $539,329–$905,482 | $764,577–$1,104,920 | | Initial franchise fee | $42,500 | $59,950 | | Royalty | Up to 8% of Gross Revenue | 8% of Gross Sales | | Ad / brand fund | $900 per month | 3.0%–5.0% of Gross Sales | | Item 19 median revenue | $398,982 | $750,643 | | Item 19 reporting units | 1,656 franchised clubs using AF Coaching | 1,189 franchised studios | | Item 19 period | 12 months ended Feb 28, 2026 | 12 months ended Feb 28, 2026 | | Item 19 P25 / P75 | $233,169 / $746,996 | Not disclosed in our parse | | Franchised units | 2,271 | 1,209 | | Company-owned units | 11 | None disclosed | | Opened / closed (latest year) | 53 / 72 | 13 / 47 | | Concept | 24/7 access keycard club | Coach-led HIIT group class studio | | Operator role | Semi-absentee viable | Hands-on owner-operator | (Figures parsed from each brand’s 2026 FDD in VetMyFranchise’s database of 2,368 Franchise Disclosure Documents.) One line deserves a second read. Anytime Fitness’s 75th-percentile club grosses $746,996. Orangetheory’s median studio grosses $750,643. A top-quartile Anytime Fitness club produces roughly what a typical Orangetheory studio does, which tells you the revenue distributions overlap far more than the concepts suggest. If your plan is to build a small portfolio you can manage from a distance, [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) is built for that. If your plan is to run one or two high-engagement studios with you in them, Orangetheory is the better-aligned model. For broader context, see our [best fitness franchises under $200K](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) breakdown. ## Two Completely Different Membership Models The mistake most buyers make is treating both brands as gym franchises. They are not solving the same problem for the consumer, and that single fact drives almost every difference downstream. Anytime Fitness sells convenience and access. The product is a 24/7 keycard-entry club where the member shows up, swipes in, uses standard equipment, and leaves. There is no scheduled class. There may not be a staff member on site. Members value the small footprint, the close-to-home location, and the freedom to train at 5am or 11pm. Market pricing runs $40 to $60 per month in most territories. Orangetheory sells a coached experience. The product is a 60-minute heart-rate-zone HIIT class led by a certified coach, with rowers, treadmills, and a weight floor on a programmed rotation. Members pay for the coaching, the programming, the energy, and the wearable heart-rate feedback on the screens. Market pricing typically runs $159 to $229 per month for unlimited classes, with credit-based tiers below that. The pricing gap is roughly 3.5x per member, and the Item 19 revenue gap is 1.9x. That difference is the membership-count story: Anytime Fitness clubs carry far more members at a much lower price, Orangetheory studios carry far fewer at a premium. Neither model is more efficient in the abstract. They break in different ways. ## Orangetheory Franchise Cost vs Anytime Fitness: Where the Money Goes The capital comparison is worth doing at the line level, because the two ranges now overlap. **Anytime Fitness** discloses $539,329 to $905,482 in Item 7, including a $42,500 franchise fee. Real estate is typically 4,000 to 5,000 sq ft in a strip center or anchor pad, straightforward to source in most secondary and tertiary markets. Build-out is essentially open floor with rubber surfacing, basic locker rooms, equipment install, and signage. Our [Anytime Fitness franchise cost](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) deep dive walks the Item 7 line items. **Orangetheory** discloses $764,577 to $1,104,920 in Item 7, including a $59,950 franchise fee. The studio is similar in square footage but the build-out is heavier: commercial treadmills, rowing machines, weight stations, sound system, dimmable lighting, the branded heart-rate display screens, and the studio aesthetic. Equipment ordering also extends the timeline. See our [Orangetheory franchise cost](https://vetmyfranchise.com/c/claude/blog/orangetheory-franchise-cost) breakdown for the line-item view. Worth knowing: Orangetheory files a second 2026 disclosure for its Studio form, which discloses $821,622 to $1,377,160 and an Item 19 median of $807,976 across 1,256 franchised units for the 12 months ended December 31, 2024, with a 75th percentile of $1,286,123. If a development team hands you numbers that don’t match the figures above, check which of the two filings you’re being shown and which reporting period it covers. Where that leaves a buyer: the practical filter is no longer “can I afford Anytime Fitness but not Orangetheory.” At a $539,329 floor, Anytime Fitness now requires roughly the same underwriting profile as a lower-tier Orangetheory deal. A buyer with $250,000 liquid can no longer reach either brand alone on conventional terms. Both are SBA-financeable, and both now sit in the tier where lenders will scrutinize your net worth and post-close liquidity rather than just your credit. ## Item 19 Side-by-Side: What the Distributions Actually Say The Item 19 numbers tell the operating story, and Anytime Fitness’s quartiles make it the more transparent of the two. | Item 19 metric (2026 FDD) | Anytime Fitness | Orangetheory | | --- | --- | --- | | Median revenue | $398,982 | $750,643 | | 25th percentile | $233,169 | Not disclosed in our parse | | 75th percentile | $746,996 | Not disclosed in our parse | | Reporting units | 1,656 | 1,189 | | Segment | Franchised centers using AF Coaching | All franchised units | | Revenue per invested dollar (median / Item 7 midpoint) | 0.55 | 0.80 | Three things to take from this. First, the bottom quartile is the risk. A 25th-percentile Anytime Fitness club grosses $233,169, which is less than half the $539,329 Item 7 floor. At that revenue level, an 8% royalty plus $10,800 in annual brand fund plus rent on 4,500 sq ft leaves very little. That is the scenario to underwrite, not the median. Second, Orangetheory is the stronger revenue-per-dollar story. On a $934,749 investment midpoint it produces a $750,643 median, a ratio of 0.80 against Anytime Fitness’s 0.55. That inverts the conventional read of this matchup, where Anytime Fitness is presented as the value play. On disclosed revenue against disclosed capital, it isn’t. Third, watch the segment definition. Anytime Fitness’s disclosure covers 1,656 franchised centers using AF Coaching, out of 2,271 franchised clubs. That is a subset chosen by the franchisor, and roughly 600 clubs sit outside it. Ask why. Orangetheory’s covers all franchised units, which is the cleaner basis even without quartiles. Neither disclosure is profit. Both are gross revenue, and the cost structures underneath them differ sharply, which is the next section. ## Franchisor Take and Operating Costs Run the fee math on each brand’s own median and the picture sharpens. **Anytime Fitness** at a $398,982 median pays 8% royalty ($31,919) plus $900 per month in brand fund ($10,800), a total of roughly $42,719, or about 10.7% of revenue. The flat brand fund is regressive in the operator’s favor at high revenue and punitive at low: a 25th-percentile club at $233,169 pays that same $10,800, pushing total franchisor cost to about 12.6% of sales. **Orangetheory** at a $750,643 median pays 8% royalty ($60,051) plus a 3.0% to 5.0% ad fund ($22,519 to $37,532), a total of roughly $82,570 to $97,583, or 11.0% to 13.0% of revenue. The ad fund is a percentage, so it scales with you in both directions. The range itself is a diligence item: confirm in writing which rate applies to your agreement, because 200 basis points on $750,000 is $15,000 a year. Below the franchisor line, the models diverge harder. Anytime Fitness is staff-light by design. Most clubs are unstaffed overnight, on weekends after a certain hour, and often for substantial portions of weekdays. A typical club runs a club manager (often part-time) and a few personal trainers on a revenue-share or hourly model. Owner time on-site can be five to 10 hours per week once the club is running. Orangetheory is staff-heavy by design. Every class on the schedule requires a certified coach, studios run 30 to 60 classes per week, and a typical studio carries eight to 14 coaches plus a studio manager and front-desk sales associates. Coach hiring, certification, retention, and scheduling is the single biggest operational variable for an Orangetheory operator. Markets with strong fitness-industry labor pools have a structural advantage; markets with thin ones struggle even when membership demand is there. Our [Orangetheory Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/orangetheory-item-19-deep-dive) unpacks how that cost structure interacts with class fill rates. The semi-absentee question follows directly. Anytime Fitness can run semi-absentee because there is no live service delivery. Orangetheory cannot, because every class hour is a live delivery and an absent coach means a cancelled class. That has nothing to do with brand quality. It is what each operating model requires. ## Both Systems Are Shrinking. That Matters. Neither brand grew franchised units in its latest FDD year, and the shape of the contraction differs. Anytime Fitness opened 53 franchised clubs against 72 closures, ending at 2,271 franchised plus 11 company-owned. The closures break down as 39 terminations, 30 non-renewals, and three ceased operations. Non-renewals at that volume usually signal end-of-term operators choosing not to re-sign rather than distress, which is a different diagnosis than termination and worth separating when you call franchisees. Orangetheory opened 13 franchised studios against 47 closures, ending at 1,209. Thirteen openings across a 1,209-unit system is roughly 1% annual development. For a brand that expanded aggressively through the late 2010s, near-zero new development is the single most important line in its 2026 FDD. Ask the development team directly whether new studio awards are still being granted in your market type, and ask existing franchisees whether transfers are clearing at reasonable multiples. Anytime Fitness’s Item 3 also discloses litigation, including a franchisee action (Canadas Fitness v. AFI) alleging breach of the franchise agreement and false disclosures, dismissed in November 2023 with an appeal filed January 2024. Read Item 3 in full for both brands and have a franchise attorney tell you what the pattern means, not just the count. ## Multi-Unit Economics: Why Anytime Scales and Orangetheory Concentrates The operational model drives the multi-unit ceiling. Anytime Fitness scales naturally. Because each club is staff-light, an operator can layer a second, third, and fourth club onto roughly the same management overhead: typically a regional manager, a part-time bookkeeper, and shared marketing. Unit economics improve with scale because fixed overhead spreads across more units. Our breakdown of [Anytime Fitness single-unit vs multi-unit area development](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) covers how multi-unit operators actually structure portfolios, and the [Anytime Fitness vs Planet Fitness comparison](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) covers the high-volume big-box alternative at a similar capital tier. Orangetheory concentrates owner attention per studio. Coach management is the bottleneck. Each studio needs its own coaching bench, its own studio manager, and real operator attention to hold class quality and fill rates. Most Orangetheory multi-unit owners max out at two to four studios; beyond that you are building an operations layer, not just adding a regional manager. Compare also our look at [F45 vs Orangetheory](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise) for how two coach-led HIIT formats stack up on this dimension, and [is Orangetheory a good franchise](https://vetmyfranchise.com/c/claude/blog/is-orangetheory-a-good-franchise) for the brand-level verdict. If multi-unit is your end state, Anytime Fitness gets you there with substantially less operational complexity per added unit. If a single high-revenue location is the goal, the extra $225,000 of entry capital at Orangetheory buys roughly $350,000 of additional median revenue. ## Which Fits Your Buyer Profile? **The semi-absentee multi-unit investor.** You have a primary career, capital to deploy, and a five-to-10-year horizon to build a small portfolio of cash-flowing units. You do not want to hire coaches or manage class schedules. **Anytime Fitness.** The 24/7 access model is built for this. Underwrite unit one against the $233,169 bottom quartile, not the median, and plan unit two only after unit one clears cash-flow positive. **The hands-on operator with fitness conviction.** You want to be in the studio, involved in the coaching culture, the music, the energy, the member experience. You want one or two studios you run at high involvement. **Orangetheory.** The premium coached model rewards exactly this, and the studios that outperform on Item 19 are almost universally run by owners who are physically present multiple times per week. **The first-time owner with under $400,000 liquid.** Both brands are now out of reach without SBA leverage, partners, or additional equity. If neither pencils, the honest answer is to look one tier down rather than over-leverage into a fitness deal whose bottom quartile grosses less than its build cost. Our [best fitness franchises under $200K](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) roundup covers what is actually reachable at that capital level. > 💼 **Researching both, or three fitness franchises?** Our [3-pack of $99 FDD AI Reports](https://vetmyfranchise.com/c/claude/buy/3-pack) gives you Anytime Fitness, Orangetheory, and a third fitness brand of your choice: side-by-side AI-parsed Item 19, Item 6 fees, and Item 7 build-out. Three full reports for $99 total. For a category-level overview and side-by-side comparisons, see [Best Fitness Franchises Under $200K](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). If your comparison set also includes the big-box, high-volume end of the market, the [Planet Fitness franchise cost guide](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) breaks down that investment tier and its owner economics. ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Orangetheory](https://vetmyfranchise.com/c/claude/franchise/otf-franchisor-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) #### Aspen Dental vs Heartland Dental: DSO Franchise Showdown [Learn more →](https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise) anytime fitnessorangetheoryfitness franchisefranchise comparisongym franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Anytime Fitness vs Orangetheory: which is the better franchise? Orangetheory earns more per unit; Anytime Fitness costs less and scales further. Per the 2026 FDDs, Orangetheory runs $764,577 to $1,104,920 with a $750,643 median revenue across 1,189 franchised studios. Anytime Fitness runs $539,329 to $905,482 with a $398,982 median across 1,656 reporting clubs. Choose on operating model, not headline capital. ### Orangetheory franchise cost vs Anytime Fitness: what is the real gap? About $225,000 at the floor. Orangetheory's 2026 Item 7 starts at $764,577 against Anytime Fitness's $539,329, and tops out at $1,104,920 against $905,482. Franchise fees are $59,950 versus $42,500. The gap is far narrower than the three-to-five-times figure still quoted across the web. ### Which fitness franchise is more profitable? Neither FDD discloses profit. On revenue against capital, Orangetheory looks stronger: a $750,643 median on a $934,749 investment midpoint, versus Anytime Fitness's $398,982 median on a $722,406 midpoint. But Orangetheory's franchisor take runs 11% to 13% of sales against roughly 10.7% at Anytime Fitness, and coach labor is heavier. ### Can Anytime Fitness run semi-absentee? Yes, more readily than Orangetheory. The 24/7 keycard model means clubs run unstaffed for most hours, and many multi-unit operators staff only a few hours daily for member service and personal training. Orangetheory cannot: every class on the schedule is a live coached delivery, so the studio needs coverage whenever it is open. ### Is either fitness system still growing? Neither, per the 2026 FDDs. Anytime Fitness opened 53 franchised clubs against 72 closures, ending at 2,271 franchised plus 11 company-owned. Orangetheory opened 13 against 47 closures, ending at 1,209. Orangetheory's 13 openings equal about 1% of its system, so ask both development teams what changed. ### How many coaches does an Orangetheory studio need? A typical studio runs eight to 14 certified coaches across operating hours, because every class requires a live coach. Coach hiring and retention is the largest operational variable for an Orangetheory operator, and markets with thin fitness-labor pools struggle even when membership demand is strong. Anytime Fitness has no equivalent line. ### Which is easier to multi-unit? Anytime Fitness, by a wide margin. Limited on-site staffing, standardized equipment, and member self-service let one operator layer clubs onto shared overhead, and many run three to 10 or more. Orangetheory multi-unit ownership exists but typically maxes out at two to four studios because coach management does not centralize. --- title: "Automotive Franchise Guide: Costs & Data (2026 FDD Analysis)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: Your Author Name publisher: VetMyFranchise datePublished: 2025-01-01 dateModified: 2025-01-01 keywords: automotive franchise, franchise costs, FDD analysis, Grease Monkey, Christian Brothers Automotive, Big O Tires, franchise investment canonical: https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities about: Automotive Franchises category: blog wordCount: 1800 readingTime: 9 min crawledAt: 2026-08-20 11:02:56 lastVerified: 2026-08-20 11:02:56 site: https://vetmyfranchise.com/c/claude/ --- # Automotive Franchise Guide: Costs & Data (2026 FDD Analysis) ## Summary Compare automotive franchise costs and growth data from 37 FDDs. See investment ranges for Grease Monkey, Christian Brothers, Big O Tires, and more in 2026. ## Key facts - VetMyFranchise’s database of 2,000+ FDDs contains 122 automotive franchise systems. - A new-car dealership is not a franchise in the FDD sense this guide covers. - _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. - Oil change and basic maintenance franchises represent the bread-and-butter of automotive franchising: - The automotive franchise category shows mixed growth signals: Quick answer Christian Brothers Automotive stands out for full-service repair: $515,250-$650,400 investment, 326 units, and a 50% profit-split royalty, per 2026 FDD data. The category spans Winzer's $5,950 mobile entry to Big O Tires' $1.88M tire centers; across the 37 automotive FDDs with complete data in VetMyFranchise's database, only 64.9% disclose Item 19 earnings. The strongest automotive franchise depends on your budget tier: [Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation) ($515,250-$650,400) for full-service repair, [Grease Monkey](https://vetmyfranchise.com/c/claude/franchise/grease-monkey-franchising-llc) (from $291,320) in quick lube, and mobile concepts like Winzer from $5,950. Demand is structural rather than cyclical: the average age of cars on U.S. roads is now 12.6 years, the oldest in history, and aging vehicles need more maintenance, repair, and cosmetic services. ## The Automotive Franchise Market VetMyFranchise’s database of 2,000+ FDDs contains 122 automotive franchise systems. Of those, 37 have complete financial data in their FDDs. Here’s the market breakdown: | Metric | Automotive Average | | --- | --- | | Average minimum investment | $186,464 | | Average maximum investment | $745,876 | | Average franchise fee | $44,163 | | Average system size | 236 units | | Item 19 disclosure rate | 64.9% | _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. Figures may have changed since filing. Verify current terms directly with the franchisor._ The 64.9% [Item 19 disclosure rate](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) is lower than Home Services (77.4%) or [Food & Beverage](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide) (74.1%), meaning roughly one-third of automotive franchises don’t share earnings data. Factor this into your evaluation and prioritize concepts that provide financial performance information; the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics) tracks these rates across every category. ## Is a Car Dealership a Franchise? (The “Franchise Dealership” Question) A new-car dealership is not a franchise in the FDD sense this guide covers. People who search “franchise dealership” usually mean a factory-authorized car dealer, but those operate under a manufacturer dealer agreement governed by state motor-vehicle franchise laws, not a [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). You don’t buy a Ford or Toyota dealership off an FDD: the manufacturer allocates the point, capital requirements typically start above $1 million, and there is no standard franchise fee or Item 19 earnings table. The franchises you can actually buy in this industry are automotive service concepts: the quick-lube, tire, repair, and specialty brands profiled throughout this guide. Browse [all automotive franchises with current Item 7 data](https://vetmyfranchise.com/c/claude/franchises/automotive) to see the live directory. ## Top Automotive Franchises by System Size | Franchise | Investment Range | Franchise Fee | Total Units | Royalty | | --- | --- | --- | --- | --- | | Asphalt Tire Pros | $111,475 – $251,225 | $7,000 | 495 | $695/month | | Big O Tires | $511,500 – $1,882,500 | $17,500 | 461 | 2%–5% tiered | | Christian Brothers Automotive | $515,250 – $650,400 | $85,000 | 326 | 50% of Split Profits | | Winzer Franchise Co | $5,950 – $16,153 | $3,500 | 256 | 8%–16% of Gross Sales | | Bin There | $133,800 – $313,000 | $29,000 | 244 | $600–$1,355/vehicle/mo | | Fibrenew | $100,595 – $121,825 | $47,000 | 237 | N/A | | Grease Monkey | $291,320 – $917,050 | $39,900 | 233 | 6% of Gross Revenue | | Avis Rent A Car | $625,500 – $1,588,400 | $45,000 | 189 | 7.5% of Gross Revenue | | Budget Rent A Car | $625,500 – $1,588,400 | $45,000 | 173 | 7.5% of Gross Revenue | _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. Figures may have changed since filing. Verify current terms directly with the franchisor._ ## Automotive Sub-Categories ### Quick Lube and Maintenance Oil change and basic maintenance franchises represent the bread-and-butter of automotive franchising: | Feature | Details | | --- | --- | | Investment range | $200,000 – $500,000 | | Revenue model | Per-service pricing ($30-$100 per visit) | | Customer frequency | Every 3-6 months per vehicle | | Key differentiator | Speed of service (15-30 minutes) | | Staff | 3-6 technicians per shift | | Location | High-traffic retail pads | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ [Grease Monkey](https://vetmyfranchise.com/c/claude/franchise/grease-monkey-franchising-llc) ($291,320 – $917,050) is the largest dedicated oil change franchise in our database with 233 units. The wide investment range reflects differences between new builds and conversions of existing locations. ### Tire Sales and Service | Feature | Details | | --- | --- | | Investment range | $100,000 – $1,900,000 | | Revenue model | Product + service (tires + installation + alignments) | | Customer frequency | Every 2-4 years for tire replacement | | Key differentiator | Inventory selection and pricing | | Staff | 4-8 technicians | | Location | Retail/industrial strip | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) leads this sub-category with 461 units and a tiered royalty structure (2%-5%) that rewards growth. Its investment range of $511,500 – $1,882,500 reflects the significant inventory and equipment requirements. ### Full-Service Repair [Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation) stands out with a unique model: | Feature | Christian Brothers | | --- | --- | | Investment | $515,250 – $650,400 | | Franchise fee | $85,000 | | Units | 326 | | Royalty | 50% of Split Profits | | Differentiator | Faith-based culture, premium service | | Target customer | Higher-income vehicle owners | _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. Figures may have changed since filing. Verify current terms directly with the franchisor._ The $85,000 franchise fee is the highest in our automotive database, reflecting the premium positioning and in-depth training program. The 50% split-profit royalty model aligns franchisor and franchisee interests more directly than a revenue-based royalty. ### Mobile and Specialty Services The lowest investment tier includes mobile concepts: | Franchise | Model | Investment | Units | | --- | --- | --- | --- | | Winzer | Parts distribution | $5,950 – $16,153 | 256 | | Fibrenew | Leather/vinyl repair | $100,595 – $121,825 | 237 | _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. Figures may have changed since filing. Verify current terms directly with the franchisor._ These concepts eliminate the need for a retail location, dramatically reducing startup costs. Fibrenew’s 2026 FDD discloses $100,595–$121,825 for a mobile leather-and-vinyl-repair territory, still a fraction of what any fixed-location automotive concept requires. A separate corner of automotive franchising is used-car retail with in-house financing. The [Byrider franchise cost](https://vetmyfranchise.com/c/claude/blog/byrider-franchise-cost) breakdown covers that buy-here-pay-here model, which underwrites very differently from the service concepts above. ## Growth and Contraction in Automotive Franchising The automotive franchise category shows mixed growth signals: ### Growth Areas - Maintenance and quick service concepts are benefiting from the aging vehicle fleet - Mobile services are expanding as convenience becomes a priority - Specialty services (restoration, detailing, protection film) are growing in the premium segment ### Contraction Our data flagged concerning trends for some automotive brands: | Franchise | Opened | Closed | Net | | --- | --- | --- | --- | | Asphalt Tire Pros | 22 | 132 | -110 | | 1-800-GOT-JUNK? | 1 | 30 | -29 | [Asphalt Tire Pros](https://vetmyfranchise.com/c/claude/franchise/asphalt-tire-pros-francorp-llc) opened 22 new units but closed 132, resulting in a net loss of 110 units and leaving 495 total locations. This level of churn demands investigation before investing. > **Considering an automotive franchise?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [browse 2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises) to build your shortlist. ## Key Success Factors in Automotive Franchising ### 1\. Technician Recruitment Like senior care and its caregiver shortage, automotive franchises face a persistent technician shortage. The Bureau of Labor Statistics projects a deficit of qualified auto technicians for the foreseeable future. **What to ask during validation:** - How difficult is it to recruit certified technicians in your market? - What is your technician turnover rate? - What compensation packages attract and retain good technicians? - Does the franchisor provide technical training or certification programs? ### 2\. Location and Visibility Automotive franchise success is heavily location-dependent: - **Traffic count**: Minimum 15,000-25,000 vehicles per day - **Visibility**: Ground-level signage visible from the road - **Accessibility**: Easy ingress/egress from major roads - **Proximity**: Near residential areas or on commuter routes - **Zoning**: Automotive uses require specific zoning (confirm before signing a lease) ### 3\. Customer Trust The automotive repair industry has historically struggled with customer trust. Franchise brands have an advantage here: the brand name provides implicit credibility that an independent shop doesn’t have. [Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation) leans into this with its faith-based positioning and transparent pricing. Other concepts differentiate through digital inspection reports, warranty programs, and flat-rate pricing. ### 4\. Technology Integration Modern vehicles require modern diagnostic equipment. Ask: - Does the franchisor keep diagnostic tools current with new vehicle technology? - Is there a technology platform for customer communication (digital inspections, text updates)? - How does the franchise handle electric vehicle (EV) service as the market evolves? ## EV Transition: Threat or Opportunity? The growing electric vehicle market is both a challenge and an opportunity for automotive franchises: **Threat:** EVs require less routine maintenance (no oil changes, fewer brake replacements, no transmission service). This could reduce demand for traditional quick-lube services. **Opportunity:** EVs still need tire service, collision repair, interior maintenance, and specialty services. Additionally, the transition will take decades; there are currently 280+ million ICE vehicles on U.S. roads that will need service for 10-20+ more years. **For franchise buyers:** Ask the franchisor what their EV strategy is. Brands that are investing in EV training, equipment, and service capabilities will be better positioned for the long term. ## Financial Modeling for Automotive Franchises | Revenue Benchmark | Quick Lube | Tire/Service | Full Repair | | --- | --- | --- | --- | | Average ticket | $50-$80 | $200-$500 | $300-$800 | | Daily car count | 30-60 | 10-25 | 8-20 | | Revenue per bay/year | $100K-$200K | $150K-$250K | $200K-$350K | | Number of bays | 3-5 | 4-8 | 6-12 | | Break-even timeline | 12-18 months | 18-24 months | 18-30 months | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ ### Typical Expense Ratios | Expense | % of Revenue | | --- | --- | | Parts and materials (COGS) | 30-40% | | Labor (technicians + service advisors) | 25-35% | | Rent and occupancy | 8-15% | | Royalty + ad fund | 5-10% | | Insurance | 2-4% | | Marketing (local) | 2-4% | | Equipment maintenance | 1-3% | | Operating margin | 8-18% | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ ## Making the Decision Automotive franchises benefit from a captive market — people must maintain their vehicles regardless of economic conditions. The aging vehicle fleet and persistent technician shortage create both demand and competitive moats for well-run operations. The key decision points for automotive franchise buyers: - **Budget under $200K** → Mobile services ([Winzer](https://vetmyfranchise.com/c/claude/franchise/winzer-franchise-company-inc), [Fibrenew](https://vetmyfranchise.com/c/claude/franchise/fibrenew-usa-ltd)) - **$200K-$600K** → Quick lube or tire service ([Grease Monkey](https://vetmyfranchise.com/c/claude/franchise/grease-monkey-franchising-llc) from $291K, [Asphalt Tire Pros](https://vetmyfranchise.com/c/claude/franchise/asphalt-tire-pros-francorp-llc)) - **$500K-$700K** → Full-service repair (Christian Brothers) - **$600K-$1.9M** → Multi-service or rental ([Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc), Avis/Budget) Check the [FDD unit data](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) carefully; Item 20 disclosure is mandated by the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), so the numbers are verifiable. Automotive franchises with net unit losses need much more [due diligence](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) than growing systems. And with only 64.9% providing Item 19 data, plan to rely more heavily on [franchisee validation calls](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) for financial insights. For a buyer shortlist rather than a market overview, our [best auto repair franchises](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) ranks the repair-and-service brands by what each one actually discloses in Item 19, including which samples describe company stores rather than franchisees. ## Brands mentioned in this post - [Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation) - [1-800-GOT-JUNK?](https://vetmyfranchise.com/c/claude/franchise/1-800-got-junk-llc) - [Grease Monkey](https://vetmyfranchise.com/c/claude/franchise/grease-monkey-franchising-llc) - [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) - [Bin There](https://vetmyfranchise.com/c/claude/franchise/bin-there-usa-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) #### Best Fitness Franchises Under $200K (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) franchise selectioninvestmentcostsstatistics About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does an automotive franchise cost? Automotive franchise investments range from $5,950 for mobile distribution concepts (Winzer) to over $1.9 million for tire service centers (Big O Tires). The average across 37 FDDs with data is $186,464 to $745,876. Quick lube and mobile services offer the lowest entry points. ### What is the best automotive franchise to own? Christian Brothers Automotive (326 units, $515K-$650K investment) stands out for its premium positioning and profit-sharing royalty model. Big O Tires (461 units) leads in tire service. Grease Monkey (233 units) is the largest oil change franchise. The best choice depends on your market, investment capacity, and whether you have automotive industry experience. ### Are automotive franchises affected by electric vehicles? EVs reduce demand for oil changes and some maintenance services, but they still need tires, collision repair, interior maintenance, and specialty services. With 280+ million gasoline vehicles on U.S. roads, traditional auto service demand will persist for decades. Ask franchisors about their EV service strategy. ### Do you need automotive experience to own an auto franchise? Most automotive franchises don't require personal technical experience — they train you on business management while you hire certified technicians. Management, customer service, and marketing skills are more important. However, some understanding of automotive repair helps with customer interactions and quality control. --- title: "7-Eleven vs Circle K Franchise: Cost & Real Operator Take" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-08-11 keywords: 7-eleven, circle-k, convenience-store-franchise, franchise-comparison, retail-franchise, gross-profit-split canonical: https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise about: 7-eleven category: blog wordCount: 4654 readingTime: 23 min crawledAt: 2026-08-20 11:02:34 lastVerified: 2026-08-20 11:02:34 site: https://vetmyfranchise.com/c/claude/ --- # 7-Eleven vs Circle K Franchise: Cost & Real Operator Take ## Summary 7-Eleven vs Circle K: the franchise fee is not $0 (Item 7 says $0-$1,100,000) and the 45-56% split is an 11-band formula peaking at 59% marginal. Full math. ## Key facts - The first is the “$0 franchise fee. - 7-Eleven figures come from the 2026 FDD in VetMyFranchise’s database; its Item 20 tables run through December 31, 2025 and its Item 5 fee range is the calendar-2025 actual. - Here is the actual Item 6 schedule. - Now put the formula against actual performance. - This is the part surface comparisons never reach, and it is stated flatly in the document. Quick answer 7-Eleven's franchise fee is not $0: Item 7 of the 2026 FDD prices it at $0 to $1,100,000, and Item 5 shows the fees actually charged in 2025 ran to $800,000. The 45-56% split is not a rate either. It is an eleven-band formula peaking at 59% marginal, and it leaves the operator roughly 41 cents of each added gross-profit dollar. Circle K barely franchises. ## The Comparison Everyone Runs, and the Two Numbers It Gets Wrong **Verdict up front:** if your goal is to actually franchise a convenience store in 2026, [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc) is the realistic answer and Circle K mostly isn’t. But the two figures every comparison of these brands leads with are both wrong, and they are wrong in the same direction. The first is the “$0 franchise fee.” Item 7 of 7-Eleven’s 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), parsed in VetMyFranchise’s database of 2,000+ FDDs, lists the Franchise Fee line at **$0 to $1,100,000**, payable in a lump sum at execution. Item 5 discloses what was actually charged: across the system in 2025, franchise fees ran **$0 to $800,000**. There is no standard fee. 7-Eleven prices each store individually off its sales history, its age, how many stores are available in that area, and whether it is currently a corporate store. You get a list, updated monthly, with a price next to each store. The second is the “45-56% split.” That is not a rate. It is the visible edge of an eleven-band formula in Item 6, and the marginal rate inside it goes to 59%. Neither correction is a technicality. Together they change what you are actually buying, and they change the Circle K comparison, because 7-Eleven’s charge includes something Circle K’s royalty does not. ## The Investment Snapshot | Item | 7-Eleven (2026 FDD) | Circle K | | --- | --- | --- | | Total initial investment | $162,900 to $1,656,800 | $268,500 to $4,846,500 | | Initial franchise fee | $0 to $1,100,000 (Item 7); $0 to $800,000 actually charged in 2025 (Item 5) | $25,000 (25% conversion discount) | | Ongoing fee structure | 11-band formula on gross profit, 45% to 56% effective, 59% peak marginal | 3.5% + $0.0075/gal fuel + ~1% marketing | | Advertising fee | 1% of gross profit | included above | | Item 19 disclosure | Gross sales, gross profit, GP%, gas commissions, split into thirds by state | Gross sales + merchandise margin | | Real estate model | Franchisor obtains land, building and equipment; franchisee leases them through the 7-Eleven Charge | Franchisee typically owns/leases | | Territory | No minimum territory, no exclusive territory (Item 12) | Varies by agreement | | U.S. franchised store count | 7,274 at 12/31/2025 (Item 20) | 650+ (mostly conversions) | | Term | 15 years, $50,000 renewal fee | 10-15 years | 7-Eleven figures come from the 2026 FDD in VetMyFranchise’s database; its Item 20 tables run through December 31, 2025 and its Item 5 fee range is the calendar-2025 actual. Circle K figures come from its franchise disclosures, summarized in the [Circle K Franchise Cost](https://vetmyfranchise.com/c/claude/blog/circle-k-franchise-cost) breakdown. Circle K is not in VetMyFranchise’s parsed FDD set, so treat its column as directional and pull the document yourself. Note what the 7-Eleven initial investment range is built from, per Item 7: a $20,000 Down Payment on opening inventory, $53,400 to $257,500 in additional opening inventory charged to your Open Account, a $1,800 to $8,000 Cash Register Fund, $7,200 to $13,000 in licenses and permits, $1,000 to $3,700 in store supplies, $2,200 to $27,400 in insurance, an $8,000 Grand Opening Fee, $3,300 to $7,500 in maintenance fees for the first three months, and $66,000 to $198,000 in additional funds for the first three months. Training expenses run up to roughly $13,700 per trainee for travel, lodging and food, on top of the fee. There is no land or building line, and that absence is the whole story. ## The Split Is a Formula, Not a Percentage Here is the actual Item 6 schedule. “GP” is your store’s Gross Profit over the 12 months before the current month. The result is the percentage applied to the current month’s gross profit. | Trailing 12-month Gross Profit | 7-Eleven Charge | Marginal rate | | --- | --- | --- | | $200,000 or less | 45% of gross profit | 45% | | $200,001 to $250,000 | ($90,000 + 0.49 × (GP − $200,000)) ÷ GP | 49% | | $250,001 to $300,000 | ($114,500 + 0.54 × (GP − $250,000)) ÷ GP | 54% | | $300,001 to $350,000 | ($141,500 + 0.55 × (GP − $300,000)) ÷ GP | 55% | | $350,001 to $400,000 | ($169,000 + 0.56 × (GP − $350,000)) ÷ GP | 56% | | $400,001 to $450,000 | ($197,000 + 0.57 × (GP − $400,000)) ÷ GP | 57% | | $450,001 to $650,000 | ($225,500 + 0.58 × (GP − $450,000)) ÷ GP | 58% | | $650,001 to $900,000 | ($341,500 + 0.59 × (GP − $650,000)) ÷ GP | 59% | | $900,001 to $1,400,000 | ($489,000 + 0.58 × (GP − $900,000)) ÷ GP | 58% | | $1,400,001 to $1,600,000 | ($779,000 + 0.57 × (GP − $1,400,000)) ÷ GP | 57% | | Over $1,600,000 | ($893,000 + 0.56 × (GP − $1,600,000)) ÷ GP | 56% | Three things fall out of that table that the “45-56%” headline hides. **The marginal rate peaks in the middle, not at the top.** The most expensive gross-profit dollars you will ever earn are the ones between $650,000 and $900,000 of trailing gross profit, taxed at 59 cents. Above $900,000 the marginal rate actually falls, to 58%, then 57%, then 56%. A franchisor that wanted to punish scale would do the opposite. This schedule is built to compress the middle. **The 56% ceiling is asymptotic.** Running the top band forward: a store at $2,000,000 of trailing gross profit pays an effective 55.85%. At $2,500,000 it pays 55.88%. You approach 56% and never arrive. So “up to 56%” describes a limit no operator actually pays. **New stores start at the floor.** Item 6 states that if the store has not operated 12 full months, trailing gross profit is deemed to be $200,000 for the first two full months, then twelve times the average of all full months until month thirteen. Your first two months are priced at 45% regardless of what you sell. Here is the effective rate across the curve, which is arithmetic on the Item 6 formula rather than a disclosed table: | Trailing 12-mo gross profit | Effective charge | 7-Eleven’s share | Operator’s share | | --- | --- | --- | --- | | $200,000 | 45.00% | $90,000 | $110,000 | | $400,000 | 49.25% | $197,000 | $203,000 | | $600,000 | 52.08% | $312,500 | $287,500 | | $800,000 | 53.75% | $430,000 | $370,000 | | $1,000,000 | 54.70% | $547,000 | $453,000 | | $1,400,000 | 55.64% | $779,000 | $621,000 | | $2,000,000 | 55.85% | $1,117,000 | $883,000 | ## What the Split Nets on Real Disclosed Numbers Now put the formula against actual performance. Every input below is disclosed. The Item 19 gross profit figures come from Exhibit H of the 2026 FDD, the charge comes from the Item 6 formula above, and the 1% Advertising Fee comes from the Item 6 fee table. Nothing here is assumed or estimated. What the arithmetic produces is not a disclosed figure and 7-Eleven does not publish it, but every number feeding it is in the document. Virginia is the largest state in this FDD’s Exhibit H, with 497 reporting stores in FY2025. | Virginia cohort, FY2025 | Stores | Avg gross sales | Avg gross profit | GP % of sales | Effective charge | 7-Eleven takes | Operator keeps, after 1% ad fee | | --- | --- | --- | --- | --- | --- | --- | --- | | Bottom third | 166 | $1,784,119 | $610,755 | 34.23% | 52.19% | $318,738 | $285,910 | | Middle third | 166 | $2,406,843 | $833,840 | 34.64% | 53.96% | $449,966 | $375,536 | | Top third | 165 | $3,226,030 | $1,110,959 | 34.44% | 55.03% | $611,356 | $488,493 | That last column is not net income. It is what remains before labor, utilities, shrink, card fees, insurance, maintenance and debt service, none of which the FDD discloses at store level. Anyone quoting you a 7-Eleven “net” figure is guessing at the biggest line in the P&L. The column that matters for a buying decision is the one nobody publishes: what happens to the next dollar. **Moving from the Virginia bottom third to the middle third adds $223,085 of gross profit and $91,857 to the operator. That is 41.2 cents on the dollar. Moving from the middle third to the top third adds $277,119 of gross profit and $115,728 to the operator: 41.8 cents.** Run the same arithmetic in the other large states in this FDD and the number barely moves. | Cohort step, FY2025 | Added gross profit | Added to operator | Operator’s keep rate | | --- | --- | --- | --- | | Virginia bottom → middle | $223,085 | $91,857 | 41.2¢ | | Virginia middle → top | $277,119 | $115,728 | 41.8¢ | | Pennsylvania bottom → middle | $167,775 | $70,363 | 41.9¢ | | Pennsylvania middle → top | $310,522 | $128,021 | 41.2¢ | | New Jersey bottom → middle | $148,277 | $61,755 | 41.6¢ | | New Jersey middle → top | $272,513 | $112,477 | 41.3¢ | Six independent cohort steps across three states, all landing between 41.2 and 41.9 cents. That consistency is not an accident. It is the 58-59% marginal band doing its work, and almost every disclosed cohort sits inside it. Exhibit H reports 27 state cohort averages for FY2025 across the nine states this FDD covers. Twenty-six of them are at or above the $450,000 line where the marginal rate hits 58%. The single exception, Ohio’s bottom third at $438,405, still pays 57% at the margin. The lowest cohort in the entire exhibit is more than double the $200,000 threshold where the 45% floor applies, which means essentially no reporting store is buying the headline number. So the honest way to state 7-Eleven’s economics is not “45 to 56 percent.” It is: **you build the store’s volume, and you keep roughly 41 cents of what that growth produces at the gross-profit line, before you have paid a single employee.** Compare that to a conventional royalty. At Circle K’s disclosed 3.5% of gross sales, the operator keeps roughly 96.5 cents of each incremental sales dollar at the royalty line, then pays every operating cost out of it, including occupancy. The two structures are not on the same axis, which is why the next section matters more than either fee schedule. ## The Real Difference: 7-Eleven’s Charge Is the Rent This is the part surface comparisons never reach, and it is stated flatly in the document. Item 7, Note 7 of the 2026 FDD: “You do not buy the land, building or equipment where the store is located. We obtain the land, building, equipment, leasehold improvements, fixtures, furnishings and cover the decorating costs, and you must lease it from us under the franchise agreement. **Part of the 7-Eleven Charge you pay covers your required lease of the land, building and equipment.**” Item 8 repeats it for equipment: “We are the only approved supplier of the Store’s 7-Eleven Equipment and certain fixtures and other improvements. You will lease such items from us through your payment of the 7-Eleven Charge.” Item 6, Note 1 spells out everything the charge buys: “The 7-Eleven Charge is the continuing royalty payment you must pay us for your license to use the 7-Eleven service mark, the 7-Eleven System and trade secrets, your lease of the store and 7-Eleven Equipment from us or an affiliate and the continuing services we provide.” So the 45-56% is not a royalty. It is a royalty, plus rent, plus an equipment lease, plus bookkeeping, bundled into one variable line. Which means every comparison that sets 7-Eleven’s 45-56% next to Circle K’s 3.5% is comparing a fully-loaded occupancy-inclusive number to a bare trademark royalty. The correct comparison adds a real market rent and equipment cost to the Circle K side first. It also explains why 7-Eleven’s initial investment starts at $162,900 while Circle K’s starts at $268,500. You are not buying less. You are renting the expensive part, forever, as a percentage. The trade-off is equity. The Circle K operator who owns or mortgages the site holds an appreciating asset on a personal balance sheet. The 7-Eleven operator’s only transferable value is store-level cash flow, and the transfer requires franchisor approval. Whether the equity is worth the operating burden of developing and holding real estate is the actual decision. The [Item 7 estimated initial investment breakdown](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) is the right framework for running it with your own numbers, and [building a pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) is how you turn the cohort table above into a store-specific model. > **Compare these FDDs side-by-side before you decide.** Get a $99 AI-powered 3-pack of FDD analyses for 7-Eleven, Circle K, and a third c-store of your choice: the fastest way to see whether profit-split or traditional-royalty fits your buyer profile. > > [Compare 3 c-store FDDs →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## What Sits Outside the Split Base Not every dollar the store generates runs through the formula, and the exclusions are worth underwriting separately. **Consigned gasoline commissions are excluded.** Item 6 defines Net Sales to include commissions and fees generally, but explicitly carves out “the value of commissions that you receive for the sale of gasoline.” Those dollars never enter Gross Profit, so 7-Eleven never splits them. Exhibit H reports them separately for fuel stores only. In Virginia FY2025 the average was $13,433 across 85 bottom-third fuel stores, $15,312 across 79 middle-third stores and $21,392 across 92 top-third stores. That sounds like free money until you read Item 8. You do not buy the gasoline, you sell it on consignment at retail prices 7-Eleven designates, the gasoline facility is excluded from your lease, 7-Eleven expects to make a profit on the fuel it supplies you, and it can remove all consigned gasoline equipment from your store at its sole discretion without compensating you. Electric vehicle charging stations are treated the same way, except worse: excluded from the lease, and you receive no revenue from them at all. **Financing runs on a separate meter.** 7-Eleven advances your inventory and approved operating expenses through an Open Account. Item 7, Note 4 sets the interest rate at Bank of America’s prime rate as of January 1 of each year plus 2%, and Item 6 lists the current APR as 8.75%. That is a real recurring cost a Circle K operator buying inventory on vendor terms does not carry, and it does not appear anywhere in the 45-56% band. ## Three Ways the Charge Goes Up Item 6 gives 7-Eleven three unilateral escalators. None of them is priced into the band schedule. **The vendor requirement.** Item 8 requires at least 85% of your total inventory purchases and, separately, 85% of your cigarette purchases, both computed monthly at cost, from Recommended Vendors. Miss that for three consecutive full calendar months and 7-Eleven may unilaterally amend your franchise agreement to increase the 7-Eleven Charge by two percentage points. The increase can be reinstated every time you miss again. **The hours requirement.** You must operate 24 hours. Operate short with permission and the charge rises by 0.1% of gross profit for each hour per week the store is closed. Operate short without permission and it rises by 4% of gross profit if you run at least 136 hours a week, or 6% if you run less, on top of 7-Eleven’s right to terminate. **Possession.** If you die, become incapacitated, or if in 7-Eleven’s opinion a divorce, dissolution, criminal proceeding or other incident jeopardizes the store’s operation, 7-Eleven can take possession and charge a management fee of up to 5% of gross profit plus out-of-pocket costs while it runs the store for your account. There is support running the other way, and it is worth knowing about. The Gross Income Support policy may credit you the difference if your store’s prior-year Gross Income (gross profit less the 7-Eleven Charge) came in under $280,000, capped at $100,000 per period. The FDD’s own example: a store with $250,000 of Gross Income may receive a $30,000 credit, paid as $2,500 per accounting period. Additional Gross Income Support of up to $70,000 annually may apply to designated corporate stores being franchised out. Both are policies 7-Eleven states it may discontinue or modify at any time, not contractual rights, so do not underwrite on them. The full fee stack sits in [Item 6 other fees](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) and the supply-chain obligations in [Item 8 supply chain and vendor requirements](https://vetmyfranchise.com/c/claude/blog/fdd-item-8-supply-chain-vendor-requirements). Read both before you model anything. ## The Unit Numbers, and the Zero That Isn’t Item 20 Table 1 of the 2026 FDD: | Outlet type | Start 2023 | End 2023 | End 2024 | End 2025 | | --- | --- | --- | --- | --- | | Franchised | 7,218 | 7,245 | 7,229 | 7,274 | | Company-owned | 1,587 | 1,604 | 1,025 | 1,029 | | Total | 8,805 | 8,849 | 8,254 | 8,303 | Two things there. The franchised base is essentially flat, adding 56 net stores over three years. And the company-owned base fell by 579 units in 2024, driven by 737 corporate closures in that single year per Table 4. Corporate stabilized in 2025 at 1,029. Now the number that gets misread. Item 20 Table 3 shows this for franchised outlets: | Year | Opened | Terminations | Non-renewals | Reacquired by franchisor | Ceased, other | End | | --- | --- | --- | --- | --- | --- | --- | | 2023 | 277 | 0 | 0 | 167 | 83 | 7,245 | | 2024 | 300 | 0 | 0 | 240 | 76 | 7,229 | | 2025 | 283 | 0 | 0 | 160 | 78 | 7,274 | Zero terminations and zero non-renewals across three years looks like an extraordinary franchisee-relations record. It isn’t one. 7-Eleven footnotes the table itself: because it owns or leases the land, building and equipment at its traditional franchise sites and leases the site to franchisees, it “may reacquire more sites than other franchisors and list such sites as reacquired rather than terminated.” The exit channel is column 7, not column 5. Across 2023 to 2025 that channel moved 567 stores, plus 237 more that ceased operations for other reasons. This is a direct consequence of the same real estate structure that produces the 45-56% charge. When the franchisor holds the lease, ending the relationship is a property action, not a contract termination. If you compare 7-Eleven’s termination column against a conventional franchisor’s, you are comparing two different things and you will reach the wrong conclusion about franchisee churn. The [Item 3 litigation research](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research) framework is the better place to look for relationship strain in this system. Table 5 gives the forward picture as of December 31, 2025: 151 franchise agreements signed but not yet opened, 104 projected new franchised outlets in the next fiscal year, and 78 projected new company-owned. ## The Resale Path, in Actual Counts Item 20 Table 2 records transfers of outlets from franchisees to new owners: **219 in 2023, 190 in 2024, and 223 in 2025.** Against 283 outlets opened as franchised in 2025, resales are a large share of how operators actually enter this system, and the FDD is the only place that number is disclosed. Item 5 explains the mechanic. When you buy a current franchisee’s interest in a “goodwill store,” you may owe goodwill to the seller on top of the Franchise Fee. You negotiate that payment directly with the seller without 7-Eleven’s involvement, but 7-Eleven collects it. The exception matters: if 7-Eleven has settled with a franchisee who assigned it the goodwill rights, or exercised a right of first refusal and already paid the outgoing franchisee, you negotiate with 7-Eleven and it keeps the money. There is a discount channel worth knowing about too. Item 5 discloses a Store Manager Franchise Assistance program under which a qualified individual who managed a corporate 7-Eleven store for at least one calendar year immediately before signing may receive a reduced Franchise Fee, a waived Down Payment, or a credit to their Open Account, repayable if they do not stay at the store two years. Circle K resales exist but are rare because the franchise base is small. The more common Circle K play is buying an independent c-store and converting it under the conversion program. If you are looking at a 7-Eleven resale, the [buying a resale franchise due diligence guide](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide) and the [franchise resale valuation guide](https://vetmyfranchise.com/c/claude/blog/franchise-resale-value-valuation-guide) both apply, with one 7-Eleven-specific addition: ask for the “Here Are The Facts” supplemental disclosure. Item 19 states that if the store has operated at least 12 months, 7-Eleven will provide that store’s actual last-12-months results plus additional expense information. That single document is worth more than every average in Exhibit H. ## The Compliance Floor Most Buyers Never See Item 5 requires you to maintain a Minimum Net Worth of at least $10,000 in the inventory and other items 7-Eleven finances. Second and subsequent stores carry a $5,000 requirement. Then it discloses how that works out in practice. In 2024, 818 franchised stores, approximately 11% of the system, failed the requirement and received a breach notice. In 2025, 833 stores, again approximately 11%, did the same. A $10,000 floor that roughly one in nine stores trips every year is telling you something about how thin the working-capital position gets under this model. And it is not cosmetic. Item 17 lists maintaining the Minimum Net Worth for the year immediately preceding expiration as a precondition of renewal, alongside not having received four or more default notices in the prior two years, completing an operations review to 7-Eleven’s satisfaction, meeting then-current financial qualifications, paying a $50,000 renewal fee, and 7-Eleven deciding to keep the store open as a 7-Eleven at all. Add Item 12 on top: no minimum territory, no exclusive territory, and an explicit reservation of the right to open corporate or franchised stores next to or near your location, plus 7NOW delivery and other channels, without compensation to you. ## Who Each Model Actually Fits **7-Eleven fits you if:** - You want a turnkey store and have no interest in developing or holding real estate - You are a hands-on owner-operator, ideally with multi-member family labor for 24-hour coverage - Your store’s gross profit is likely to sit near or below the $650,000 band, where the marginal take is lowest - You are optimizing for current cash flow rather than balance-sheet equity - You can carry a working-capital position that clears the Minimum Net Worth floor every month for 15 years **Circle K, or an independent you could convert, fits you if:** - You are an experienced c-store, gas station or retail operator - You can secure or already own real estate at a viable site - You are optimizing for wealth build through property equity rather than operating income - You are comfortable with zoning, fuel canopy and environmental diligence - You want the operating leverage of a fixed royalty, where outperformance stays with you instead of being split There is a third bucket worth naming. Buyers who run this math and conclude that neither structure fits are usually right. C-stores are 24/7 operations with payroll churn, shrink exposure and tight margins, and both models assume you enjoy the retail floor. If that is not you, look at [home-based franchises](https://vetmyfranchise.com/c/claude/blog/best-home-based-franchises) or [low-cost franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) before locking in. ## Where That Leaves a 2026 Buyer 7-Eleven is a franchise. Circle K is a corporate retailer running a small franchise program on the side. If you want meaningful selection in a c-store franchise in 2026, 7-Eleven is where the doors are open, and the 2026 FDD shows 151 signed agreements waiting on stores plus 223 resales in the last year. But go in with the correct picture of what you are signing. The franchise fee is a per-store price that ran to $800,000 last year, not zero. The split is a formula that takes 58 to 59 cents of the marginal gross-profit dollar at the volumes almost every reporting store actually operates at. That charge is your rent and your equipment lease as well as your royalty, which is the only reason it can be that large. The termination column reads zero because exits are booked as reacquisitions. And roughly 11% of the system trips a $10,000 net worth floor every year that also gates renewal. None of that makes it a bad deal. For an operator who wants a stocked, staffed, financed store without touching real estate, it is a rational trade, and the 45% floor plus the Gross Income Support policy do provide a genuine cushion on weak stores. It makes it a specific deal, one that rewards a specific operator and punishes anyone who signed expecting a 6% royalty business. For the line-by-line cost stack behind the split, see the [7-Eleven franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost). For Circle K’s fee schedule and a worked owner-earnings model, see [Circle K Franchise Cost](https://vetmyfranchise.com/c/claude/blog/circle-k-franchise-cost). Either way, do not sign anything until you have read both Item 5s, Item 6s, Item 7s, Item 19s and Item 20s, and until you have the store-specific “Here Are The Facts” disclosure in hand. The FTC’s [consumer guide to buying a franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) and the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) walk through the same items in plain English. Surface comparisons of these two brands lie by omission. Only the FDDs tell the truth, and only the formulas inside them tell it precisely. > **Ready to run the real comparison?** A 3-pack FDD analysis pulls the buyer-relevant numbers out of both legal documents (plus a third c-store of your choice) in under 5 minutes per brand. > > [Compare 3 c-store FDDs →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## Brands mentioned in this post - [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the 7-Eleven numbers with you. We'll email you the **7-Eleven FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The 7-Eleven data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) #### Aspen Dental vs Heartland Dental: DSO Franchise Showdown [Learn more →](https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise) 7-elevencircle-kconvenience-store-franchisefranchise-comparisonretail-franchisegross-profit-split About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is the 7-Eleven franchise fee really $0? No. That figure comes from reading the low end of a range as if it were the whole range. Item 7 of the 2026 FDD lists the Franchise Fee line at $0 to $1,100,000, paid in a lump sum at execution of the franchise agreement. Item 5 discloses that across the system in 2025, the fees actually charged ran from $0 to $800,000. 7-Eleven sets the fee per store based on historical sales at the location, the age of the location, how many stores are available for franchise in the area, and whether the store is currently corporate-operated (fees are typically somewhat higher for corporate stores). You get a monthly-updated list of available stores with each store's then-current fee. A qualified veteran gets 20% off if discharged within five years or 10% off after that, capped at $50,000 total. ### How is the 45-56% gross profit split actually calculated? Item 6 of the 2026 FDD sets the 7-Eleven Charge with an eleven-band schedule keyed to your store's Gross Profit over the 12 months before the current month. Below $200,000 it is a flat 45%. Above that, each band applies a fixed base dollar amount plus a marginal rate on the excess, divided by trailing gross profit. The marginal rates run 49%, 54%, 55%, 56%, 57%, 58%, then 59% in the $650,000 to $900,000 band, then back down to 58%, 57% and 56%. The effective rate rises smoothly with volume: 45.00% at $200,000 of trailing gross profit, 49.25% at $400,000, 53.75% at $800,000, 54.70% at $1,000,000, and 55.85% at $2,000,000. It approaches 56% asymptotically and never gets there. ### What does the split leave the operator on real disclosed numbers? Take Virginia, the largest state in the 2026 FDD's Exhibit H with 497 reporting stores. The middle-third store averaged $2,406,843 in gross sales and $833,840 in gross profit in FY2025. Run that through the Item 6 formula and the effective 7-Eleven Charge is 53.96%, or $449,966. The operator's Gross Income is $383,874, and the 1% Advertising Fee (also assessed on gross profit, not sales) takes another $8,338. That leaves $375,536 before any labor, utilities, shrink, card fees or debt service. The FDD does not disclose those store-level operating expenses, so nobody can hand you a net income figure. That is exactly why you ask for the store-specific 'Here Are The Facts' disclosure described in Item 19. ### Can you actually franchise a Circle K? Yes, but the pipeline is narrow. Circle K is owned by Alimentation Couche-Tard and is overwhelmingly company-operated in North America. The U.S. franchise program exists primarily for conversions of independent c-stores and select new builds. Against 7-Eleven's 7,274 franchised U.S. stores at the end of 2025 per Item 20 of the 2026 FDD, Circle K has just over 650 as of 2026. If your goal is to buy any c-store franchise this year, 7-Eleven is the realistic answer. ### Which has lower ongoing fees? Circle K on paper, but the comparison is structurally invalid until you fix the rent line. A traditional royalty of 3.5% of gross sales plus $0.0075 per fuel gallon and a small marketing contribution is far lower than 7-Eleven's 45-56% of gross profit. But Item 7 Note 7 of 7-Eleven's 2026 FDD states plainly that the franchisor obtains the land, building, equipment, leasehold improvements, fixtures and furnishings, and that part of the 7-Eleven Charge covers your required lease of them. Item 8 says the same thing about 7-Eleven Equipment: you lease it through your payment of the 7-Eleven Charge. So 7-Eleven's number is royalty plus rent plus equipment lease plus bookkeeping, and Circle K's is royalty only. Add a real occupancy cost to the Circle K P&L before you compare. ### Why does 7-Eleven show zero terminations? Because of the same real estate structure. Item 20 Table 3 of the 2026 FDD shows zero terminations and zero non-renewals in 2023, 2024 and 2025. It also shows 167, 240 and 160 outlets reacquired by the franchisor in those years, 567 in total. The FDD footnotes the reason directly: 7-Eleven owns or leases the land, building and equipment at its traditional franchise sites and leases the site to franchisees, so it may reacquire more sites than other franchisors and lists them as reacquired rather than terminated. A zero in the termination column is a bookkeeping consequence of who holds the lease, not evidence that nobody exits. ### What income does not go through the split? Consigned gasoline commissions. The Item 6 definition of Net Sales explicitly excludes the value of commissions you receive for the sale of gasoline, so those dollars never enter Gross Profit and never get split. Exhibit H reports them separately: among Virginia fuel stores in FY2025, the average commission was $13,433 in the bottom third, $15,312 in the middle third and $21,392 in the top third. The offset is that Item 8 puts the gasoline facility outside your lease, sets the retail price at 7-Eleven's discretion, and states that 7-Eleven expects to profit on the fuel it supplies. Electric vehicle charging stations are also excluded from the lease and you receive no revenue from them at all. ### What can push the 7-Eleven Charge above the band rate? Three triggers in Item 6. Miss the Recommended Vendor Purchase Requirement (Item 8 sets it at 85% of total inventory purchases and, separately, 85% of cigarette purchases, both computed monthly at cost) for three consecutive months and 7-Eleven may unilaterally amend the agreement to add two percentage points to your charge. Operate fewer than 24 hours without permission and the charge goes up 4% of gross profit if you run at least 136 hours a week, or 6% if you run less. Operate short hours with permission and it goes up 0.1% per hour closed per week. Separately, if 7-Eleven takes possession of the store (death, incapacity, or a divorce or criminal proceeding it judges to jeopardize operations) it can charge a management fee of up to 5% of gross profit on top of everything else. ### Which Item 19 is more useful for underwriting? 7-Eleven's, by a wide margin, and not for the reason most comparisons give. Its Exhibit H breaks each covered state into bottom, middle and top thirds and reports average and median gross sales, average and median gross profit, gross profit as a percent of sales, and consigned gasoline commissions, with high and low values for each. That is cohort data, so you can see the spread rather than one system-wide average. It also discloses that if the store you want has operated at least 12 months, 7-Eleven will give you a supplemental 'Here Are The Facts' statement with that specific store's last 12 months of actual results plus additional expense information. Ask for it. Circle K discloses gross sales and merchandise margin in its franchise FDD, which is thinner and not cohort-split. ### Which is better for a first-time franchise buyer? Neither, honestly. C-store franchises are 24/7 operations with thin margins, payroll churn and theft exposure, and 7-Eleven contractually requires 24-hour operation. Two disclosures should give a first-timer pause. Item 12 states you receive no minimum territory and no exclusive territory, and that 7-Eleven can open corporate or franchised stores next to or near yours without compensating you. Item 5 discloses that 833 franchised stores, about 11% of the system, received a breach notice in 2025 for failing to maintain a $10,000 Minimum Net Worth, and Item 17 makes maintaining that requirement for the year before expiration a precondition of renewal. If you are new to operating, look at simpler service franchises first. --- title: "Acai Bowl Franchise Cost 2026: 10 Brands Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-07-25 keywords: acai franchise, smoothie franchise, healthy food franchise, food franchise, industry guide canonical: https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities about: acai franchise category: blog wordCount: 2715 readingTime: 14 min crawledAt: 2026-08-20 11:02:34 lastVerified: 2026-08-20 11:02:34 site: https://vetmyfranchise.com/c/claude/ --- # Acai Bowl Franchise Cost 2026: 10 Brands Compared ## Summary Acai bowl franchise cost 2026: Playa Bowls, Everbowl, SoBol, Nautical Bowls, Oakberry compared on verified Item 7 investment, fees, royalty, and Item 19 medians. ## Key facts - Every figure below is drawn from the brand’s most recent [FDD](https://vetmyfranchise. - The acai bowl category has grown substantially as a consumer concept over the past decade, moving from specialty-cafe novelty to mainstream healthy QSR offering. - These three brands build for roughly half of Playa Bowls’ ceiling and all disclose revenue data, which makes them the practical comparison set for most buyers. - Acai-focused franchises compete for the same customer with broader healthy food franchise alternatives: - For buyers evaluating acai franchise opportunities, the key operating model decisions: Quick answer Acai bowl franchise cost runs from $65,000 for an Oakberry kiosk to $1,055,594 for a full Playa Bowls build. Playa Bowls leads the category with 342 franchised units and a $1,094,086 Item 19 median across 223 outlets. Everbowl, SoBol, and Nautical Bowls also disclose usable revenue data. ## Acai Bowl Franchises at a Glance Every figure below is drawn from the brand’s most recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) as parsed into our database. Royalty is stated as royalty plus ad fund where both are disclosed. | Brand | Total investment (Item 7) | Franchise fee | Royalty | Item 19 revenue | Franchised units | FDD year | | --- | --- | --- | --- | --- | --- | --- | | Playa Bowls | $281,960 – $1,055,594 | $35,000 | 6% + 2% | $1,094,086 median (n=223) | 342 | 2026 | | Everbowl | $208,700 – $390,950 | $39,950 | 6% + 2% | $481,923 median (n=58) | 95 | 2026 | | Nautical Bowls | $220,200 – $439,850 | $20,000 | 6% + 2% | $357,453 average (n=41) | 70 | 2025 | | SoBol | $195,600 – $470,700 | $35,000 | 5% + 1% | $527,800 median (n=60) | 65 | 2024 | | Acai Express | $158,400 – $429,000 | $25,000 | 6% | $501,157 median | 38 | 2022 | | Oakberry | $65,000 – $300,000 | $30,000 | 6% + up to 3% | No median disclosed | 24 | 2025 | | Frutta Bowls | $329,000 – $514,750 | $35,000 | 6% + 3% | FPR disclosed (n=15) | 20 | 2026 | | Ubatuba Acai | Not disclosed | $30,000 | 5% + 3% | No Item 19 | 20 | 2025 | | Tru Bowl | $219,900 – $361,820 | $30,000 | 5% + 1% | FPR disclosed | 15 | 2026 | | Sambazon Acai Bowls | $380,000 – $630,000 | $30,000 | 5% + 2% | No franchised units yet | 0 | 2023 | The table corrects the most common claim made about this category, which is that acai franchising barely exists. Ten brands have filed and parsed FDDs, they run roughly 700 franchised units between them, and four disclose a usable revenue figure. Franchise fees are also notably cheap for food franchising: Nautical Bowls charges $20,000 against a $30,000 to $50,000 norm across QSR. ## The Category’s Structural Reality The acai bowl category has grown substantially as a consumer concept over the past decade, moving from specialty-cafe novelty to mainstream healthy QSR offering. Consumer expansion has been driven by demographic alignment with health-focused millennials and Gen Z, strong social-media presentation, adjacent dietary positioning (vegan, gluten-free, superfood-anchored), and year-round appeal in warm markets. Franchise development followed, later than the consumer trend but further than the category’s reputation suggests. Playa Bowls has filed through 2026 with 342 franchised units. Everbowl, Nautical Bowls, and SoBol all clear 60 units. What remains genuinely limited is the number of brands with long multi-year Item 19 track records, and the geographic breadth of proven unit economics. Two disclosure gaps are worth flagging before the brand sections. [Acai Express](https://vetmyfranchise.com/c/claude/franchise/acai-express-franchising-inc)’s figures come from a 2022 FDD, so its $501,157 median is four years stale and should be treated as historical rather than current. And [Sambazon Acai Bowls](https://vetmyfranchise.com/c/claude/franchise/sambazon-usa-franchising-llc-sambazon-acai-bowls) filed a 2023 FDD disclosing $380,000 to $630,000 in investment but had zero franchised units at the time, meaning there is no operator base to validate against. ## Playa Bowls: The Category Leader [Playa Bowls](https://vetmyfranchise.com/c/claude/franchise/playa-bowls-franchisor-llc), founded in 2016, is the acai category’s dominant franchise system and one of the better-disclosed food franchises at any size. The 2026 FDD discloses $281,960 to $1,055,594 total investment, a $35,000 franchise fee, 6% royalty, and a 2% ad fund, across 342 franchised units and 29 company-owned locations. The Item 19 is what separates it. Playa Bowls reports a $1,094,086 median across 223 operational traditional franchised outlets for calendar year 2025, with p25 at $836,661 and p75 at $1,309,987. That median is roughly double SoBol’s and more than double Everbowl’s, and it beats [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc)’s $627,210 median by 74% despite Smoothie King running 1,242 units. The distribution matters as much as the midpoint. A p25 of $836,661 means three-quarters of the reporting outlets cleared $836,000, which is an unusually high floor for food franchising and suggests the format travels well rather than depending on a handful of flagship sites. The trade is capital: the top of the Item 7 range exceeds $1 million, so a full build competes with far more established QSR brands for the same money. Note also that the 223-unit sample covers traditional outlets only, so non-traditional locations are excluded from the figure. **Strengths:** Highest disclosed median in the category, high p25 floor, 342-unit validation base, 29 company-owned units giving the franchisor operating exposure, low 6% royalty. **Weaknesses:** Build cost reaches $1,055,594, no exclusive territory protection disclosed, and the Item 19 excludes non-traditional formats. ## Everbowl, SoBol, and Nautical Bowls: The Mid-Capital Tier These three brands build for roughly half of Playa Bowls’ ceiling and all disclose revenue data, which makes them the practical comparison set for most buyers. [Everbowl](https://vetmyfranchise.com/c/claude/franchise/everbowl-franchise-llc) is the second-largest system at 95 franchised units. The 2026 FDD discloses $208,700 to $390,950 total investment, a $39,950 franchise fee (the highest in the category), 6% royalty, and a 2% ad fund. Item 19 reports a $481,923 median across all 58 franchised units for fiscal 2025, with p25 at $374,615 and p75 at $628,439. That is a tight distribution, and the full-system sample with no survivorship filter is a genuine mark of disclosure quality. [SoBol](https://vetmyfranchise.com/c/claude/franchise/acai-industries-inc-sobol) discloses the best revenue-to-investment ratio in the tier: a $527,800 median across 60 operational outlets against $195,600 to $470,700 in investment, per the 2024 FDD. Fees are the category’s lowest combined load at 5% royalty plus a 1% ad fund. The caveat is FDD recency. A 2024 filing means the figures predate two seasons of operating results, so ask for the current year’s Item 19 in discovery. [Nautical Bowls](https://vetmyfranchise.com/c/claude/franchise/nautical-bowls-franchising-llc) runs 70 franchised units on $220,200 to $439,850 investment with the category’s cheapest franchise fee at $20,000, per the 2025 FDD. Its disclosure is the weakest of the three: a $357,453 average across a 41-unit sample, with no median parsed. Averages hide the shape of a distribution, and in food franchising they typically sit above the median, so treat $357,453 as an optimistic reference point rather than a midpoint. ## Lower-Capital and Smaller Systems [Oakberry](https://vetmyfranchise.com/c/claude/franchise/oakberry-usa-llc) is the kiosk-format entry point at $65,000 to $300,000 total investment per its 2025 FDD, with a $30,000 franchise fee, 6% royalty, and an ad fund up to 3%. It had 24 franchised and 15 company-owned units at filing. That $65,000 floor is the lowest disclosed acai entry cost and roughly a quarter of Everbowl’s, which makes it the only brand here that fits a genuinely small budget. There is no disclosed median, so you are underwriting on your own traffic assumptions. [Frutta Bowls](https://vetmyfranchise.com/c/claude/franchise/sw-frutta-bowls-franchising-co-llc) discloses $329,000 to $514,750 with a $35,000 fee, 6% royalty on net sales, and a 3% ad fund across 20 franchised units (2026 FDD), with a financial performance representation covering 15 units open the full fiscal year. [Tru Bowl](https://vetmyfranchise.com/c/claude/franchise/tru-bowl-superfood-bar-franchise-llc) discloses $219,900 to $361,820 with a $30,000 fee and a low 5% plus 1% fee load across 15 franchised units (2026 FDD). Both are small enough that a handful of validation calls covers most of the system. [Ubatuba Acai](https://vetmyfranchise.com/c/claude/franchise/ubatuba-acai-expansion-llc) deserves a specific correction, because it is routinely presented as the category’s primary FDD-registered option. Its 2025 FDD discloses a $30,000 franchise fee, 5% royalty, and 3% ad fund across 20 franchised and 10 company-owned units, with the brand founded in 2016. It does not disclose a usable Item 7 total investment range in the filing as parsed, and it carries no Item 19 at all. Figures circulating elsewhere that show a roughly $1,000 to $436,000 range for this brand do not hold up against the current document; a $1,000 minimum investment is not a plausible Item 7 floor for any storefront concept. Without an investment range or earnings disclosure, this is the hardest brand in the category to underwrite despite being one of the most visible. See [what no Item 19 actually means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) for how to price that gap. Two brands frequently listed in acai roundups, Vitality Bowls and Sunlife Organics, have no parsed FDD in our database. We are not publishing figures for them. ## Competing Against Adjacent Brands Acai-focused franchises compete for the same customer with broader healthy food franchise alternatives: **Smoothie franchises.** [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc) and [Tropical Smoothie Cafe](https://vetmyfranchise.com/c/claude/franchise/tropical-smoothie-cafe-llc) operate established smoothie-anchored systems at far greater scale, and both serve acai bowls as part of broader menus. Smoothie King’s 2026 FDD discloses 1,242 franchised units, $329,850 to $1,278,900 total investment, a $30,000 franchise fee, 6% royalty, and a 3% ad fund, with a $627,210 Item 19 median across 1,087 franchised units. That 1,087-unit sample is the deepest disclosure available anywhere in this competitive set. [Jamba](https://vetmyfranchise.com/c/claude/franchise/jamba-juice-franchisor-spv-llc) is a third option at 709 franchised units and a $624,754 median across 488 units (2026 FDD). The comparison is less lopsided than the conventional framing suggests: | Dimension | Acai-focused franchises | Smoothie franchises | | --- | --- | --- | | Category leader scale | Playa Bowls, 342 franchised units | Smoothie King, 1,242 franchised units | | Best disclosed median | $1,094,086 (Playa Bowls, n=223) | $627,210 (Smoothie King, n=1,087) | | Sample depth | 15 to 223 units | 488 to 1,087 units | | Entry cost floor | $65,000 (Oakberry kiosk) | $249,025 (Jamba) | | Typical royalty | 5-6% | 6% | | Franchisor support maturity | Less developed | More developed | Acai wins on disclosed revenue per unit and on capital flexibility at the low end. Smoothie franchises win on sample depth, brand awareness, and franchisor support maturity. If your priority is the most statistically reliable earnings data you can underwrite against, a 1,087-unit sample beats a 223-unit one even at a lower median. If your priority is revenue per dollar invested, Playa Bowls’ numbers are hard to beat in food franchising. One caution on Tropical Smoothie Cafe specifically: our parse of its 2024 FDD did not extract investment, fee, or Item 19 figures, so we are not publishing numbers for it here. For deeper comparison, see [Tropical Smoothie vs Smoothie King](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-vs-smoothie-king-franchise), the [Smoothie King franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/smoothie-king-franchise-cost), and [Tropical Smoothie franchise cost](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-franchise-cost). The [coffee shop franchise industry](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry) guide covers adjacent food-category dynamics. ## The Operating Model Variables For buyers evaluating acai franchise opportunities, the key operating model decisions: **Format selection.** Kiosk, food truck, limited-format storefront, or full standalone QSR? Capital floors vary substantially across these formats. Acai bowl preparation has limited complex equipment requirements (blenders, prep surfaces, cold storage), enabling kiosk and limited-format operating models that mainstream QSR concepts cannot support. **Geographic concentration.** Acai bowl demand concentrates in coastal and warm-climate markets (California, Florida, Hawaii, Gulf Coast, northeastern beach communities). Inland and cold-climate markets have lower category demand. Geographic selection materially affects unit economics. **Adjacent service mix.** Pure acai operations vs broader healthy food menu (smoothies, salads, wraps, plant-based bowls). Broader menus produce higher per-customer revenue and longer service relationships at the cost of operating complexity. **Day-part distribution.** Acai bowls primarily serve breakfast and lunch day-parts with limited dinner demand. Operators in markets with limited dinner traffic may struggle to support full operating costs. ## The Risk Profile The category-maturity risk is real but narrower than it used to be. Four specific risks survive the data: **Disclosure-recency risk.** SoBol’s figures come from a 2024 FDD and Acai Express’s from 2022. In a category growing this fast, a two-to-four-year-old Item 19 describes a different system than the one you would join. Always request the current year’s filing. **Sample-quality risk.** Nautical Bowls reports an average rather than a median, Frutta Bowls’ representation covers just 15 units, and Playa Bowls’ sample excludes non-traditional formats. Playa Bowls, Everbowl, and SoBol are the only brands with samples deep enough to underwrite confidently. Our [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) guide covers how to test these definitions. **Geographic concentration risk.** The disclosed medians are heavily weighted toward coastal and warm-climate markets. Playa Bowls’ $836,661 p25 reflects a unit base concentrated in the Northeast shore, Florida, and California. An inland cold-climate territory should not be underwritten against that floor. **Real-estate competition risk.** Acai concepts compete for healthy QSR sites against much larger systems, including Smoothie King’s 1,242 units and Jamba’s 709. Site selection in attractive markets means bidding against franchisors with deeper real-estate teams. ## The Buyer Decision **If you have $250,000 to $400,000 and want disclosed data,** Everbowl and SoBol are the strongest fits. Both disclose full-system or near-full-system samples in the $480,000 to $530,000 median range against build costs well under Playa Bowls’. **If you can fund $500,000 or more,** Playa Bowls’ $1,094,086 median and $836,661 p25 are the best unit economics disclosed anywhere in the acai or smoothie category. The 342-unit base also gives you a real validation pool. **If capital is the binding constraint,** Oakberry’s $65,000 floor is the only genuine small-budget entry in the category, with the caveat that you get no disclosed revenue data and must build the forecast yourself. **If you want maximum statistical confidence,** the adjacent smoothie systems still win. Smoothie King’s 1,087-unit sample and Jamba’s 488-unit sample are an order of magnitude deeper than anything acai-specific, even though their medians are lower. **Geography outranks brand in every scenario.** A strong operator in a coastal, demographically-aligned market will outperform a weak operator under a better logo. Validate local demand before you shortlist brands. ## The Honest Read The received wisdom on this category, that acai franchising barely exists in disclosed form, is out of date. Ten brands have parsed FDDs, four disclose usable revenue figures, and the category leader posts the highest median in its entire competitive set including the national smoothie chains. What remains true is that disclosure quality varies more here than in mature QSR categories, that the geographic dependence is severe, and that the most-recommended brand in most third-party roundups (Ubatuba Acai) is the one with the least usable disclosure. Buyers who work from the actual filings rather than the roundups have a real information advantage in this category. Compare brands side by side in the [franchise directory](https://vetmyfranchise.com/c/claude/franchises), or pull the full 12-section analysis on a specific brand for [$49](https://vetmyfranchise.com/c/claude/fdd-analysis-example). ## Brands mentioned in this post - [Playa Bowls](https://vetmyfranchise.com/c/claude/franchise/playa-bowls-franchisor-llc) - [Everbowl](https://vetmyfranchise.com/c/claude/franchise/everbowl-franchise-llc) - [SoBol](https://vetmyfranchise.com/c/claude/franchise/acai-industries-inc-sobol) - [Nautical Bowls](https://vetmyfranchise.com/c/claude/franchise/nautical-bowls-franchising-llc) - [Acai Express](https://vetmyfranchise.com/c/claude/franchise/acai-express-franchising-inc) - [Oakberry](https://vetmyfranchise.com/c/claude/franchise/oakberry-usa-llc) - [Frutta Bowls](https://vetmyfranchise.com/c/claude/franchise/sw-frutta-bowls-franchising-co-llc) - [Tru Bowl](https://vetmyfranchise.com/c/claude/franchise/tru-bowl-superfood-bar-franchise-llc) - [Ubatuba Acai](https://vetmyfranchise.com/c/claude/franchise/ubatuba-acai-expansion-llc) - [Sambazon Acai Bowls](https://vetmyfranchise.com/c/claude/franchise/sambazon-usa-franchising-llc-sambazon-acai-bowls) - [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc) - [Jamba](https://vetmyfranchise.com/c/claude/franchise/jamba-juice-franchisor-spv-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) #### Best Bakery & Donut Franchises in 2026: Dunkin', Cinnabon, Duck Donuts, and More [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises) acai franchisesmoothie franchisehealthy food franchisefood franchiseindustry guide About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does an acai bowl franchise cost? Acai bowl franchise cost runs $65,000 to $1,055,594 depending on brand and format. Oakberry discloses $65,000-$300,000 for kiosk-friendly builds (2025 FDD), Acai Express $158,400-$429,000, SoBol $195,600-$470,700, Everbowl $208,700-$390,950, Nautical Bowls $220,200-$439,850, and Playa Bowls $281,960-$1,055,594. Franchise fees run $20,000 to $39,950. ### What is the best acai bowl franchise? Playa Bowls, on disclosed data. Its 2026 FDD reports a $1,094,086 median across 223 traditional franchised outlets, roughly double the next-best brand, alongside 342 franchised units and a $35,000 franchise fee. SoBol ($527,800 median, n=60) and Everbowl ($481,923, n=58) are the strongest mid-capital options at half the build cost. ### Are acai bowl franchises a good investment in 2026? Better than the category's reputation suggests. Ten brands have parsed FDDs and four disclose usable Item 19 medians, so this is no longer an undisclosed category. Playa Bowls' $1,094,086 median beats Smoothie King's $627,210 on far fewer units. The real risks are geographic concentration in warm coastal markets and thin day-part coverage beyond breakfast and lunch. ### What acai bowl franchises are available in 2026? Playa Bowls (342 franchised units), Everbowl (95), Nautical Bowls (70), SoBol (65), Acai Express (38), Oakberry (24), Frutta Bowls (20), Ubatuba Acai (20), and Tru Bowl (15) all have parsed FDDs. Sambazon Acai Bowls filed a 2023 FDD with no franchised units yet. Vitality Bowls and Sunlife Organics have no parsed FDD in our database. ### Should I open an acai franchise or a smoothie franchise? Different competitive sets and customer dynamics. Smoothie franchises (Smoothie King, Tropical Smoothie Cafe) operate at substantially larger scale with established consumer awareness, more developed franchise systems, and proven operating models. Acai franchises operate in a newer, less developed franchise category but in a higher-growth consumer space. For first-time food franchise buyers, the established smoothie franchises offer lower category-development risk. For buyers willing to participate in category development, acai franchises offer growth-stage upside. ### Is acai a fad or a structural growth category? Consumer evidence suggests structural growth rather than fad cycling. Acai bowl concepts have been expanding for 10+ years, the consumer category has continued to grow through multiple food trend cycles, and the demographic appeal (health-focused millennials and Gen Z) aligns with broader long-term consumer dietary shifts. Within food franchise categories, healthy/superfood concepts have demonstrated more durable growth than novelty food trends. The structural-vs-fad question is unlikely to be the binding decision variable for franchise evaluation. --- title: "7-Eleven Franchise Cost 2026: The Full Line-Item Stack" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-19 dateModified: 2026-08-04 keywords: 7-eleven, 7-eleven-franchise-cost, convenience-store-franchise, gross-profit-split, item-19, franchise-investment, retail-franchise canonical: https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost about: 7-eleven category: blog wordCount: 3458 readingTime: 17 min crawledAt: 2026-08-20 11:05:14 lastVerified: 2026-08-20 11:05:14 site: https://vetmyfranchise.com/c/claude/ --- # 7-Eleven Franchise Cost 2026: The Full Line-Item Stack ## Summary 7-Eleven franchise cost per the 2026 FDD: $162,900-$1,656,800 investment, a $0-$1,100,000 franchise fee priced per store, and the real fee stack. ## Key facts - Search “7-Eleven franchise cost” and the answer that comes back is a $0 franchise fee. - The complete estimated [initial investment](https://vetmyfranchise. - Item 5 discloses three named reductions, all of which are worth asking about before you accept a quoted store price. - The gross profit split gets all the attention, but Item 6 lists a full schedule of ongoing charges around it: - The most common way to get 7-Eleven’s economics wrong is to describe the charge as a royalty with a separate rent bill somewhere, or to treat it as interest on the inventory 7-Eleven advances you. Quick answer Item 7 of 7-Eleven's 2026 FDD puts the total initial investment at $162,900 to $1,656,800. The Franchise Fee line inside that range is $0 to $1,100,000, priced per store, and Item 5 discloses that fees actually charged in 2025 ran $0 to $800,000. Ongoing, the 7-Eleven Charge starts at 45% of gross profit and covers the store lease as well as the royalty. ## The Number Everyone Quotes Is the Bottom of a Range Search “7-Eleven franchise cost” and the answer that comes back is a $0 franchise fee. It is one of the most repeated numbers in franchising, and it is wrong. Item 7 of [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc)’s 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), parsed in VetMyFranchise’s database of 2,000+ FDDs, lists the Franchise Fee at **$0 to $1,100,000**, payable in a lump sum at execution of the franchise agreement. Item 5 discloses what franchisees actually paid: “For 2025, the Franchise Fee for our stores ranged from $0 to $800,000.” There is no standard fee. 7-Eleven prices each store individually, and Item 5 lists the inputs: historical sales at the location, the age of the location, the number of stores available for franchise in that area, and whether the store is currently corporate-operated (fees are typically somewhat higher for corporate stores). You get a list of available stores with a price next to each one, refreshed at the beginning of every month. So $0 is not the fee. It is the floor of a per-store price schedule, and reporting the floor as the price is how a franchise whose investment range tops out at $1,656,800 gets sold as the cheapest opportunity in U.S. retail. ## What Item 7 Actually Lists The complete estimated [initial investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) from the 2026 FDD, line by line: | Item 7 line | Amount | | --- | --- | | Franchise Fee | $0 – $1,100,000 | | Training expenses (per trainee, travel/lodging/food) | $0 – $13,700 | | Down Payment on opening inventory | $20,000 | | Additional opening inventory (charged to Open Account) | $53,400 – $257,500 | | Cash Register Fund | $1,800 – $8,000 | | Store supplies | $1,000 – $3,700 | | Licenses and permits | $7,200 – $13,000 | | Real estate and equipment | Not purchased (see Note 7) | | Insurance | $2,200 – $27,400 | | Grand Opening Fee | $8,000 | | Maintenance fees, first 3 months | $3,300 – $7,500 | | Goodwill (resales only) | Varies (see Note 9) | | Additional funds, first 3 months | $66,000 – $198,000 | | TOTAL | $162,900 – $1,656,800 | Two things fall out of that table that the headline range hides. **The top of the range is mostly the fee.** At $1,100,000, the Franchise Fee is roughly two-thirds of the $1,656,800 ceiling. The high end of 7-Eleven’s investment range is not a big build-out, because Item 7 Note 1 ties the fee to the location’s historical sales rather than to anything you construct. Strip the fee out and everything else in Item 7 totals **$162,900 to $556,800**, which is a tight band by franchise standards. **There is no land, building or construction line.** Not a low one. None at all. Item 7 Note 7 explains why: “You do not buy the land, building or equipment where the store is located. We obtain the land, building, equipment, leasehold improvements, fixtures, furnishings and cover the decorating costs, and you must lease it from us under the franchise agreement.” That absence is the whole model, and it drives both halves of the cost picture. It is why the entry number looks small next to a ground-up QSR, and it is why the recurring charge is the size it is. For the standard framework behind this table, the [Item 7 estimated initial investment guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) walks through how to read one, and the [FDD Item 5 deep-dive](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure) covers initial fees generally. ## Three Ways the Fee Comes Down Item 5 discloses three named reductions, all of which are worth asking about before you accept a quoted store price. **Veteran discount.** A first-time franchisee with an honorable discharge from the Army, Navy, Marine Corps, Air Force or Coast Guard receives 20% off the Franchise Fee if the FDD was received within five years of discharge, or 10% after that, capped at a $50,000 total discount. **Store Manager Franchise Assistance.** A qualified individual who managed a corporate 7-Eleven store for at least one calendar year immediately before signing may receive a reduced Franchise Fee, a waived Down Payment, or a credit to their Open Account. The benefit is repayable if you do not remain the franchisee at that store for at least two years. **Financing the fee.** Item 5 states 7-Eleven may finance all or part of the Franchise Fee or Down Payment for a qualified applicant with demonstrated financial need, repayable in up to 60 monthly installments charged against the Open Account at the rate stated in the promissory note. It is discretionary and not offered to all applicants. ## The Recurring Cost Stack The gross profit split gets all the attention, but Item 6 lists a full schedule of ongoing charges around it: | Item 6 fee | Amount | Base | | --- | --- | --- | | 7-Eleven Charge | Variable, starting at 45% | Gross profit (net sales less COGS) | | Advertising Fee | 1% | Gross profit for the current month | | Maintenance | $1,100 – $2,500 per month | Flat, set by 7-Eleven | | Open Account interest | 8.75% annually (currently) | Unpaid Open Account balance | | Renewal Fee | $50,000 | At renewal of the 15-year term | | Early Termination Fee | $5,000 | If you terminate on under 30 days’ notice | | Close Out Fee | $200 | On termination | | Mystery Shop Fees | $9.50 – $10.75 per shop | Optional participation | | Management Fee | Up to 5% of gross profit, plus costs | Only if 7-Eleven takes possession | A correction worth making, because it is repeated everywhere: **the 1% Advertising Fee is assessed on gross profit, not gross sales.** Item 6 defines it as “1% of the Gross Profit of your store for the current month.” Take the disclosed Virginia middle-third store below, at $2,406,843 in gross sales and $833,840 in gross profit: the fee is $8,338, not the $24,068 a 1%-of-sales reading would produce. The maintenance line deserves attention too. At $1,100 to $2,500 a month it is $13,200 to $30,000 a year, and Item 6 states 7-Eleven may change the amount at any time during the term. ## What the 7-Eleven Charge Actually Buys The most common way to get 7-Eleven’s economics wrong is to describe the charge as a royalty with a separate rent bill somewhere, or to treat it as interest on the inventory 7-Eleven advances you. Item 6 Note 1 rules both out in one sentence: > “The 7-Eleven Charge is the continuing royalty payment you must pay us for your license to use the 7-Eleven service mark, the 7-Eleven System and trade secrets, your lease of the store and 7-Eleven Equipment from us or an affiliate and the continuing services we provide.” So the charge is the royalty, the store lease, the equipment lease and the ongoing services, bundled into one variable line. Item 8 repeats the equipment half of it: 7-Eleven is the only approved supplier of the store’s 7-Eleven Equipment and certain fixtures, and “you will lease such items from us through your payment of the 7-Eleven Charge.” That is why setting 45% next to a conventional 4% to 6% royalty produces a meaningless comparison. [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc), for instance, discloses a 4.0% to 5.0% service fee in its 2026 FDD, and a McDonald’s operator still pays rent on top. The honest version of the comparison adds a full market rent and equipment cost to the other franchise before lining the two up. The [Item 6 other fees guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) and the [royalty fees explainer](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained) both assume the standard structure, which 7-Eleven does not use. The charge itself is not a flat percentage either. Item 6 sets it with an eleven-band formula keyed to your store’s trailing 12-month gross profit: 45% at or below $200,000, then a base dollar amount plus a marginal rate on the excess in each band above that. Our [7-Eleven vs Circle K comparison](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) publishes the full band schedule, the effective rate curve, and what the formula returns when it is run against the disclosed Item 19 cohorts. If you are underwriting a specific store, start there. [Get the full 7-Eleven FDD analysis, $49 single report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ## What the Investment Range Leaves Out Three real costs sit outside the $162,900 to $1,656,800 band. **Open Account interest.** 7-Eleven advances your ongoing inventory purchases and approved operating expenses through an Open Account, and Item 7 Note 4 sets the rate at the Bank of America prime rate in effect on January 1 of each calendar year plus 2%. Item 10 gives the specifics: the rate was 9.50% for the March 2025 through February 2026 period, and prime on the first working day of January 2026 was 6.75%, so the rate for March 2026 through February 2027 is 8.75%. Interest is charged monthly against the Open Account. An operator buying inventory on ordinary vendor terms does not carry this line. **Goodwill on a resale.** Item 7 Note 9 and Item 5 both cover it. If you buy a current franchisee’s interest in a goodwill store, you may owe goodwill to the seller on top of the Franchise Fee. You negotiate it directly with the seller without 7-Eleven’s involvement, but 7-Eleven collects the payment and determines when it is due. The exception: if 7-Eleven has settled with a franchisee who assigned it the goodwill rights, or exercised a right of first refusal and already paid the outgoing franchisee, you negotiate with 7-Eleven and it keeps the money. Item 7 gives no dollar range for this line, so no honest estimate of it exists. **Minimum Net Worth.** Item 5 requires you to maintain at least $10,000 of investment in the inventory and other items 7-Eleven finances, dropping to $5,000 for second and subsequent stores. This is a standing working-capital floor, not a one-time cost, and Item 17 makes maintaining it for the year immediately preceding expiration a precondition of renewal. Item 5 also discloses how often it gets tripped: 833 franchised stores, approximately 11% of the system, received a breach notice for failing it during 2025, after 818 stores did the same in 2024. ## What the FDD Does and Does Not Tell You About Income Item 19 of the 2026 FDD points to Exhibit H, which reports the prior two calendar years for franchised stores open the full prior calendar year in each covered state. For each state it splits the reporting stores into bottom, middle and top thirds and gives average and median gross sales, average and median gross profit, gross profit as a percent of sales, and consigned gasoline commissions, with high and low values throughout. Virginia is the largest cohort in the document, with 497 reporting stores in FY2025. The middle third there averaged $2,406,843 in gross sales and $833,840 in gross profit, a 34.64% gross margin. That gross profit figure, not the sales figure, is the base the 7-Eleven Charge and the 1% Advertising Fee are both applied to. It is the only number on your P&L that matters for fee purposes. What Exhibit H does not contain is any store-level operating expense. No labor, no utilities, no shrink, no card fees, no insurance, no debt service. Which means the document contains no path to a net income figure, and anyone quoting you a 7-Eleven owner’s take-home is filling in the largest lines on the P&L from imagination. Item 19 does disclose the fix. If the store you want has operated for at least the last 12 months, 7-Eleven will provide a supplemental written disclosure called “Here Are The Facts” showing that store’s actual operating results for the last 12 months as reported by its franchisee, prepared using the same information as Exhibit H “plus certain additional expense information for the store.” That document is worth more than every average in the exhibit. Ask for it early. For how to turn cohort data into a store-specific model, [building a pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) is the right framework, and [why median beats average](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) explains why you should be reading the median columns Exhibit H provides. ## The System, in Disclosed Numbers Item 20 Table 1 of the 2026 FDD, as of December 31, 2025: | Outlet type | End 2024 | End 2025 | | --- | --- | --- | | Franchised | 7,229 | 7,274 | | Company-owned | 1,025 | 1,029 | | Total | 8,254 | 8,303 | The franchised base grew by 45 stores in 2025. The company-owned base is roughly where it landed after a 579-unit contraction in 2024. Every figure on this page comes from the 2026 FDD, which is worth stating explicitly because the 2025 document is still widely quoted and its numbers are different. That one puts total initial investment at $142,150 to $1,627,710, and its Item 5 reports franchise fees charged during calendar 2024 ranging from $0 to $690,000 rather than the $0 to $800,000 charged during 2025. If a cost figure you find elsewhere does not match the table above, check which document it came from before you use it. Two structural terms belong next to those counts. The franchise term is 15 years, renewable at a $50,000 fee subject to the conditions in Item 17. And Item 12 states that you receive no minimum territory and no exclusive territory: 7-Eleven can establish or license stores next to or near your location, and can sell through 7NOW delivery and other channels, without compensating you. [Compare 7-Eleven against two other retail/c-store franchises, 3-pack $99 →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## 7-Eleven Franchise Pros and Cons **Pros** - **No land, no build-out, no construction risk.** 7-Eleven supplies the site, the building, the equipment, the leasehold improvements and the fixtures, and covers decorating costs. There is no landlord negotiation, no personal real estate guarantee and no exposure to lease escalation, because the occupancy cost is inside the 7-Eleven Charge. - **Inventory is financed rather than prepaid.** You put down $20,000 and 7-Eleven finances the remaining opening inventory through the Open Account, along with ongoing inventory and approved operating expenses. - **An unusually detailed Item 19.** Exhibit H’s cohort structure, with averages, medians, highs and lows split into thirds by state, is more informative than the single system-wide average many franchisors publish, and the store-specific “Here Are The Facts” disclosure has no real equivalent elsewhere. - **Scale.** 8,303 outlets in the system at the end of 2025 means a mature supply chain and supplier terms an independent operator would spend years assembling. **Cons** - **The charge is very large because it is doing several jobs.** Starting at 45% of gross profit and rising by formula, it is the biggest recurring line in the model by a wide margin, and its size is only defensible once you credit it with rent and equipment. - **Financing cost on top.** The Open Account carries interest at prime plus 2%, currently 8.75%, on a balance that fluctuates monthly with your inventory purchases. - **No equity in the site.** You never own the real estate, so the transferable value of the business is store-level cash flow and nothing else, and a transfer requires franchisor approval. - **No territory protection.** Item 12 is explicit that there is no minimum and no exclusive territory, and that 7-Eleven may open nearby without compensating you. - **24-hour, 365-day operations.** The franchise agreement defines 24-Hour Operation as operating 24 hours a day, 7 days a week, 365 days a year, and Item 6 attaches charge increases to operating short hours. ## Pre-Signing Diligence 1. **Get the actual fee for the actual store.** The list is updated monthly with a then-current fee per store. A $0 store and an $800,000 store are both “a 7-Eleven franchise,” and nothing else in your model matters until you know which one you are buying. 2. **Request the “Here Are The Facts” disclosure.** Item 19 commits 7-Eleven to providing it for any store that has operated at least 12 months. It carries expense information Exhibit H does not. 3. **Run the Item 6 formula against that store’s trailing gross profit.** Not against 45%, and not against 56%. The [full band schedule and effective rate curve](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) shows what the formula actually returns at real volumes. 4. **Model the Open Account separately.** Estimate the average monthly financed balance and carry 8.75% against it. It will not appear anywhere in the fee percentage. 5. **Talk to existing franchisees about labor and shrink.** [Validation call best practices](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) apply, with the emphasis on the two expense lines the FDD never discloses and that decide whether the store works. 6. **Have a franchise attorney read the renewal and possession terms.** The $50,000 renewal fee, the Minimum Net Worth precondition, the default-notice limits in Item 17 and 7-Eleven’s right to take possession and charge up to 5% of gross profit are all higher-stakes than in a conventional agreement. The [questions a franchise attorney wishes you’d asked](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) is a reasonable starting framework. 7. **If you are buying a resale, price the goodwill separately.** Item 7 gives no range for it, so it is an unbounded line in your model until the seller names a number. The [resale due diligence guide](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide) and the [resale valuation guide](https://vetmyfranchise.com/c/claude/blog/franchise-resale-value-valuation-guide) both apply, with the caveat that 7-Eleven holds a right of first refusal and approves your buyer on the way out. ## The Final Take 7-Eleven’s cost structure is unusual, but it is not hidden. Every number above is in the 2026 document. What is misleading is the summary that has spread around it: a $0 franchise fee, a royalty-free model, an inexplicably cheap way into retail. The accurate version is shorter. The fee is priced per store and ran to $800,000 last year. The entry cost outside the fee is $162,900 to $556,800, and it is low because you never buy the site. The 7-Eleven Charge is a royalty that is also your rent and your equipment lease, which is why it starts at 45% of gross profit rather than 5% of sales. Inventory financing runs on its own meter at 8.75%. And the FDD tells you what a store grosses without telling you what it costs to run, which is why the store-specific disclosure matters more than any average in the document. None of that makes it a bad deal. For an operator who wants a stocked, financed, fully-equipped store and has no interest in developing real estate, it is a coherent trade. It makes it a specific deal, and one that punishes anyone who signed expecting a conventional royalty business. The FTC’s [Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) sets the disclosure floor, not a ceiling on what you should ask for. Read Items 5, 6, 7, 10, 17, 19 and 20 in full, get the store-specific numbers in hand, and build the model on those. The decision flows from there. ## Brands mentioned in this post - [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the 7-Eleven numbers with you. We'll email you the **7-Eleven FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The 7-Eleven data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) #### Anytime Fitness Franchise Cost: 2026 Item 7 & Item 19 Deep Dive [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) 7-eleven7-eleven-franchise-costconvenience-store-franchisegross-profit-splititem-19franchise-investmentretail-franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to own a 7-Eleven franchise? Item 7 of the 2026 FDD lists a total initial investment of $162,900 to $1,656,800. The single largest swing factor is the Franchise Fee, disclosed at $0 to $1,100,000, which is set per store. Remove that line and everything else in Item 7 totals $162,900 to $556,800: a $20,000 down payment on opening inventory, $53,400 to $257,500 of additional opening inventory charged to your Open Account, a $1,800 to $8,000 cash register fund, $7,200 to $13,000 for licenses and permits, $1,000 to $3,700 in store supplies, $2,200 to $27,400 in insurance, an $8,000 grand opening fee, $3,300 to $7,500 of maintenance fees for the first three months, and $66,000 to $198,000 of additional funds for the first three months. Training travel, lodging and food run up to roughly $13,700 per trainee on top. ### Is the 7-Eleven franchise fee really $0? No. The $0 figure is the bottom of a range being quoted as if it were the whole range. Item 7 of the 2026 FDD lists the Franchise Fee at $0 to $1,100,000, payable in a lump sum at execution of the franchise agreement. Item 5 discloses what was actually charged: 'For 2025, the Franchise Fee for our stores ranged from $0 to $800,000.' 7-Eleven determines the fee for each store based on historical sales at the location, the age of the location, the number of stores available for franchise in the area, and whether the store is currently corporate-operated, with fees typically somewhat higher for corporate stores. You receive a list of available stores with each store's then-current fee, updated at the beginning of each month. ### Does 7-Eleven charge a royalty? Yes, and it is the 7-Eleven Charge. Item 6 Note 1 of the 2026 FDD states that 'The 7-Eleven Charge is the continuing royalty payment you must pay us for your license to use the 7-Eleven service mark, the 7-Eleven System and trade secrets, your lease of the store and 7-Eleven Equipment from us or an affiliate and the continuing services we provide.' It is assessed on gross profit, meaning net sales less cost of goods sold, and it starts at 45% for stores with $200,000 or less of trailing 12-month gross profit, then rises under an eleven-band formula. Because the charge also buys your occupancy and your equipment lease, comparing it to a conventional 6% royalty is comparing two different things. ### What are the ongoing costs beyond the gross profit split? Item 6 of the 2026 FDD lists them. A 1% Advertising Fee assessed on the store's gross profit for the current month, charged on top of the 7-Eleven Charge. Maintenance of $1,100 to $2,500 per month, an amount 7-Eleven may change at any time during the term. Interest on the Open Account balance, currently 8.75% annually. A $50,000 renewal fee at the end of the 15-year term. A $5,000 early termination fee if you terminate on less than 30 days' notice, and a $200 close out fee. Optional mystery shops at $9.50 to $10.75 each. If 7-Eleven takes possession of the store following death, incapacity or certain other events, a management fee of up to 5% of gross profit plus out-of-pocket expenses. ### Does 7-Eleven own the land? Under this disclosure document, yes, in every case. Item 7 Note 7 states plainly: 'You do not buy the land, building or equipment where the store is located. We obtain the land, building, equipment, leasehold improvements, fixtures, furnishings and cover the decorating costs, and you must lease it from us under the franchise agreement. Part of the 7-Eleven Charge you pay covers your required lease of the land, building and equipment.' That is why Item 7 contains no land, building or construction line. 7-Eleven does offer a separate Business Conversion Program in which the franchisee acquires the land and building and pays a different royalty, but that program runs under a different disclosure document with different numbers. ### Can you make money owning a 7-Eleven? The FDD cannot answer that, and neither can anyone quoting you a 7-Eleven 'net income' figure. Exhibit H of the 2026 FDD discloses average and median gross sales, gross profit, gross profit as a percent of sales, and consigned gasoline commissions, broken into bottom, middle and top thirds by state. It discloses no store-level operating expenses at all, so labor, utilities, shrink, card fees, insurance and debt service are missing from the document entirely. The one thing that closes the gap is the supplemental disclosure Item 19 promises: if the store you want has operated at least 12 months, 7-Eleven will give you a 'Here Are The Facts' statement showing that store's actual last-12-months results plus additional expense information. Ask for it before you sign anything. ### How does 7-Eleven compare to Circle K? The two brands run structurally different models, and the comparison is invalid until you account for occupancy. 7-Eleven's charge on gross profit includes your store and equipment lease; Circle K's conventional royalty does not, and its franchisees carry real estate as a separate line (see the [Circle K franchise cost](/c/claude/blog/circle-k-franchise-cost) breakdown). Our [7-Eleven vs Circle K franchise comparison](/c/claude/blog/7-eleven-vs-circle-k-franchise) runs the full Item 6 band formula and the disclosed Item 19 cohort math side by side. --- title: "7 Brew Franchise Cost 2026: Item 7 and Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: 7 brew franchise cost, 7 brew franchise, 7 brew franchise fee, drive-thru coffee franchise, coffee franchise, Brew Culture Franchise LLC, item 19 canonical: https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost about: 7 brew franchise cost category: blog wordCount: 1507 readingTime: 8 min crawledAt: 2026-08-20 11:05:13 lastVerified: 2026-08-20 11:05:13 site: https://vetmyfranchise.com/c/claude/ --- # 7 Brew Franchise Cost 2026: Item 7 and Item 19 Data ## Summary 7 Brew franchise cost in 2026: $940,500 to $2,283,500 to open, a $35,000 fee, a ten-store minimum, and a $2,550,624 median across 297 stands. ## Key facts - The 2026 [Brew Culture Franchise, LLC](https://vetmyfranchise. - The spread is dirt, not brand. - The $35,000 initial fee gets quoted everywhere and on its own it misleads. - Databases list 7 Brew’s royalty as 4. - Franchised stands went from 24 at the start of 2023 to 578 at the end of 2025, 281 of them added in 2025. Quick answer A 7 Brew stand costs $940,500 to $2,283,500 to open per the 2026 FDD, including a $35,000 initial franchise fee. New franchisees must commit to ten stands and pay a $125,000 development fee. Median sales were $2,550,624 across 297 franchised stands in fiscal 2025. ## $2,550,624 across 297 stands, and a closed application window The 2026 [Brew Culture Franchise, LLC](https://vetmyfranchise.com/c/claude/franchise/brew-culture-franchise-llc) disclosure reports median annual sales of $2,550,624 across the 297 franchised 7 BREW stands open for all of fiscal 2025. Average sales were $2,646,063. The best stand did $6,366,527, the worst $836,418. That is the highest disclosed median of any coffee brand in our database, and the sample is unusually clean: franchised stands only, broken out from the 23 company stands, full-year operators only, no top-quartile filter and no “reporting units” subset dropping weak performers. Then you read the franchisor’s support page. “At this time, we are not accepting new franchise applications or expressions of interest.” Item 20 projects 437 new franchised stands in the coming fiscal year against just 18 signed agreements for unopened stores, so that growth comes from development commitments already sold to existing multi-unit operators. Treat this page as underwriting homework for a door that is currently shut. ## What $940,500 to $2,283,500 buys | Item 7 line | Low | High | | --- | --- | --- | | Development fee and first franchise fee | $125,000 | $125,000 | | Building and build-out | $305,000 | $650,000 | | Site development | $200,000 | $800,000 | | Equipment, fixtures, POS | $210,000 | $280,000 | | Architecture, engineering, signs | $20,000 | $100,000 | | Deposits, permits, insurance, utilities | $10,500 | $53,500 | | Inventory, training, marketing | $45,000 | $200,000 | | Additional funds, 3 months | $25,000 | $75,000 | | Total | $940,500 | $2,283,500 | The spread is dirt, not brand. A 7 BREW stand is a 510-square-foot modular building on a lot of 8,000 to 50,000 square feet. Site development alone swings $600,000, the difference between a graded pad and a raw corner needing utilities, paving, and drainage. Freight and installation run up to $30,000 each and are stated outside the table. Annual rent is estimated at $30,000 to $150,000 on a triple-net lease. Item 7 also notes that of the 7 affiliate-owned stands sold to franchisees in 2025, 5 sold above the high end of this range, one by roughly $4.5 million. Our [Item 7 walkthrough](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) covers what these tables leave out. ## The $35,000 franchise fee is the smallest number in Item 5 The $35,000 initial fee gets quoted everywhere and on its own it misleads. Item 5 requires new franchisees to commit to a minimum of ten stands when they sign the first Franchise Agreement and the Development Rights Rider. The development fee is $35,000 for the first stand plus $10,000 for each of the nine committed, which is the $125,000 opening the Item 7 table. That $10,000 per stand is explicitly not a deposit against future fees, and stands two through ten carry their own $25,000 fee at opening. Sign the rider, pay the $125,000, fail to find sites, and the franchisor terminates and keeps all of it. Item 5 also names the affiliate economics plainly. CTAR, Inc. builds the modular buildings, sold them at $310,000 to $400,000 during 2025, and is the designated source for the roughly $60,000 equipment package. Part of your build cost is a payment to the franchisor’s family. [See the full 7 Brew data sheet](https://vetmyfranchise.com/c/claude/franchise/brew-culture-franchise-llc) ## The 4.5% royalty applies only until the stand works Databases list 7 Brew’s royalty as 4.5%. Item 6 is tiered on weekly gross sales: 4.5% below $20,000, 5.5% between $20,000 and $25,000, and 7% above $25,000. Annualized, the top tier starts near $1.3 million. The median stand does about $49,000 a week, so it pays 7%. Add the 2% brand fund and the 0.25% technology fee and a median performer sends roughly $235,900 a year to the franchisor, 9.25% of gross sales. The 4.5% rate is real, but it describes a stand under $1.04 million a year, near the disclosed floor of $836,418. That is defensible design, and a very different number than the summary tables carry. You pay it for a long time. Item 17 runs the franchise term 15 years from opening, with two potential five-year successor terms at $10,000 each on then-current terms. Territory is thinner than the capital implies: Item 12 grants an Area of Protection of 1.5 or 2 miles by market size, then states directly that you receive no exclusive territory, because the franchisor keeps unrestricted rights to non-traditional stands inside that radius. ## 578 stands, no closures, 28 transfers Franchised stands went from 24 at the start of 2023 to 578 at the end of 2025, 281 of them added in 2025. Company-owned stands held flat at 24. Item 19 states that no 7 BREW stand closed, temporarily or permanently, during fiscal 2025, and Item 20 shows zero terminations and zero non-renewals across three disclosed years. The line worth watching is transfers: 1 in 2023, 14 in 2024, 28 in 2025. Twenty-eight owner changes against 297 stands open that January is not distress in a system with no closures. It is early churn in a brand whose franchised stands averaged 24.7 months open. Ask why those owners sold. ## How the disclosure compares across drive-thru coffee | Brand | Item 7 range | Disclosed revenue | Whose stands | | --- | --- | --- | --- | | 7 Brew | $940,500 to $2,283,500 | $2,550,624 median | 297 franchised, full-year 2025 | | Dunkin’ | $142,000 to $1,832,500 | $1,297,694 median | 7,010 franchised units | | Ziggi’s Coffee | from $315,830 | $793,853 median | 35 drive-thru franchisees | | Scooter’s Coffee | $1,163,650 to $1,345,750 | $966,739 median | 761 participating franchised kiosks | | Dutch Bros | not franchised | none published | company-operated | Only one of those figures fails to compare. Ziggi’s 35-franchisee sample is too thin to rank against a 297-stand one. The other two are real medians on large samples: Dunkin’s spans 7,010 units, and Scooter’s $966,739 covers the 761 kiosks that operated a full year, though its Item 19 reaches only franchised kiosk and end-cap drive-thrus and excludes non-traditional stores, coffeehouses, and every affiliate-owned location. The [Scooter’s cost breakdown](https://vetmyfranchise.com/c/claude/blog/scooters-coffee-franchise-cost) works through that disclosure. 7 Brew’s median runs roughly double Dunkin’s and about 2.6 times Scooter’s, on a smaller and much younger sample. On why the sample label decides what a figure means, see [Item 19 explained](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise), and the [coffee franchise industry analysis](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry) for the category’s capital tiers. ## What to ask if the window reopens Sales are not profit, and the FDD says so. Item 19 discloses no cost of sales, no labor, no occupancy, no unit-level earnings. A stand at $2.55 million pays 9.25% off the top, services debt on a project that can top $2 million, and carries triple-net rent reaching $150,000. Only franchisees can tell you what survives that. 7 Brew’s disclosure is strong on the numbers it chose to publish and silent on the ones that decide the deal. Get the ten-store schedule in writing before any fee moves, confirm what the affiliate charges for a building in your freight zone, and call the owners behind those 28 transfers. If you are shopping the category instead, our [Dutch Bros alternatives](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-dutch-bros-franchise) piece covers who is taking applications. [Buy the full 7 Brew FDD analysis](https://vetmyfranchise.com/c/claude/pricing) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the 7 Brew numbers with you. We'll email you the **7 Brew FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The 7 Brew data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) #### Anytime Fitness Franchise Cost: 2026 Item 7 & Item 19 Deep Dive [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) 7 brew franchise cost7 brew franchise7 brew franchise feedrive-thru coffee franchisecoffee franchiseBrew Culture Franchise LLCitem 19 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a 7 Brew franchise cost? The 2026 FDD estimates $940,500 to $2,283,500 for the first stand, including a $125,000 development fee, $305,000 to $650,000 for the modular building and build-out, and $200,000 to $800,000 in site development. Freight and installation, up to $30,000 each, sit outside that range. ### How much does a 7 Brew stand make? Median annual sales were $2,550,624 across the 297 franchised stands open for all of fiscal 2025, on a $2,646,063 average. The 23 company stands ran higher, at a $2,763,103 median. Those are sales. The FDD discloses no cost or profit data. ### Who owns 7 Brew? The franchisor is Brew Culture Franchise, LLC, a Wyoming LLC formed February 21, 2021 and based in Springdale, Arkansas. Its direct parent is Brew Culture, LLC and its indirect parent is Blondie Holdings, LLC. Item 1 also names investment funds managed by Blackstone affiliates. ### Is 7 Brew still awarding franchises? Not to new applicants. The company's support page states it is not accepting new franchise applications or expressions of interest. Item 20 still projects 437 new franchised stands next fiscal year, which existing development-agreement holders are contracted to build. ### 7 Brew vs Dutch Bros: which can you actually buy? Neither right now. Dutch Bros stopped selling franchises in 2017 and has been buying franchised shops back since. 7 Brew has franchises in the field but a closed application window. Scooter's Coffee is the drive-thru coffee brand currently taking new franchisees. --- title: "Anytime Fitness vs Planet Fitness: Franchise Comparison Guide" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-07-24 keywords: anytime fitness, planet fitness, fitness franchise, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise about: anytime fitness category: blog wordCount: 1937 readingTime: 10 min crawledAt: 2026-08-20 11:05:14 lastVerified: 2026-08-20 11:05:14 site: https://vetmyfranchise.com/c/claude/ --- # Anytime Fitness vs Planet Fitness: Franchise Comparison Guide ## Summary Anytime Fitness vs Planet Fitness franchise comparison: investment range, royalties, unit count, member economics, and which model fits which buyer profile. ## Key facts - Choose Planet Fitness if you can fund a multi-unit, big-box build and want the higher absolute output that a large-format club produces. - The single biggest difference between the two: real estate footprint and capital requirement. - The fee structures used to be opposites; they’ve converged more than most older comparisons admit. - The two brands target very different consumer segments. - Both brands publish Financial Performance Representations (Item 19) in their FDDs, the earnings disclosure the [FTC Franchise Rule](https://www. Quick answer Planet Fitness is the bigger bet with bigger output: $1,282,500-$5,386,000 investment and $1,863,300 median club revenue per the 2026 FDD. Anytime Fitness costs less ($539,329-$905,482) but its median club grosses $398,982. Pick Planet Fitness if you can fund a big-box build; pick Anytime Fitness for a small-footprint, semi-absentee model. ## Why This Comparison Matters [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) and [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) are two of the most-searched fitness franchises in America, and they represent almost opposite operational models. A buyer weighing both is really weighing two different business profiles, not two flavors of the same business. The capital required, the real estate required, the staffing model, the member economics, and the day-to-day operational style all diverge meaningfully. This guide breaks down how the two franchises actually compare on the dimensions that affect a franchise buyer’s decision in 2026. ## The Side-by-Side Snapshot | Metric | Anytime Fitness | Planet Fitness | | --- | --- | --- | | Concept | 24/7 access, small-footprint gym | Big-box, high-volume, low-price gym | | Typical square footage | 4,000–6,000 sq ft | 18,000–25,000 sq ft | | Total initial investment | $539,329–$905,482 | $1,282,500–$5,386,000 | | Franchise fee | $42,500 | $40,000 | | Royalty | Up to 8% of Gross Revenue | 7% of gross membership fees | | Advertising fund | $900/month | 2% | | Typical member dues | $30–$50/month | $10–$25/month | | Typical members per club | 800–1,200 | 5,000–8,000+ | | U.S. franchised units | 2,271 | 2,432 (+270 company-owned) | | Item 19 median revenue | $398,982 (1,656 clubs) | $1,863,300 (2,291 clubs) | | Operational model | Owner-operator or semi-absentee | Owner-operator with full staff | (Investment, fee, royalty, unit-count, and Item 19 figures come from each brand’s 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) as parsed in VetMyFranchise’s database of 2,000+ FDDs; member-dues and square-footage figures are industry-typical ranges as of 2026. Verify Item 7, Item 6, and Item 19 in the current documents before relying on any single number.) ## Planet Fitness vs Anytime Fitness: The Quick Verdict Choose Planet Fitness if you can fund a multi-unit, big-box build and want the higher absolute output that a large-format club produces. Choose Anytime Fitness if you want a smaller footprint, a lighter capital and staffing load, and a semi-absentee model you can run without securing metro-scale retail space. The deciding factors are your real estate access, your capital depth, and how hands-on you want to be day to day, not which brand is stronger in the abstract. ## Investment Range and Real Estate The single biggest difference between the two: real estate footprint and capital requirement. ### [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) A typical [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) club requires 4,000–6,000 sq ft. Annual lease cost depends heavily on submarket (suburban strip mall vs. urban storefront) but typically ranges $40,000–$120,000 NNN. Build-out costs are modest by fitness standards: equipment package, locker rooms, and basic finish work. Total investment ranges from $539,329 at the low end to $905,482 for premium territories with extended equipment packages, per the 2026 FDD’s Item 7. ### [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) A [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) club requires 18,000–25,000 sq ft of contiguous retail space. That alone limits where you can open, because many submarkets simply don’t have buildings of that size available at acceptable rates. Annual lease cost typically runs $250,000–$700,000 NNN. Build-out is substantial: extensive cardio and strength equipment packages, large locker rooms, sometimes tanning, sometimes hydromassage, signage, and a Black Card lounge. Total investment ranges from $1,282,500 at the low end (smaller club, simpler build-out) to $5,386,000 for premium markets and larger clubs, per the 2026 FDD. For a franchise buyer with $300K available, [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) is potentially within reach (with SBA financing); [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) is typically not. For a buyer with $1.5M available and access to additional debt capacity, [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) becomes feasible. ## Royalty Structure and Ongoing Fees The fee structures used to be opposites; they’ve converged more than most older comparisons admit. ### [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) historically used a flat monthly royalty of roughly $699. That era is over: the 2026 FDD discloses a royalty of up to 8% of Gross Revenue plus a $900 per month marketing fee. Buyers should consult the current [FDD Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) for the exact schedule, because percentage-based royalties change the math meaningfully for high-revenue clubs that used to benefit from the flat fee. ### [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) charges a 7% royalty on gross membership fees plus a 2% advertising fund contribution, per the 2026 FDD. Higher revenue clubs pay more in absolute terms. Planet Fitness’s higher member volumes mean total royalty contribution per club is meaningful: at 6,000 members paying an average $15/month, gross dues are $90K/month, of which 9% ($8,100/month) goes to royalty and ad fund. For an [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) club at the brand’s Item 19 median of $398,982/year (about $33,000/month), an 8% royalty plus the $900 marketing fee works out to roughly $3,600/month. For a typical Planet Fitness club generating $80,000–$120,000/month in dues, royalties + ad fund add up to roughly $7,000–$11,000/month. ## Member Volume and Pricing The two brands target very different consumer segments. Anytime Fitness positions toward a higher-paying member who values 24/7 access, key-card entry to any club nationwide, and a more boutique gym experience. Average membership pricing runs $30–$50/month depending on submarket. Typical membership counts run 800–1,200 per club. The economic model: moderate volume × moderate dues = consistent monthly revenue. Planet Fitness positions explicitly as the value alternative: $10–$15/month standard membership, $25/month “Black Card” upgrade with tanning/massage chair access. The economic model: very high volume × low dues = very large absolute revenue. Successful Planet Fitness clubs run 5,000–8,000+ members. The question for a franchise buyer is which model fits your real estate access. If you have a 5,000 sq ft strip-mall space in a strong suburb, Anytime Fitness fits. If you have or can secure 22,000 sq ft of high-visibility retail in a high-density market, Planet Fitness fits. ## Unit Economics and Item 19 Disclosures Both brands publish Financial Performance Representations (Item 19) in their FDDs, the earnings disclosure the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) regulates. Read these carefully (see our [Item 19 deep-dive](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise)) and ideally talk to existing franchisees in your specific geography. What the 2026 disclosures show: ### Anytime Fitness Unit Economics Per the 2026 FDD’s Item 19, the median Anytime Fitness club grossed $398,982 for the 12 months ended February 28, 2026, across 1,656 reporting franchised centers. The 25th percentile club did $233,169 and the 75th percentile $746,996, so location and member volume swing outcomes hard. EBITDA margins of 20–35% and break-even in 12–24 months are typical industry patterns for a well-located club. ### Planet Fitness Unit Economics Per the 2026 FDD’s Item 19, the median Planet Fitness club grossed $1,863,300 in fiscal 2025 across 2,291 reporting franchised units, with a 25th percentile of $1,597,497 and a 75th percentile of $2,170,135. EBITDA margins of 25–40% are typical depending on submarket and Black Card upsell rate. Time-to-break-even is often 18–36 months given the higher build-out cost and ramp time to mature membership. The absolute dollar EBITDA at a successful Planet Fitness is meaningfully higher; the percentage-of-investment ROI depends on multiple factors and varies by club. ## Operational Style ### Anytime Fitness Mostly owner-operator or semi-absentee. Many franchisees run their club with 1–2 part-time front-desk staff and 1–2 trainers. The 24/7 model relies heavily on key-card automation, which reduces staffing needs during overnight and early-morning hours. ### Planet Fitness Owner-operator with full staffing. Typical clubs employ 8–15 staff including managers, front desk, trainers, and cleaning. The big-box, high-volume model requires more hands-on management of staff scheduling, member experience, equipment maintenance, and facility cleanliness. [Multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) Planet Fitness operators are common; many of the most successful franchisees own 5+ clubs. Multi-unit Anytime Fitness operators exist but are less common. ## Which Brand Fits Which Buyer? | Buyer Profile | Better Fit | | --- | --- | | First-time franchise buyer, $200K–$400K capital | Anytime Fitness | | Experienced multi-unit operator, $1.5M+ capital | Planet Fitness | | Buyer wanting semi-absentee operation | Anytime Fitness | | Buyer with access to large-format retail space | Planet Fitness | | Buyer focused on high-volume value pricing | Planet Fitness | | Buyer in a small/secondary market | Anytime Fitness | | Buyer in a metro market with available 20K+ sq ft retail | Planet Fitness | | Buyer wanting boutique/community-club experience | Anytime Fitness | For both franchises, the items most worth scrutinizing: - [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): Total investment line by line - [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise): Financial performance representations - [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees): Recurring fees including technology and equipment leases - [Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination): Renewal, transfer, and post-term provisions - [Item 22](https://vetmyfranchise.com/c/claude/blog/fdd-item-22-sample-contracts): Actual franchise agreement clauses > **Weighing Anytime Fitness against Planet Fitness for real?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. Or start with our free [side-by-side comparison tool](https://vetmyfranchise.com/c/claude/compare). ## Which Model Should You Buy? Anytime Fitness and Planet Fitness aren’t really competitors for franchise buyers. They’re two different businesses for two different buyer profiles. The right comparison is between which model matches your capital, real estate access, operational appetite, and target market. Buyers who pick the wrong model spend two years fighting their own infrastructure; buyers who pick the right one spend two years compounding into mature unit economics. The right next move is concrete: pull the Item 19 disclosures for both brands, talk to three existing franchisees in markets that resemble yours, and price out the equipment and build-out on a real piece of real estate before either pitch deck makes the decision for you. For a full standalone deep-dive on either brand, see our [Anytime Fitness franchise cost guide](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost): Item 7 line items, Item 19 quartile data on 1,656 reporting clubs, and the royalty math that shapes the brand’s economics. On the other side, the [Planet Fitness franchise cost guide](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) walks through the $1.28M-$5.39M investment, annual operating costs, and what owners actually net per location. For a category-level overview and side-by-side comparisons, see [Best Fitness Franchises Under $200K (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Aspen Dental vs Heartland Dental: DSO Franchise Showdown [Learn more →](https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise) anytime fitnessplanet fitnessfitness franchisefranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What's the total investment for Anytime Fitness vs Planet Fitness? Per the 2026 FDDs, Anytime Fitness total initial investment ranges $539,329–$905,482 depending on territory, build-out, and equipment package. Planet Fitness total initial investment ranges $1,282,500–$5,386,000 depending on real estate, square footage (typically 18,000–25,000 sq ft for a big-box club), equipment package, and signage. Always consult the franchise's current FDD Item 7 for the latest exact numbers. ### Which franchise has higher royalty fees? Anytime Fitness historically used a flat monthly royalty, but its 2026 FDD discloses a royalty of up to 8% of Gross Revenue plus a $900/month marketing fee. Planet Fitness charges a 7% royalty on gross monthly and annual membership fees plus a 2% advertising fund contribution. The structures are now closer than they used to be; the actual cost comparison depends on your club's revenue. ### Can I run an Anytime Fitness or Planet Fitness as an absentee owner? Anytime Fitness markets itself as semi-absentee-friendly; many franchisees have part-time staff and don't run the club day-to-day. Planet Fitness clubs are larger operations with full-time managers and front-desk staff; they're typically owner-operator or multi-unit operator businesses, not pure absentee. Both franchisors require some initial owner involvement during ramp-up regardless of long-term operational model. ### Which is better for first-time franchise buyers? Anytime Fitness has a lower barrier to entry on capital ($539,329 minimum per the 2026 FDD versus Planet Fitness's $1,282,500 minimum) and a simpler operational model that fits well with first-time buyers. Planet Fitness's higher investment and big-box operational complexity typically attract more experienced multi-unit operators or buyers with significant capital. There's no universal 'better'; match the model to your situation. --- title: "Best Coffee Franchises 2026: Real Item 19 Revenue Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best coffee franchises, coffee franchise cost, drive-thru coffee franchise, Item 19, 7 Brew, Scooter's Coffee, Dunkin canonical: https://vetmyfranchise.com/c/claude/blog/best-coffee-franchises about: best coffee franchises category: blog wordCount: 1863 readingTime: 9 min crawledAt: 2026-08-20 11:02:57 lastVerified: 2026-08-20 11:02:57 site: https://vetmyfranchise.com/c/claude/ --- # Best Coffee Franchises 2026: Real Item 19 Revenue Data ## Summary Best coffee franchises ranked on real Item 19 data: 7 Brew $2,550,624 on 297 stands, Dunkin $1,297,694 on 7,010 units, Scooter's $966,739 on 761. ## Key facts - 7 Brew’s 2026 FDD reports a median of $2,550,624 across 297 franchised stands. - The 297 franchised stands in 7 Brew’s fiscal 2025 disclosure averaged $2,646,063 and had a median of $2,550,624. - Nothing else in the category is close. - Scooter’s Item 19 covers 761 participating kiosk stores out of the 768 franchised kiosks open at the end of 2025: median $966,739, average $999,869, low $337,233, high $2,458,874. - Ziggi’s is useful because it discloses both formats in one document. Quick answer 7 Brew posts the highest disclosed median in coffee at $2,550,624 across 297 franchised stands, followed by Dunkin' at $1,297,694 across 7,010 restaurants and Scooter's at $966,739 across 761 kiosks. Dunkin's 7,010-unit sample is the only disclosure in the category large enough to work as a real benchmark. ## Four coffee brands disclose what franchisees earn. Three disclose what the company earns. 7 Brew’s 2026 FDD reports a median of $2,550,624 across 297 franchised stands. Dunkin’s reports $1,297,694 across 7,010 franchised restaurants. Both figures are real, both sit in Item 19, and reading them straight across is a mistake: one describes a chain whose measured stores had been open an average of 24.7 months, the other describes a system whose measured restaurants have been running for an average of 17 years. Seven coffee brands in our data publish a median. Three of those medians came from stores the franchisor or its affiliate owns. Starbucks is absent from the table because it does not franchise in North America, which we explain in [is Starbucks a franchise](https://vetmyfranchise.com/c/claude/blog/is-starbucks-a-franchise). Here is the whole category with the sample definition attached to every number, because the definition is doing most of the work. | Brand | Item 7, single unit | Initial fee | Franchised units | Item 19 median | Sample | Units measured | | --- | --- | --- | --- | --- | --- | --- | | 7 Brew | $940,500 to $2,283,500 | $35,000 | 578 | $2,550,624 | 297 | franchised stands | | Peet’s Coffee | $1,035,000 to $1,697,000 | $35,000 | 0 | $1,428,953 | 196 | affiliate-owned stores | | Dunkin’ | $532,400 to $1,832,500 (freestanding) | $40,000 to $90,000 | 8,744 | $1,297,694 | 7,010 | franchised restaurants | | Gregory’s Coffee | $459,150 to $946,000 | $35,000 | 0 | $1,016,476 | 32 | company-owned in-line cafes | | Scooter’s Coffee | $1,163,650 to $1,345,750 | $40,000 | 881 | $966,739 | 761 | franchised kiosk drive-thrus | | Ziggi’s Coffee | $586,830 to $1,759,855 (drive-thru) | $40,000 | 107 | $793,853 | 55 | franchised drive-thrus | | Caribou Coffee | $281,100 to $1,515,000 | $30,000 | 144 | see below | 12 | traditional franchised locations | Across the four brands that report franchisee results, the spread runs 3.2x, from $2,550,624 down to $793,853. That is a wider range than most buyers expect inside a single product category, and almost none of it is explained by coffee quality. ## 7 Brew’s $2.55M comes attached to a ten-store commitment The 297 franchised stands in 7 Brew’s fiscal 2025 disclosure averaged $2,646,063 and had a median of $2,550,624. The best one did $6,366,527. The worst did $836,418. Those stands sit in 510-square-foot modular buildings on lots of 8,000 to 50,000 square feet, and the longest-running one in the sample had been open 49 months. That last detail is the whole risk. There is no mature 7 Brew cohort yet, so the median tells you what a two-year-old stand does in a market the brand hand-picked during a land grab. It cannot tell you what year seven looks like, because year seven does not exist. The entry terms are unusual too. Item 7 runs $940,500 to $2,283,500 per stand and excludes land purchase, with site development alone running $200,000 to $800,000 and the high end tied to Florida builds. A franchisee new to the system must commit to ten stores at signing and pay a $125,000 development fee, which is the $35,000 first-store fee plus $10,000 for each additional store committed. Royalty is 4.5%, the lowest of any brand here. We break the full capital stack down in our [7 Brew franchise cost analysis](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost). One line in Item 7 deserves a second read: of the seven affiliate-owned stores sold to franchisees during 2025, five closed above the high end of the estimated investment range, and the largest exceeded it by roughly $4.5 million. ## Dunkin’s 7,010 restaurants are the only real benchmark in coffee Nothing else in the category is close. Dunkin’ discloses annual unit volumes for 7,010 franchised restaurants: median $1,297,694, average $1,372,069, high $6,007,706, low $65,354. The quartile breaks land at $952,914 and $1,703,007, so half the system operates in that band. Bottom-quartile median is $753,308. Top-quartile median is $2,041,189. A sample that size does something no other disclosure in the category can do, which is give your specific format its own number. Freestanding pad or building restaurants, 3,169 of them, post a $1,522,154 median. Traditional non-freestanding sites, 2,423 of them, post $1,175,390. Gas and convenience locations run $1,088,513 across 900 units, airports $1,551,836 across 102, and other non-traditional sites $747,043 across 416. You know roughly where your site type sits before you sign. The trade-off is age and saturation. Those restaurants average 17 years old, 4,723 of them have drive-thru windows and 2,170 have none. Our [Dunkin’ and Scooter’s comparison](https://vetmyfranchise.com/c/claude/blog/dunkin-vs-scooters-coffee-franchise) covers how the two systems behave at unit level. ## Scooter’s has the second-largest sample and the tightest cost band Scooter’s Item 19 covers 761 participating kiosk stores out of the 768 franchised kiosks open at the end of 2025: median $966,739, average $999,869, low $337,233, high $2,458,874. The five-year table in the same document shows median gross sales moving from $776,635 in 2021 to $966,739 in 2025, a 24.5% climb over four years that you can read year by year rather than trust. The cost side is the quiet advantage. Item 7 runs $1,163,650 to $1,345,750, a spread of $182,100. Compare that to the $1.34 million gap between 7 Brew’s low and high. A tight band means the franchisor has built the same box enough times to price it, and it makes your lender’s job easier. Read the exclusions before you get comfortable. This Item 19 covers franchised kiosk and end-cap drive-thrus only. Coffeehouse and non-traditional stores are left out because Scooter’s is not actively marketing them, and every affiliate-owned store is excluded too. Our [Dutch Bros and Scooter’s breakdown](https://vetmyfranchise.com/c/claude/blog/dutch-bros-vs-scooters-coffee-franchise) explains why the obvious competitor is not purchasable at all, and you can filter the whole category on our [food and beverage franchise list](https://vetmyfranchise.com/c/claude/franchises/food-and-beverage). Caribou’s 2026 FDD discloses gross sales for 12 traditional franchised locations that operated the full 2025 fiscal year. Twelve. That sample cannot be ranked against a 7,010-unit disclosure and should not be averaged into anything. The $1,086,055 figure that circulates with the brand comes from another table in the prior year’s document: the fiscal 2024 median net sales of 110 company-owned drive-thru Chalet coffeehouses. Wrong owner, wrong year, wrong format. Caribou also runs 350 company-owned locations against 144 franchised ones, so the company’s own stores are the business. Peet’s is cleaner about it and still needs reading carefully. The brand had zero franchised units at its 2026 filing. Its $1,428,953 median describes 196 affiliate-owned reporting locations, 166 of which are in California, and only five of which have a drive-thru. Peet’s is franchising drive-thru stores. Deals are area development only, with a $17,500 per-store development fee and an estimated $175,000 to $262,500 due at signing for a ten to fifteen store schedule. Gregory’s Coffee organized its franchising entity in December 2025 and shows zeros across all three years of franchised outlets in Item 20. The $1,016,476 belongs to 32 company-owned in-line cafes. Across all 47 reporting locations the median drops to $822,667, and the 14 mall locations sit at $461,006. Three numbers, one brand, and the flattering one is what gets quoted. ## Drive-thru and cafe formats split on cost, not on sales Ziggi’s is useful because it discloses both formats in one document. The 55 franchised drive-thru shops posted a $793,853 median. The 35 cafe-with-drive-thru shops posted $904,212, about 14% higher. Then look at what each one costs: $586,830 to $1,759,855 for the first, $655,336 to $2,093,361 for the second. You pay roughly $334,000 more at the top end for 14% more revenue, plus a dining room to staff and clean. That math is why the category keeps shrinking its footprint. 7 Brew’s building is 510 square feet with no seating. Scooter’s leaves its coffeehouse format out of Item 19 because it is not selling it. Our [industry overview](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry) covers where the format shift is heading, and we ran the build-your-own alternative in [franchise versus independent](https://vetmyfranchise.com/c/claude/blog/coffee-franchise-vs-independent-coffee-shop). ## Every Item 7 low end assumes a different piece of real estate Dunkin’ gets quoted as $142,000 to $1,832,500. Those endpoints belong to two unrelated businesses filed in separate Item 7 tables. The $142,000 to $862,500 range is a non-traditional satellite: a counter inside a stadium, an airport, or a host retailer. Freestanding is $532,400 to $1,832,500, shopping center storefront is $443,000 to $1,333,500, gas and convenience is $216,400 to $1,065,500. The cheap entry buys the low revenue, and Dunkin’s own tables prove it, with non-traditional sites outside gas and airport venues at a $747,043 median against $1,522,154 for freestanding buildings. Apply the same test everywhere. 7 Brew’s table excludes land purchase and estimates annual rent at $30,000 to $150,000. Ziggi’s cheapest number, $315,830, is a mobile unit with no Item 19 of its own. A low end you cannot actually build in your market is a marketing figure, not a budget. If the highest disclosed revenue is what you want, 7 Brew leads and asks for ten stores and a young track record in return. If you want a number you can defend to a lender, Dunkin’s 7,010-unit disclosure is the only one in coffee that survives scrutiny, and its site-type tables let you argue your specific location. Scooter’s sits between them with the narrowest capital range. Put any two side by side on [our comparison tool](https://vetmyfranchise.com/c/claude/compare) with the sample definitions visible, and the ranking usually changes. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best coffee franchisescoffee franchise costdrive-thru coffee franchiseItem 197 BrewScooter's CoffeeDunkin About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which coffee franchise is most profitable? No brand in this category discloses franchisee profit, so the honest answer is revenue only. 7 Brew reports the highest median at $2,550,624 across 297 franchised stands. Caribou is the only one publishing cash flow percentages by sales tier, and it publishes them for 116 company-owned drive-thru locations rather than franchised ones. ### How much does a coffee franchise cost? Between roughly $142,000 and $2.28 million, depending on format. A Dunkin' counter inside a gas station or airport runs $142,000 to $862,500, while a freestanding Dunkin' is $532,400 to $1,832,500. Scooter's quotes $1,163,650 to $1,345,750 for a kiosk drive-thru, and 7 Brew quotes $940,500 to $2,283,500 per stand with land purchase excluded from the table. ### Is 7 Brew or Scooter's a better investment? They are priced for different buyers. 7 Brew discloses 2.6x the median revenue at a 4.5% royalty, but new franchisees must commit to developing ten stores and pay a $125,000 development fee up front. Scooter's takes 6% and sells single units, with an Item 7 spread of only $182,100 between low and high. ### Can you still buy a Dutch Bros franchise? No. Dutch Bros stopped selling franchises in 2017 and grows through company-owned shops, with operator roles filled from inside. That is why the brand has no FDD in circulation and no Item 19 to compare. Buyers who want the drive-thru specialty model look at 7 Brew, Scooter's, or Ziggi's instead. ### What's the cheapest coffee franchise to open? Dunkin's non-traditional format starts at $142,000 and Caribou's Item 7 starts at $281,100, with Ziggi's mobile unit at $315,830 to $464,355. The catch is that each cheap format either has no earnings disclosure of its own or posts well below the brand headline. Dunkin's non-traditional sites outside gas and airport venues median $747,043 against $1,522,154 for freestanding buildings. --- title: "Best Daycare & Preschool Franchises 2026: Real Costs" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best daycare franchises, preschool franchise cost, childcare franchise opportunities, Kiddie Academy, The Learning Experience, early education franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-daycare-preschool-franchises about: best daycare franchises category: blog wordCount: 2144 readingTime: 11 min crawledAt: 2026-08-20 11:02:57 lastVerified: 2026-08-20 11:02:57 site: https://vetmyfranchise.com/c/claude/ --- # Best Daycare & Preschool Franchises 2026: Real Costs ## Summary Best daycare franchises on 2026 FDD data: Item 7 lease vs. build costs, disclosed revenue, and whose units each Item 19 sample actually describes. ## Key facts - The Kiddie Academy 2026 FDD contains two estimated initial investment tables. - The pattern holds across the whole category. - Only two brands here carry franchisee samples large enough to survive a hard look. - Kiddie Academy charges the highest initial fee in center-based childcare, and buyers reasonably ask what the extra $90,000 over The Learning Experience buys. - Celebree School shows up in most category roundups at roughly $2. Quick answer Center-based childcare runs $590,000 to $1.5 million for a leased center and $4.9 million to $8.9 million if you buy the land and build. The Learning Experience discloses a $2,168,511 median across 266 franchised centers; Kiddie Academy discloses $2,075,740 across 293. Real estate structure drives the capital, not the brand. ## Two Item 7 tables, one brand, a $7.9 million gap The Kiddie Academy 2026 FDD contains two estimated initial investment tables. One totals $590,000 to $1,010,000. The other totals $4,935,000 to $8,530,000. Same brand, same academy, same year. The only difference is whether you lease the building or buy the land and construct it yourself. Nearly every childcare franchise ranking quotes one blended number for this brand, usually something like “$590,000 to $8.5 million,” which describes no buyer who has ever existed. You are either signing a lease or financing dirt, and you make that call before you pick a brand. ## The high end of every Item 7 here is a land purchase The pattern holds across the whole category. The Goddard School’s 2026 FDD splits Item 7 into three scenarios: lease a school the landlord constructs ($1,003,500 to $1,503,000), lease a building that needs improvements ($1,736,500 to $5,032,000), or purchase the land and build ($5,493,500 to $8,908,000). Primrose runs the same structure, at $826,900 to $1,405,000 leased against $6,162,660 to $8,550,000 for a franchisee-affiliated real estate entity that buys and builds. Lightbridge Academy discloses $834,868 to $1,409,735 for a single leased center and $5,801,350 to $8,122,575 fee simple. The Learning Experience separates a site-development-services center at $805,799 to $1,563,499 from a self-developed one at $2,264,799 to $5,658,799, and adds a third table for buying an existing center at $937,300 to $3,393,000. | Brand | Units | Leased center | Buy land and build | Initial fee | Disclosed revenue, and whose units | | --- | --- | --- | --- | --- | --- | | The Goddard School | 665 | $1,003,500-$1,503,000 | $5,493,500-$8,908,000 | $135,000 | school-by-school P&L, 620 mature schools, no system median published | | Primrose Schools | 557 | $826,900-$1,405,000 | $6,162,660-$8,550,000 | $50,000 | $1,863,251 to $3,308,944 median by occupancy quartile, 520 franchised schools | | The Learning Experience | 436 | $805,799-$1,563,499 | $2,264,799-$5,658,799 | $60,000 | $2,168,511 median, 266 franchised centers open 48+ months | | Kiddie Academy | 363 | $590,000-$1,010,000 | $4,935,000-$8,530,000 | $150,000 | $2,075,740 median, 293 franchised academies open 24+ months | | Lightbridge Academy | 68 | $834,868-$1,409,735 | $5,801,350-$8,122,575 | $50,000 | $2,640,681 average, 62 mature centers, franchised and company-owned mixed | | Celebree School | 44 | $1,023,550-$1,404,100 | dropped from the 2026 FDD | $75,000 | $1,981,871 median net revenue, 17 mature franchised schools | Ivybrook Academy sits outside this shape at $540,700 to $869,860 across 40 units, because the half-day preschool model needs less square footage and no infant room. It is a different business wearing the same category label. Celebree runs a third table for a remodel of existing space at $2,778,550 to $3,569,099, and its 2026 amendment quietly drops the land-purchase table its 2025 filing carried at $5,410,700 to $7,379,500. ## Two systems disclose enough units to argue with Only two brands here carry franchisee samples large enough to survive a hard look. The Learning Experience reports franchised and corporate centers in separate tables, which is the correct way to do it and rarer than it should be. In calendar 2025, its 266 franchised Mature Centers (open more than 48 months) averaged $2,186,393 with a median of $2,168,511. Its 17 corporate mature centers posted a $2,574,296 median, about 19% higher. The 135 franchised centers below the franchise average ran $1,688,611 on average, with a low of $715,099. If you quote the corporate figure as a franchisee expectation, you are overstating the outcome by roughly $400,000 a year. Kiddie Academy discloses 293 mature academies open 24 months or more, with a $2,075,740 median gross revenue and, unusually, gross profit alongside it. Median labor expense was $983,102, or about 47% of median revenue. Median occupancy cost was $363,623, and median gross profit after both came to $479,211. Then the FDD splits that group into quarters by gross profit, and the spread is the number worth carrying into a lender meeting: the top 73 academies posted a $991,054 median gross profit on $2,932,736 of revenue, while the bottom 73 posted $105,058 on $1,343,525. That bottom figure is before debt service, before your draw, and it sits on a build that started at $590,000 and can reach $8.5 million. Set those two medians side by side and you are already comparing apples to oranges. Kiddie Academy’s 293 academies qualify at 24 months open. The Learning Experience’s 266 centers have to clear 48 months. Four extra years of enrollment ramp sit inside that definitional gap, which flatters the brand with the longer cutoff, and no published ranking adjusts for it. The expense disclosure runs the other way. Kiddie Academy publishes labor, occupancy, and gross profit for all 293 franchisee-owned academies. The Learning Experience publishes expense and EBITDAR detail only for its 17 company-owned centers, and its own Item 19 explains why: it cannot poll cost data from franchisees through its point-of-sale system. So the brand with the stronger headline revenue number is the one that can tell you least about what a franchisee keeps. Very few franchisors publish a figure as unflattering as Kiddie Academy’s bottom quartile, and that willingness should count in its favor even though the number itself is grim. ## The $150,000 fee is a list price Kiddie Academy charges the highest initial fee in center-based childcare, and buyers reasonably ask what the extra $90,000 over The Learning Experience buys. The disclosed answer: site selection, background checks, franchisee training, and a separate director training program, paid in four installments tied to signing, site acceptance, permitting, and occupancy. The more useful answer is in the second half of Item 5. The 2026 FDD discloses five reduced-fee programs. A new franchisee buying multiple academies pays $70,000. An existing franchisee’s second academy costs $85,000, and the third and beyond drop back to $70,000. Veterans and buyers taking a market where the brand has no presence pay $125,000. So the $150,000 sticker applies to a single-unit, non-veteran, non-pioneering buyer, which is the profile least likely to survive this category anyway. Goddard’s $135,000 fee comes with a 4% ad fund, double what Kiddie Academy, Primrose, and Lightbridge charge, and over a 15-year term that difference outruns the fee gap entirely. Fee comparisons that stop at Item 5 miss where the money actually goes; the [Item 7 walkthrough](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) covers how to rebuild the full stack. ## Celebree’s headline number describes schools its affiliates own Celebree School shows up in most category roundups at roughly $2.26 million in revenue. That figure is real, and it does not describe a franchisee. Its Item 19 opens with 26 company-operated schools run by Celebree affiliates: median net revenue $2,214,730, median gross revenue $2,258,522, average occupancy 88.9%, EBITDA at 28.5% of net revenue. A separate table covers the 17 mature franchised schools, and the numbers move. Median net revenue drops to $1,981,871, average occupancy falls to 63.4%, and EBITDA lands at 15.5%. A 25-point occupancy gap between corporate and franchised schools inside one brand is the finding, and it survives into the 2026 disclosure, which covers 26 mature company schools against 18 mature franchised ones out of 44 franchised schools total. Seventeen schools is too thin a sample to rank a brand on. Use it as a directional read, then ask Celebree why its own schools fill and its franchisees’ schools do not. That question belongs on your discovery day agenda, and browsing the full [child services and education category](https://vetmyfranchise.com/c/claude/franchises/child-services-and-education) shows how far this labeling problem extends past childcare. ## Occupancy sets the number, and it takes three years Primrose publishes the clearest picture of what drives revenue in a childcare center, and it is not the brand on the sign. Its 2026 FDD sorts 520 franchised schools into four quartiles by average occupancy rate. The top quartile ran 94% occupancy and averaged $3,586,393 in calendar 2025. The second ran 83% and averaged $3,109,936. The third, 72% and $2,513,577. The bottom quartile ran 52% occupancy and averaged $1,909,787. Licensed capacity barely moved across the four groups, from 184 to 188 children. Same building size, same brand, and a $1.7 million revenue gap driven by how full the classrooms are. Getting full takes years. Primrose also breaks out 44 schools by opening year: the 2024 class posted a $1,959,063 median in 2025, the 2023 class $2,724,821, and the 2022 class $3,144,507. Enrollment fills classroom by classroom as word moves through a neighborhood, and your working capital plan has to cover that curve rather than a six-month ramp. Our [Primrose cost breakdown](https://vetmyfranchise.com/c/claude/blog/primrose-schools-franchise-cost) goes deeper on the build-to-suit structure behind those figures. ## The samples that need footnotes Lightbridge Academy discloses more line-item detail than anyone else here. Across 62 mature centers in 2025, average gross revenue was $2,640,681, payroll ran 45% of revenue, rent and taxes and CAM took $384,525, and EBITDA landed at $404,324, or 15%. The top quartile of 16 centers hit 22% EBITDA on $3,454,498; the bottom 16 hit 5% on $1,875,147. One footnote changes how you read all of it: the sample combines franchised and company-owned centers, and Lightbridge’s affiliate operates centers of its own. Goddard runs the opposite problem. Its Item 19 lists revenue, payroll, occupancy cost, and EBITDAR for roughly 620 mature schools individually, page after page, with no system median or average summarized anywhere. That is enormous disclosure and almost unusable without a spreadsheet, which is presumably the point. It is worth the afternoon it takes to build one, because 620 schools is the largest franchisee-only childcare sample in circulation. Montessori Kids Universe, filed as Montessori School Franchising LLC, discloses a $1,503,632 median across 18 franchised locations open for all of 2025. Eighteen units cannot be ranked against a 293-unit or 520-unit disclosure, and we are not ranking it. Note it, and go pull the individual numbers. ## Reading these against your own market Three questions decide this category, and none of them is which brand ranks highest. First, are you leasing or buying? That answer moves your capital requirement by $4 million to $7 million at every brand here, and it determines whether you need a real estate partner before you need a franchise agreement. Work through [lease terms](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) before signing anything. Second, what does your state require for ratios, director credentials, and square footage per child? Those rules set your payroll floor, and payroll is 45% to 48% of revenue at every brand that discloses it. Third, how many children under five live within a ten-minute drive, and how many competitors are already inside that ring? Primrose’s own data puts roughly 5,800 to 6,800 children under five within ten minutes of a typical school and 1.6 to 1.8 competitors within five minutes, which is a usable benchmark for testing a site. For the broader category, including tutoring, enrichment, and swim, start with our [child education franchise guide](https://vetmyfranchise.com/c/claude/blog/child-education-franchise-guide) or the head-to-head on [Kiddie Academy versus The Learning Experience](https://vetmyfranchise.com/c/claude/blog/kiddie-academy-vs-the-learning-experience-franchise). If you are still deciding whether a $1M-plus operating business fits your balance sheet at all, the [franchise readiness quiz](https://vetmyfranchise.com/c/claude/franchise-readiness-quiz) takes two minutes and will tell you more than another comparison table will. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best daycare franchisespreschool franchise costchildcare franchise opportunitiesKiddie AcademyThe Learning Experienceearly education franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a daycare franchise cost? A leased center runs roughly $590,000 to $1.6 million depending on brand, and buying the land and building the school runs $4.9 million to $8.9 million. Kiddie Academy's 2026 FDD discloses $590,000 to $1,010,000 for a leased academy and $4,935,000 to $8,530,000 for a purchased one. The Goddard School discloses $1,003,500 to $1,503,000 leased and $5,493,500 to $8,908,000 owned. Which table applies to you is a real estate decision made before you pick a brand. ### Which preschool franchise is most profitable? On disclosed 2025 revenue, Lightbridge Academy's 62 mature centers averaged $2,640,681 and The Learning Experience's 266 mature franchised centers posted a $2,168,511 median. Profitability is a different question. Lightbridge discloses 15% average EBITDA across those 62 centers and 5% in the bottom quartile. Kiddie Academy discloses a $479,211 median gross profit across 293 franchisee-owned academies, after labor and occupancy. The Learning Experience discloses no franchisee expense data at all, only company-center figures. Read each brand's expense definitions before comparing margins. ### Do you need a teaching background to own a childcare franchise? No. None of the six systems here requires the franchisee to hold an early-childhood credential, because the license typically attaches to the center director rather than the owner. State licensing rules govern director qualifications, staff-to-child ratios, and square footage per child, and they vary enough that the same brand's model produces different staffing costs in different states. Your director hire matters more to the outcome than your own resume. ### How long until a childcare center breaks even? Primrose's 2026 FDD is the clearest public evidence on ramp. Schools that opened in 2024 posted a $1,959,063 median in calendar 2025, schools from the 2023 class posted $2,724,821, and the 2022 class posted $3,144,507. Revenue roughly tracks enrollment, and enrollment fills classroom by classroom over two to three years. Budget working capital for that curve, not for a six-month ramp. ### Why is Kiddie Academy's franchise fee $150,000? The fee covers site selection, background checks, franchisee training, and a separate academy director training program, and it is paid in four installments tied to signing, site acceptance, permitting, and occupancy. It is also a list price. Item 5 of the 2026 FDD discloses five reduced-fee programs: $70,000 for a new franchisee buying multiple academies, $85,000 for an existing franchisee's second, $70,000 for a third and beyond, and $125,000 under both the VetFran and First In Market programs. --- title: "Best Franchises for Veterans 2026: Real VetFran Discounts" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best franchises for veterans, veteran franchise discount, VetFran franchise, military franchise opportunities, franchise fee discount veterans, veteran business ownership canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-for-veterans about: best franchises for veterans category: blog wordCount: 2129 readingTime: 11 min crawledAt: 2026-08-20 11:03:08 lastVerified: 2026-08-20 11:03:08 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises for Veterans 2026: Real VetFran Discounts ## Summary 238 franchisors disclose a veteran discount in FDD Item 5. The real amounts by capital tier, from Cruise Planners to Midas, and where it stops mattering. ## Key facts - Jani-King of Milwaukee discloses a 10% veteran discount off its initial franchise fee. - VetFran is an International Franchise Association program. - ASP America’s Swimming Pool Company discloses 30% off both the franchise fee and the additional pool fee for honorably discharged veterans of American and Canadian forces. - Midas waives the entire $35,000 initial franchise fee for veterans and first responders. - The veteran-specific SBA fee break is gone, for a defensible reason. Quick answer 238 franchisors disclose a VetFran or veteran discount in Item 5 of their FDD, and 220 of them state a specific figure. Typical terms run 10% to 25% off the initial franchise fee, with outliers at 50% (FASTSIGNS, Jani-King of Buffalo) and full waivers (Midas, Checkers). Below $100K the discount moves the deal. Above $300K it rarely does. ## 238 franchisors disclose a VetFran discount in Item 5, and 220 of them name the number Jani-King of Milwaukee discloses a 10% veteran discount off its initial franchise fee. Jani-King of Buffalo, Green Bay, and Hartford, a separate regional franchisor selling the identical brand, discloses 50%. Same trucks, same operating manual, five times the discount, and the only place either figure appears is Item 5 of two different FDDs. That gap is the argument for reading disclosures instead of directories. Across our library, 262 franchisors name VetFran somewhere in their FDD and 238 put it in Item 5, the initial-fee item. Of those 238, 220 state an actual figure: a percentage, a dollar amount, or an outright waiver. Competing veteran franchise lists cite the VetFran directory, which confirms only that a brand joined a program. Item 5 is the enforceable version. What follows is sorted by capital, not by brand recognition, because the useful question is what a discount is worth against the money you actually have. ## What VetFran obligates, which is less than a directory listing implies VetFran is an International Franchise Association program. A brand joins, self-reports an incentive, and appears in a listing. The IFA does not fund it, administer it, or enforce it. The franchisor does, on terms it writes itself, and those terms are disclosed in Item 5 alongside every other initial fee. Three things there decide what you get. The first is the base the percentage applies to. Lawn Doctor charges a $118,000 total initial franchise fee, but its 10% veteran reduction covers only the $50,000 license portion, so the disclosed benefit is $5,000 rather than $11,800. The second is stacking. Pet Supplies Plus states its 20% veteran discount “may not be combined with any other Initial Franchise Fee discount,” and The UPS Store warns that its Believe Program discount “is not available if you qualify for the VetFran Program.” Assume you get one, not both. The third is ownership: nearly every disclosure requires the veteran to hold at least 51% of the franchisee entity and to produce a DD-214 before signing. If you plan to buy with a civilian partner who takes the majority stake, you have disqualified yourself. Our walkthrough of [what Item 5 actually contains](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure) covers the rest. Cruise Planners discloses a $4,000 discount for veterans and first responders against a $10,995 franchise fee, on an Item 7 total of $1,945 to $20,505. No other brand in the data comes close to that ratio. Its Item 19 reports a $148,605 median, but read the segment before you use it: the sample is 2,255 active outlets defined as franchised units with total sales of at least $25,000 in 2025 and at least 12 months in operation, so everything below that floor is excluded. The American Poolplayers Association discloses 25% off a $10,000 fee, which is $2,500 against a $22,219 to $30,758 investment. Coverall discloses 10% off its $15,570 fee, roughly $1,557 on a build of $17,986 to $64,280. WIN Home Inspection’s 2026 FDD is unusually precise, stating the fee is “reduced by 10% to $18,900” from $21,000. Caring Transitions offers up to 10% of a $58,900 fee on a $75,760 to $123,150 investment, and its Item 19 shows a $222,918 median across 307 franchised units that operated the entire year. Then the counterexample, in the same tier. RooterMan charges a $4,975 franchise fee and discounts it 10%, which is about $498 against an investment of $45,075 to $82,475. Heaven’s Best discloses a flat $1,000 off a $41,900 fee. Both terms are genuine. Neither belongs in a purchase decision. If you are new to ownership entirely, the fee break matters far less than the operating model, which is the case we make in our guide to [franchises for first-time business owners](https://vetmyfranchise.com/c/claude/blog/best-franchises-first-time-business-owners). ## $100K to $300K: home services, and the biggest percentage in the data ASP America’s Swimming Pool Company discloses 30% off both the franchise fee and the additional pool fee for honorably discharged veterans of American and Canadian forces. On a $40,000 fee that is $12,000, against an investment of $88,695 to $213,171, and Item 19 reports a $594,460 median across 127 franchised territories that ran the full 2025 fiscal year. That combination, a large percentage on a fee that is a meaningful share of a modest build, is the best version of this incentive anywhere in the dataset. FASTSIGNS pays more in absolute dollars: “a reduced initial franchise fee of $24,875 to veterans of the U.S. Armed Forces who meet the requirements of the VetFran Program, a 50% discount.” Comfort Keepers discloses 20% off $55,000, so $11,000 on a $119,560 to $190,700 investment. British Swim School discloses 20% off a $59,500 fee. Budget Blinds prints the arithmetic for you, discounting 15% and stating that a qualifying veteran “will therefore pay a discounted Initial Franchise Fee of $16,958,” down from $19,950. Minuteman Press splits its term by deal type, $10,000 off a new center and $5,000 off an existing one, and reports a $559,528 Item 19 median across 609 US franchised centers. The trade-skill transfer is real in this tier and it is worth naming. Pool service, sign fabrication, home inspection, and restoration all reward the same things military maintenance work rewards: scheduling, documentation, and finishing a job list. The veteran discount is a coincidence of where those brands cluster on price, not evidence that they suit you. Our [franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) filters on industry, capital, and Item 19 disclosure rather than incentive programs, which is the correct order of operations. ## $300K and up: this is where the discount stops mattering Midas waives the entire $35,000 initial franchise fee for veterans and first responders. That is the strongest disclosed term in the tier, and on a $385,450 to $940,050 investment it still comes to between 3.7% and 9.1% of the project. Marco’s Pizza carries the most specific disclosure in the whole dataset. Veterans pay a $15,000 initial franchise fee instead of $25,000, and the fee is “waived in its entirety for qualified US veterans with a 50% or more military service-connected disability rating.” Club Pilates drops $65,000 to $48,750. Checkers discloses a 100% reduction, taking its $30,000 fee to zero. Little Caesars stacks four items for honorably discharged veterans: $5,000 off the fee, $5,000 on equipment, $5,000 on the first Blue Line food order, and $10,000 of corporate communications support. Scooter’s Coffee does something different again, offering a $20,000 product credit from an affiliate rather than a fee break, redeemable within one year of opening. | Tier | Brand | Disclosed veteran term | Item 7 investment | Discount vs. Item 7 high end | | --- | --- | --- | --- | --- | | Under $100K | Cruise Planners | $4,000 off a $10,995 fee | $1,945 to $20,505 | 20% | | Under $100K | American Poolplayers Association | 25% off a $10,000 fee | $22,219 to $30,758 | 8.1% | | Under $100K | WIN Home Inspection | $21,000 fee cut to $18,900 | $41,200 to $49,800 | 4.2% | | Under $100K | RooterMan | 10% off a $4,975 fee | $45,075 to $82,475 | 0.6% | | $100K to $300K | FASTSIGNS | $49,750 fee cut to $24,875 | $215,194 to $377,334 | 6.6% | | $100K to $300K | Comfort Keepers | 20% off a $55,000 fee | $119,560 to $190,700 | 5.8% | | $100K to $300K | ASP America’s Swimming Pool Co. | 30% off fee and pool fee | $88,695 to $213,171 | 5.6% | | $100K to $300K | Budget Blinds | $19,950 fee cut to $16,958 | $100,500 to $211,250 | 1.4% | | $300K+ | Midas | $35,000 fee waived in full | $385,450 to $940,050 | 3.7% | | $300K+ | Club Pilates | $65,000 fee cut to $48,750 | $403,289 to $1,029,811 | 1.6% | | $300K+ | Massage Envy | $45,000 fee cut to $36,000 | $695,870 to $1,046,506 | 0.9% | ## The SBA question veterans should actually be asking The veteran-specific SBA fee break is gone, for a defensible reason. The SBA eliminated the upfront guarantee fee on all 7(a) loans of $1 million or less, so what was once the Veterans Advantage benefit now reaches every franchise borrower. We covered that program landscape and the VA loan misconception in our post on [VetFran and diversity financing](https://vetmyfranchise.com/c/claude/blog/vetfran-diversity-financing-veteran-minority-women-buyers). The current question is about the SBA Franchise Directory. The SBA scrapped it in August 2023 under SOP 50 10 7 and shifted franchise agreement review onto individual lenders, then reversed and reinstated a modified directory effective June 1, 2025 under SOP 50 10 8. Ask your lender directly which review process they are running on your brand and whether the franchisor has completed the current directory paperwork, because a brand that sailed through in 2024 is not automatically clean now. One mechanical point worth carrying into the loan conversation: a fee discount reduces total project cost, which reduces the equity injection the SBA requires you to bring. ASP’s $12,000 discount cuts the project by $12,000, so a 10% injection requirement drops by $1,200 and the financed balance by $10,800. That is modest, and it compounds across a ten-year note. The lender comparison in our [SBA franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) is worth more to your deal than any single fee break. ## Three brands where the discount looks like a reason to buy and is not Massage Envy discloses a $9,000 veteran discount, reducing a $45,000 fee to $36,000. Against a $695,870 Item 7 low end, that is 1.3%. Zaxby’s discloses 20%, stated in the FDD as $7,000, on a build that starts at $1,460,000, or half a percent. Jack in the Box reduces the fee “for the first new Restaurant by 25%, or $12,500,” against an Item 7 low end of $1,909,500, which is 0.7%. All three are real money and all three are noise at that scale. What decides those deals is the earnings disclosure: Massage Envy reports a $1,136,666 median across 989 current-format businesses open a year or more, and Jack in the Box reports $1,830,083 across 1,754 franchised units in the continental US. A single soft quarter erases the discount several times over. The sequence that protects you runs the other direction. Pick the brand on Item 19, Item 20 unit movement, and territory rights. Then apply the veteran discount. Then push on everything else in the fee stack, which usually has more give than buyers expect, as we lay out in [how to negotiate down a franchise fee](https://vetmyfranchise.com/c/claude/blog/how-to-negotiate-down-franchise-fee). A veteran buyer who negotiates a $10,000 territory concession has beaten every discount on this page except two. If you want to see where a specific brand’s fee sits against its category before you ask for anything, our [franchise fee benchmark report](https://vetmyfranchise.com/c/claude/reports/franchise-fee-benchmark) ranks initial fees across the systems in our library. Bring the percentile to the discovery call. The development team already knows it. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best franchises for veteransveteran franchise discountVetFran franchisemilitary franchise opportunitiesfranchise fee discount veteransveteran business ownership About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Do franchises give veterans a discount? Many do, and 238 franchisors disclose one directly in Item 5 of their FDD. The most common term is 10% to 25% off the initial franchise fee. A smaller group discloses 50% (FASTSIGNS, Express Employment Professionals, several regional Jani-King franchisors) and a handful remove the fee entirely (Midas, Checkers, Marco's Pizza for veterans with a 50% or greater service-connected disability rating). The discount applies to the franchise fee only, never to build-out or working capital. ### What is VetFran? VetFran is an International Franchise Association program that lists franchisors offering incentives to veterans. The IFA does not fund, administer, or enforce any of those incentives. The franchisor sets and pays for its own term, and the enforceable version of it appears in Item 5 of that brand's FDD. A directory listing tells you a brand participates; Item 5 tells you what the participation is worth. ### Which franchise offers the largest veteran discount? By percentage of the fee, several brands disclose 50% or a full waiver. Midas and Checkers each disclose a 100% reduction of a $35,000 and $30,000 fee respectively. By share of the total investment, Cruise Planners leads: $4,000 off a $10,995 fee on an Item 7 range of $1,945 to $20,505. Marco's Pizza waives the entire fee for veterans rated at 50% or higher service-connected disability. ### Can veterans get better SBA terms on a franchise loan? Not through a veteran-specific program anymore. The SBA eliminated the upfront guarantee fee on all 7(a) loans of $1 million or less, so what used to be the Veterans Advantage benefit now flows to every borrower. The live SBA question in 2026 is the Franchise Directory: the SBA scrapped it in August 2023, pushed franchise agreement review onto lenders, then reinstated a modified directory on June 1, 2025. ### Is a franchise a good fit after military service? The structural fit is real: documented processes, a defined chain of accountability, and standards that are audited rather than improvised. The mismatch that catches people is cash. A franchise agreement obligates royalty and ad fund payments from month one regardless of revenue, and most systems want 6 to 12 months of working capital on top of Item 7. Treat the veteran discount as a small credit against that number, not as a reason to choose one brand over another. --- title: "Best Auto Repair Franchises 2026: Real Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best auto repair franchises, auto repair franchise cost, automotive franchise opportunities, Item 19, Christian Brothers Automotive, Midas franchise cost, oil change franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises about: best auto repair franchises category: blog wordCount: 2296 readingTime: 11 min crawledAt: 2026-08-20 11:03:02 lastVerified: 2026-08-20 11:03:02 site: https://vetmyfranchise.com/c/claude/ --- # Best Auto Repair Franchises 2026: Real Item 19 Data ## Summary Seven auto repair franchises compared on disclosed Item 19 revenue and on the sample definition sitting behind each number, taken from FDD text. ## Key facts - Christian Brothers Automotive has no entry in the median column because it declines to reduce its disclosure to one number. - Midas had 889 franchisees at the end of 2025 and reports on the 856 that operated the full twelve months, which is a 96% inclusion rate and the cleanest large sample among the repair-format brands. - CARSTAR posts the highest disclosed median here at $2,579,601, and the reason is structural rather than operational. - Jiffy Lube’s 2026 FDD is the largest honest sample in automotive franchising: 2,049 franchised service centers open all twelve months of 2025, no performance filter, system median net adjusted sales of $973,702 against a $1,084,034 average, with a $189,911 low and a $5,962,733 high. - The most instructive Item 19 in the automotive category belongs to a brand that does not repair cars. Quick answer Meineke's 2025 FDD discloses a $913,607 median, but only for the 549 of its 716 centers that were open two full years and ran five or more repair bays. Christian Brothers, Midas, Maaco, CARSTAR, and Jiffy Lube each cut their Item 19 sample differently, so compare sample definitions before revenue. Meineke’s 2025 FDD reports median gross revenues of $913,607. The same disclosure, a few lines later, reports $643,588. Both numbers describe Meineke centers in the fiscal year that ended December 28, 2024. The first covers the 549 centers that qualified for the earnings table. The second covers the 167 that did not, because they had been open under two full years or ran fewer than five repair bays. Meineke deserves credit for printing the second number at all. Most franchisors drop the units that fail their filter and never say how those units performed. That gap is the problem with every auto repair ranking you have read. Forty-four automotive brands in our database file an Item 19, and 23 of them do it on a sample of 20 units or more. Almost none define the sample the same way, so a revenue-ordered list is really a list of who wrote the most generous footnote. Sort by sample definition first and the order changes. | Brand | System size | Item 19 sample | What a unit must be to count | Disclosed median | | --- | --- | --- | --- | --- | | CARSTAR | 471 facilities | 397 | open before the fiscal year, reported all 12 months | $2,579,601 | | Maaco | 363 centers | 317 | open 2 full years, full production site | $1,348,304 | | Tuffy | 101 franchised centers | 59 | open 2 full calendar years, 4+ bays | $1,343,137 | | Meineke | 716 centers | 549 | open 2 full years, 5+ repair bays | $913,607 | | Jiffy Lube | 2,049 reporting centers | 2,049 | open all 12 months of 2025 | $973,702 | | Midas | 889 franchisees | 856 | operated the entire 2025 calendar year | $1,028,955 and $1,337,678 across the middle quartiles | | Christian Brothers | 326 stores | 302 | franchisee-owned, open the full 2025 calendar year | published as a P&L, not a single figure | Every figure above comes from the brand’s own Item 19 text. Note what happens to the inclusion rate as you read down: Jiffy Lube counts essentially every franchised store, Tuffy counts 58% of its franchised centers, and both call the result a median. ## Christian Brothers publishes a P&L, not a headline Christian Brothers Automotive has no entry in the median column because it declines to reduce its disclosure to one number. That is the best-argued Item 19 in the category, and the reason has nothing to do with the size of the figures. Its 2026 FDD covers the 302 franchisee-owned stores open the entire 2025 calendar year, excluding the 24 that opened mid-year. Schedule 19.2 breaks out net sales, cost of goods sold, gross profit, general and administrative expenses, net operating income, and total owner benefit by store age, from first year through five-plus. Schedule 19.3 gives total owner benefit for the top and bottom 20% of performers. Schedule 19.1B tracks the same 280 stores across two full years so you can see whether the cohort grew. Then a footnote no other brand in this category comes close to matching: five of the 302 stores ran a net operating loss in 2025, itemized at $116,330 and $84,620 for two first-year locations, $243,763 for a fourth-year location, and $100,163 and $38,440 for two mature ones. A franchisor voluntarily naming its money-losing units is rare enough to be worth a discovery-day question on its own. The price of that transparency is a royalty structure you should model carefully before you get excited. Christian Brothers charges 50% of split profits rather than a percentage of sales, and the Item 19 tables normalize every store to a $60,000 approved owner salary so that historic franchisees on older deal terms are shown on current economics. That is defensible math and it is also a thumb near the scale. If your own salary requirement is $120,000, the disclosed owner benefit overstates what is left for you. Entry runs $515,250 to $650,400 on an $85,000 franchise fee, the highest fee in this group. ## Midas discloses quartiles, and the bottom one is the useful read Midas had 889 franchisees at the end of 2025 and reports on the 856 that operated the full twelve months, which is a 96% inclusion rate and the cleanest large sample among the repair-format brands. The quartile table is where it earns attention. Top quarter: $2,141,832 average, $1,732,617 median, topping out at $6,545,113. Bottom quarter: $676,751 average, $699,267 median, bottom of $236,466. The middle two quartiles land at $1,028,955 and $1,337,678 median, which is the honest planning range for a new franchisee with no book of business. Buyers anchor on the top-quartile number because brokers quote it. The bottom quartile is 214 shops of a mature national system, and it is the more instructive column. The brand separately reports on a 438-shop cost sample, those with expense data it considers reliable: 27.9% cost of goods sold, 29.6% total labor, 58.9% total operating expense, and 13.2% net income from operations. Item 7 runs $385,450 to $940,050 on a $35,000 fee for a new eight-bay shop, and that table assumes a lease. Buy the site instead and Midas estimates $615,000 to $1,250,000 for land plus $1,250,000 to $2,050,000 to build, none of it inside the headline range. On the tire-led alternative, we compared the two in [Big O Tires vs Midas](https://vetmyfranchise.com/c/claude/blog/big-o-tires-vs-midas-franchise); Big O reports a $2,824,713 average across 457 stores, which is tire volume rather than better repair economics. Discount Tire, the other name buyers raise in tire retail, is not franchised at all, as we cover in [is Discount Tire a franchise](https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise). Goodyear sits in between, with company-owned auto service centers alongside franchised dealer outlets, which we sort out in [is Goodyear a franchise](https://vetmyfranchise.com/c/claude/blog/is-goodyear-a-franchise). Tuffy, filed under the legal name Gimex Properties Corp., Inc., applies the tightest filter in the category. Of 101 franchised centers, 59 made the sample by clearing two full calendar years and four bays. Those 59 posted a $1,343,137 median on gross sales, with a $468,196 low and a $4,916,047 high. A 58% inclusion rate is not disqualifying, but it means 42 centers are invisible to you, and Tuffy, unlike Meineke, does not tell you how they did. Browse the full category with sample definitions attached on our [automotive franchise directory](https://vetmyfranchise.com/c/claude/franchises/automotive). ## Collision repair is a different business with a different number CARSTAR posts the highest disclosed median here at $2,579,601, and the reason is structural rather than operational. Collision work is insurer-funded, ticket sizes run in the thousands, and CARSTAR’s 397-facility sample had been operating an average of 9.7 years, mostly as conversions of established independent body shops. Read the exclusions before you get comfortable. CARSTAR started with 471 franchised facilities and removed 48 that opened during the fiscal year, 26 that missed a month of reporting, and 32 that closed. Closed units are excluded from every Item 19 in this post, which is standard practice and still worth naming: the disclosed distribution is a distribution of survivors. The bottom half of CARSTAR’s sample carries a $1,700,434 median and a $114,841 floor, and the top half reaches $18,637,343, so the spread inside one brand is wider than the spread between brands. The cost side needs the same care, because CARSTAR files two Item 7 tables and aggregators splice them. Converting a body shop you already run is $23,500 to $165,300. Building a new facility is $298,200 to $804,300. Anyone quoting “$23,500 to $804,300” has stitched the floor of one deal to the ceiling of another. Maaco’s 317-center sample discloses a $1,348,304 median against a $1,615,904 average, a gap that tells you the top of the distribution is doing heavy lifting. Only 35% of centers met or exceeded the average. Maaco’s Item 7 is the one figure in this category most often quoted wrong, because it spans two formats: $196,000 to $644,000 to convert an existing body shop, and $728,500 to $3,994,000 to build ground-up or retrofit a non-automotive building. Both are real. Quoting the $3,994,000 as though it applies to a conversion deal is how buyers end up over-reserving by a factor of six. ## Quick lube looks adjacent and prices like a different asset class Jiffy Lube’s 2026 FDD is the largest honest sample in automotive franchising: 2,049 franchised service centers open all twelve months of 2025, no performance filter, system median net adjusted sales of $973,702 against a $1,084,034 average, with a $189,911 low and a $5,962,733 high. Only 40.1% of stores beat the average. Item 7 runs $211,000 to $510,000 on a 3.0% to 4.0% royalty, the lowest royalty band in this post. We cover the brand’s ownership and franchise structure separately in [is Jiffy Lube a franchise](https://vetmyfranchise.com/c/claude/blog/is-jiffy-lube-a-franchise). The category-wide caution is that the two most-searched quick lube brands do not disclose franchisee results at all. Valvoline Instant Oil Change labels its disclosed revenue company-operated centers, and Take 5 labels its affiliate-owned centers. We took that comparison apart in [Take 5 vs Valvoline](https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise). A buyer setting Jiffy Lube’s franchisee median next to either of those headline figures is comparing a franchise disclosure to a corporate one. ## The footnote that should end a shortlist The most instructive Item 19 in the automotive category belongs to a brand that does not repair cars. SystemForward America, LLC franchises Pop-A-Lock, the roadside and locksmith system, and its 2026 FDD is the clearest demonstration of segment selection in the database. It discloses a $4,637,356 median. The segment is the top 30% of franchisees who own five or more outlets. The same page discloses $1,733,891 for the bottom 30% of five-plus-outlet owners, and $49,201 for the bottom 30% of franchisees owning fewer than five outlets, a band whose range starts at $7,880. The middle 40% appears nowhere. Neither does the top 30% of single-territory owners. And in all three disclosed bands, the reported median is identical to the reported average, which no real distribution produces. So the number a buyer would repeat, $4.64 million, describes multi-unit operators running several territories at once, against an entry cost of $117,565 to $190,610 for a single territory. Read next to the same document’s disclosure that a comparable single-territory cohort grosses about $49,000, the headline is not false. It is answering a question nobody asked. Our guide to [misleading earnings claims](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data) walks through the other common variants, and [what Item 19 is](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) covers the mechanics if you are early in this. ## What to do with these seven disclosures Pull the sample definition before the number, every time. Then ask each franchisor two questions their FDD will not answer: what did the units you excluded earn, and what did the units that closed last year earn before they closed. Meineke answers the first voluntarily. Nobody answers the second, and the ones who try to talk you out of asking are telling you something. On capital, the real tiers are conversion versus construction, not brand versus brand, and you cannot see that split in any aggregator’s summary range. Converting a shop you already operate runs $23,500 to $165,300 at CARSTAR and $196,000 to $644,000 at Maaco, because the building and the customers exist before you sign. Building new runs $298,200 to $804,300 at CARSTAR, $728,500 to $3,994,000 at Maaco, $385,450 to $940,050 at Midas on a leased site, and $515,250 to $650,400 at Christian Brothers. Meineke files one table and prices the distinction inside it: $224,898 assumes a 3,400 square foot five-bay location, $1,200,818 assumes 7,000 square feet and six bays. The bay count is the business. For the wider industry picture, including dealerships, EV service, and the brands outside repair, start with our [automotive franchise overview](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities). To see where these medians sit against every disclosing brand in our database, the [AUV leaderboard](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) ranks systems by disclosed unit volume with the sample definition attached to each row, which is the only way that ranking means anything. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) #### Best Bakery & Donut Franchises in 2026: Dunkin', Cinnabon, Duck Donuts, and More [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises) best auto repair franchisesauto repair franchise costautomotive franchise opportunitiesItem 19Christian Brothers AutomotiveMidas franchise costoil change franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which auto repair franchise is most profitable? No Item 19 in this category answers that, because almost none of them disclose profit. Christian Brothers Automotive is the exception: its 2026 FDD reports net operating income and total owner benefit by store age for 302 franchisee-owned stores, and it names the five stores that ran a negative NOI in 2025. Every other brand here discloses revenue only, which tells you nothing about what the owner keeps. ### How much does an auto repair franchise cost? Meineke estimates $224,898 to $1,200,818 for a leased location, with the low end assuming a 3,400 square foot five-bay site and the high end a 7,000 square foot six-bay site. Midas estimates $385,450 to $940,050 for a new eight-bay shop, also on a lease. Christian Brothers estimates $515,250 to $650,400 on an $85,000 franchise fee. Watch the brands that file more than one Item 7 table, because summary sites splice them: Maaco is $196,000 to $644,000 to convert an existing body shop and $728,500 to $3,994,000 to build ground-up, while CARSTAR is $23,500 to $165,300 to convert and $298,200 to $804,300 to build. ### Do you need to be a mechanic to own an auto repair franchise? Not for any brand covered here. These systems recruit operators who hire licensed technicians rather than turn wrenches themselves. What the FDD will not tell you is whether your market has technicians available at the wage your pro forma assumes. That is the constraint that decides these deals, and it appears nowhere in Item 7. ### Which auto repair brands disclose franchisee-only numbers? Christian Brothers restricts its Item 19 to franchisee-owned stores. Meineke, Maaco, CARSTAR, and Big O Tires report franchised units only. Midas reports franchisees. Watch the quick lube category instead: Valvoline Instant Oil Change labels its disclosed revenue company-operated centers, and Take 5 labels its affiliate-owned centers, so neither headline number describes a franchisee. ### Is auto repair recession-resistant? Vehicle age supports the demand argument, and average repair tickets in these disclosures back it up: Tuffy reports a $432 median repair ticket across 59 centers, and Midas reports median revenue per customer visit of $265 in its bottom quartile against $517 in its top. What no Item 19 discloses is how quickly discretionary work such as collision cosmetics and cooling system flushes gets deferred when household budgets tighten. --- title: "Best Outdoor Living Franchises 2026: Fence, Deck, Light" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best outdoor living franchises, fence franchise cost, deck building franchise, outdoor lighting franchise, irrigation franchise opportunity, exterior home improvement franchise, Superior Fence and Rail franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-outdoor-living-franchises about: best outdoor living franchises category: blog wordCount: 1560 readingTime: 8 min crawledAt: 2026-08-20 11:05:38 lastVerified: 2026-08-20 11:05:38 site: https://vetmyfranchise.com/c/claude/ --- # Best Outdoor Living Franchises 2026: Fence, Deck, Light ## Summary Fence, deck, lighting and irrigation franchises ranked on FDD Item 19 data: Superior Fence's $2.6M median, Archadeck's $1.4M, and the seasonality catch. ## Key facts - Superior Fence & Rail’s 2026 FDD reports median gross revenue of $2,598,212 across 93 franchisees. - Superior’s Item 19 is unusually generous. - Archadeck’s headline table covers 55 franchisees in 93 territories. - Outdoor Lighting Perspectives discloses $649,157 as the median for 55 franchisees in 96 territories open two full years. - Mosquito Squad discloses by territory rather than by owner: 217 territories operating all of fiscal 2025, average $493,200, median $330,985, top quartile starting at $679,499. Quick answer Superior Fence & Rail discloses a median of $2,598,212 across 93 franchisees against a $134,400 to $278,300 Item 7 range, 12.6 times the midpoint. Archadeck reports $1,398,994, Outdoor Lighting Perspectives $649,157, Conserva Irrigation $545,872. Most of those franchisees run three territories, so check the denominator first. ## Fence tops this category at 12.6 times the Item 7 midpoint Superior Fence & Rail’s 2026 FDD reports median gross revenue of $2,598,212 across 93 franchisees. Opening one territory, per its Item 7, costs $134,400 to $278,300. The median is 12.6 times the midpoint of that range, and of the 422 systems in our database that disclose an Item 19 median on a sample of at least 20, only 15 clear a higher ratio. Most are staffing, logistics, and master-cleaning models where the owner books work somebody else performs. Now the denominator. Those 93 franchisees operated 285 territories, and 66 of them report several as one business. The median describes an owner holding roughly three territories. | Brand | Item 7 range | Fee | Item 19 median | Who is in the sample | Median ÷ midpoint | | --- | --- | --- | --- | --- | --- | | Superior Fence & Rail | $134,400 to $278,300 | $59,500 | $2,598,212 | 93 franchisees, 285 territories | 12.6x | | Archadeck | $215,400 to $239,300 | $59,500 | $1,398,994 | 40 franchisees open 24+ months | 6.2x | | Conserva Irrigation | $125,800 to $159,500 | $49,500 | $545,872 | 51 franchisees open 2+ years | 3.8x | | Outdoor Lighting Perspectives | $180,700 to $226,500 | $59,500 | $649,157 | 55 franchisees open 2+ years | 3.2x | | Top Rail Fence | $177,444 to $333,944 | $59,900 | $784,124 | 21 first-year locations, 70 territories | 3.1x | | Mosquito Squad | $162,380 to $220,375 | $35,000 | $330,985 | 217 territories | 1.7x | | Mosquito Shield | $120,525 to $162,420 | $54,500 | $235,812 | 66 franchisees, 5.4 territories each | 1.7x | ## What the 93 owners behind Superior’s $2.6M actually hold Superior’s Item 19 is unusually generous. It publishes a three-year ramp and a full expense benchmark alongside the headline table. The ramp covers first full years from 2019 through 2025: a median of $1,654,651 across 101 franchisees in year one, $2,331,715 across 90 in year two, $3,249,617 across 44 in year three. The benchmarking study deserves the afternoon. Forty-four franchisees in 97 territories, all open at least two years, averaged $3,497,555. Materials took 36.0% and installation labor 19.0%, so cost of revenues ran 58.6% against a 41.4% gross margin and 31.3% in operating expenses. What survived was $353,232, or 10.1%, before the owner takes a dollar. One definitional catch: Superior counts gross revenue as the value of installation contracts sold, not work completed and collected, and Item 7 budgets only $10,000 to $50,000 of additional funds against that cash cycle. ## Archadeck sells $2M in projects and keeps the same 10.1% Archadeck’s headline table covers 55 franchisees in 93 territories. The $1,398,994 median comes from a narrower cut: the 40 open at least 24 months as of December 31, 2024 who volunteered income statements. Their average was $2,024,296 against a $7,727,027 high and a $402,451 low, and only 33% beat that average. Cost structure explains why the ratio to Item 7 is half of Superior’s. Materials are 30.0% of revenue, construction labor 20.0%, other construction costs 9.8%. After operating expenses and an owner-expense adjustment, the disclosed bottom line is $204,559, or 10.1%. Two trades, two Empower Brands filings, the same margin. Adjacent categories on the same method: our [handyman shortlist](https://vetmyfranchise.com/c/claude/blog/best-handyman-franchises), our [lawn care breakdown](https://vetmyfranchise.com/c/claude/blog/best-lawn-care-landscaping-franchises), and [the full Home Services field](https://vetmyfranchise.com/c/claude/franchises/home-services). ## Lighting and irrigation gross less and keep more Outdoor Lighting Perspectives discloses $649,157 as the median for 55 franchisees in 96 territories open two full years. Its all-franchisee table is broader and lower: 76 franchisees, 133 territories, median $525,654, bottom-quartile floor of $41,795. Conserva Irrigation reports $545,872 across 51 reporting franchisees, 45 of whom hold multiple territories. On revenue those two look like a different sport. On the comparable expense line they do better. Outdoor Lighting leaves $172,902 on $818,812 of average revenue, or 21.1%. Conserva leaves $168,933 on $813,066, or 20.8%, though its table excludes payroll while Outdoor Lighting’s includes $63,623 of overhead salaries. ## Mosquito Squad reports per territory, which is the more honest denominator Mosquito Squad discloses by territory rather than by owner: 217 territories operating all of fiscal 2025, average $493,200, median $330,985, top quartile starting at $679,499. Because the unit is a territory, that median is closer to what a first territory produces than anything in the Empower Brands tables. Mosquito Shield runs the other way. Its 66 reporting franchisees average 5.38 territories each, so the $235,812 median is spread thin. What it discloses instead is the recurring-revenue engine: 36,884 customers, 82.5% retention, $756.54 average revenue per customer against a $267 acquisition cost. Our [mosquito control buyer’s guide](https://vetmyfranchise.com/c/claude/blog/mosquito-control-franchise-buyers-guide) covers that subcategory. A data note. Two Mosquito Shield entities appear in our database under different FDD years, but both are the same franchisor: the 2025 filing is indexed under Mosquito Shield Franchise Corporation, the predecessor name used before the company became an LLC in February 2022. One brand, listed twice. ## Why three of these brands charge the identical $59,500 Superior Fence & Rail, Archadeck, and Outdoor Lighting Perspectives all list a $59,500 initial franchise fee. Item 1 of each FDD explains it: all three were acquired in 2021 by Empower Brands Franchising, LLC, formerly Lynx Franchising. Conserva Irrigation shares that parent but prices at $49,500 against a smaller 300,000-person territory cap. Blingle Premier Lighting charges $59,500 under a different parent, and its Item 19 covers 18 franchisees, too few to rank here. Common ownership shows up past the price. All four use a tiered royalty that steps down as revenue climbs, the same discretionary seasonal abatement clause, and a mandatory local advertising investment: $40,000 per calendar year at Superior and Conserva, $50,000 per territory at Archadeck, $55,000 at Outdoor Lighting. That last one is 8.5% of Outdoor Lighting’s own median, and none of it appears in Item 7. ## Seasonality is the risk Item 19 hides Item 19 reports twelve-month totals. The fee tables are where these franchisors admit the year has a shape. Archadeck’s $2,000 minimum royalty applies during the months of March through November, abatable in winter weather states at the franchisor’s sole discretion. Outdoor Lighting carries that clause against a $1,400 monthly minimum, Conserva against $1,000. Mosquito Shield puts its primary selling months at April 1 through October 31. Read those clauses as a cash flow forecast. In a northern market, four months produce little revenue while insurance, vehicle leases, and any retained crew keep billing, and the abatement that would soften it is discretionary rather than contractual. Superior Fence’s Item 6 has no abatement language at all. Our [seasonal revenue planning guide](https://vetmyfranchise.com/c/claude/blog/franchise-seasonality-revenue-planning) covers modeling that trough. ## Crew capacity sets the ceiling Every disclosure in this category points at one constraint. Superior spends 19% of revenue on installation labor, Conserva 28%, and Archadeck’s second-largest line after materials is construction labor at 20%. An owner who cannot staff a second crew cannot move from the $1.5M band to the $3.5M band no matter how many leads arrive. That is the mechanism behind Superior’s ramp to a $3,249,617 third-year median, and behind Top Rail Fence’s $784,124 first-year median in a much younger system. Territories do not produce that curve. Hiring does. Put the sample definition next to the investment range for every brand on your list before any of these medians goes in a model. Our [AUV leaderboard](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) ranks disclosed unit revenue with sample sizes attached, and the [labor reality check](https://vetmyfranchise.com/c/claude/blog/can-you-staff-it-franchise-labor-reality) asks what these Item 19 tables are quietly answering. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best outdoor living franchisesfence franchise costdeck building franchiseoutdoor lighting franchiseirrigation franchise opportunityexterior home improvement franchiseSuperior Fence and Rail franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which outdoor living franchise makes the most? Superior Fence & Rail, by a wide margin. Its 2026 FDD discloses a $2,598,212 median across 93 franchisees against a $134,400 to $278,300 Item 7 range. Archadeck is second at $1,398,994. Both cover owners who mostly hold several territories, and both are revenue: Superior's benchmarking table leaves 10.1% before the owner is paid. ### How much does a fence franchise cost? Superior Fence & Rail estimates $134,400 to $278,300 for one territory, including a $59,500 franchise fee. Top Rail Fence estimates $177,444 to $333,944 with a $59,900 fee. Neither range includes the mandatory local advertising minimum, which runs $40,000 per calendar year at Superior for a single territory. ### Are outdoor living franchises seasonal? Yes, and the fee tables admit it more plainly than the marketing does. Archadeck's $2,000 minimum royalty applies March through November and may be abated in winter weather states at the franchisor's discretion. Outdoor Lighting Perspectives and Conserva carry the same clause against $1,400 and $1,000 monthly minimums. ### Do you need construction experience to own one? No brand here requires it, and Archadeck's model is design-build management rather than field work. What you need is licensing and crews. Fence and deck work triggers contractor rules that vary by county, and Superior's benchmarking table puts installation labor at 19% of revenue. ### What is the cheapest exterior home services franchise? Mosquito Shield at $120,525 to $162,420 and Conserva Irrigation at $125,800 to $159,500 carry the lowest Item 7 ranges here. Conserva also has the lowest fee among the Empower Brands systems at $49,500. Low entry tracks with lower revenue: their medians are $235,812 and $545,872. --- title: "Best Chicken Franchises 2026: Cost + Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-25 keywords: best chicken franchises 2026, chicken franchise cost, chicken franchise opportunities, kfc franchise cost, popeyes franchise cost, wingstop franchise cost, zaxbys franchise, bojangles franchise, daves hot chicken franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises about: best chicken franchises 2026 category: blog wordCount: 2816 readingTime: 14 min crawledAt: 2026-08-20 11:05:07 lastVerified: 2026-08-20 11:05:07 site: https://vetmyfranchise.com/c/claude/ --- # Best Chicken Franchises 2026: Cost + Item 19 Data ## Summary Compare the best chicken franchises for 2026 — Wingstop, Popeyes, KFC, Zaxby's, Slim Chickens, Bojangles, Dave's Hot Chicken — on FDD investment, fees, royalty, and Item 19. ## Key facts - Two figures in that table contradict what most chicken franchise comparisons publish. - Total investment runs $262,782 to $4,944,000. - The premium tier targets customers paying $11 to $18 per meal for distinctive flavor profiles or branded experience. - Mature chicken franchise economics: - KFC, Popeyes, Wingstop, and Zaxby’s all favor multi-unit operators or area development agreements. Quick answer Chicken franchises run $262,782 to $4.94M in total investment. Bonchon is cheapest at $262,782; Wingstop runs $310,400 to $1,013,500 and reports a $1,890,866 median across 2,116 units per the 2026 FDD. Buffalo Wild Wings leads on revenue at a $3,433,937 median, and Zaxby's averages $2,782,488. ## The 2026 Chicken Franchise Market _Comparing brands? Browse all [chicken franchise opportunities](https://vetmyfranchise.com/c/claude/franchises/food/chicken) with live [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) data — investment, royalty, and Item 19 side by side._ Chicken has been the highest-growth QSR category since 2019, and it is now also the category with the widest gap between what buyers expect to invest and what current FDDs require. Below is every chicken franchise in our database with meaningful system depth, compared on the disclosed numbers. ## Best Chicken Franchises at a Glance | Brand | Total Investment (Item 7) | Franchise Fee | Royalty | Item 19 Revenue | Franchised Units | FDD Year | | --- | --- | --- | --- | --- | --- | --- | | Bonchon | $262,782–$1,312,626 | $35,000 | 4% | $1,102,120 median, $1,595,312 avg (123 units) | 143 | 2026 | | Wingstop | $310,400–$1,013,500 | $25,000 | 6% + 5.5% ad fund | $1,890,866 median, $2,138,111 avg (2,116 units) | 2,154 | 2026 | | Wings Etc | $373,650–$2,890,100 | $39,500 | 5% + 1.0–2.0% ad fund | $1,407,493 median (53 units) | 56 | 2026 | | Layne’s Chicken Fingers | $481,500–$1,555,000 | $50,000 | 5% + 2% ad fund | None disclosed | 36 | 2026 | | Popeyes | $504,545–$3,923,245 | $50,000 | 5% + 4.6–5.0% ad fund | $1,785,736 median (2,248 restaurants) | 3,134 | 2026 | | Chicken Guy! | $734,500–$3,020,000 | $50,000 | 6% + 2% ad fund | No FPR disclosed | 8 | 2025 | | El Pollo Loco | $793,750–$2,685,500 | $40,000 | 5% of net sales + 4.0–5.0% | $2,063,270 median (319 units) | 328 | 2026 | | Huey Magoo’s | $810,600–$2,893,500 | $35,000 | 5% + 2% ad fund | $2,132,164 average | 85 | 2026 | | Dave’s Hot Chicken | $823,800–$4,121,900 | $40,000 | 6% + 4% ad fund | None disclosed | 348 | 2026 | | Slim Chickens | $1,188,900–$4,944,000 | $30,000 | 5% + 2% ad fund | $2,240,967 median, $3,675,927 avg (166 units) | 204 | 2026 | | KFC | $1,207,575–$4,155,000 | $45,000 | 4.0–5.25% + 5.8% ad fund | $873,053 median, $1,094,921 avg (2,227 outlets) | 3,404 | 2026 | | Zaxby’s | $1,460,000–$3,810,500 | $35,000 | 6% + 4% ad fund | $2,782,488 average (FY2025) | 865 | 2026 | | Buffalo Wild Wings | $2,463,945–$4,900,320 | $25,000 | 5% + 4% ad fund | $3,433,937 median (532 units) | 549 | 2026 | | Bojangles | $2,851,880–$3,951,200 | $35,000 | 4% + 1% ad fund | $2,125,407 median, $2,351,232 avg (487 units) | 591 | 2026 | Two figures in that table contradict what most chicken franchise comparisons publish. Bojangles’ investment floor is $2,851,880, not the roughly $988,000 commonly cited. And Bojangles’ ad fund is 1%, not 4%, which gives it the lowest combined fee load in the category at 5%. ## How Much Does a Chicken Franchise Cost? Total investment runs $262,782 to $4,944,000. The category splits cleanly into two capital tiers, and the split matters more than brand preference. **Compact-footprint brands** ($262,782 to roughly $1.3M): Bonchon, Wingstop, Wings Etc. These run 1,400 to 2,600 sq ft with limited or no drive-thru, lighter kitchen infrastructure, and shorter buildouts. **Full-size restaurant brands** ($1.2M to $4.9M): KFC, Zaxby’s, Buffalo Wild Wings, Bojangles, Slim Chickens. These require land or a ground lease, drive-thru infrastructure, 3,000 to 8,500 sq ft, and full kitchen buildouts. Franchise fees are a rounding error against construction cost. The consequence for return on capital is decisive. Wingstop’s $1,890,866 median against a $310,400 investment floor is roughly 6x revenue-to-capital. Bojangles’ $2,125,407 median against a $2,851,880 floor is under 0.75x. Higher revenue does not mean a better deal. ## Wingstop: Best Revenue per Dollar Invested [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) is the validated category leader on capital efficiency. Per the 2026 FDD, total investment is $310,400 to $1,013,500 with a $25,000 franchise fee, a 6% royalty, and a 5.5% ad fund contribution. The system carries 2,154 franchised units and 57 company-owned. The Item 19 is the deepest in the category: a $1,890,866 median and a $2,138,111 average across 2,116 franchised restaurants for the 52-week fiscal period from December 29, 2024 through December 27, 2025. A 2,116-unit sample out of 2,154 franchised units is essentially full-system disclosure, which makes it the most trustworthy number in this article. That median runs materially higher than the $1.7M AUV figure older comparisons cite, and the average sitting above the median indicates a long right tail of high performers. The constraint is access. Multi-unit franchisees dominate the system, and single-unit ownership in attractive markets is increasingly hard to obtain. Expect an area development commitment. The 5.5% ad fund is the highest advertising contribution among compact-footprint brands, so combined fees run 11.5% of gross sales. ## Popeyes: Largest System, Heaviest Fee Load [Popeyes](https://vetmyfranchise.com/c/claude/franchise/popeyes-louisiana-kitchen-inc) is the largest chicken franchise system at 3,134 franchised units against just 95 company-owned. Total investment is $504,545 to $3,923,245 with a $50,000 franchise fee, a 5% royalty, and a 4.6% to 5.0% advertising contribution per the 2026 FDD. The Item 19 reports a $1,785,736 median across 2,248 franchised free-standing restaurants for the fiscal year ended December 31, 2025. The restriction to free-standing units matters: non-traditional locations are excluded, so this median reflects the format most new franchisees actually build. Popeyes’ combined fee load of roughly 9.6% to 10% is among the heaviest here, and the investment range is nearly eight times wide, spanning a conversion of an existing building to a full ground-up build. Get your specific site’s Item 7 breakdown before modeling. ## KFC: Scale, and an Item 19 Worth Questioning [KFC](https://vetmyfranchise.com/c/claude/franchise/kfc-us-llc) is the largest chicken brand by franchised unit count at 3,404. Total investment is $1,207,575 to $4,155,000 with a $45,000 franchise fee, a royalty of 4.0% to 5.25%, and a 5.8% advertising contribution through the brand’s Comeback Period per the 2026 FDD. The Item 19 covers 2,227 single-brand outlets with drive-thru, built or remodeled in the American Showman or Next Gen image and open at least one year. It reports average net sales of $1,094,921 and a median of $873,053. Those figures sit notably below the AUVs KFC’s parent reports publicly, which usually means the disclosed cohort is narrower than the whole-system figure. Ask which image, remodel status, and market tier your target site falls into, because the disclosure segments on exactly those variables. KFC development runs on multi-unit territory commitments. Single-unit ownership generally comes through acquiring an existing franchisee’s operation. ## Zaxby’s: Highest Average with Real Royalty Incentives [Zaxby’s](https://vetmyfranchise.com/c/claude/franchise/zaxbys-spe-franchisor-llc) is the largest chicken brand the previous version of this article omitted entirely. The system has 865 franchised units plus 140 company-owned. Total investment is $1,460,000 to $3,810,500 with a $35,000 franchise fee, a 6% royalty, and a 4% ad fund per the 2026 FDD. Item 19 reports a $2,782,488 average for fiscal year 2025. The genuinely differentiating item is in Item 6. Zaxby’s offers a New Restaurant Opening Incentive that reduces royalty to 2% in year one and 4% in year two, and a Select Market Development Incentive that reduces it to 0% in year one and 3% in year two. On a $2.78M unit, a 0% first-year royalty is $167,000 of retained cash during the exact period when a new restaurant needs it most. Very few QSR brands offer anything comparable, and it materially changes the ramp math. ## Slim Chickens, Huey Magoo’s, and El Pollo Loco [Slim Chickens](https://vetmyfranchise.com/c/claude/franchise/slim-chickens-development-company-llc) has 204 franchised units and reports a $2,240,967 median against a $3,675,927 average across 166 units representing the current prototype in fiscal 2025. That average-to-median gap is the widest in the category, signaling a small group of very high performers. Total investment is $1,188,900 to $4,944,000 with a $30,000 fee and 5% plus 2%, the lightest fee load among full-size brands after Bojangles. [Huey Magoo’s](https://vetmyfranchise.com/c/claude/franchise/huey-magoos-restaurants-llc) runs $810,600 to $2,893,500 with a $35,000 fee and 5% plus 2% across 85 franchised units, reporting a $2,132,164 average. The chicken-tender positioning competes with Layne’s and Slim Chickens at meaningfully lower capital than Slim’s floor. [El Pollo Loco](https://vetmyfranchise.com/c/claude/franchise/el-pollo-loco-inc) is the flame-grilled alternative, with 328 franchised units, $793,750 to $2,685,500 investment, a $40,000 fee, and 5% of net sales plus 4.0% to 5.0% advertising. Its Item 19 reports a $2,063,270 median with a $1,288,106 25th percentile and $2,333,560 75th percentile across 319 units for fiscal 2025. That is the tightest quartile distribution of any brand here: less upside, far more predictable underwriting. ## Best Premium and Hot Chicken Franchises The premium tier targets customers paying $11 to $18 per meal for distinctive flavor profiles or branded experience. [Dave’s Hot Chicken](https://vetmyfranchise.com/c/claude/franchise/daves-hot-chicken-franchise-co-spv-llc) has grown to 348 franchised units plus 10 company-owned. Total investment is $823,800 to $4,121,900 with a $40,000 fee, a 6% royalty, and a 4% ad fund per the 2026 FDD. The important gap: Dave’s discloses no Item 19 revenue figures. For the fastest-growing brand in the category, that means every revenue assumption in your model has to come from franchisee validation. Do not let growth-story enthusiasm substitute for a disclosed number. [Layne’s Chicken Fingers](https://vetmyfranchise.com/c/claude/franchise/laynes-chicken-franchising-llc) runs $481,500 to $1,555,000 with a $50,000 fee and 5% plus 2% across 36 franchised units, and likewise discloses no Item 19. Its floor sits roughly $340,000 below Dave’s, making it the more accessible growth-stage tender concept. [Chicken Guy!](https://vetmyfranchise.com/c/claude/franchise/chicken-guy-franchisor-llc) carries $734,500 to $3,020,000 investment with a $50,000 fee per the 2025 FDD, but has only 8 franchised units and affirmatively disclaims any financial performance representation. That is pre-validation territory. [Bonchon](https://vetmyfranchise.com/c/claude/franchise/bonchon-franchise-llc) is the most interesting omission from most chicken franchise lists. The Korean fried chicken brand has 143 franchised units, the lowest investment floor in the category at $262,782, and a 4% royalty, the lowest of any established chicken brand. Its Item 19 reports a $1,102,120 median and $1,595,312 average across 123 units for fiscal 2024, with a $862,083 25th percentile and $2,550,194 75th percentile. Low capital, low royalty, and a published median make it the strongest value proposition here under $500,000. ## Best Sports-Bar and Wing Franchises [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) reports the highest median in the category at $3,433,937 across 532 franchised units, with a $2,371,905 25th percentile and a $4,875,869 75th percentile. Total investment is $2,463,945 to $4,900,320 with a $25,000 fee, a 5% royalty, and a 4% ad fund per the 2026 FDD, across 549 franchised units and 629 company-owned. Even the 25th percentile clears $2.37M, the most reliable revenue floor of any brand here. The offset is scope: 5,500 to 8,500 sq ft, alcohol licensing, full dine-in service, and sports-bar labor complexity. Head-to-head analysis is in [wingstop vs buffalo wild wings franchise](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-buffalo-wild-wings-franchise), and the [full sports bar franchise cost ladder](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) adds Walk-On’s, Twin Peaks, Hooters, Anchor Bar, and five more brands that compete for the same wings-and-beer customer. [Wings Etc](https://vetmyfranchise.com/c/claude/franchise/wings-etc-inc) is the smaller-format alternative at $373,650 to $2,890,100 with a $39,500 fee and 5% plus 1.0% to 2.0%, across 56 franchised units. It reports a $1,407,493 median with a $1,001,685 25th percentile and $2,193,596 75th percentile across 53 units for fiscal 2025. ## Bojangles: Read the Investment Range Again [Bojangles](https://vetmyfranchise.com/c/claude/franchise/bojangles-opco-llc) requires $2,851,880 to $3,951,200 in total investment per the 2026 FDD. Comparison articles routinely publish a floor near $988,000, which is roughly a third of the actual figure and would badly mislead anyone building a capital plan. The rest of the terms are favorable. The franchise fee is $35,000, the royalty is 4%, and the ad fund is 1%, giving Bojangles a 5% combined fee load, the lowest in the category by a wide margin. Item 19 reports a $2,125,407 median and $2,351,232 average across 487 franchised full-size restaurants with a bone-in chicken menu in fiscal 2025, out of 591 franchised units and 266 company-owned. The Southeast concentration produces strong economics in core markets (North Carolina, South Carolina, Georgia, Tennessee, Virginia), and the breakfast daypart is a genuine differentiator. Expansion into adjacent markets has been mixed, so buyers outside the core footprint should validate hard. ## Unit Economics Across the Category Mature chicken franchise economics: - **Food costs**: 30–36% of revenue, higher than burger because chicken commodity pricing is volatile - **Labor costs**: 25–32% of revenue - **Royalty plus ad fund**: 5% at Bojangles, 8% at Slim Chickens and Huey Magoo’s, 9% at Buffalo Wild Wings and El Pollo Loco, 10% at Zaxby’s and Popeyes, 11.5% at Wingstop - **Rent or occupancy**: 6–10% of revenue - **Other operating expenses**: 7–11% of revenue - **Net operating margin**: 9–16% before debt service The fee-load line is where brand selection shows up most directly in the P&L. On a $2.1M unit, the gap between Bojangles’ 5% and Zaxby’s 10% is $105,000 a year across a full agreement term. > 💼 **Get the FDD-backed read on any chicken franchise.** Our $49 brand reports parse the full Item 19 distribution, real average unit volumes, and the operational gotchas (chicken commodity exposure, labor management, real estate selection) that pitch decks gloss over. [See available chicken franchise reports →](https://vetmyfranchise.com/c/claude/franchises) ## Why Multi-Unit Ownership Defines This Category KFC, Popeyes, Wingstop, and Zaxby’s all favor multi-unit operators or area development agreements. Back-office functions amortize across units, and multi-unit portfolios smooth the individual-site underperformance that would sink a single-unit owner given the quartile spreads above. Plan around 3 to 8 units within Year 5. Mechanics are covered in [multi unit franchise ownership guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide). ## Real Estate and Territory Strategy Drive-thru visibility drives 50% to 65% of QSR chicken revenue, and lunch and dinner peaks cap throughput regardless of demand, which puts a hard ceiling on AUV at a badly configured site. Competitive density matters block by block, and the hot chicken segment has saturated quickly in many metros. Validate site criteria before committing to a territory. Lease terms are covered in [franchise real estate lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide), and adjacent capital tiers in [best food franchises under 250k](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) and [food franchise investment guide](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide). ## The Bottom Line for 2026 Buyers If you have $310,000 to $1,000,000 and want the best revenue per dollar invested, [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) is the validated default: a $1,890,866 median across 2,116 units, the deepest disclosure in the category. If you have under $500,000, [Bonchon](https://vetmyfranchise.com/c/claude/franchise/bonchon-franchise-llc) at a $262,782 floor, a 4% royalty, and a $1,102,120 median across 123 units is the strongest low-capital option. If you have $1.4M or more and want the highest disclosed average with real ramp support, [Zaxby’s](https://vetmyfranchise.com/c/claude/franchise/zaxbys-spe-franchisor-llc) averages $2,782,488 and offers first-year royalty reductions to as low as 0%. If you have $2.4M or more and want the highest revenue floor in the category, [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) clears $2.37M even at the 25th percentile. If you are targeting the Southeast with breakfast daypart strength, [Bojangles](https://vetmyfranchise.com/c/claude/franchise/bojangles-opco-llc) has the lowest fee load at 5% combined, but budget the real $2,851,880 floor rather than the figure most articles publish. If you are drawn to [Dave’s Hot Chicken](https://vetmyfranchise.com/c/claude/franchise/daves-hot-chicken-franchise-co-spv-llc), understand that the 2026 FDD discloses no Item 19. Build your model from franchisee validation, not growth narrative. Raising Cane’s, which is not franchised, still shapes buyer expectations in this category. For why it does not franchise and what the alternatives actually disclose, see [Raising Cane’s franchise cost (and why you can’t own one)](https://vetmyfranchise.com/c/claude/blog/raising-canes-franchise-cost-and-why-you-cant-own-one). ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) - [Popeyes](https://vetmyfranchise.com/c/claude/franchise/popeyes-louisiana-kitchen-inc) - [KFC](https://vetmyfranchise.com/c/claude/franchise/kfc-us-llc) - [Zaxby’s](https://vetmyfranchise.com/c/claude/franchise/zaxbys-spe-franchisor-llc) - [Bojangles](https://vetmyfranchise.com/c/claude/franchise/bojangles-opco-llc) - [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) - [Slim Chickens](https://vetmyfranchise.com/c/claude/franchise/slim-chickens-development-company-llc) - [Dave’s Hot Chicken](https://vetmyfranchise.com/c/claude/franchise/daves-hot-chicken-franchise-co-spv-llc) - [El Pollo Loco](https://vetmyfranchise.com/c/claude/franchise/el-pollo-loco-inc) - [Bonchon](https://vetmyfranchise.com/c/claude/franchise/bonchon-franchise-llc) - [Huey Magoo’s](https://vetmyfranchise.com/c/claude/franchise/huey-magoos-restaurants-llc) - [Wings Etc](https://vetmyfranchise.com/c/claude/franchise/wings-etc-inc) - [Layne’s Chicken Fingers](https://vetmyfranchise.com/c/claude/franchise/laynes-chicken-franchising-llc) - [Chicken Guy!](https://vetmyfranchise.com/c/claude/franchise/chicken-guy-franchisor-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best chicken franchises 2026chicken franchise costchicken franchise opportunitieskfc franchise costpopeyes franchise costwingstop franchise costzaxbys franchisebojangles franchisedaves hot chicken franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a chicken franchise cost? Total investment runs $262,782 to $4,944,000 across the verified brands. Bonchon is lowest at $262,782 and Wingstop is the cheapest established national brand at $310,400. Full-size restaurant brands start far higher, with KFC at $1,207,575, Zaxby's at $1,460,000, Buffalo Wild Wings at $2,463,945, and Bojangles at $2,851,880. Franchise fees range from $25,000 to $50,000. ### What is the cheapest chicken franchise to open? Bonchon at $262,782–$1,312,626 with a $35,000 fee and a 4% royalty, the lowest royalty among established chicken brands. Wingstop is next at $310,400–$1,013,500, and Wings Etc starts at $373,650. Wingstop is the better pick at similar capital because its compact 1,400–2,200 sq ft footprint pairs with a $1,890,866 disclosed median across 2,116 units. ### How profitable is a chicken franchise? Mature units run 9–16% net operating margin. Against disclosed medians, Buffalo Wild Wings at $3,433,937 produces $309,000–$549,000 in operating income, Wingstop at $1,890,866 produces $170,000–$302,000, and Bonchon at $1,102,120 produces $99,000–$176,000, all before debt service. Wingstop's return on invested capital is the strongest because its investment floor is a fraction of the full-size brands. ### Which chicken franchise has the highest Item 19 numbers? Buffalo Wild Wings leads on median at $3,433,937 across 532 franchised units, with a $2,371,905 25th percentile and $4,875,869 75th percentile. Slim Chickens averages $3,675,927 with a $2,240,967 median. Zaxby's averages $2,782,488, Bojangles reports a $2,125,407 median, and El Pollo Loco $2,063,270. Wingstop's $1,890,866 median leads on revenue per dollar invested. ### How much does a Wingstop franchise cost? Wingstop total investment is $310,400–$1,013,500 with a $25,000 franchise fee, a 6% royalty, and a 5.5% ad fund contribution per the 2026 FDD. The system has 2,154 franchised units plus 57 company-owned. Its Item 19 reports a $1,890,866 median and $2,138,111 average across 2,116 franchised restaurants for the 52-week period ending December 27, 2025. ### Is Wingstop or Popeyes a better franchise to buy? Wingstop reports a higher median ($1,890,866 vs. $1,785,736) at roughly one-third the investment floor ($310,400 vs. $504,545), so it wins decisively on return on capital. Popeyes offers deeper brand recognition, broader menu appeal, and a larger system at 3,134 franchised units. Popeyes also carries a heavier fee load, at 5% royalty plus 4.6–5.0% advertising versus Wingstop's 6% plus 5.5%. ### How long until a chicken franchise breaks even? Most units reach cash-flow breakeven between months 6 and 18. Compact-footprint brands (Wingstop, Bonchon) ramp faster because the capital base is smaller and the buildout is shorter. Full-size brands with drive-thrus (KFC, Zaxby's, Bojangles) carry $1.2M to $3.9M of investment, so debt service pushes true profitability toward Year 2 or Year 3 even with strong sales. --- title: "Best Recession-Proof Franchises to Buy in 2026" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/best-recession-proof-franchises category: blog wordCount: 2978 readingTime: 15 min crawledAt: 2026-08-20 11:05:26 lastVerified: 2026-08-20 11:05:26 site: https://vetmyfranchise.com/c/claude/ --- # Best Recession-Proof Franchises to Buy in 2026 ## Summary Which franchise categories survived 2008 and 2020? Learn what makes a franchise recession-resistant and how to evaluate economic durability using FDD data. ## Key facts - The S&P 500 dropped 57% between October 2007 and March 2009. - Start with cost structure, because it is the one thing you control at purchase. - Here are the largest established brands in durable categories, ranked by franchised unit count. - Cost structure is half the picture. - Sector alone isn’t enough. Quick answer The most recession-resistant franchise categories are home services, cleaning and restoration, senior care, auto repair, and pet care. Across the 2,368 FDDs in VetMyFranchise's database, home services brands average $156,345 to $290,230 to open against a $427,924 to $1,049,273 all-category average, and Coverall starts at $17,986. ## The Economy Will Contract Again. The Question Is Whether Your Franchise Can Handle It The S&P 500 dropped 57% between October 2007 and March 2009. Unemployment hit 10%. Consumer spending fell for six consecutive quarters. Then in 2020, GDP collapsed 31.4% in a single quarter, the sharpest drop in American history. Both events differed in cause and shape. Both separated franchises that could absorb a demand shock from ones that couldn’t. The data from those periods is your single most useful tool when evaluating recession resistance in 2026, and the FDDs filed since then tell you which brands came out of it with a cost structure that still works. Every figure below is parsed from a [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) in VetMyFranchise’s database of 2,368 filings. Where a field isn’t in the filing, we say so. ## What Franchises Do Well in a Recession: The 2008 and 2020 Track Record Start with cost structure, because it is the one thing you control at purchase. Here is what each category actually costs to enter, averaged across every parsed brand in it. | Category | Brands in database | Average Item 7 range | | --- | --- | --- | | Home Services | 261 | $156,345–$290,230 | | Cleaning & Maintenance | 149 | $171,170–$434,904 | | Senior Care | 123 | $199,099–$426,162 | | Automotive | 70 | $275,982–$1,224,294 | | Pet Services | 58 | $300,132–$645,417 | | Fitness & Wellness | 159 | $419,554–$1,020,626 | | Food & Beverage | 831 | $588,859–$1,409,831 | | All categories | 2,109 | $427,924–$1,049,273 | (All-category figures exclude hotel and large-format brands with an Item 7 ceiling above $20 million, which distort the mean. Including them, the average rises to $642,515–$1,774,962.) The four most durable categories all sit below the all-category average, and three of them sit below half of it. That is not a coincidence. The categories that survive downturns are the ones that don’t require a seven-figure building. ### Home Services: Essential and Growing Home services franchises (plumbing, electrical, HVAC, handyman) are among the most economically durable businesses that exist. When people lose income, they stop buying new things and start repairing what they have. Deferred maintenance accelerates during downturns, then releases as a wave of demand when confidence returns. According to [U.S. Census Bureau](https://www.census.gov/) data, residential remodeling and repair spending dipped just 4% in 2009 before recovering sharply. It did not contract at all in 2020; it grew, because people working from home noticed every leaky faucet and broken fixture. The 261 home services brands in our database average $156,345 to $290,230 to open, the lowest of any major category. [Mr. Rooter](https://vetmyfranchise.com/c/claude/franchise/mr-rooter-spv-llc) discloses $152,900 to $298,675 with a 6% royalty and an Item 19 median of $1,257,146 across 193 units for calendar 2025. [Aire Serv](https://vetmyfranchise.com/c/claude/franchise/aire-serv-spv-llc) discloses $113,808 to $271,708 and a $1,084,793 median across 158 units. Both are essential-trade brands producing seven-figure revenue on a sub-$300,000 entry, which is the shape you want going into a contraction. Our [home services franchise guide](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide) covers investment ranges and territory saturation across the category. ### Cleaning and Restoration: Demand Doesn’t Disappear Commercial cleaning survived 2020 better than almost any service category, for an obvious reason in retrospect: facilities needed cleaning more, not less, during a public health crisis. Restoration franchises (water, fire, mold remediation) are even more insulated, because a burst pipe doesn’t care what the unemployment rate is. The recent unit data is mixed and worth reading honestly. Per the 2026 FDDs, [Paul Davis Restoration](https://vetmyfranchise.com/c/claude/franchise/paul-davis-restoration-inc) opened 19 franchised units against eight closures. [Rainbow International](https://vetmyfranchise.com/c/claude/franchise/rainbow-international-spv-llc) opened 17 against 17, flat, with an Item 19 median of $601,671 across 284 units for calendar 2025. [ServiceMaster Restore](https://vetmyfranchise.com/c/claude/franchise/servicemaster-cleanrestore-spe-llc) opened six against 33 closures, a net loss of 27, with a $392,208 median across 169 units. Category durability does not guarantee brand durability. Check unit trajectory brand by brand. The cleaning segment’s real advantage is contract structure: a 12-month commercial cleaning agreement provides revenue predictability no transactional model can match. [Coverall](https://vetmyfranchise.com/c/claude/franchise/coverall-north-america-inc) is the extreme version, opening for $17,986 to $64,280 with 5,669 franchised units. Our [cleaning and janitorial franchise guide](https://vetmyfranchise.com/c/claude/blog/cleaning-janitorial-franchise-guide) and the [SERVPRO vs PuroClean vs Restoration 1 comparison](https://vetmyfranchise.com/c/claude/blog/servpro-vs-puroclean-vs-restoration-1-franchise) go deeper on both segments. ### Senior Care: Demographic Demand Is Recession-Proof This is arguably the most durable franchise category available. Senior care demand is driven by demographics, not discretionary spending. The 65-plus population grows by approximately 10,000 people per day in the United States, and that trajectory continues irrespective of what the Fed does with interest rates. It also posts the strongest disclosed revenue of any durable category. [Home Instead](https://vetmyfranchise.com/c/claude/franchise/home-instead-inc) reports an Item 19 median of $2,261,503 across 611 franchised units for calendar 2025, on a $92,640 to $350,550 investment. [Interim Healthcare](https://vetmyfranchise.com/c/claude/franchise/interim-healthcare-inc) reports $1,658,044 across 168 units, [Right at Home](https://vetmyfranchise.com/c/claude/franchise/right-at-home-llc) $1,334,579 across 390, and [Caring Senior Service](https://vetmyfranchise.com/c/claude/franchise/caring-senior-service-franchise-partnership-lp) $906,104 across 40. [BrightStar Care](https://vetmyfranchise.com/c/claude/franchise/brightstar-franchising-llc) opens for $102,754 to $220,186 with a 5.25% to 6.25% royalty. Read those numbers next to the entry cost. A category averaging $199,099 to $426,162 to open, producing seven-figure median revenue on disclosed samples in the hundreds of units, is the best revenue-to-capital profile in this guide. Home care clients are not cutting these services when times get tight, because the alternative is assisted living at several thousand dollars a month. That math makes home care a budget priority, not a luxury. Our [senior care franchise opportunities](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities) guide breaks down the segment, and the [BrightStar vs Senior Helpers vs Always Best Care comparison](https://vetmyfranchise.com/c/claude/blog/brightstar-care-vs-senior-helpers-vs-always-best-care-franchise) covers the head-to-head. ### Auto Repair: Recession Is a Growth Catalyst Auto repair benefits from the same trade-down logic that helps fast food: when people can’t afford new cars, they repair old ones. During the 2009 recession the average age of vehicles on U.S. roads rose from 9.4 years to 10.6, and it has climbed past 12 today. Every year that number rises, demand for repair grows. [Jiffy Lube](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) discloses $211,000 to $510,000 with a 3.0% to 4.0% royalty across 1,765 franchised units, and opened 67 against 23 closures in its 2026 filing. [Valvoline Instant Oil Change](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) reports an Item 19 median of $1,894,490 across 785 units for fiscal 2025. [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) discloses $385,450 to $940,050 across 889 franchised units. Quick-lube in particular is the most recession-shaped format in the category: low ticket, high frequency, non-deferrable, and short dwell time. Our [automotive franchise opportunities](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) guide covers the rest of the segment. ### Pet Care: Emotional Spending Holds Americans spent $147 billion on their pets in 2023. Historically pet spending has been extraordinarily resistant to contractions, with owners ranking pet food, veterinary care, and grooming among the last expenditures they would cut. The American Pet Products Association tracked essentially flat year-over-year spending through the 2008-2009 recession. The FDD data splits the category by format. [Pet Supplies Plus](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) discloses a $2,496,071 median across 347 units, but it is a retail build at $540,520 to $1,975,005. [Scenthound](https://vetmyfranchise.com/c/claude/franchise/scenthound-franchising-llc) is the leaner shape at $322,999 to $550,769 with a $489,150 median across 69 units. [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) sits at the top of the cost range at $954,606 to $1,229,536, which is a heavier fixed-cost profile than the category average suggests. The caveat holds: basic grooming and boarding are more durable than luxury pet services. Our [pet boarding and daycare franchise](https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises) roundup compares the formats. ## Best Recession-Proof Franchises: The Verified Shortlist Here are the largest established brands in durable categories, ranked by franchised unit count. All figures are from the 2026 FDD except Valvoline Instant Oil Change (2025). | Franchise | Industry | Franchised units | Investment range | Franchise fee | Royalty | | --- | --- | --- | --- | --- | --- | | Coverall | Cleaning & Maintenance | 5,669 | $17,986–$64,280 | $15,570 | 5% | | The UPS Store | Business Services | 5,487 | $57,120–$606,081 | $39,950 | 5% | | Great Clips | Health & Beauty | 4,441 | $187,800–$419,900 | $20,000 | 6% of biweekly gross sales | | SERVPRO | Cleaning & Maintenance | 2,354 | $263,305–$385,570 | $100,000 | 10.0% | | Jiffy Lube | Automotive | 1,765 | $211,000–$510,000 | $35,000 | 3.0%–4.0% | | Sport Clips | Health & Beauty | 1,702 | $236,800–$580,500 | $30,000 | 6% of net sales | | Budget Blinds | Home Services | 1,355 | $100,500–$211,250 | $19,950 | 3.5% | | Valvoline Instant Oil Change | Automotive | 1,071 | $192,375–$3,483,550 | $5,000 | 6% of AGR | | Chem-Dry | Cleaning & Maintenance | 941 | $74,150–$249,500 | $36,000 | 4.0%–7.0% | | Midas | Automotive | 889 | $385,450–$940,050 | $35,000 | 2%–10% | _Figures extracted from 2025-2026 FDDs filed with state regulators. Verify current terms directly with the franchisor before relying on any of them._ Three things jump out. First, cleaning and home services dominate the top because their cost structures are built for downturns: low fixed costs, recurring revenue, essential-service positioning. Second, eight of these ten open for under $250,000 at the low end, which caps your financial exposure going in. For a full breakdown of affordable options, see our [guide to franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k). Third, Valvoline’s $3,483,550 ceiling is the outlier and it is real: that top end assumes land and building acquisition rather than a lease, which is a fundamentally different deal than the $192,375 floor. ## What Durable Franchises Actually Gross Cost structure is half the picture. Here is the disclosed revenue side, across every durable-category brand in our database with a parsed Item 19 median. | Brand | Category | Item 19 median revenue | Reporting units | Period | | --- | --- | --- | --- | --- | | Pet Supplies Plus | Pet Services | $2,496,071 | 347 | Jan 1–Dec 28, 2024 | | Home Instead | Senior Care | $2,261,503 | 611 | CY2025 | | Valvoline Instant Oil Change | Automotive | $1,894,490 | 785 | FY2025 | | Interim Healthcare | Senior Care | $1,658,044 | 168 | FY2025 | | Right at Home | Senior Care | $1,334,579 | 390 | CY2025 | | Mr. Rooter | Home Services | $1,257,146 | 193 | CY2025 | | Aire Serv | Home Services | $1,084,793 | 158 | CY2024 | | Caring Senior Service | Senior Care | $906,104 | 40 | CY2025 | | Rainbow International | Cleaning & Maintenance | $601,671 | 284 | CY2025 | | Budget Blinds | Home Services | $522,826 | 282 | CY2024 | | Scenthound | Pet Services | $489,150 | 69 | Not stated | | Sport Clips | Health & Beauty | $416,189 | 1,645 | 2025 | | ServiceMaster Restore | Cleaning & Maintenance | $392,208 | 169 | FY2025 | | Great Clips | Health & Beauty | $390,685 | 4,158 | 2025 | Pair the two tables and the recession math becomes concrete. [Mr. Rooter](https://vetmyfranchise.com/c/claude/franchise/mr-rooter-spv-llc) discloses a $1,257,146 median on a $152,900 to $298,675 entry: revenue is roughly four times the high end of investment. [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) discloses $390,685 against a $419,900 ceiling, roughly one times. Neither figure is profit, but the first business can absorb a 30% revenue shock and the second has far less room, because a haircut shop’s rent and staffing don’t fall with traffic. That ratio, not the category label, is what you are actually buying. > **Considering a franchise in one of these categories?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or shortlist candidates across [2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises) first. ## What Actually Makes a Franchise Recession-Resistant Sector alone isn’t enough. There are bad franchise operators in every category. These are the structural characteristics that create durability regardless of industry. ### Recurring Revenue Models A franchise with subscription or contract revenue has a fundamentally different risk profile than a transactional one. With 200 customers on monthly cleaning contracts at $350 each, you know before the month starts that you’ll collect $70,000. A haircut shop dependent on daily foot traffic can be wrecked by a two-week disruption. Look for membership fees, retainer contracts, route-based recurring services, and subscription models. Avoid one-time-purchase models with no natural repurchase cycle. ### Low Fixed Cost Ratios The math is straightforward. If 60% of your costs are variable and scale down with revenue, a 30% revenue decline is survivable. If 80% are fixed (rent, equipment leases, salaried staff), a 30% decline threatens the business. Home-based and van-based franchises have almost no fixed cost exposure, which is why so many of the sub-$300,000 brands above are service businesses run from a truck rather than a storefront. Brick-and-mortar concepts with long-term leases carry significantly more risk. ### Essential vs Discretionary Positioning Essential has a specific meaning here: services people need regardless of economic conditions. Medical care, home repair, senior care, auto repair, pest control, tax preparation. When income drops, these are among the last things cut. Discretionary means the opposite: experiences or products people want but can defer. Upscale dining, luxury fitness, boutique retail, entertainment concepts. These contract sharply in a recession and recover slowly. ## How to Evaluate Recession-Readiness in the FDD Franchisor marketing materials tell you nothing useful about performance under economic stress. The FDD does. **Item 20: unit counts 2020-2021.** This is your COVID stress test. A franchise that held or grew unit counts through 2020-2021 has real data. One that contracted sharply needs explanation. Pull five years of unit-count data and chart the trajectory. If the brand is old enough, request historical FDDs from 2008-2010 and do the same. And check the latest year too, because as the ServiceMaster Restore figures above show, a durable category can contain a shrinking brand. **Item 19: financial performance representations.** The [Item 19 financial performance data](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise), disclosed under the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), tells you what franchisees earn in normal conditions. More importantly, ask franchisees directly what their revenue looked like in 2020. Current and former franchisees will tell you things no document captures. **Item 21: franchisor financial statements.** A recession tests the franchisor too. If the franchisor carries heavy debt, a revenue drop could threaten their ability to support the network. You don’t want to invest $300,000 in a system whose parent company might not survive a two-year downturn. Review this with a franchise attorney. **[Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): initial investment.** Low investment means lower exposure and faster payback. A franchise that costs $80,000 all-in recovers faster from a bad year than one requiring $600,000. Our guide on [franchise investment costs](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) walks through how to read Item 7 carefully, including which lines franchisors routinely understate. ## Red Flags That Signal Economic Fragility **High real estate dependency.** [Multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) restaurant or retail concepts with 10-year leases at $8,000-$15,000 per month per location carry enormous fixed cost exposure. If revenue drops 40%, that lease doesn’t adjust. **Closure rates above 5% annually.** Check Item 20 for churned units. More than 5% annual closures in a stable economy suggests the model doesn’t work well for franchisees. In a recession that rate accelerates. ServiceMaster Restore’s 33 closures against 584 franchised units is roughly 5.6%, which is exactly the threshold worth questioning. **Franchisor cash position.** Item 21 reveals whether the parent company has reserves. A franchisor with six months of operating expenses in cash will outlast one running on thin margins with no buffer. **Over-reliance on a single revenue stream.** Concepts with one product or one customer type carry concentrated risk. A business serving 300 residential clients is more resilient than one serving three large commercial accounts. ## Where That Leaves a 2026 Buyer The most recession-proof franchises share three traits: they provide essential services, their cost structures are predominantly variable, and they generate recurring or repeat revenue. Home services, senior care, cleaning, auto repair, and pet care all check those boxes, and all five average well below the $427,924 to $1,049,273 all-category entry cost. That doesn’t mean every franchise in those categories is a good investment. It means those categories give you a starting position with structural durability, and the FDD tells you whether a specific brand has kept it. Use the [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) to work through any candidate systematically, and run the Item 20 unit-count history through the 2020 period. That one data point will tell you more about recession resistance than any franchise consultant’s pitch deck. Economic cycles are a certainty. Which franchise you buy should account for that from day one. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) recession prooffranchise investmentfranchise selectioneconomic downturn About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What franchises do well in a recession? Essential-service categories with recurring revenue. In our database, senior care home-care brands post the strongest disclosed revenue: Home Instead reports a $2,261,503 median across 611 units and Right at Home $1,334,579 across 390. Home services, commercial cleaning, auto repair, and pet care follow. All four sell need-based work that does not defer when consumer confidence drops. ### What are the best recession proof franchises to buy? By unit count and cost structure: Coverall ($17,986 to $64,280), Budget Blinds ($100,500 to $211,250), Chem-Dry ($74,150 to $249,500), Jiffy Lube ($211,000 to $510,000), and SERVPRO ($263,305 to $385,570), all per 2026 FDDs. Each sells essential work, carries low fixed costs, and opens for well under the $427,924 all-category average. ### Which franchise industry is most recession-proof? Senior care. Demand is demographic rather than discretionary, and the 123 senior care FDDs in our database average $199,099 to $426,162 to open, well below the all-category average. Home Instead discloses a $2,261,503 median across 611 units for calendar 2025, the highest disclosed revenue in any durable category we track. ### How do I evaluate recession-resistance using the FDD? Start with Item 20 unit counts for 2020 and 2021, your COVID stress test. A brand that held or grew through that period has real data. Then check Item 19 revenue trends, and Item 21 audited financials for the franchisor's own leverage. Ask franchisees directly what their 2020 revenue looked like. ### Are food franchises recession-proof? Partly. Fast food holds up because consumers trade down from casual dining, but the 831 Food & Beverage FDDs in our database average $588,859 to $1,409,831 to open, roughly four times the home services average. High fixed costs plus a long lease is the wrong shape for a downturn. Choose QSR with drive-through, not sit-down. ### What financial metrics indicate recession resistance in a franchise? High variable cost ratios so costs fall with revenue, low lease obligations relative to revenue, recurring or repeat-purchase revenue, and no single client above 10% to 15% of sales. Also read Item 21 for the franchisor's own debt load: a heavily leveraged franchisor may not survive to support you through a two-year downturn. --- title: "Best Vending & ATM Franchise Opportunities 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-07-25 keywords: vending-franchise, atm-franchise, passive-income-franchise, low-cost-franchise, distributorship canonical: https://vetmyfranchise.com/c/claude/blog/best-vending-atm-franchise-opportunities about: vending-franchise category: blog wordCount: 2657 readingTime: 13 min crawledAt: 2026-08-20 11:05:27 lastVerified: 2026-08-20 11:05:27 site: https://vetmyfranchise.com/c/claude/ --- # Best Vending & ATM Franchise Opportunities 2026 ## Summary Best vending and ATM franchise opportunities 2026: zero of 2,364 parsed FDDs are vending or ATM brands. Distributorship warnings plus verified alternatives. ## Key facts - There is no Item 7 or Item 19 column below, because none of these sellers files an FDD that contains one. - If you’ve spent any time researching vending machine opportunities online, you’ve seen pitch decks promising $40,000 in passive income from a $50,000 investment in healthy snack machines. - Before any positive recommendations, the most-cited cautionary tale in the vending category: Reis & Irvy’s, the frozen yogurt vending robot from Generation NEXT Franchise Brands. - Search “best vending machine franchise” and you will get ranked lists of Healthier4U Vending, Naturals2Go, and Healthy YOU Vending. - In a real FDD, Item 19 (Financial Performance Representations) discloses earnings data with specific franchisee population, time periods, and methodology disclosure. Quick answer Zero of the 2,364 FDDs in VetMyFranchise's database are vending or ATM brands, because these offers are business-opportunity distributorships rather than franchises. Healthier4U Vending ($50K-$100K+) and Naturals2Go ($50K-$90K+) are the most established, and ATM offers run $20K-$80K+. Expect 15-30% per-machine margins, not passive income. The honest answer to “best vending or ATM franchise” is that almost none of the heavily marketed options are franchises at all. We maintain a database of 2,364 FDDs parsed from official filings, and not one of them is a vending or ATM brand. The most established names, Healthier4U Vending ($50K-$100K+) and Naturals2Go ($50K-$90K+), are typically structured as business opportunities without full [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) protection, and ATM offers ($20K-$80K+) are almost universally distributorships. A realistic route nets 15-30% of gross per machine as of 2026. Here’s how to sort the legitimate from the predatory. ## Vending & ATM Offers at a Glance There is no Item 7 or Item 19 column below, because none of these sellers files an FDD that contains one. That is the comparison. | Offer | Structure | Typical Investment | Disclosure you receive | Item 19 | Verified FDD in our database | | --- | --- | --- | --- | --- | --- | | Healthier4U Vending | Business opportunity (typical) | $50K – $100K+ | Business-opportunity document | None | No | | Naturals2Go | Business opportunity (typical) | $50K – $90K+ | Business-opportunity document | None | No | | Healthy YOU Vending | Business opportunity | $35K – $90K+ | Business-opportunity document | None | No | | ATM offers (various) | Distributorship typical | $20K – $80K+ | Varies; sometimes none | None | No | | Reis & Irvy’s (defunct) | Business opportunity | $40K – $100K+ per robot | Parent filed bankruptcy 2019 | None | No | Investment figures are compiled from public seller materials as of 2026 and are not FDD-verified, because no FDD exists to verify them against. Compare that final column to the route-franchise alternatives table near the end of this guide, where every figure traces to a filed document. ## The First Thing to Get Straight: Most Vending ‘Franchises’ Aren’t Franchises If you’ve spent any time researching vending machine opportunities online, you’ve seen pitch decks promising $40,000 in passive income from a $50,000 investment in healthy snack machines. Or $80,000 income from frozen yogurt robots. Or ATM “franchise” routes that pay residuals while you sleep. Almost none of these are actually franchises. A franchise, under the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), requires three elements: (1) a marketing system associated with the franchisor’s trademark, (2) significant ongoing support from the franchisor, and (3) the payment of a fee. When a company sells you vending machines as “vending machine business opportunities” with no ongoing royalty and minimal support, it’s a business opportunity governed by the FTC [Business Opportunity Rule](https://www.ftc.gov/legal-library/browse/rules/business-opportunity-rule). When a company sells you ATMs with a “branding” arrangement, it’s typically a distributorship or licensing agreement. The distinction matters because franchises require a 23-item FDD with extensive disclosure of fees, litigation, bankruptcy, financial statements, and (sometimes) earnings claims. Business opportunities require a much shorter disclosure with weaker buyer protections. When something goes wrong (and in this category, things go wrong often) the franchise buyer has more legal recourse than the distributor-buyer. This post separates the legitimate options from the dangerous ones and tells you what to do if you want low-capital passive-income exposure without falling into a scam. The same ‘is it really a franchise?’ question trips up buyers researching kiosk brands; our look at [whether Redbox is a franchise](https://vetmyfranchise.com/c/claude/blog/is-redbox-a-franchise) walks through one well-known example. ## The Reis & Irvy’s Cautionary Tale Before any positive recommendations, the most-cited cautionary tale in the vending category: Reis & Irvy’s, the frozen yogurt vending robot from Generation NEXT Franchise Brands. The pitch was extraordinary. A futuristic frozen yogurt robot, premium locations, “turnkey” income. Buyers paid roughly $40,000-$100,000+ per robot. The parent company collected hundreds of millions in machine sales. The parent (8minutenoodles, later Generation NEXT Franchise Brands) filed for bankruptcy in 2019. Buyers were left with expensive equipment they couldn’t service, no parent support, no realistic return path, and weak legal recourse because the offering was structured as a business opportunity rather than a franchise. If you encounter any successor entity, rebranded operation, or “new” frozen yogurt vending robot opportunity tied to the original Reis & Irvy’s intellectual property, equipment, or principals, walk away. The same pattern shows up periodically in vending: the same machines re-marketed under new corporate names. This is also a strong reminder that [FDD Item 4 bankruptcy history](https://vetmyfranchise.com/c/claude/blog/fdd-item-4-bankruptcy-history) matters. Always check the principals’ prior bankruptcies and the corporate entity’s history before signing any vending or ATM agreement. ## Best Vending Machine Franchise: What Actually Exists Search “best vending machine franchise” and you will get ranked lists of Healthier4U Vending, Naturals2Go, and Healthy YOU Vending. Those lists are ranking business opportunities against each other while calling them franchises. We can be precise about this. Our database holds 2,364 FDDs parsed from official state filings, spanning every industry from senior care to car washes. Searching it for vending, ATM, micro-market, or snack-route brands returns nothing. The one near-hit, redbox+, is a dumpster-rental franchise unrelated to kiosk vending, and even the well-known DVD kiosk business was never franchised, as our piece on [whether Redbox is a franchise](https://vetmyfranchise.com/c/claude/blog/is-redbox-a-franchise) explains. That absence is deliberate on the sellers’ side. Filing an FDD means disclosing litigation history (Item 3), bankruptcy history (Item 4), audited financial statements (Item 21), and a full fee schedule (Items 5 and 6). It also means that if you make an earnings claim, it has to live in Item 19 with a stated sample size, time period, and methodology. A business-opportunity disclosure carries none of that weight. That doesn’t automatically make these sellers illegitimate; real operators do make real income from vending routes. But without an FDD you have to substitute your own diligence: 1. Verify the specific disclosure document type (FDD vs business opportunity vs nothing at all) 2. Demand earnings data with actual location and time-range specifics, not summary averages 3. Talk to multiple existing operators in your geography about their real numbers 4. Reject any guaranteed-income promises in writing (a regulatory red flag) For the broader low-capital franchise category, see [best low-cost franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) and [low-cost franchises under $50K](https://vetmyfranchise.com/c/claude/blog/low-cost-franchises-under-50k). The [cheapest franchises report](https://vetmyfranchise.com/c/claude/reports/cheapest-franchises) ranks the lowest verified entry costs across the full database. ## What “Earnings Claims” Means in This Category In a real FDD, Item 19 (Financial Performance Representations) discloses earnings data with specific franchisee population, time periods, and methodology disclosure. The franchisor either makes a claim with that disclosure or makes no claim at all. In business-opportunity vending sales, sellers commonly make verbal or marketing claims about expected income without the disclosure rigor of Item 19. Common patterns: - “Average machine produces $X per month,” with no disclosure of which machines, which locations, or which time periods - “Top operators earn $Y annually,” with no disclosure of what percentage of operators - “Locations produce 30-50 transactions per day,” with no disclosure of measured median or range The FTC’s Business Opportunity Rule requires some earnings claim disclosure but the standard is much lower than the Franchise Rule. As a buyer, treat any unsupported income claim as suspect. Apply the [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) methodology even when there’s no formal Item 19; the analytical framework still applies. For context on how to price a deal when the earnings disclosure is missing entirely, see [what no Item 19 actually means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means). > **Want the FDD analyzed for a franchise you’re seriously considering?** Get a $49 AI-powered FDD analysis that pulls the buyer-relevant numbers, fees, and red flags out of the legal document in under 5 minutes. > > [Analyze any FDD →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ## ATM Franchise Cost: What You Actually Pay “ATM franchise” is mostly marketing language, and the cost question has a different answer depending on which of three real models you pick: 1. **Independent route operator.** You buy ATMs outright, often used machines at $1,500-$3,500 each, place them under your own agreements, and keep the surcharge revenue minus processor fees. A $20,000 budget buys 6-10 machines you own with no royalty and no franchisor. 2. **Route purchase.** You buy an existing operating route from a retiring operator. Pricing typically runs 12-24x monthly net revenue, so a route netting $2,000 a month prices at $24,000-$48,000. You are buying proven placements and existing cash flow, which is the closest thing in this category to underwritable. 3. **ATM “franchise” or “distributorship.”** The $20,000-$80,000+ packages advertised as franchises. You are paying marked-up machine pricing plus placement promises, and the seller may retain a revenue share. Same machines, higher price, weakest disclosure. The pricing gap between path one and path three is the whole story. Marked-up machine packages routinely cost two to three times what the same hardware sells for on the open market, and the “guaranteed placements” that justify the premium are the single most common failure point in category complaints. If passive ATM income is your goal, route purchase is the legitimate path. Independent operators with 50-100 well-placed ATMs build meaningful businesses, but that’s a self-directed business, not a franchise. ## The Real Underwriting Math If you do pursue a legitimate vending business opportunity, the underwriting math hinges on: **Per-machine revenue:** Realistic ranges in 2026 are $300-$1,200 per machine per month gross revenue depending on location quality. High-traffic premium locations (large workplaces, hospitals, transit hubs) are at the top; low-traffic locations are at the bottom. The variance is huge. **Per-machine costs:** - COGS (product cost): 40-55% of revenue - Restocking labor: $15-40/visit, 4-12 visits/month - Machine depreciation: $80-200/month over 7-10 years - Service/maintenance: $20-80/month average - Location commission (if any): 0-25% of revenue The all-in margin per machine after all costs is typically 15-30% of gross revenue, much narrower than marketing materials suggest. A 20-machine route producing $600 average monthly revenue per machine grosses $12,000/month and nets $2,000-$3,600 to the operator after costs. That’s a $24-43K annual return on a $50-100K investment: meaningful but not life-changing, and absolutely not passive. ## Red Flags Specific to This Category Watch for these patterns when evaluating any vending or ATM opportunity: - **Guaranteed locations or guaranteed income**, both regulatory red flags - **Mandatory machine purchase from the franchisor or its affiliate** at non-market prices - **Corporate entity name changes or prior bankruptcies** in the principals’ history - **High-pressure sales** with limited-time pricing or “territory grabbing” urgency - **No FDD or business opportunity disclosure document** offered - **Unverifiable testimonials** that can’t be cross-checked - **Unrealistic earnings claims** without time-period and methodology specifics Our [franchise red flags guide](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items) applies here even when the opportunity isn’t technically a franchise. Most franchise red flags translate directly to vending and ATM scams. ## Who Should Skip This Category Entirely Vending and ATM business opportunities are a poor fit if you: - Want pure passive income (this isn’t it) - Don’t have time for 5-15 hours per week of route management - Can’t afford to lose the full investment (treat as venture risk, not safe income) - Don’t have the patience to verify every claim and document carefully ## What to Buy Instead: Route Franchises With Real FDDs If the appeal of vending is a low-capital route business you service on your own schedule, that category exists inside real franchising, with filed Item 7 investment ranges and Item 19 earnings data. Every figure below is drawn from the brand’s most recent FDD as parsed into our database. | Brand | Total investment (Item 7) | Franchise fee | Royalty | Item 19 median | Franchised units | FDD year | | --- | --- | --- | --- | --- | --- | --- | | Poop 911 | $3,620 – $25,970 | $0 | 25% + 1% | No Item 19 | 254 | 2025 | | WIN Home Inspection | $41,200 – $49,800 | $21,000 | 7% + 4% | $193,335 (n=94) | 247 | 2026 | | Mr. Sandless | $41,560 – $91,210 | $20,000 | 6% | $170,520 (n=182) | 192 | 2026 | | 360clean | $43,000 – $58,800 | $25,000 | 7-14% + 1% | $175,176 (n=57) | 69 | 2025 | | DoodyCalls | $76,450 – $93,850 | $39,900 | 7.5% + 1.5% | $147,096 (n=107) | 134 | 2026 | | The Patch Boys | $74,500 – $105,900 | $44,900 | 8% | $252,414 | 264 | 2026 | [DoodyCalls](https://vetmyfranchise.com/c/claude/franchise/doodycalls-franchising-spe-llc) is the closest structural analogue to a vending route: recurring stops, a truck, a service schedule, and a low ceiling on any single account. The difference is that its 2026 FDD discloses a $147,096 median across all 107 franchised units in operation for the entire fiscal year, so you can underwrite it. [Poop 911](https://vetmyfranchise.com/c/claude/franchise/hounds-mounds-inc) sits lower on capital than almost any vending package at $3,620-$25,970 with no initial franchise fee, though its 25% royalty is the trade and its 2025 FDD carries no Item 19. One caution that proves the point about disclosure quality: [WIN Home Inspection](https://vetmyfranchise.com/c/claude/franchise/world-inspection-network-international-llc)’s $193,335 median is calculated only on “franchisees with Gross Revenue of $100,000 or more.” That exclusion is disclosed in the document, which is exactly why you can spot it, adjust for it, and price the risk. No vending seller hands you a sample definition you can audit. Our guide to [verifying Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) covers how to test these segment definitions. For more in this range, see [best home-based franchises](https://vetmyfranchise.com/c/claude/blog/best-home-based-franchises), [best mobile or van-based franchises](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises), and [best franchises for passive income](https://vetmyfranchise.com/c/claude/blog/best-franchises-passive-income). ## The Bottom Line The vending and ATM “franchise” category is heavily salted with business opportunities and distributorships masquerading as franchises. There are legitimate operators making real income, but they’re a minority, and the marketing makes it nearly impossible to tell the legitimate from the predatory without careful disclosure-document review. If you want to pursue this category: 1. Demand to see the actual disclosure document (FDD or Business Opportunity Disclosure) 2. Verify the corporate entity’s litigation and bankruptcy history 3. Talk to at least 5 existing operators in your geography about their actual numbers 4. Treat the investment as venture-risk capital, not safe income 5. Walk away from any opportunity with guaranteed-income promises or pressure-sales tactics For most low-capital passive-leaning buyers, there are better-disclosed franchise options outside the vending/ATM category. The combination of weak disclosure regime, history of bankruptcies, and persistent scam patterns makes this one of the harder franchise categories to underwrite confidently. > **Got a specific vending or franchise opportunity you want analyzed?** $49 AI-powered FDD analysis pulls fees, Item 19, litigation, and red flags out of the legal document in under 5 minutes, so you know what you’re really buying. > > [Analyze any FDD →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) vending-franchiseatm-franchisepassive-income-franchiselow-cost-franchisedistributorship About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is vending really passive income? Less passive than the sales pitches suggest. Even a small route of 20-30 machines requires regular restocking (typically 1-3x per week per location), cash collection, machine maintenance, and location relationships. The 'passive' framing is what attracts buyers; the actual labor and equipment maintenance reality is closer to a part-time job. Real passive income franchises are rarer than the marketing suggests. ### What's the difference between a vending franchise and a vending distributorship? A franchise is governed by the FTC Franchise Rule, requires an FDD (Franchise Disclosure Document) with 23 items, and gives the buyer specific federal-and-state protections. A distributorship (or business opportunity) is governed by the FTC Business Opportunity Rule with much less disclosure and fewer protections. Most companies selling vending machines as 'franchise opportunities' are actually selling business opportunities. The distinction matters when something goes wrong. ### Are vending franchises a scam? The category has more scams than legitimate opportunities. Common warning signs: heavy upfront machine purchase requirement, vague 'guaranteed locations' that don't materialize, 'turnkey income' promises without supporting Item 19 disclosure, unverifiable testimonials, and corporate entities with prior bankruptcies or name changes. Reis & Irvy's is the canonical cautionary tale. Always verify the corporate entity, its disclosure type, and its litigation history before signing. ### What is the best vending machine franchise? There isn't one, in the legal sense. Zero of the 2,364 FDDs in our database are vending brands, so no vending offer can be compared on Item 7 or Item 19. Healthier4U Vending ($50K-$100K+) and Naturals2Go ($50K-$90K+) are the most established sellers, but both are typically business opportunities. If a comparable-quality franchise matters, look at a route-based service brand with a real FDD instead. ### How much does an ATM franchise cost? Marketed ATM 'franchise' packages run $20,000 to $80,000+, but you are buying machines and placement help, not a franchise. Building a route independently is cheaper: used ATMs cost $1,500-$3,500 each, so $20,000 buys 6-10 machines you own outright with no royalty. Buying an existing route typically prices at 12-24x monthly net revenue. ### What about ATM franchises? Most 'ATM franchise' offerings are distributorships or route-broker arrangements, not franchises. The legitimate ATM business is buying or building a route of ATMs that you own outright and place in locations under your own agreements — there's no franchisor and no royalty. If a company is selling you a 'franchise' with ongoing royalties tied to ATMs, scrutinize the business model carefully because the unit economics rarely support it. ### If I want low-capital passive income, what should I look at instead? Route-based franchises with real FDDs. WIN Home Inspection discloses $41,200-$49,800 total investment and a $193,335 Item 19 median across 94 units (2026 FDD). DoodyCalls, a pet-waste route business, discloses $76,450-$93,850 and a $147,096 median across 107 units. Both give you Item 7 and Item 19 disclosure that no vending offer provides. --- title: "Best Kitchen & Bath Remodeling Franchises 2026: Costs" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best remodeling franchises, kitchen remodeling franchise cost, bathroom remodel franchise, cabinet franchise opportunity, home improvement franchise, Floor Coverings International, Item 19 canonical: https://vetmyfranchise.com/c/claude/blog/best-kitchen-bath-remodeling-franchises about: best remodeling franchises category: blog wordCount: 1716 readingTime: 9 min crawledAt: 2026-08-20 11:03:49 lastVerified: 2026-08-20 11:03:49 site: https://vetmyfranchise.com/c/claude/ --- # Best Kitchen & Bath Remodeling Franchises 2026: Costs ## Summary The best remodeling franchises compared on FDD data: Floor Coverings International, Miracle Method, Cabinet IQ, Kitchen Refresh, and their sample sizes. ## Key facts - Cabinet IQ’s 2026 FDD reports a median of $1,129,828 for franchised outlets with a showroom open throughout 2025. - FCI’s Item 19 covers 136 US franchisees open more than 24 months as of December 31, 2024. - At $6,000, Kitchen Refresh has the lowest initial franchise fee in this category in our data. - FCI’s Item 6 stacks a 5% royalty on top of a 3% brand fund contribution and a required local advertising minimum of 6% of gross sales. - Take the number you were quoted and divide it by the brand’s disclosed average job size. Quick answer 136 franchisees. That is the largest Item 19 sample in kitchen and bath remodeling, disclosed by Floor Coverings International, which reported a median gross revenue of $895,993 on an initial investment of $184,000 to $249,000. Every other brand in the category discloses on samples of 2 to 64 units. ## Six brands, one sample worth arguing with Cabinet IQ’s 2026 FDD reports a median of $1,129,828 for franchised outlets with a showroom open throughout 2025. Two outlets qualified. Their gross revenues were $747,495 and $1,512,162, so that median is the midpoint of two numbers, and 39 other Cabinet IQ outlets sat outside the table because they were not open all year. That is the shape of earnings disclosure in kitchen and bath remodeling. Capital runs from $21,280 at Kitchen Refresh to $534,350 at Cabinet IQ, a 25x spread, and the brands quoting the biggest revenue are usually the ones with the fewest units reporting it. The label also hides four different businesses. Floor Coverings International sells flooring from a mobile showroom that drives to the customer. Miracle Method refinishes tubs, tile, and countertops instead of replacing them. Cabinet IQ, The Designery, and More Space Place run retail showrooms with designers on salary. Kitchen Refresh replaces cabinet doors and drawer fronts out of a studio the size of a dentist’s waiting room. | Brand | Initial investment | Franchise fee | Franchised units | Item 19 headline | Units in the sample | | --- | --- | --- | --- | --- | --- | | Floor Coverings International | $184,000 to $249,000 | $55,000 | 288 (end 2024) | $895,993 median gross revenue installed | 136 franchisees | | Miracle Method | $142,500 to $261,800 | $50,000 | 149 (end 2025) | $1,083,293 median gross revenue | 64 owners running 213 outlets | | More Space Place | $164,200 to $253,400 | $59,500 | 26 (end 2025) | $1,414,933 median gross revenue | 11, all multi-territory owners | | The Designery | $223,739 to $463,439 | $59,900 | 89 (end 2025) | $1,133,072 median accepted contract | 8 locations, 13 territories | | Cabinet IQ | $308,350 to $534,350 | $59,500 | 53 | $1,129,828 median gross revenue | 2 outlets | | Kitchen Refresh | $21,280 to $133,950 | $6,000 to $28,500 | 8 (end 2024) | $985,899 average gross sales | 7 outlets | ## Floor Coverings International has the only defensible benchmark FCI’s Item 19 covers 136 US franchisees open more than 24 months as of December 31, 2024. Median gross revenue installed was $895,993 and the average was $1,109,721, a gap that tells you the top of the system is pulling the mean up. The disclosure then breaks the 136 into groups, which is what makes it usable: the top 14 averaged $2,890,948, the bottom 14 averaged $359,418, and the bottom half, 68 franchisees, averaged $587,555. Average gross margin across all 136 was 45%. Average job size was $7,645. Item 20 shows 288 franchised outlets at the end of 2024, up from 252 and 215 in the two prior years, with no company-owned units anywhere in the table. Item 7 puts total initial investment at $184,000 to $249,000 against a $55,000 franchise fee. Two caveats before you treat $895,993 as a forecast. FCI reports per franchisee, not per territory, and says plainly that some reporting franchisees own more than one business. The 136 also exclude anyone open under 24 months, anyone running the franchise part time, and anyone not reporting through the standard software. Half a system is generous by the standards of this category and still a selected half, which is why [average versus median in Item 19](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) matters more than the headline. Rank these brands by sample size and the order inverts. Cabinet IQ’s two outlets were both in their first full calendar year with a showroom open, which is the worst possible year to generalize from in a design business. Kitchen Refresh’s seven self-reporting outlets produced gross sales ranging from $29,139 to $1,867,641, a 64x spread inside one sample, which means the $985,899 average describes no actual franchisee. The Designery’s $1,133,072 is not revenue at all. Its Item 19 reports Accepted Contract Amount, defined as the value recorded when a customer accepts a work order, and the FDD states that acceptance does not necessarily mean the work has been completed. Franchisees report and pay royalties on a cash basis. So the headline is booked work on an accrual basis, drawn from 8 franchise locations operating 13 territories, in a system with 89 outlets. More Space Place discloses a $1,414,933 median from 11 locations, and every one of those 11 is owned by a multi-territory operator. The franchisor says so directly. Buying one territory and expecting that median is a category error. Miracle Method’s $1,083,293 has the same structure at larger scale: 64 franchised locations reported, and those 64 owners operate 213 outlets between them, so the median describes an owner with roughly three units, not a unit. Kitchen and bath brands are hardly alone in this. The same pattern turns up in [painting](https://vetmyfranchise.com/c/claude/blog/best-painting-franchises) and [handyman](https://vetmyfranchise.com/c/claude/blog/best-handyman-franchises) systems that scaled fast and then disclosed on the small slice open long enough to count. To filter the whole home services field by disclosure quality instead of marketing, our [home services category page](https://vetmyfranchise.com/c/claude/franchises/home-services) shows what each brand actually publishes. ## Kitchen Refresh and the $6,000 franchise fee At $6,000, Kitchen Refresh has the lowest initial franchise fee in this category in our data. Item 5 explains it: there are three tiers, $28,500, $16,000, and $6,000, so the number in most listings is the floor of a ladder rather than a flat price. Total initial investment runs $21,280 to $133,950, and the low end assumes the Tier 3 fee, virtual training, and a studio with $500 in leasehold improvements. The more interesting disclosure is what is missing. Item 6 lists no continuing royalty. It lists a $500 weekly minimum local marketing spend, a $100 weekly lead nurturing fee, a $2,500 site extension fee, and 21% interest on late balances, but no percentage of gross sales flowing to the franchisor. Item 8 explains where the money comes from instead: franchisees must buy all customer orders of cabinet doors and drawer fronts from the franchisor or its affiliate, which is the only approved supplier. The franchisor earns on product margin. That is a legitimate model and it changes your diligence questions. A royalty is visible and fixed. Product margin is neither, and it can move without amending your franchise agreement. Ask for three years of price lists before you sign. ## Lead cost is the operating expense nobody quotes you FCI’s Item 6 stacks a 5% royalty on top of a 3% brand fund contribution and a required local advertising minimum of 6% of gross sales. That is 9% of the top line committed to marketing before a franchisee buys a single extra lead. Cabinet IQ’s affiliate location spent 4.0% on advertising plus a 1.0% brand fund on $2.38M in revenue. Kitchen Refresh requires $26,000 a year in local marketing plus $5,200 in lead nurturing fees regardless of what the business does. FCI is the only brand here that discloses the funnel behind the revenue. Its 136 reporting franchisees averaged 894 leads and 356 proposals, converting at a 43% average success rate on an average job of $7,645. Roughly 40% of leads became proposals. No other brand in this group publishes lead volume, so no other brand lets you check whether its revenue figure was bought or earned. That ratio decides whether the buildout in [your Item 7 estimate](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay) is survivable, and it reads best alongside what [local marketing actually costs beyond the ad fund](https://vetmyfranchise.com/c/claude/blog/franchise-local-marketing-beyond-ad-fund). ## Stress-test the Item 19 against your own county Take the number you were quoted and divide it by the brand’s disclosed average job size. FCI’s $895,993 median against a $7,645 average job implies about 117 completed jobs a year, a bit over two a week, every week. Mixing a median with an average makes that rough, and rough is enough. Now pull residential alteration permits for your county from the local building department and count how many remodelers are already pulling them. If the implied job count is a meaningful share of the permits in your territory, that median was earned in a market that does not resemble yours. Two questions belong in writing to the franchisor. How many units were left out of the Item 19 table, and on what criterion? And is the figure collected revenue, booked contracts, or something else? The Designery answers the second one honestly, in a footnote most buyers never reach. Run your own numbers against the disclosed fee stack in our [investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) before you treat anyone’s median as a starting point. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best remodeling franchiseskitchen remodeling franchise costbathroom remodel franchisecabinet franchise opportunityhome improvement franchiseFloor Coverings InternationalItem 19 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a remodeling franchise cost? Between $21,280 and $534,350 across the brands in our database. Kitchen Refresh sits at the bottom because it runs from a small studio with a $6,000 fee at its lowest tier. Cabinet IQ sits at the top because a franchisee builds out a retail showroom. Franchise fees cluster between $49,000 and $59,900 regardless of model. ### Which home improvement franchise is most profitable? No FDD here discloses profit at the franchisee level, so nobody can answer that from public paper. Cabinet IQ publishes a full profit and loss for one affiliate-owned location in Cedar Park, Texas: $2,383,388 in gross revenue, a 42.2% gross profit margin, and $322,570 in adjusted profit. That unit was in its eighth year and belongs to an affiliate of the franchisor, which makes it a ceiling rather than a baseline. ### Do you need a contractor license to own a remodeling franchise? Usually yes, and the rule varies by state and trade. These systems either require the franchisee to hold a license, hire a qualifying individual, or subcontract installation to licensed trades. Kitchen Refresh, Cabinet IQ, and The Designery all sell design plus installation, which triggers home improvement contractor rules in states like New Jersey and California. ### Why are remodeling Item 19 samples so small? Because most of these brands are young and grew fast. The Designery went from 4 outlets to 89 in three years, and Cabinet IQ left 39 outlets out of its 2025 tables because they were not open the full year. A franchisor may disclose only the units meeting a stated criterion, and in a system that recently doubled, that criterion removes most of the system. ### Is Floor Coverings International a kitchen and bath franchise? It is a flooring franchise, and it belongs in this comparison because buyers shop it against showroom remodelers on the same capital. Its 2025 FDD discloses $184,000 to $249,000 in initial investment, a $55,000 franchise fee, and 288 franchised outlets at the end of 2024. It is the only brand here with an Item 19 sample above 100 units. ### What is the cheapest remodeling franchise? Kitchen Refresh, at $21,280 to $133,950 in total initial investment. The low end assumes the $6,000 Tier 3 franchise fee, virtual training, and a minimal studio buildout. Item 5 also lists Tier 1 at $28,500 and Tier 2 at $16,000, so the $6,000 headline is one of three prices. ## Content not visible to non-JS crawlers - $534,350, --- title: "Best Pilates Franchises 2026: Yoga and Barre Brands" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-25 keywords: best pilates franchises 2026, yoga franchise opportunities, club pilates franchise cost, yogasix franchise, stretchlab franchise, barre franchise, pilates studio franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-yoga-pilates-barre-franchises about: best pilates franchises 2026 category: blog wordCount: 1528 readingTime: 8 min crawledAt: 2026-08-20 11:03:45 lastVerified: 2026-08-20 11:03:45 site: https://vetmyfranchise.com/c/claude/ --- # Best Pilates Franchises 2026: Yoga and Barre Brands ## Summary Compare the best yoga, Pilates, and barre franchises for 2026 — Club Pilates, YogaSix, StretchLab, Pilates Republic — by capital, royalty, and membership economics. ## Key facts - The boutique fitness category broadly — and Pilates, yoga, and barre specifically — have produced stronger franchise economics than traditional gyms since 2018. - Reformer Pilates has emerged as the strongest unit-economic segment in the broader Pilates and boutique fitness category. - YogaSix operates the strongest national yoga franchise system. - The barre and stretch segments operate adjacent to Pilates and yoga with distinct positioning. - Service mix typically includes: Quick answer Club Pilates leads the category on disclosed revenue, with a $978,300 Item 19 median across 1,179 franchised studios, but its 2026 FDD puts initial investment at $403,289–$1,029,811 with a $65,000 franchise fee and an 8% royalty. StretchLab runs $194,800–$378,500 and YogaSix $293,000–$487,500. Mature studios gross $400,000–$1.2M with 15–25% net operating margins before debt service. Memberships run $159–$299 monthly and drive 75–90% of mature revenue. ## Why Pilates, Yoga & Barre Have Outperformed Most Fitness Categories The boutique fitness category broadly — and Pilates, yoga, and barre specifically — have produced stronger franchise economics than traditional gyms since 2018. Three structural factors drove the outperformance: - **Premium membership pricing.** $159–$299 monthly memberships vs. $30–$75 traditional gym rates. The customer pool is smaller but produces meaningfully higher revenue per square foot. - **Strong customer retention.** Annual member retention at 70–82% for established Pilates and yoga franchises vs. 55–65% for traditional gyms. Members who stick stay for years. - **Recurring class booking behavior.** Members typically attend 2–5 classes per week with consistent scheduling, producing predictable customer flow and operational efficiency. - **Premium real estate match.** Boutique fitness studios fit retail centers (1,800–3,500 sq ft) better than traditional gyms (15,000–40,000 sq ft), opening more real estate options. For 2026, the category sits in continuing growth phase but with meaningful market saturation in metro markets. Buyers in attractive territories should validate competitive landscape carefully — multiple franchise brands now compete for similar customer bases. ## Best Reformer Pilates Franchises Reformer Pilates has emerged as the strongest unit-economic segment in the broader Pilates and boutique fitness category. | Brand | Initial Investment | Royalty | Franchise Fee | Notes | | --- | --- | --- | --- | --- | | Club Pilates | $403,289–$1,029,811 | 8% gross | $65,000 | Category leader, 1,179 franchised studios | | Pilates Republic | $245,000–$498,000 | 7% gross | $40,000 | Growth-stage reformer Pilates | | Pilates Addiction Franchisor | $265,500–$485,000 | 7% gross | $42,500 | Specialty positioning | [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) is the validated category leader in reformer Pilates franchising. The brand’s operational systems, instructor training, and unit-level execution produce category-leading economics. Multi-unit ownership is common — most successful [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) operators run 2–5 studios. [Pilates Republic](https://vetmyfranchise.com/c/claude/franchise/pilates-republic-franchising-llc) and [Pilates Addiction](https://vetmyfranchise.com/c/claude/franchise/pilates-addiction-franchisor-llc) operate as growth-stage alternatives with somewhat different operational models. Both offer franchise opportunity in markets where [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) territory is unavailable. ## Best Yoga Franchises | Brand | Initial Investment | Royalty | Franchise Fee | Notes | | --- | --- | --- | --- | --- | | YogaSix | $293,000–$487,500 | 7% gross | $60,000 | Hot yoga and broader yoga | YogaSix operates the strongest national yoga franchise system. The brand offers hot yoga, traditional yoga, and broader yoga programming with operational systems comparable to [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) (both brands operate within the Xponential Fitness family). Yoga as a franchise category is meaningfully more challenging than Pilates because: - **Independent yoga studios** dominate market share, particularly in urban markets - **Customer relationship loyalty** to individual instructors creates challenges for franchise systems - **Pricing pressure** from independent studios and online yoga platforms (Glo, Alo Moves) The franchise opportunity works in suburban markets where independent yoga competition is limited and customer base prefers branded experiences. ## Best Specialty Barre and Stretch Franchises The barre and stretch segments operate adjacent to Pilates and yoga with distinct positioning. | Brand | Initial Investment | Royalty | Franchise Fee | Notes | | --- | --- | --- | --- | --- | | StretchLab | $194,800–$378,500 | 7% gross | $60,000 | Assisted stretching positioning | | Stretch Lab Franchise SPV | Same brand, structured ownership | | | | | Barrel House Enterprises | $215,000–$425,000 | 7% gross | $40,000 | Barre franchise opportunity | | Neighborhood Barre Franchising | $195,000–$385,000 | 7% gross | $39,500 | Barre studio operations | StretchLab operates assisted-stretching franchising — a relatively new category that targets fitness-adjacent customers seeking flexibility, mobility, and recovery services. The economics differ from Pilates and yoga because the service is one-on-one rather than group class, but unit economics in supportive markets are strong. Barre franchises ([Barrel House](https://vetmyfranchise.com/c/claude/franchise/barrel-house-enterprises-llc), [Neighborhood Barre](https://vetmyfranchise.com/c/claude/franchise/neighborhood-barre-franchising-llc), plus Pure Barre as competitive context) target a specific fitness segment with ballet-inspired strength and conditioning workouts. ## What These Franchises Actually Sell Service mix typically includes: - **Membership programs** ($159–$299 monthly): the primary revenue driver, includes set class allotment per month - **Class packages** for non-members: typically $25–$45 per class purchased in 5–10 class bundles - **Private instruction**: $75–$150 per session, premium-positioned customers - **Retail products** (clothing, accessories, branded merchandise): incremental revenue - **Workshops and special programming**: revenue diversification - **Teacher training programs** (where supported): high-margin offering for studios with capacity The membership model is the operational backbone. Studios that successfully drive members to higher-tier memberships ($259+ monthly) and retain members long-term produce dramatically better economics than studios with high member churn. ## Capital + Royalty + Unit Economics Across the Pilates/yoga/barre franchise tier, mature unit economics look like this: - **Annual gross revenue**: $400,000–$1.2M (median around $600,000–$800,000) - **Instructor costs (commission/wages)**: 30–40% of revenue - **Royalty + advertising fund**: 9–11% of revenue - **Rent and utilities**: 12–18% of revenue (premium retail real estate is critical) - **Equipment depreciation and maintenance**: 4–7% of revenue (Pilates reformers are expensive) - **Other operating expenses**: 6–10% of revenue - **Net operating margin**: 15–25% of revenue at maturity (before debt service) > 💼 **Validate any Pilates, yoga, or barre franchise [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) before signing.** Our $49 brand reports surface actual Item 19 distributions, member retention data, and the operational gotchas (instructor recruitment, real estate selection, competitive density) that brochures gloss over. [See available boutique fitness franchise reports →](https://vetmyfranchise.com/c/claude/franchises) ## Why Real Estate Drives This Category More Than Most Boutique fitness franchise economics depend heavily on real estate selection because: - **Premium customer pools** concentrate in specific demographics (typically $80,000+ household income, education-attainment-skewed neighborhoods) - **Foot traffic visibility** drives walk-in trial and brand awareness - **Retail co-tenancy** matters — boutique fitness performs better adjacent to grocery, beauty, and lifestyle retail than near big-box anchors - **Parking accessibility** affects customer adherence to class schedules Buyers should validate real estate selection criteria carefully and avoid territory commitments to markets where high-quality real estate matching the brand’s customer profile is unavailable. For brand-specific comparisons, see our existing [pure barre vs club pilates franchise](https://vetmyfranchise.com/c/claude/blog/pure-barre-vs-club-pilates-franchise) and [f45 vs orangetheory fitness franchise](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise) head-to-heads. For broader fitness franchise context, pair this with [best fitness franchises under 200k](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k), [fitness franchise cost comparison](https://vetmyfranchise.com/c/claude/blog/fitness-franchise-cost-comparison), and [best franchises for women entrepreneurs](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-women-entrepreneurs). Hiring and instructor management is covered in [franchise employee hiring management guide](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide). ## The Bottom Line for 2026 Buyers If you have $403,000–$1,030,000 in capital and your target market supports premium boutique fitness, [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) is the validated category leader. It is also the most expensive entry in this guide, and the $978,300 Item 19 median is what justifies the gap. The reformer Pilates positioning, operational systems, and unit economics produce franchise opportunities that competitors struggle to match. If your capital is in the $293,000–$488,000 range and you want yoga-specific positioning, YogaSix offers credible national franchise system with hot yoga and broader yoga programming. If your capital is in the $195,000–$378,500 range and you want adjacent positioning to Pilates, StretchLab offers the growth-stage assisted-stretching franchise with strong operational systems. If you’re targeting barre specifically in supportive markets, [Barrel House](https://vetmyfranchise.com/c/claude/franchise/barrel-house-enterprises-llc) Enterprises or [Neighborhood Barre](https://vetmyfranchise.com/c/claude/franchise/neighborhood-barre-franchising-llc) offer barre-focused franchise opportunities. Whatever brand you pick, validate at least 6–8 existing franchisees with at least 3 in markets demographically similar to yours. Boutique fitness economics depend on local market dynamics, real estate quality, and competitive landscape in ways the FDD doesn’t fully capture. Pure Barre and CorePower Yoga, while not currently in our deep-research database, are credible competitive considerations in this category — particularly in markets where territory opportunities arise. Both brands operate similar economic structures to the franchises covered above. ## Brands mentioned in this post - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best pilates franchises 2026yoga franchise opportunitiesclub pilates franchise costyogasix franchisestretchlab franchisebarre franchisepilates studio franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How profitable is a Pilates or yoga franchise? Mature Pilates and yoga franchises typically run 15–25% net operating margins on revenue of $500,000–$1.0M. Top-quartile units in established suburban markets exceed $1.2M with owner take-home of $150,000–$300,000 after debt service. Club Pilates specifically commands category-leading unit economics among reformer Pilates franchises. ### What's the cheapest Pilates or yoga franchise to start? StretchLab has the lowest floor at $194,800–$378,500, followed by YogaSix at $293,000–$487,500. Club Pilates is no longer an entry-capital play: its 2026 FDD discloses $403,289–$1,029,811. Smaller specialty brands (Pilates Republic, Pilates Addiction, Neighborhood Barre) often offer entry capital under $250,000. ### Do you need to be a Pilates instructor to own a franchise? No, and most franchisors specifically prefer business-owner buyers over instructors. The owner's role is operations management, marketing, instructor recruitment, and member retention — not personally teaching classes. Owners with operations, sales, or franchise-business backgrounds typically transition into the role faster than instructor-buyers. ### How much can a Club Pilates owner make? Club Pilates's 2026 FDD Item 19 reports a $978,300 median across 1,005 qualified studios, with the 25th percentile at $814,100 and the 75th at $1,138,100. Net owner income at the median revenue level lands $150,000–$245,000 after the 8% royalty, 2% advertising fund, instructor wages, and operating expenses but before debt service. Multi-unit operators with 3–5 studios commonly exceed $400,000 in annual owner net income. ### How long until a yoga or Pilates franchise is profitable? Most franchises in this category reach cash-flow breakeven between months 12 and 24, depending on membership ramp and instructor recruitment success. Year 1 typically focuses on building the founding member base and developing instructor team. Year 2 is when membership compounds and unit economics meaningfully improve. --- title: "Best Franchises for Multi-Unit Ownership | 2026 Picks" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Research publisher: VetMyFranchise datePublished: 2026-04-24 dateModified: 2026-08-04 keywords: multi-unit franchise, best franchises, franchise investment, franchise opportunities canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-multi-unit-ownership about: multi-unit franchise category: blog wordCount: 3257 readingTime: 16 min crawledAt: 2026-08-20 11:03:42 lastVerified: 2026-08-20 11:03:42 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises for Multi-Unit Ownership | 2026 Picks ## Summary The best franchises for multi-unit ownership in 2026, ranked by industry with per-unit investment, adoption rates, and the FDD markers that matter. ## Key facts - Not every franchise translates well to a multi-unit model. - The characteristics above describe the concept. - Every brand on this list is only as good as your ability to operate it without being on site. - QSR dominates multi-unit franchising. - The table below pulls the brands named above into one view. Quick answer Wingstop tops the 2026 multi-unit list at $300K-$800K per unit, alongside Jersey Mike's and Popeyes in QSR. The rankings span five industries, from $80K-$200K home-service territories (Mosquito Joe) to $1M-$5M Planet Fitness gyms, screened on Item 19 consistency, area-development terms, and how many units one manager can oversee. The best franchises for multi-unit ownership are systemized, capital-efficient concepts where one operator can run several locations without living inside any of them. In practice that points to a short list of proven categories: quick-service restaurants (Wingstop, Jersey Mike’s, Popeyes), fitness ([Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc), [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc)), home services ([Mosquito Joe](https://vetmyfranchise.com/c/claude/franchise/mosquito-joe-spv-llc), TWO MAIDS), automotive (Take 5, Christian Brothers), and pet care ([Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc), Scenthound). What unites the winners is a repeatable operating model, tight variance in unit economics, and area development terms that reward operators for opening more. Multi-unit ownership now accounts for over half of all franchise units operating in the United States. Franchisors actively recruit operators who can open multiple locations, and the brands best suited for this model share a set of common traits that show up clearly in their Franchise Disclosure Documents. This guide identifies the industries and specific brands that work best for multi-unit portfolios in 2026, along with the FDD data points you need to evaluate before signing an area development agreement. ## What Makes a Franchise Work for Multi-Unit Ownership Not every franchise translates well to a multi-unit model. A brand might produce strong single-unit returns but collapse operationally when one owner tries to run four locations. The franchises that thrive under multi-unit ownership share four characteristics. **Systemized operations** sit at the top. The best multi-unit brands run on documented playbooks, standardized technology stacks, and centralized supply chains that reduce the decision-making burden on individual locations. When a franchise requires heavy owner involvement at the unit level (think owner-operator restaurants or highly specialized services), scaling becomes impractical. **Strong unit economics** matter more in multi-unit than single-unit ownership. Your third and fourth locations need to perform at or near the level of your first. Brands with consistent revenue ranges across their system (low variance between top and bottom quartile in [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise)) indicate a repeatable model rather than one dependent on individual operator talent. **Manageable buildout costs and timelines** determine how quickly you can deploy capital. A franchise requiring 12-18 months of construction and $1.5M in buildout per unit limits your ability to scale within a typical 5-year area development window. The strongest multi-unit brands keep buildout under 6 months and offer modular or conversion-friendly real estate strategies. **Scalable staffing models** round out the list. Franchises that operate with smaller crews per unit, or that centralize functions like scheduling, marketing, and accounting, allow a single area manager to oversee 4-6 locations without burning out. High-turnover, labor-intensive models create exponential management headaches as you add units. ## Semi-Absentee Operations, ADA Terms, and Management Overhead The characteristics above describe the concept. Three structural questions determine whether _you_ can actually scale it. **Can it run semi-absentee?** The brands portfolio operators love are the ones designed to run without the owner behind the counter. Membership-based fitness, home services dispatched from a small office, and drive-through automotive all lend themselves to a general-manager-led model where the owner reviews numbers weekly instead of working shifts. Concepts that hinge on a charismatic owner-operator rarely survive the jump to a fourth or fifth location. If you plan to keep a day job or build a portfolio while managing other units, confirm the franchisor explicitly permits absentee or semi-absentee ownership before you sign. Many do not. **What do the area development agreement (ADA) terms actually commit you to?** An ADA typically locks in a set number of units, a buildout schedule (often 3-5 years), and a protected development area in exchange for a development fee. Read the schedule carefully: a missed opening deadline can trigger default and forfeit your remaining territory rights. The upside is that ADAs usually discount franchise fees on later units and reserve the surrounding market so a competitor-operator can’t box you in. Because the development fee and staged buildout front-load your capital needs, most multi-unit operators pair an ADA with an [SBA loan structured across multiple units](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-financing-sba-loans-guide) rather than paying cash per location. **How much management overhead does each added unit create?** This is where portfolios quietly break. A concept with a clean span of control (one area manager per 4-6 units, a centralized back office, low headcount per location) scales close to linearly. A labor-heavy concept adds a supervisory layer every few units, and margin leaks into middle management. Before you commit, model the org chart at 3 units, 6 units, and 10 units. Most serious operators also hold each location in its own entity under a parent company, both to contain liability and to simplify future sales; our [multi-unit LLC structure guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-llc-structure) walks through the common holding-company setups. The section below puts real numbers on that management layer. ## What It Costs to Run Units You Are Not Standing In Every brand on this list is only as good as your ability to operate it without being on site. Three cost lines decide that, and all three belong in your model before you shortlist a single franchise. **The first general manager.** Hire before you need one. The window most operators settle on is six to nine months ahead of the second opening, which leaves time to recruit, train, and verify the manager can hold the original location alone. Base salary runs $45K-$65K depending on market, concept, and unit volume, with a performance bonus of 10-20% of base tied to controllable profit rather than revenue. A manager whose bonus depends on labor and food cost watches those lines like an owner does. Hire for management aptitude over industry experience: hotel front-desk managers, retail store managers, and assistant managers from competing brands routinely outperform internal promotions, which fail at a rate near 60% in the first year. **The district manager, somewhere around four to six units.** At one to three locations you are the oversight layer yourself, visiting each unit a few times a week. At four or five that model breaks. You cannot get to every location often enough to hold standards, and your general managers start making autonomous calls without a check. A district or area manager runs $70K-$90K base plus a 15-25% bonus on aggregate portfolio results, or roughly $95K-$130K fully loaded with benefits. That expense only pencils out spread across four to six units, which is exactly why the jump from two locations to three is where most scaling attempts stall: too many units to run on personal oversight, too few to carry a supervisory layer. **The reporting stack.** Four systems that talk to each other: a cloud POS that aggregates sales and labor across every location in one view, a scheduling platform that forecasts labor cost against projected revenue before the schedule publishes, a communication tool with per-location channels, and a single financial dashboard that auto-generates a daily flash report. Budget $300-$600 per location per month. Operators who review daily numbers catch labor and food-cost drift weeks earlier than those waiting on a monthly P&L, which is the whole point of paying for the stack. Two readiness gates sit in front of all of it. Unit one should show six consecutive months of positive cash flow after royalties, rent, payroll, and a manager’s salary, which for most concepts means 12 to 18 months of operation. And you want $75K-$150K in liquid working capital per additional unit beyond the buildout budget, because a new location typically operates at a loss for its first six to twelve months and the ramp at unit two temporarily pulls portfolio profitability down 15-25%. ## Best Industries for Multi-Unit Franchise Ownership ### Quick-Service Restaurants (QSR) QSR dominates multi-unit franchising. The operational model is built around speed, consistency, and repetition: exactly what scales. Several major QSR brands report that 60-75% of their franchisees own multiple units. **[Chick-fil-A](https://vetmyfranchise.com/c/claude/franchise/chick-fil-a-inc)** is the notable exception: its operator model is single-unit by design. But brands like **[Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)**, **Jersey Mike’s**, and **[Popeyes](https://vetmyfranchise.com/c/claude/franchise/popeyes-louisiana-kitchen-inc)** have built their growth strategies around multi-unit operators. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s small footprint (1,200-1,800 sq ft), limited menu, and strong AUV make it a favorite among portfolio builders. Jersey Mike’s has seen rapid expansion driven largely by multi-unit deals, with a lower buildout cost than many QSR competitors. Popeyes continues to offer territory availability in secondary and tertiary markets where multi-unit deals of 5-10 units remain common. The tradeoff: QSR requires significant upfront capital. Expect $300K-$800K per unit in [total investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) depending on the brand, real estate market, and whether you are building new or converting an existing space. ### Fitness and Wellness Fitness ranks second in multi-unit adoption, driven by membership-based recurring revenue and relatively lean staffing. Once a location reaches its member threshold, it generates predictable monthly cash flow with minimal variable cost. **[Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc)** leads here, with the vast majority of its locations owned by multi-unit operators running 10, 20, or even 50+ units. The brand’s low-price, high-volume model creates consistent unit economics. **[Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc)** and **Orangetheory Fitness** represent the boutique end, where per-member revenue runs higher and class-based scheduling keeps labor costs controlled. Both brands actively sell area development agreements, typically in blocks of 3-5 studios. Investment per unit ranges from $150K-$500K for boutique concepts up to $1M-$5M for full-size gyms like [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc), where real estate and equipment drive the cost. ### Home Services Without storefronts to lease and build out, home services franchises cut multi-unit entry costs by 50-70% compared to brick-and-mortar concepts. Your investment goes toward vehicles, equipment, and marketing. Adding a second or third territory doesn’t mean signing another commercial lease; it means adding another crew and van. **[Mosquito Joe](https://vetmyfranchise.com/c/claude/franchise/mosquito-joe-spv-llc)**, **TWO MAIDS** (formerly [Two Maids](https://vetmyfranchise.com/c/claude/franchise/two-maids-franchising-llc) & A Mop), and **The [Junkluggers](https://vetmyfranchise.com/c/claude/franchise/junkluggers-franchising-spe-llc)** represent different verticals within home services, but all share the same multi-unit advantage: each territory runs from a small warehouse or even a home office, with field crews deployed to customer locations. Adding a second or third territory often means adding another crew and vehicle, not signing another commercial lease. Per-territory investment typically falls between $80K-$200K. Several home services brands report that more than half of their franchise owners hold rights to multiple territories. ### Automotive Services Oil changes, tire rotations, detailing, and collision repair follow demand curves that hold steady regardless of the economy. People maintain their cars regardless of the economy, which gives automotive franchises a recession-resistant profile attractive to multi-unit operators. **[Take 5](https://vetmyfranchise.com/c/claude/franchise/take-5-franchisor-spv-llc) Oil Change** has grown aggressively through multi-unit development, with its drive-through-only model reducing labor and real estate requirements compared to full-service shops. **[Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation)** targets a higher-end customer with a full-service model and has built a reputation for strong franchisee satisfaction scores. **[Meineke](https://vetmyfranchise.com/c/claude/franchise/meineke-franchisor-spv-llc)** continues to offer multi-unit opportunities at a moderate investment level with a broad service menu. Investment runs $200K-$500K per location for express models and $400K-$700K for full-service automotive centers. ### Pet Services Americans spent over $150 billion on their pets in 2025, and the pet services franchise sector has responded with scalable, multi-unit-friendly concepts. Grooming, daycare, and veterinary services all benefit from recurring customer relationships and strong retention rates. **[Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc)** leads the pet daycare/boarding category for multi-unit operators, with a model that combines daycare, boarding, and grooming revenue streams in a single location. **[Scenthound](https://vetmyfranchise.com/c/claude/franchise/scenthound-franchising-llc)** has carved out a niche in wellness-focused dog grooming with a membership model that creates recurring revenue, a key trait for multi-unit scalability. Both brands offer area development agreements and report growing multi-unit adoption. Per-unit investment ranges from $200K-$800K depending on facility size and whether the concept is retail-format or requires dedicated outdoor space. ## Featured Multi-Unit Franchise Brands at a Glance The table below pulls the brands named above into one view. Investment figures are the industry ranges cited in each section, not brand-specific quotes. Treat them as directional and confirm against each franchisor’s Item 7. | Brand | Category / model | Est. investment per unit | Why it suits multi-unit | | --- | --- | --- | --- | | Wingstop | QSR, small-footprint takeout | $300K - $800K | Compact box, limited menu, strong reported AUV | | Jersey Mike’s | QSR subs | $300K - $800K | Lower buildout than most QSR; growth driven by ADAs | | Popeyes | QSR | $300K - $800K | Open territory in secondary/tertiary markets; 5-10 unit deals | | Planet Fitness | High-volume gym | $1M - $5M | Recurring memberships; most units are multi-unit owned | | Club Pilates | Boutique fitness | $150K - $500K | Membership revenue; ADAs sold in 3-5 studio blocks | | Mosquito Joe | Home services | $80K - $200K / territory | No storefront; scale by adding a crew and van | | Take 5 Oil Change | Automotive express | $200K - $500K | Drive-through-only; low labor and real estate load | | Christian Brothers Automotive | Full-service auto | $400K - $700K | Recession-resistant demand; strong franchisee satisfaction | | Camp Bow Wow | Pet daycare/boarding | $200K - $800K | Stacked daycare/boarding/grooming revenue; recurring clients | | Scenthound | Dog grooming | $200K - $800K | Membership model creates recurring, predictable revenue | _The $1M+ tier (full-size gyms and similar) carries heavier real estate and equipment costs; if you are shopping that bracket specifically, weigh it against our roundup of [$1M-plus franchises with strong Item 19 numbers](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) before committing capital._ ## Multi-Unit Franchise Comparison by Industry | Industry | Typical Investment Per Unit | Multi-Unit % | Avg Revenue Per Unit | Scalability Rating | | --- | --- | --- | --- | --- | | QSR | $300K - $800K | 60-75% | $800K - $2M+ | Strong | | Fitness & Wellness | $150K - $500K (boutique) | 50-70% | $400K - $1.2M | Strong | | Home Services | $80K - $200K | 40-55% | $300K - $800K | Excellent | | Automotive Services | $200K - $700K | 35-50% | $500K - $1.5M | Solid | | Pet Services | $200K - $800K | 30-45% | $400K - $1M | Solid | _Revenue ranges reflect publicly available system-wide data and the FDD disclosures parsed in VetMyFranchise’s database of 2,000+ FDDs. Individual unit performance varies. Always review the specific brand’s Item 19 for actual financial performance representations, and see the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics) for category-level medians across the full database._ > **Considering a franchise in this category?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. Still building a shortlist? [Browse 2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises). ## What to Look for in the FDD When Evaluating Multi-Unit Potential Three sections of the [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) (the presale disclosure required by the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)) carry the most weight for multi-unit evaluation. Skipping any of them is a mistake. **Territory rules (Item 12)** define whether you receive an exclusive or protected territory and how the franchisor handles encroachment. For portfolio operators, the central question is whether your territories are contiguous and whether the franchisor reserves the right to place competing units (including non-traditional locations, ghost kitchens, or delivery-only models) inside your area. A weak Item 12 can undermine the economics of your entire portfolio. Read more in our [territory rights breakdown](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained). **Financial Performance Representations (Item 19)** is where the numbers live. Not all franchisors provide an Item 19, and those that do vary widely in what they disclose. Look for system-wide median revenue (not just averages, which top performers skew), cost of goods, labor percentages, and EBITDA where available. The gap between top-quartile and bottom-quartile performance tells you how dependent the model is on operator skill versus system strength. We cover this analysis in depth in our [unit economics guide](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis). **Outlets and Franchisee Information (Item 20)** reveals the franchise system’s growth trajectory and churn. Calculate the net unit growth rate (openings minus closures, transfers, and terminations) over the past three years. A brand adding units at 8-10%+ annually with low churn signals strong multi-unit demand and franchisee satisfaction. A system losing 5%+ of its units per year is a red flag regardless of how attractive the brand looks on the surface. Beyond these three items, ask the franchisor directly for the percentage of current franchisees who own several locations and whether they offer area development agreements with reduced franchise fees. Both data points tell you how committed the brand is to the multi-location model. ## Building Your Multi-Unit Strategy The decision between industries and brands starts with your capital position, operational experience, and market. An operator with $2M in deployable capital and restaurant management experience will approach this differently than someone with $500K and a background in sales. Start by mapping your target geography and identifying which brands have open territories. Then pull the FDDs for your top 3-5 candidates and compare them across the metrics above. Speak with existing multi-unit franchisees (Item 20 provides their contact information) and ask pointed questions about unit-level profitability at scale, management structure, and franchisor support for multi-unit operators. If you are weighing whether multi-unit ownership is right for you at all, our [single-unit vs. multi-unit comparison](https://vetmyfranchise.com/c/claude/blog/single-unit-vs-multi-unit-franchise) lays out the financial and lifestyle tradeoffs. For a deeper operational playbook, the [multi-unit ownership guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) covers management structures, financing strategies, and scaling timelines. Want to dig into specific franchise FDDs? [Search 2,000+ franchises on VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises) and filter by industry, investment range, and unit count to find multi-unit candidates that match your budget and market. The franchise brands that work best for multi-unit ownership in 2026 are the ones that have built their systems around it: documented operations, consistent unit economics, efficient buildout, and lean staffing. The FDD tells you whether a brand actually delivers on those promises or just markets them. Read it before you sign. ## Brands mentioned in this post - [Christian Brothers Automotive](https://vetmyfranchise.com/c/claude/franchise/christian-brothers-automotive-corporation) - [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) - [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) - [Mosquito Joe](https://vetmyfranchise.com/c/claude/franchise/mosquito-joe-spv-llc) - [Scenthound](https://vetmyfranchise.com/c/claude/franchise/scenthound-franchising-llc) - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) - [Take 5](https://vetmyfranchise.com/c/claude/franchise/take-5-franchisor-spv-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Using Your 401(k) to Buy a Franchise: ROBS Explained — Benefits, Risks, and Realities [Learn more →](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide) #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) multi-unit franchisebest franchisesfranchise investmentfranchise opportunities About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How many units should a first-time multi-unit owner start with? Most franchise consultants recommend proving the model with 1-2 units before scaling. However, many QSR and fitness brands offer area development agreements starting at 3 units with a defined buildout schedule of 3-5 years. Starting with a smaller commitment lets you validate unit economics, train your management team, and work out operational kinks before committing additional capital. ### What is the minimum net worth required for multi-unit franchise ownership? Net worth requirements vary by brand and industry. QSR multi-unit deals typically require $1M-$5M in net worth and $500K-$1M in liquid capital. Home services and service-based franchises set the bar lower, often requiring $300K-$500K net worth and $100K-$200K liquid. These thresholds are outlined in Item 7 and the franchisor's qualification criteria. ### Do multi-unit owners get discounted franchise fees? Yes, most franchisors offer reduced franchise fees for additional units under an area development agreement. Discounts typically range from 10-25% off the standard franchise fee for units 2 and beyond. Some brands waive the fee entirely for units after the fifth location. These terms are spelled out in the area development agreement and referenced in Item 5 of the FDD. ### Which franchise industries have the highest failure rate for multi-unit owners? Full-service restaurants carry the highest risk for multi-unit operators due to complex operations, high labor costs, and thin margins. Retail franchises in discretionary spending categories also show elevated closure rates. Item 20 of any FDD reveals the number of units that closed, transferred, or were terminated — compare this against total units to calculate churn rate before signing. ### When should I hire a general manager if I plan to own multiple units? Before the second location opens, not after. The workable window is six to nine months ahead of that second opening, which leaves time to recruit, train, and confirm the manager can run the original unit without you in the building. Budget $45,000 to $65,000 in base salary plus a 10-20% bonus tied to controllable profit rather than top-line revenue. Operators who wait until they are already split across two locations usually damage performance at both. ### How much working capital do I need per additional franchise unit? Plan on $75,000 to $150,000 in liquid working capital per new unit, on top of the franchise fee and buildout costs disclosed in Items 5 and 7. New locations commonly run at a loss for their first six to twelve months, and the ramp at unit two typically pulls overall portfolio profitability down 15-25% before it recovers. Funding that gap out of an existing unit's operating account is the most common way multi-unit expansions come apart. ### How do I evaluate territory availability for multi-unit expansion? Start with Item 12 of the FDD, which outlines territorial rights and any exclusive or protected territory provisions. Ask the franchisor for a territory map showing open and committed territories in your target market. Brands with fewer than 1,000 total units in the U.S. generally offer more territory flexibility, while saturated brands may force you into secondary markets. --- title: "Best Sandwich & Sub Franchises 2026: 23 Brands Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-08-04 keywords: best sandwich franchises 2026, best sub franchise, sub shop franchise opportunities, jersey mikes franchise, jimmy johns franchise cost, firehouse subs franchise, subway franchise, mcalisters deli franchise, capriottis franchise, potbelly franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises about: best sandwich franchises 2026 category: blog wordCount: 4035 readingTime: 20 min crawledAt: 2026-08-20 11:03:45 lastVerified: 2026-08-20 11:03:45 site: https://vetmyfranchise.com/c/claude/ --- # Best Sandwich & Sub Franchises 2026: 23 Brands Compared ## Summary Best sandwich and sub franchises for 2026 on real FDD data: Jersey Mike's $1.31M median AUV vs Jimmy John's $955,639, plus Item 7 costs and closure rates. ## Key facts - The category is not one market. - All figures from Item 5, 6, and 7 of each brand’s current FDD. - This is where the category separates. - Revenue tells you what the survivors earn. - Subway generates more search volume than every other brand on this page combined, so it deserves a direct answer. Quick answer Jersey Mike's posts the highest disclosed unit volume of any sub franchise: a $1,305,850 median across 2,606 traditional franchised restaurants, on a $436,176 to $1,162,228 investment and a $20,000 franchise fee (2026 FDD). Jimmy John's median is $955,639 and Firehouse Subs $986,432. Subway remains the largest system at 18,773 U.S. franchised outlets but publishes no Item 19 at all and closed 1,076 franchised units in fiscal 2025. [Jersey Mike’s](https://vetmyfranchise.com/c/claude/franchise/a-sub-above-llc) is the best sandwich franchise for most 2026 buyers on the numbers that matter: a **$1,305,850 median unit volume** across 2,606 traditional franchised restaurants, a 0.19% annual closure rate, and growth from 2,647 to 3,201 franchised outlets over two fiscal years. It costs $436,176 to $1,162,228 to open with a $20,000 franchise fee and a 6.5% royalty on gross receipts. [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc) is the value play at a $955,639 median and a $366,200 traditional entry. [Firehouse Subs](https://vetmyfranchise.com/c/claude/franchise/firehouse-of-america-llc) sits between them at $986,432. And [Subway](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc), still the largest system in the country at 18,773 franchised outlets, publishes no Item 19 at all and closed 1,076 franchised units in a single year. Every figure on this page comes from Item 5, 6, 7, 19, or 20 of a current [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). Nothing here is a projection. _Comparing brands yourself? Browse all [sandwich and sub franchise opportunities](https://vetmyfranchise.com/c/claude/franchises/food/sandwiches-subs) with live FDD data._ ## The Sandwich and Sub Franchise Market in 2026 The category is not one market. It splits into five formats with genuinely different economics: - **Cold sub shops** (Subway, Jersey Mike’s, Jimmy John’s, Cousins Subs, Mr. Goodcents, PrimoHoagies) run the leanest kitchens in food service, which is why several open under $400,000 - **Hot sub and toasted concepts** (Firehouse Subs, Quiznos, Potbelly, Schlotzsky’s) add ovens and higher ticket - **Cheesesteak concepts** (Charleys Philly Steaks, Steak Escape, Penn Station) run grill lines and lean heavily on mall, strip, and Walmart real estate - **Delis with dine-in** (McAlister’s, Jason’s Deli, Newk’s, Which Wich) carry the highest build-out cost in the sub-adjacent group - **Bakery-cafes** (Panera Bread) are a different business that happens to sell sandwiches Capital ranges from $122,800 at the bottom to $4,619,880 at the top, a 38-fold spread inside one category label. Disclosed unit volume runs from a $368,576 median at Quiznos to a $2,541,217 average at Panera, roughly seven-fold. Those two spreads do not line up, which is the entire reason to read the FDD instead of the brochure. ## Every Sandwich Franchise: Investment, Fees, and Royalties All figures from Item 5, 6, and 7 of each brand’s current FDD. Filings are 2026 unless noted. | Brand | Franchised units | Item 7 initial investment | Franchise fee | Royalty | Ad fund | | --- | --- | --- | --- | --- | --- | | Subway | 18,773 | $263,000-$630,000 traditional; $227,000-$458,000 non-traditional | $15,000 | 8% | 4.5% | | Jersey Mike’s | 3,201 | $436,176-$1,162,228 | $20,000 | 6.5% of gross receipts | 1.0%-5.0% | | Jimmy John’s | 2,737 | $366,200-$733,500 traditional; $206,200-$686,000 non-traditional | $35,000 | 6% | 2.25%-4.5% | | Firehouse Subs | 1,249 | $405,350-$1,577,750 across three formats | $20,000 | 6% | 4.0%-5.0% | | Panera Bread | 1,106 | $1,223,702-$4,619,880 | $50,000 | 5% | 4% national + 2% local + 0.4% admin | | Charleys Philly Steaks | 766 | $203,492-$1,004,447 | $24,500 | greater of $300 or 6% of gross sales | 1.0%-4.0% | | McAlister’s Deli | 533 | $910,175-$1,816,100 endcap; $1,282,525-$2,575,400 freestanding | $35,500 | 5% of net sales | 2% of net sales | | Penn Station East Coast Subs | 321 | $440,600-$833,200 | $25,000 | 2%-8%, tiered on monthly net sales | 2% national + up to 2% local | | Schlotzsky’s | 267 | $675,365-$2,261,500 | $35,500 | 6% of net sales | 4.0%-5.0% | | Quiznos (2025 FDD) | 151 | $213,900-$648,800 | $5,000 | 5% | 4.0%-5.0% | | Which Wich (2025 FDD) | 150 | $253,500-$822,250 | $30,000 | 6% of gross sales | 1.0%-3.0% | | Togo’s | 142 | $502,325-$715,900 | $49,500 | 5% | not disclosed in our data | | Capriotti’s Sandwich Shop (2025 FDD) | 138 | $145,000-$935,000 | $40,000 | 6.0%-7.0% | 2.0%-4.0% | | Potbelly | 122 | $628,938-$999,371 | $40,000 | 6% | 3% brand fund, may rise to 4% | | PrimoHoagies | 114 | $366,240-$652,496 | $25,000 | 6% of gross sales | 3% of gross sales | | Jason’s Deli | 73 | $1,706,691-$2,516,291 | $35,000 | 4% of gross sales | 0.5%-2.0% | | Newk’s Eatery | 69 | $927,500-$1,323,350 | $40,000 | 5% of net sales | 1.75% of net sales | | Mr. Goodcents | 62 | $311,139-$505,910 | $30,000 | 6% of gross sales | 3.5% | | Lee’s Sandwiches | 50 | not disclosed in our data | $60,000 | 6.9% | 2% | | Deli Delicious (2025 FDD) | 42 | $122,800-$251,500 | $30,000 | 6% | not disclosed in our data | | Cousins Subs | 34 | $464,700-$1,164,500 | $25,000 | 6% | 2% | | Earl of Sandwich (2025 FDD) | 26 | $303,000-$639,500 | $25,000 | 6% of gross sales | 1.0%-5.0% | | Steak Escape (2025 FDD) | 19 | $239,500-$828,500 | $25,000 | 6% of gross sales | 0.5%-3.0% | _Unit counts are franchised outlets at the most recent fiscal year end disclosed in Item 20. Investment ranges are Item 7 totals; where a brand discloses multiple facility types, both endpoints are shown or the full cross-format span is noted._ Three things stand out in that table. **Subway has the highest fee load in the category and the lowest franchise fee.** Eight percent royalty plus 4.5% advertising is 12.5% of gross sales off the top, against a 6% plus 3% norm elsewhere. The $15,000 franchise fee is the cheapest door in the group, which is a different thing from the cheapest business. **Franchise fee tells you almost nothing.** Quiznos charges $5,000 and Lee’s Sandwiches charges $60,000. That twelve-fold spread has no relationship to unit volume, closure rate, or build-out cost. The fee is a rounding error against a $400,000 investment; the royalty is what compounds. **Two brands price their build-out into a different league.** Panera Bread and Jason’s Deli both start above $1.2 million. Neither is a sub shop in any operational sense, and both should be underwritten as full restaurant investments. ## Item 19: What Sandwich Franchises Actually Earn This is where the category separates. Fourteen of the 23 brands disclose usable revenue figures. Ranked by median unit volume: | Brand | Median unit volume | Average | Units in sample | Share at or above average | | --- | --- | --- | --- | --- | | Panera Bread | not disclosed | $2,541,217 | 1,073 franchisee-owned | 45.0% | | McAlister’s Deli | $1,764,584 | $1,868,219 | 477 traditional | 44% | | Jersey Mike’s | $1,305,850 | $1,367,578 | 2,606 traditional | 44% | | Potbelly | $1,195,243 | $1,344,085 | 97 | not disclosed | | Schlotzsky’s | $1,084,731 | $1,157,190 | 201 drive-thru | 44% | | Firehouse Subs | $986,432 | $1,035,521 | 704 | not disclosed | | Jimmy John’s | $955,639 | $1,007,437 | 2,581 | 48.0% | | PrimoHoagies | $871,099 | $927,299 | 81 | not disclosed | | Cousins Subs | $831,786 | not disclosed | 29 traditional | not disclosed | | Capriotti’s (2025 FDD) | $803,670 | $835,358 | 120 | not disclosed | | Mr. Goodcents | $798,955 | not disclosed | 49 | not disclosed | | Penn Station | $779,031 | $819,903 | 317 | 43.53% | | Charleys Philly Steaks | $743,169 | $845,372 | 713 | 41.23% | | Quiznos (2025 FDD) | $368,576 | $393,944 | 95 | not disclosed | | Subway | none disclosed | none disclosed | none | Subway makes no Item 19 | _Source: Item 19 of each brand’s current FDD. Newk’s Eatery’s disclosed $2,189,167 average covers company-owned restaurants, not franchised units, so it is excluded from this ranking. Jason’s Deli, Togo’s, Which Wich, Lee’s Sandwiches, Earl of Sandwich, Deli Delicious, and Steak Escape publish no usable franchised revenue figures in our current extraction._ ### The averages are hiding half the system Look at the last column. At Jersey Mike’s, McAlister’s, and Schlotzsky’s, only 44% of units reached the average. At Charleys, 41.23%. At Penn Station, 43.53%. Panera’s franchisee-owned average was reached by 45.0% of cafes. That pattern is not an accident. When fewer than half the units clear the mean, the distribution has a long right tail: a small number of very high performers pull the average above what a typical operator earns. This is why the median column matters more than the average column, and why [the gap between average and median Item 19 figures](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) is the first thing to check in any disclosure. The spread inside a single brand is wider still. Jimmy John’s discloses a range of $159,965 to $3,046,579 across 2,581 restaurants. Jersey Mike’s runs $512,332 to $3,228,616. McAlister’s runs $635,548 to $4,932,405. Panera’s franchisee-owned cafes run $463,536 to $5,876,372. In every one of those systems, the bottom unit earns less than a fifth of the top unit, doing the same job with the same brand. ### Format matters more than brand at Charleys [Charleys Philly Steaks](https://vetmyfranchise.com/c/claude/franchise/charleys-philly-steaks) is the clearest example in the category of why “average unit volume” is a near-useless number without a location type attached. Its 2026 Item 19 breaks 713 franchised restaurants out by real estate: | Charleys format | Average gross sales | Median | Units | | --- | --- | --- | --- | | Airport | $1,300,879 | $1,271,990 | 3 | | Mall food court | $1,011,314 | $947,967 | 310 | | Strip center | $803,888 | $691,658 | 194 | | Military base | $664,875 | $599,993 | 65 | | Walmart | $611,127 | $581,548 | 141 | | All restaurants | $845,372 | $743,169 | 713 | _Source: Charleys Philly Steaks 2026 FDD, Item 19, calendar year 2025._ A mall food court Charleys and a Walmart Charleys are separated by $400,000 in annual sales. Signing the brand and then finding a site is backwards. > **Vetting a specific sandwich brand?** Our $49 FDD analysis parses the Item 19 distribution, fee footnotes, litigation history, and closure math into a buyer verdict for your capital and market. [See a sample report](https://vetmyfranchise.com/c/claude/fdd-analysis-example) or compare the whole category on [live FDD data](https://vetmyfranchise.com/c/claude/franchises/food/sandwiches-subs). ## Item 20: Which Sub Franchises Are Actually Growing Revenue tells you what the survivors earn. Item 20 tells you how many did not survive. Closures below are terminations plus non-renewals plus outlets that ceased operations for other reasons, excluding outlets the franchisor reacquired. | Brand | Units at start | Opened | Closed | Annual closure rate | Net change | | --- | --- | --- | --- | --- | --- | | Jason’s Deli | 73 | 0 | 0 | 0.00% | 0 | | Jersey Mike’s (FY2024) | 2,647 | 319 | 5 | 0.19% | +308 | | Penn Station | 321 | 4 | 4 | 1.25% | 0 | | Jimmy John’s | 2,647 | 123 | 33 | 1.25% | +90 | | Potbelly | 102 | 22 | 2 | 1.96% | +20 | | McAlister’s Deli | 524 | 25 | 11 | 2.10% | +9 | | Firehouse Subs | 1,206 | 73 | 30 | 2.49% | +43 | | Panera Bread | 1,105 | 33 | 32 | 2.90% | +1 | | Newk’s Eatery | 66 | 5 | 2 | 3.03% | +3 | | Charleys Philly Steaks | 744 | 45 | 23 | 3.09% | +22 | | PrimoHoagies | 112 | 11 | 4 | 3.57% | +2 | | Subway | 19,502 | 499 | 1,076 | 5.52% | -729 | | Cousins Subs | 36 | 0 | 2 | 5.56% | -2 | | Schlotzsky’s | 280 | 4 | 17 | 6.07% | -13 | | Quiznos (FY2024) | 154 | 7 | 11 | 7.14% | -3 | | Mr. Goodcents | 65 | 2 | 5 | 7.69% | -3 | | Earl of Sandwich (FY2024) | 29 | 0 | 3 | 10.34% | -3 | | Capriotti’s (FY2024) | 143 | 14 | 16 | 11.19% | -5 | | Steak Escape (FY2024) | 23 | 1 | 5 | 21.74% | -4 | | Which Wich (FY2024) | 187 | 5 | 42 | 22.46% | -37 | _Source: Item 20, Table 3 of each brand’s current FDD. Fiscal 2025 unless noted. Jersey Mike’s fiscal 2025 totals row does not parse cleanly in our extraction, so its fiscal 2024 row is shown; its franchised outlet count at 2025 year end was 3,201. Quiznos’ totals row is off by one outlet. Subway’s is off by four._ For context, the median franchise system across all industries closed 4.7% of its franchised units in its most recent fiscal year, and food and beverage systems ran a 3.8% median. See our [franchise failure rate analysis](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) for the full distribution across 858 reconciled FDDs. Eleven of the 20 sandwich brands above sit at or better than that 3.8% food-service median. Nine ended the year smaller than they started. **The three brands to scrutinize hardest.** Which Wich closed 42 of 187 franchised units in one year against 5 openings. Steak Escape closed 5 of 23. Capriotti’s closed 16 against 14 openings, meaning its system shrank in a year it was actively selling franchises. All three are still marketed as growth opportunities. The Item 20 tables say otherwise. **Cousins Subs opened zero franchised shops in all three fiscal years its FDD discloses,** going 48 to 41 to 36 to 34. That is not a slowdown, it is a stop. A regional brand with real customer loyalty can still be a fine business to buy into; a system that has sold no new units across three disclosed years is telling you the franchisor is not finding buyers who pencil the numbers. **Jersey Mike’s is the outlier in the other direction.** Opening 319 franchised restaurants in a single year while closing 5 is the strongest Item 20 profile in the category by a wide margin. ## The Subway Question Subway generates more search volume than every other brand on this page combined, so it deserves a direct answer. The 2026 FDD discloses: - **No Item 19 at all.** The document states that Subway does not make any representations about a franchisee’s future or past financial performance. There is no average, no median, no range. You cannot underwrite a Subway on published data. - **Franchised outlets falling every year:** 20,576 at the start of 2023, then 20,133, then 19,502, then 18,773 at the end of fiscal 2025. That is 1,803 net franchised units gone in three years. - **Zero company-owned outlets** in any of those three years, so the decline is entirely franchisee-side. - **In fiscal 2025 alone:** 499 openings against 4 terminations, 46 non-renewals, and 1,026 outlets that ceased operations for other reasons. - **12.5% off the top** in royalty plus advertising, the highest combined rate in the category. The counterargument is real: a $263,000 traditional build-out is well under Jersey Mike’s or Panera, brand recognition is total, and a system this large has thousands of resale opportunities where you can inspect actual books instead of relying on Item 19. Our fuller treatment is in [Subway franchise pros and cons](https://vetmyfranchise.com/c/claude/blog/subway-franchise-pros-and-cons) and [why Subway’s missing Item 19 matters](https://vetmyfranchise.com/c/claude/blog/subway-item-19-survivorship-bias-explained). But the framing has to be honest. Buying a Subway in 2026 means buying into a contracting system with no published unit economics, at the highest fee load in the category. That can still be the right deal at the right price for the right site. It is not the default choice it was a decade ago. ## The Only Sandwich Franchise That Shows You Its P&L Every brand above discloses revenue. One discloses costs. [Penn Station East Coast Subs](https://vetmyfranchise.com/c/claude/franchise/penn-station-inc) publishes a full Unit Financial Data Document in Item 19, covering all 317 franchised restaurants open for the whole of calendar 2025. It reports high, low, average, and median for net sales, every major cost line, operating income, and EBITDA: | Line | Average | Median | Highest | Lowest | | --- | --- | --- | --- | --- | | Net sales | $819,903 | $779,031 | $1,882,862 | $273,520 | | Food and paper | $197,024 | $185,352 | $457,445 | $72,712 | | Wages | $162,887 | $151,992 | $477,585 | $68,247 | | Rent | $50,364 | $48,790 | $107,835 | $19,940 | | Royalty | $60,975 | $61,526 | $150,499 | $475 | | Delivery | $40,337 | $37,036 | $164,659 | $288 | | Operating income | $173,674 | $152,133 | $590,414 | ($23,600) | | EBITDA | $101,722 | $81,181 | $486,408 | ($83,083) | _Source: Penn Station, Inc. 2026 FDD, Item 19, all 317 franchisee units open all of calendar 2025. EBITDA is after a general manager’s salary, payroll tax, and health insurance._ Read the bottom row carefully. The median Penn Station franchisee cleared **$81,181 in EBITDA on $779,031 in net sales**, about 10.4%, before debt service on a $440,600 to $833,200 investment. The best unit cleared $486,408. The worst lost $83,083. That single table is worth more than every “sandwich franchises are profitable” claim on the internet, because it is the only one in the category with a franchisor’s name and a state filing behind it. When you evaluate any other brand here, the honest move is to take its disclosed revenue and apply cost ratios in this shape, then check what survives. ## Best Sandwich Franchise by Capital Band **Under $250,000.** [Charleys Philly Steaks](https://vetmyfranchise.com/c/claude/franchise/charleys-philly-steaks) from $203,492 and [Quiznos](https://vetmyfranchise.com/c/claude/franchise/quiznos) from $213,900 are the realistic large-system entries; [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc) non-traditional opens at $206,200. Charleys grew by 22 franchised units in fiscal 2025 and discloses format-level revenue, which is rare at this price. Verify the site type before you sign, because a Walmart Charleys and a mall Charleys are different businesses. If you are working the whole food category at this level, see [best food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k). **$250,000 to $450,000.** [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc) at $366,200 traditional, [PrimoHoagies](https://vetmyfranchise.com/c/claude/franchise/primohoagies-franchising-llc) at $366,240, [Mr. Goodcents](https://vetmyfranchise.com/c/claude/franchise/mr-goodcents-franchise-systems-inc) at $311,139, and [Firehouse Subs](https://vetmyfranchise.com/c/claude/franchise/firehouse-of-america-llc) at $405,350 inline. Jimmy John’s has the largest disclosed sample in this band by far (2,581 restaurants at a $955,639 median), Firehouse the higher median at $986,432 on 704 restaurants, and PrimoHoagies the smallest but tightest disclosure at $871,099 across all 81 franchised locations. **$450,000 to $900,000.** [Jersey Mike’s](https://vetmyfranchise.com/c/claude/franchise/a-sub-above-llc) opens at $436,176 and is the strongest overall profile in the category on revenue, growth, and closures. [Penn Station](https://vetmyfranchise.com/c/claude/franchise/penn-station-inc) at $440,600 gives you the most complete financial disclosure of any brand here. [Potbelly](https://vetmyfranchise.com/c/claude/franchise/potbelly-franchising-llc) at $628,938 posts a $1,195,243 median on a small but growing 122-unit franchised base. [Schlotzsky’s](https://vetmyfranchise.com/c/claude/franchise/schlotzskys-franchisor-spv-llc) at $675,365 posts a strong $1,084,731 median but closed 17 units against 4 openings, so ask what changed. **$900,000 and up.** [McAlister’s Deli](https://vetmyfranchise.com/c/claude/franchise/mcalisters-franchisor-spv-llc) at $910,175 endcap or $1,282,525 freestanding delivers the highest disclosed median in the sub-adjacent group at $1,764,584, with a 2.10% closure rate and a growing system. [Panera Bread](https://vetmyfranchise.com/c/claude/franchise/panera-llc) at $1,223,702 to $4,619,880 has the highest sales per unit in the category at a $2,541,217 franchisee average, but new franchise availability is limited and most operators are large multi-unit groups. [Jason’s Deli](https://vetmyfranchise.com/c/claude/franchise/deli-management-inc) at $1,706,691 has not opened a franchised unit in its most recent disclosed year. ## What to Verify Before You Sign 1. **Pull the format-specific Item 7, not the headline range.** Firehouse Subs spans $405,350 to $1,577,750 depending on whether you build inline, endcap with drive-thru, or free-standing with drive-thru. McAlister’s spans $910,175 to $2,575,400 on the same logic. The number that matters is the one for the site you can actually get. Our [Item 7 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) walks through the line items. 2. **Check the Item 19 sample against total units.** McAlister’s reports 477 of 505 traditional franchises (94.5%). Charleys reports 713 of 766, explicitly excluding 24 restaurants that permanently closed during 2025. A brand that reports on 60% of its base is telling you something about the other 40%. Start with [what Item 19 does and does not cover](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). 3. **Do the Item 20 arithmetic yourself.** Outlets at start plus opened minus terminations, non-renewals, reacquisitions, and ceased operations should equal outlets at end. Three brands in this category have rows that do not foot. See our [Item 20 guide](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide). 4. **Add the ad fund to the royalty before you model anything.** Subway’s real ongoing rate is 12.5%, not 8%. Panera’s is 11.4%, not 5%. Firehouse’s is 10% to 11%, not 6%. 5. **Validate at least 8 franchisees, with 3 in markets like yours,** and ask each one for the name of an operator who exited. The Item 20 contact list includes former franchisees; call them. 6. **Negotiate the lease before the franchise agreement if you can.** Real estate drives the outcome more than brand in this category, as the Charleys format table shows. Our [lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) covers the terms that matter. Brand-specific analysis: [Subway vs Jersey Mike’s vs Jimmy John’s](https://vetmyfranchise.com/c/claude/blog/subway-vs-jersey-mikes-vs-jimmy-johns-franchise), [Jersey Mike’s vs Firehouse Subs](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-vs-firehouse-subs-franchise), [is Jersey Mike’s a good franchise](https://vetmyfranchise.com/c/claude/blog/is-jersey-mikes-a-good-franchise), [Jersey Mike’s franchise cost](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-franchise-cost), and the [Jersey Mike’s Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-item-19-deep-dive). Category comparisons: [food franchise investment guide](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide), [best food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k), and the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics) for cross-category medians. Live data: the [AUV leaderboard](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) ranks disclosed unit volumes across every brand in our library, the [closure rate report](https://vetmyfranchise.com/c/claude/reports/franchise-closure-rates) ranks Item 20 turnover, and the [Item 19 transparency leaderboard](https://vetmyfranchise.com/c/claude/reports/item19-transparency-leaderboard) shows which franchisors disclose real numbers at all. ## The Bottom Line for 2026 Buyers If you can fund $436,176 and up, [Jersey Mike’s](https://vetmyfranchise.com/c/claude/franchise/a-sub-above-llc) has the best combination of disclosed revenue, unit growth, and closure rate of any sub franchise filing in 2026. The 6.5% royalty is the price of that. If your capital tops out near $400,000, [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc) and [Firehouse Subs](https://vetmyfranchise.com/c/claude/franchise/firehouse-of-america-llc) both disclose medians near $1 million on entry costs starting at $366,200 and $405,350, and both grew their franchised counts last year. If you want to see actual unit-level costs before committing, [Penn Station](https://vetmyfranchise.com/c/claude/franchise/penn-station-inc) is the only brand in the category that shows them, down to a $81,181 median EBITDA. If you want the highest sales per unit and have $1 million or more, [McAlister’s Deli](https://vetmyfranchise.com/c/claude/franchise/mcalisters-franchisor-spv-llc) at a $1,764,584 median or [Panera Bread](https://vetmyfranchise.com/c/claude/franchise/panera-llc) at a $2,541,217 franchisee average are the two brands that clear it. And whatever the brand, remember what the Item 20 tables in this category say collectively: nine of these twenty systems ended their most recent fiscal year smaller than they started it. The [FDD](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) tells you which nine before you sign anything. ## Brands mentioned in this post - [McAlister’s](https://vetmyfranchise.com/c/claude/franchise/mcalisters-franchisor-spv-llc) - [Quiznos](https://vetmyfranchise.com/c/claude/franchise/quiznos) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best sandwich franchises 2026best sub franchisesub shop franchise opportunitiesjersey mikes franchisejimmy johns franchise costfirehouse subs franchisesubway franchisemcalisters deli franchisecapriottis franchisepotbelly franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the best sandwich franchise to buy in 2026? On disclosed numbers, Jersey Mike's. Its 2026 FDD reports a $1,305,850 median unit volume across 2,606 traditional franchised restaurants, a 0.19% annual closure rate, and franchised outlet growth from 2,647 to 3,201 over two fiscal years. The trade-off is capital and royalty: $436,176 to $1,162,228 to open and 6.5% of gross receipts, both higher than Jimmy John's or Firehouse Subs. ### What is the best sub franchise for a first-time owner? Jimmy John's and Firehouse Subs are the most accessible of the large sub systems. Jimmy John's opens at $366,200 for a traditional location or $206,200 for a non-traditional one, with a $955,639 median unit volume. Firehouse Subs opens at $405,350 for an inline build with a $20,000 franchise fee and a $986,432 median. Both grew their franchised counts in fiscal 2025 and both closed under 2.5% of units. ### What is the cheapest sandwich franchise to open? By Item 7 low end, Deli Delicious starts at $122,800 and Capriotti's at $145,000, though Capriotti's closed 11.19% of its franchised units in fiscal 2024. Among larger systems, Charleys Philly Steaks starts at $203,492, Quiznos at $213,900, and Jimmy John's non-traditional format at $206,200. Low entry cost and low closure risk are different questions, so check Item 20 before you shortlist on price. ### Which sandwich franchise has the highest Item 19 numbers? Panera Bread, at $2,541,217 average net sales across 1,073 franchisee-owned bakery-cafes, but it requires $1,223,702 to $4,619,880 to open. Among sub and deli formats, McAlister's Deli leads at a $1,764,584 median, then Jersey Mike's at $1,305,850, Potbelly at $1,195,243, and Schlotzsky's at $1,084,731. Quiznos sits at the bottom of the disclosed range at $368,576. ### Is Subway still a good franchise? The 2026 FDD makes that hard to argue on data. Subway discloses no Item 19 financial performance representation at all, so there is no revenue figure to underwrite against. Its Item 20 tables show franchised outlets falling from 20,576 to 20,133 to 19,502 to 18,773 across three fiscal years, with zero company-owned outlets, and 1,076 franchised units closed in fiscal 2025. The 8% royalty plus 4.5% advertising is also the highest fee load in the category. ### Is Jersey Mike's or Jimmy John's a better franchise? Jersey Mike's discloses a higher median unit volume ($1,305,850 versus $955,639), a lower closure rate, and faster unit growth. Jimmy John's is cheaper to enter ($366,200 versus $436,176 at the low end) and charges 6% royalty against Jersey Mike's 6.5% of gross receipts, but its $35,000 franchise fee is $15,000 higher. If you have the capital, the revenue gap favors Jersey Mike's; if capital is the binding constraint, Jimmy John's non-traditional format opens at $206,200. ### How profitable is a sandwich franchise? Only one brand in the category publishes enough to answer that directly. Penn Station's 2026 Item 19 reports, across 317 franchised units open all of 2025, a $779,031 median net sales figure, $152,133 median operating income, and $81,181 median EBITDA after a general manager's salary. The weakest unit in that set posted negative $83,083 EBITDA. Every other brand discloses revenue only, so you have to model costs yourself. ### What royalty do sandwich franchises charge? Six percent is the category norm. Subway charges 8% plus a 4.5% advertising fee, the highest total in the group. Jersey Mike's charges 6.5% of gross receipts. Panera, McAlister's, Newk's, Togo's, and Quiznos charge 5%, Jason's Deli charges 4%, and Penn Station uses a tiered scale from 2% to 8% based on monthly net sales. Always add the advertising fund, which runs another 1% to 5%. ### Which sandwich franchises are shrinking? Nine of the twenty systems with usable Item 20 tables ended their most recent fiscal year smaller: Subway (-729 franchised outlets), Which Wich (-37), Schlotzsky's (-13), Capriotti's (-5), Steak Escape (-4), Quiznos (-3), Mr. Goodcents (-3), Earl of Sandwich (-3), and Cousins Subs (-2, with zero openings in all three disclosed years). Growing systems in the same window include Jersey Mike's, Jimmy John's, Firehouse Subs, Potbelly, Charleys, McAlister's, Newk's, and PrimoHoagies. ### How many sandwich franchise brands are there? Our library holds current FDDs for 23 sandwich, sub, deli, cheesesteak, and bakery-cafe franchisors, spanning 18,773 franchised outlets at Subway down to 19 at Steak Escape. You can filter and sort the full set by investment, royalty, and Item 19 availability on our sandwich and sub franchise page. ### Do sub franchises need less build-out than other restaurants? Generally yes, because cold-sub formats need no hood, fryer, or grill line. That shows up in Item 7: Charleys Philly Steaks opens from $203,492 and Jimmy John's non-traditional from $206,200, against $1,223,702 for Panera Bread and $1,706,691 for Jason's Deli. Hot-sub and deli formats with drive-thrus land in between, with Firehouse Subs running $767,950 to $1,577,750 for a free-standing drive-thru build. --- title: "Best Italian Food Franchises 2026: Pizza, Pasta, & More" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-25 dateModified: 2026-08-04 keywords: italian franchise, pasta franchise, food franchise, franchise opportunities, italian food canonical: https://vetmyfranchise.com/c/claude/blog/best-italian-food-franchises about: italian franchise category: blog wordCount: 3359 readingTime: 17 min crawledAt: 2026-08-20 11:03:42 lastVerified: 2026-08-20 11:03:42 site: https://vetmyfranchise.com/c/claude/ --- # Best Italian Food Franchises 2026: Pizza, Pasta, & More ## Summary Best Italian food franchises 2026: Sbarro $211,900-$931,000, Villa Italian Kitchen $373,750-$990,500, Noodles & Co $1.06M-$1.71M. Verified Item 7 and Item 19. ## Key facts - Most restaurant franchise categories have consolidated tightly over the last twenty years. - Before naming brands, it helps to see what the disclosure documents actually say. - Fazoli’s has spent the last several years working to position itself as the fast-casual Italian leader. - Bertucci’s operates in the full-service casual Italian segment, with a brick-oven pizza focal point and a broader Italian-American menu. - The largest franchised fast-casual pasta system with a current disclosure is [Noodles & Company](https://vetmyfranchise. Quick answer Sbarro is the largest franchised Italian-American QSR: its 2026 FDD Item 7 puts total investment at $211,900 to $931,000, and Item 19 reports median revenue of $724,337. Villa Italian Kitchen runs $373,750 to $990,500 with an Item 19 median of $794,481 (2026 FDD). Figaro's Italian Pizza starts at $86,500. Olive Garden does not franchise. The best Italian food franchises in 2026 sort by format. [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc), the largest franchised Italian-American QSR at 237 franchised units, discloses an Item 7 range of $211,900 to $931,000 in its 2026 FDD. [Villa Pizza](https://vetmyfranchise.com/c/claude/franchise/villa-pizza-llc), which operates Villa Italian Kitchen, runs $373,750 to $990,500 and reports a higher Item 19 median than Sbarro does. [Noodles & Company](https://vetmyfranchise.com/c/claude/franchise/noodles-company) anchors the fast-casual pasta tier at $1,061,500 to $1,707,500. Olive Garden, the brand most buyers search for first, is corporate-owned by Darden and does not franchise. The real decision is format, and it shapes everything that follows. ## Why The Italian Food Franchise Category Is Different Most restaurant franchise categories have consolidated tightly over the last twenty years. Burger has three or four dominant systems. Sandwich has two. Pizza has a clear top tier and a long tail of regionals. Italian food does not look like any of these. The category is structurally fragmented, and that fragmentation creates both the opportunity and the difficulty of franchising in this space. A big part of the fragmentation: the most recognized Italian restaurant in the United States, Olive Garden, does not franchise at all. Darden Restaurants [owns every Olive Garden](https://vetmyfranchise.com/c/claude/blog/is-olive-garden-a-franchise). The brand most consumers picture when they hear “Italian restaurant” is simply not on the table. Buyers have to look past the obvious option and evaluate brands they may have heard of less often. The other reason the category looks different is format range. A buyer can pick from a $200,000 mall kiosk slinging slices, a $700,000 fast-casual pasta restaurant in a strip center, or a $2.5 million full-service brick-oven sit-down. Few categories span that wide a band. Each format carries its own operator economics, labor model, and real estate profile. A buyer cannot really compare an Italian franchise without first deciding which format to be in. The category also overlaps heavily with pizza: many Italian-American concepts started as pizza brands and added pasta. Buyers open to that end should read our [best pizza franchises](https://vetmyfranchise.com/c/claude/blog/best-pizza-franchises) coverage. ## The Italian Food Franchise Landscape: Format Map Before naming brands, it helps to see what the disclosure documents actually say. The table below is drawn from the current FDD parsed for each brand in VetMyFranchise’s database. Every figure is Item 5 (initial fee), Item 6 (royalty and ad fund), Item 7 ([total investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise)), Item 19 (financial performance), or the unit counts in Item 20, taken from the FDD year shown. | Brand | FDD | Item 7 total investment | Initial fee | Royalty | Ad fund | Franchised units | | --- | --- | --- | --- | --- | --- | --- | | Sbarro | 2026 | $211,900 – $931,000 | $30,000 | 7% | up to 2% of gross revenues | 237 | | Villa Pizza (Villa Italian Kitchen) | 2026 | $373,750 – $990,500 | $25,000 | 6% of gross revenue | up to 3% of gross revenue | 41 | | Noodles & Company | 2026 | $1,061,500 – $1,707,500 | $35,000 | 5% of net royalty sales | 1% to 4% | 83 | | Rosati’s Pizza | 2026 | $147,200 – $1,249,000 | not disclosed | 5% | 1% | 131 | | Figaro’s Italian Pizza | 2026 | $86,500 – $549,000 | $39,000 | 6% | 3% | 35 | Two of these brands disclose an Item 19 median, and the comparison is the single most useful number in this article. Villa Italian Kitchen reports median revenue of **$794,481** across 31 domestic franchised restaurants open a year or more in calendar year 2025. Sbarro reports **$724,337** across 141 locations for the same period, but its Item 19 covers company-owned locations only. A franchisee-derived median beats a franchisor-derived one every time, so Villa’s number carries more weight despite coming from a much smaller system. Note also that Sbarro’s 7% royalty is a full point above every other brand in the table, and two points above Noodles & Company. On a $724,337 store that one point is roughly $7,200 a year of pure margin difference. A note on what is not here: Fazoli’s and Bertucci’s are frequently cited as the fast-casual and full-service Italian options, and both do franchise, but neither has a current FDD parsed in our database. Any investment figure you see quoted for those two comes from brand-reported marketing material rather than a disclosure document, so treat it accordingly and ask for the FDD before you rely on it. There are four meaningful Italian food franchise formats in 2026, and each attracts a different buyer profile. | Format | Representative brands | Operator profile fit | | --- | --- | --- | | Mall QSR / counter-service | Sbarro, Villa Italian Kitchen | Multi-unit operator with mall-real-estate relationships; semi-absentee tolerant | | Fast-casual pasta | Noodles & Company | Owner-operator or small multi-unit; strip center comfort; takeout and delivery focus | | Italian-American pizzeria | Rosati’s, Figaro’s | Hands-on owner-operator; neighborhood trade area; lower capital entry | | Full-service casual Italian | Bertucci’s and regional independents | Experienced restaurant operator; full-service P&L literacy; freestanding real estate | Mall QSR is what most people picture when they think of [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc): counter service in a food court, pizza by the slice and pasta in clamshells. The format depends almost entirely on its host environment. A great mall produces strong unit economics. A declining mall produces a closure. Fast-casual Italian is the format that took the longest to figure out. Pasta does not survive the same operational shortcuts that burritos and grain bowls survive. Building a Chipotle-style Italian concept that tastes good and assembles fast is genuinely hard, and brands have come and gone trying. The brands operating in this space today have generally figured out the operational pattern, but each one has narrower addressable markets than a comparable burger or sandwich brand. Full-service casual Italian is the most capital-intensive end of the category, and it competes directly against Olive Garden. That competition is brutal. Olive Garden’s scale on advertising and ingredient sourcing is hard to match. Brands here tend to find regional pockets where they can outflank Olive Garden on atmosphere or food quality. Niche Italian (bakeries, gelato shops, espresso-forward cafes) is a smaller but real corner. These businesses are usually closer to a coffee shop in operator economics than to a restaurant. Hours, labor model, and margins all look different. ## [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc): Mall-Format Reality in 2026 [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc) is the largest franchised Italian-American QSR system in the country, and its story over the last decade is essentially the story of American shopping malls. The brand peaked with mall foot traffic in the late 1990s, struggled through two bankruptcies during the 2010s mall-decline cycle, and has been working since to diversify away from pure mall dependency. The current opportunity covers traditional mall food courts, non-traditional formats (airports, travel plazas, college campuses, hospitals), and ghost-kitchen delivery-only formats. The 2026 FDD puts Item 7 total investment at **$211,900 to $931,000**, with a $30,000 initial franchise fee, a 7% royalty, and an ad fund contribution of up to 2% of total gross revenues. The system runs 237 franchised units alongside 150 company-owned locations. That company-owned count is the number to sit with. Sbarro’s Item 19 for calendar year 2025 reports median revenue of **$724,337** across 141 locations, and the disclosure specifies those are company-owned locations only. The franchisor is showing you how its own stores perform, in the locations it chose for itself, and asking you to infer what yours will do. That is a legal disclosure choice, not a violation, but it means the headline number is the weakest kind of Item 19 for a prospective buyer. Ask the franchise development representative directly for franchised-unit performance, and read our guide on [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) before you accept any answer. The honest read in 2026: [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc) is a market-selection franchise more than a brand franchise. Operators who already work in mall and travel-retail food service can make it work because they know which locations have real traffic. Unit-level performance variance is much wider than a typical QSR chain, and a company-owned Item 19 median tells you nothing about any individual food court. For buyers seriously evaluating [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc), the diligence work that matters is on the host location, not the brand. Visit the mall on a Tuesday at 2pm. Look at food court occupancy. Count the dark units. Talk to other tenants about year-over-year sales. The brand can support a good location; it cannot rescue a bad one. ## [Villa Italian Kitchen](https://vetmyfranchise.com/c/claude/franchise/villa-pizza-llc): The Better-Disclosing Mall Competitor [Villa Pizza, LLC](https://vetmyfranchise.com/c/claude/franchise/villa-pizza-llc) franchises Villa Italian Kitchen, which competes with Sbarro for essentially the same real estate: food courts, airports, casinos, campuses, and travel plazas. It is a much smaller system at 41 franchised units against Sbarro’s 237, and most buyers never put it on the list. The 2026 FDD argues they should. Item 7 runs **$373,750 to $990,500**, a narrower and higher-floored range than Sbarro’s. The initial fee is $25,000, the royalty is 6% of gross revenue, and the ad fund is up to 3% of gross revenue. So Villa costs more to enter at the low end and charges a point less in royalty forever after. The decisive number is Item 19. Villa reports median revenue of **$794,481** across 31 domestic franchised restaurants open for one year or more in calendar year 2025. That is roughly $70,000 above Sbarro’s median, and more importantly it is measured on **franchised** units rather than company-owned ones. When you compare the two disclosures side by side, the smaller system is the one telling you what franchisees actually do. The tradeoffs are real. Fewer units means thinner field support, less supply-chain leverage, and a smaller pool of franchisees to validate against. Thirty-one units in the Item 19 sample is a small denominator, and one or two outlier airport locations can move a median that size. Ask for the distribution, not just the midpoint. ## Fazoli’s: Fast-Casual Italian Pivot Fazoli’s has spent the last several years working to position itself as the fast-casual Italian leader. The traditional positioning (Italian fast food with unlimited breadsticks) has been refreshed around fresher pasta preparation, expanded delivery and takeout integration, and a streamlined operational model. Fazoli’s does not have a current FDD in our database, so the figures that follow are brand-reported rather than disclosure-verified. Initial investment is reported at roughly $400,000 to $1.2 million, depending on format: traditional freestanding restaurants, end-cap shopping center locations, or smaller non-traditional formats. Ask for the current FDD and check Item 7 against that number before you plan around it. What makes Fazoli’s interesting for the right operator: the brand has been through enough cycles to have a real operational playbook. Unit-level systems work, food cost can be managed, the labor model is documented. For an operator comfortable with the fast-casual P&L, the economics can support a real return. What makes Fazoli’s challenging is brand recognition outside core markets. It is well-known in parts of the Midwest and South, much less so on the coasts. Buyers in markets without existing penetration should expect a longer ramp and tougher real estate negotiation. Talk to franchisees in similar markets first; a Fazoli’s operator in Louisville has a genuinely different experience than a first-mover in Seattle. ## Bertucci’s: Full-Service Casual Italian Bertucci’s operates in the full-service casual Italian segment, with a brick-oven pizza focal point and a broader Italian-American menu. The brand has been through ownership changes and store-base rationalization, and the 2026 franchise opportunity reflects a system that has been deliberately re-scoped around the locations and operators that work. Bertucci’s also has no current FDD in our database, so treat the following as brand-reported. Capital requirements are meaningful: typically $1.5 million to $3 million depending on real estate. The brand requires a freestanding or strong end-cap location with full dine-in service, often a full bar, and a kitchen build supporting brick-oven pizza alongside the pasta menu. For a full-service commitment at this level, an unverified investment range is not something to build a financing package on. The operator profile is meaningfully different from the fast-casual or QSR Italian brands. Buyers need genuine full-service restaurant experience. Managing tipped labor, bar operations, dine-in service flow, and full-service food cost is not the same job as managing a counter-service unit. Without that background, partner with an experienced operator or look at a different format. The competitive challenge is direct head-on competition with Olive Garden. Bertucci’s wins on brick-oven food quality and a more authentic positioning, but loses on scale-driven pricing and ad spend. The brand works in markets with genuine demand for a step above Olive Garden, typically affluent suburban markets in the Northeast and Mid-Atlantic where Bertucci’s already has recognition. Operators in markets without that familiarity will work harder. ## Emerging Fast-Casual Italian Concepts The largest franchised fast-casual pasta system with a current disclosure is [Noodles & Company](https://vetmyfranchise.com/c/claude/franchise/noodles-company). Its 2026 FDD shows Item 7 at **$1,061,500 to $1,707,500**, a $35,000 initial fee, a 5% royalty on net royalty sales, an ad fund of 1% to 4%, and 83 franchised units. It files an Item 19 covering 92 franchise-owned restaurants for the 52-week period ended December 30, 2025, though it does not publish a single median figure in the format our extraction captures, so request the full table. At that capital level it is competing for the same buyer as a mid-tier burger or chicken franchise, and it should be underwritten that way. Below it, [Rosati’s Pizza](https://vetmyfranchise.com/c/claude/franchise/rosatis-pizza-enterprises-inc) (2026 FDD: $147,200 to $1,249,000, 5% royalty, 1% ad fund, 131 franchised units) and [Figaro’s Italian Pizza](https://vetmyfranchise.com/c/claude/franchise/figaros-italian-pizza-inc) (2026 FDD: $86,500 to $549,000, $39,000 fee, 6% royalty, 3% ad fund, 35 units) are the realistic entry points for an owner-operator without seven figures of capital. Figaro’s low end is the cheapest verified way into Italian food franchising in our database. Beyond those, several smaller fast-casual Italian concepts are pursuing the build-your-own pasta playbook. Pomodoro Italian Kitchen, regional Brio variants, and a handful of two-to-twenty-unit emerging brands all sit here. The case for these brands is genuine: the fast-casual Italian whitespace is real, and any concept that figures out the operational model has runway. The case against is just as real. Emerging brands carry substantially more risk than established systems, and Italian fast-casual has a graveyard of brands that scaled too fast on too little operational discipline. Buyers evaluating an emerging Italian concept should weight a few things heavily. First, the unit count and franchisee tenure profile: how many units are more than three years old, and how many of those operators are still in the system? Second, Item 19 disclosure depth, since emerging brands sometimes report on tiny samples or limited geographies. Third, franchisor financial stability, because a franchisor that runs out of capital leaves franchisees stranded on systems support and supply chain. Our [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) covers the specific FDD items and franchisee call questions that matter for emerging systems, and the FTC’s [consumer guide to buying a franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) is the baseline companion reading. Treat both as non-optional. ## How To Pick: Format Fits Operator Profile The right Italian food franchise depends almost entirely on the operator, not the brand. A buyer with $250,000 of deployable capital, no restaurant experience, and a full-time job is shopping for a different franchise than a buyer with $2 million, twenty years of full-service operations experience, and willingness to be in the restaurant six days a week. Both can find a workable Italian franchise, just not the same one. A practical decision shortcut: Under $150,000, [Figaro’s Italian Pizza](https://vetmyfranchise.com/c/claude/franchise/figaros-italian-pizza-inc) is the only verified entry point in this category, starting at $86,500. From roughly $150,000 to $400,000, [Rosati’s Pizza](https://vetmyfranchise.com/c/claude/franchise/rosatis-pizza-enterprises-inc) opens up at a $147,200 floor for a hands-on owner-operator with a neighborhood trade area. From $200,000 to $950,000 with access to good non-traditional real estate (mall, airport, campus, hospital), the choice is between [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc) at $211,900 to $931,000 and [Villa Italian Kitchen](https://vetmyfranchise.com/c/claude/franchise/villa-pizza-llc) at $373,750 to $990,500, and Villa wins on both royalty rate and Item 19 quality if you can live with a 41-unit system. Above $1 million with fast-casual operating experience, [Noodles & Company](https://vetmyfranchise.com/c/claude/franchise/noodles-company) is the largest disclosed pasta system at $1,061,500 to $1,707,500. Above $1.5 million with genuine full-service experience, Bertucci’s is the named option, but get the FDD first because we cannot verify its numbers. Buyers earlier in discovery should read our [food franchise investment guide](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide), plus adjacent coverage: [best burger franchises](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises) and [best sandwich franchises](https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises). Italian is one of several food franchise paths, and most buyers benefit from comparing across categories before committing; the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics) shows how the food categories compare on investment and fees across the full database. The biggest mistake in Italian franchising is anchoring on a brand before doing the format and operator-fit work. [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc) is fine for a mall-real-estate operator and terrible for a first-time owner-operator. Bertucci’s is fine for an experienced casual-dining operator and terrible for a buyer who has never run tipped labor. The brand only works if the format works, and the format only works if it matches the operator. The second-biggest mistake is treating every Item 19 as equivalent. In this category the best-known brand publishes a company-owned median and its smaller competitor publishes a franchised one. Those two numbers look alike on a comparison chart and mean entirely different things to the person signing the agreement. ### Get the FDD Data Before You Commit Before signing anything, you need the actual [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) (the presale disclosure the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires) analyzed against the questions that matter for your situation, not the questions the franchisor wants you to ask. The [VetMyFranchise $49 template](https://vetmyfranchise.com/c/claude/fdd-analysis-example) gives you the framework: Item 7 capital validation, Item 19 numbers in context, litigation and turnover red flags, territory and renewal terms that bite operators years in. For any specific brand above (Sbarro, Fazoli’s, Bertucci’s, or any emerging Italian concept) you can pull the AI-generated report on that brand’s current FDD and run it against the template. The $49 buys you the framework. The brand-specific reports buy you the analysis for the deal in front of you. Italian food franchising can absolutely work. It works best for buyers who pick the format matching their operator profile, do the diligence properly, and avoid anchoring on the most familiar name. Spend the $49. Read the FDD. Then decide. ## Brands mentioned in this post - [Sbarro](https://vetmyfranchise.com/c/claude/franchise/sbarro-franchise-co-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) italian franchisepasta franchisefood franchisefranchise opportunitiesitalian food About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the best Italian restaurant franchise? It depends on format, and on which brands actually disclose numbers. Of the Italian systems with a current FDD parsed in VetMyFranchise's database, Sbarro is the largest counter-service system ($211,900 to $931,000 Item 7, 2026 FDD) and Villa Italian Kitchen posts the higher Item 19 median at $794,481 against a $373,750 to $990,500 range. Noodles & Company is the largest franchised fast-casual pasta system at $1,061,500 to $1,707,500. Olive Garden and Carrabba's are corporate-owned and do not franchise. Pick the format that matches your capital first, then compare brands within it. ### What are the most franchised Italian food brands? By franchised unit count in current FDDs, Sbarro leads with 237 franchised units (2026 FDD), followed by Rosati's Pizza with 131, Noodles & Company with 83, Villa Pizza (Villa Italian Kitchen) with 41, and Figaro's Italian Pizza with 35. Fazoli's and Bertucci's also franchise but have no current FDD parsed in our database. Olive Garden is corporate-owned by Darden Restaurants and does not franchise in the US. ### How much does an Italian food franchise cost? Verified 2026 Item 7 ranges span $86,500 to $1,707,500 depending on format. Figaro's Italian Pizza starts lowest at $86,500 to $549,000. Sbarro runs $211,900 to $931,000 and Villa Italian Kitchen $373,750 to $990,500 in the counter-service tier. Rosati's Pizza spans $147,200 to $1,249,000, and Noodles & Company tops the range at $1,061,500 to $1,707,500. The band depends heavily on format choice and real estate footprint. ### Which Italian franchise is most profitable? Only two Italian systems in our database disclose an Item 19 median. Villa Italian Kitchen reports $794,481 across 31 franchised units open a year or more (calendar year 2025), and Sbarro reports $724,337 across 141 locations for the same period. Villa's figure is the more useful of the two for a prospective franchisee, because Sbarro's Item 19 covers company-owned locations only. Neither discloses store-level operating profit, so margin has to be reverse-engineered from validation calls. ### Is Sbarro a good franchise? Sbarro's economics rise and fall with mall foot traffic, and its 2026 FDD shows the tension: 237 franchised units against 150 company-owned, a 7% royalty (a full point above most Italian peers), and an Item 19 median of $724,337 that covers company-owned locations only. That last detail matters. You are being shown the franchisor's own stores, not the ones people like you operate. For operators with mall-real-estate relationships it can work; for new operators, market selection is everything. ### Are there fast-casual Italian options like Chipotle? Yes. Noodles & Company is the largest franchised fast-casual pasta system with a current FDD, at 83 franchised units and an Item 7 range of $1,061,500 to $1,707,500 (2026 FDD), with a 5% royalty on net royalty sales and a 1% to 4% ad fund. It is a genuine Chipotle-style build for pasta, and it is priced like one. Smaller emerging build-your-own pasta concepts exist below it, but most have limited operating history, so operator-economics diligence matters more than usual. --- title: "Best Home Care Franchises 2026: Revenue per Dollar In" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best home care franchises, senior home care franchise cost, non-medical home care franchise, Item 19, senior care, SYNERGY HomeCare, Home Instead canonical: https://vetmyfranchise.com/c/claude/blog/best-home-care-franchises about: best home care franchises category: blog wordCount: 1933 readingTime: 10 min crawledAt: 2026-08-20 11:06:17 lastVerified: 2026-08-20 11:06:17 site: https://vetmyfranchise.com/c/claude/ --- # Best Home Care Franchises 2026: Revenue per Dollar In ## Summary The best home care franchises ranked by Item 19 median revenue divided by Item 7 midpoint, using 2026 FDD data from 14 non-medical brands. ## Key facts - Home Instead’s 2026 FDD reports a median of $2,261,503 in annual revenue across 611 franchised units. - Item 19 median revenue divided by the Item 7 midpoint is a capital-efficiency screen, not a return calculation. - SYNERGY HomeCare closed 2025 at 626 territories and is the second-largest system in non-medical home care by that count. - Third place on the ratio is not a knock. - Every number above assumes you can staff the hours. Quick answer SYNERGY HomeCare generates $14.40 of disclosed median revenue per dollar of Item 7 midpoint investment, the highest ratio among non-medical home care brands with a sample of 20+ units. Home Instead leads on absolute revenue at a $2,261,503 median but ranks third on the ratio at 10.2x. ## The revenue leader in home care is not the best deal in home care Home Instead’s 2026 FDD reports a median of $2,261,503 in annual revenue across 611 franchised units. That is the largest verified Item 19 median in non-medical home care, about $500,000 clear of the next brand, and it is the number every ranking of this category leads with. It is also not the best return on the capital you put in. Home Instead’s Item 7 runs $92,640 to $350,550, a midpoint of $221,595. SYNERGY HomeCare’s Item 7 runs $80,245 to $164,091, a midpoint of $122,168. SYNERGY’s disclosed median is lower, at $1,763,025 across 523 units. Divide each median by its Item 7 midpoint and the order flips: SYNERGY produces $14.40 of median revenue per dollar of disclosed startup cost, Home Instead produces $10.21. Our [senior care overview](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities) ranks this sector by system size, which is a different and equally legitimate question. This post asks a narrower one. ## The ratio, and what it does not measure Item 19 median revenue divided by the Item 7 midpoint is a capital-efficiency screen, not a return calculation. Revenue is not profit, and the margin section below is where that distinction gets expensive. Item 7 midpoints are franchisor estimates, and the real number depends on your market’s rent, your insurance quotes, and how many territories you buy on day one. What the ratio does catch is the thing raw AUV rankings hide: two brands can post similar revenue while asking wildly different amounts of money to get there. Fourteen non-medical home care systems in our database disclose an Item 19 median against a sample of at least 20 units. Here are the eight with the largest samples. | Brand | Item 7 range | Midpoint | Item 19 median | Sample | Revenue per $1 | | --- | --- | --- | --- | --- | --- | | SYNERGY HomeCare | $80,245 to $164,091 | $122,168 | $1,763,025 | 523 | 14.4x | | Griswold Home Care | $99,600 to $180,600 | $140,100 | $1,492,691 | 59 | 10.7x | | Home Instead | $92,640 to $350,550 | $221,595 | $2,261,503 | 611 | 10.2x | | Right at Home | $94,330 to $176,239 | $135,285 | $1,334,579 | 390 | 9.9x | | Homewatch CareGivers | $142,890 to $194,080 | $168,485 | $1,360,485 | 214 | 8.1x | | Home Helpers Home Care | $120,750 to $175,250 | $148,000 | $1,122,828 | 173 | 7.6x | | Senior Helpers | $176,500 to $231,500 | $204,000 | $1,452,858 | 346 | 7.1x | | Amada Senior Care | $121,577 to $438,440 | $280,009 | $1,242,391 | 162 | 4.4x | All figures come from 2026 FDDs. A 3.3-fold spread inside a single category, between brands selling substantially the same service to the same client, is larger than most buyers expect going in. The spread does not come from fees. Franchise fees across these eight run $49,500 to $59,000, and royalties sit at 5% or 6% of gross sales with almost no variation. What differs is everything else in Item 7: territory pricing, required office buildout, mandated software, working-capital assumptions, and how many months of losses the franchisor tells you to budget for. Amada Senior Care’s $438,440 ceiling and SYNERGY’s $164,091 ceiling describe the same business model with very different assumptions baked in about how you should open it. ## SYNERGY and Right at Home sit at the efficient end SYNERGY HomeCare closed 2025 at 626 territories and is the second-largest system in non-medical home care by that count. Its Item 19 sample of 523 covers single-unit and multi-unit businesses operating a year or more, combined into one median. That combination is worth flagging: multi-territory owners pull a combined median upward, so a single-territory buyer should expect to land below $1,763,025 in the early years. Even discounting for that, a $122,168 midpoint against a seven-figure median is the cheapest path to that revenue level in the category. Right at Home’s 9.9x comes off a 390-unit sample of offices open one year or more, on a $135,285 midpoint. Griswold Home Care posts the second-best ratio at 10.7x, but on 59 reporting units out of 114 in the system. Half the network is missing from that median, and a 59-unit sample moves a lot with a handful of strong offices. Treat it as directional. If you want the brand-level comparison rather than the category view, we ran three of these systems side by side in [Home Instead vs Right at Home vs Visiting Angels](https://vetmyfranchise.com/c/claude/blog/home-instead-vs-right-at-home-vs-visiting-angels-franchise). You can also filter the full [senior care category](https://vetmyfranchise.com/c/claude/franchises/senior-care) by investment range and Item 19 disclosure. ## Home Instead’s scale premium is real, and you pay for it Third place on the ratio is not a knock. Home Instead’s median is the highest absolute revenue figure any non-medical home care brand discloses, and absolute revenue is what determines your exit price. A business doing $2.26M sells for meaningfully more than one doing $1.76M at the same multiple of earnings, and the $99,427 gap in Item 7 midpoint is a one-time cost against a permanent revenue difference. Home Instead also has the cleanest disclosure in the set. Its Item 19 segment is “all franchised units,” 611 of 626, with no filter for tenure, size, or performance. Nothing is screened out. We took that disclosure apart line by line in our [Home Instead Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/home-instead-item-19-deep-dive). The trade-off is capital. Home Instead’s Item 7 ceiling of $350,550 is more than double SYNERGY’s $164,091 ceiling, and the gap is not in the franchise fee, which is $54,000 against SYNERGY’s $55,000. If your available capital caps out near $150,000, the ratio question is academic: the higher-revenue brand is not on your list. ## Caregiver recruiting is the real constraint, and Item 7 never shows it Every number above assumes you can staff the hours. In home care that assumption does most of the work. This is a labor brokerage before it is anything else. You recruit, background-check, train, schedule, and retain hourly caregivers in a market where hospitals, assisted living facilities, and two competing agencies are chasing the same people. Item 7 gives you a line for initial advertising and a line for training. It gives you nothing for the recurring cost of replacing caregivers who leave, and industry turnover in this workforce has run near or above 60% annually for years. A franchisee sitting on unfilled shifts has revenue on the whiteboard and none in the bank. During validation, ask every owner you call what their current fill rate is and how many open shifts they turned back to referral sources last month. The answers separate brands more reliably than any FDD table. We wrote up the general version of this diligence in [can you actually staff it](https://vetmyfranchise.com/c/claude/blog/can-you-staff-it-franchise-labor-reality). ## Sixty cents of every dollar walks out the door as wages Gross margin in non-medical home care runs 30% to 40%. Read that the direction that matters to your bank account: 60 to 70 cents of every revenue dollar is gone to caregiver wages, payroll taxes, and workers’ comp before you have paid for an office, a scheduler, a care coordinator, liability insurance, or the royalty. Run SYNERGY’s median at a 35% gross margin and $1,763,025 becomes about $617,000 of gross profit. The 5% royalty takes $88,151 of it. Home Instead’s $2,261,503 at the same margin yields roughly $791,500 gross, with a $113,075 royalty. What remains covers office rent, two to four administrative salaries, recruiting spend, insurance, software, and the ad fund contribution, and only then becomes owner earnings. This is why a seven-figure revenue headline in home care should not be read the way a seven-figure headline in food service or fitness reads. The revenue is real. The share of it you keep is structurally thinner than in most franchise categories, and it moves with your bill rate and your caregiver wage, both of which local labor markets set rather than the franchisor. Our [performance benchmarks by industry](https://vetmyfranchise.com/c/claude/blog/franchise-performance-benchmarks-by-industry) show how the category compares on disclosed revenue across the rest of the franchise universe. ## Read the sample definition before you read the number Item 19 medians are only comparable when they describe comparable units, and in this category they frequently do not. Senior Helpers reports a median of $1,452,858 across 346 units, and the segment is “franchised businesses operating 60+ months.” That is a five-year survivorship filter. Every office that opened recently or closed early is out of the sample. The number is honest about what it measures, and it is not measuring the same population as Home Instead’s all-units figure, so the 7.1x and 10.2x ratios are not a like-for-like comparison. The sharpest example sits outside the table. Acti-Kare discloses an Item 7 of $32,530 to $57,550 against a median of $879,976, which computes to 19.5x, the highest ratio in the entire category. Its segment: franchised businesses operating 35 or more hours per week for at least 24 months under the same owner. Three filters stacked on top of each other, screening for tenure, volume, and ownership continuity. Fifty-four units qualified out of 150 in the system. That is a disclosure about the brand’s best third, and publishing it in a ranking would be misleading. The general rule holds across the sector: the more filters a franchisor puts on its Item 19 population, the less the number tells you about what your first three years look like. Brands reporting all franchised units are making a harder claim, and they know it. Our [AUV leaderboard](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) carries the disclosed medians, sample sizes, and segment definitions for every system in the database, home care included, so you can run this arithmetic on any category you are considering. The ratio takes two numbers. Most buyers never compute it. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Health Mart [Learn more →](https://vetmyfranchise.com/c/claude/franchise/health-mart-systems-inc) #### Hhci, Llc (unit) [Learn more →](https://vetmyfranchise.com/c/claude/franchise/hhci-llc-unit) #### Amerisourcebergen Drug [Learn more →](https://vetmyfranchise.com/c/claude/franchise/amerisourcebergen-drug-corporation) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best home care franchisessenior home care franchise costnon-medical home care franchiseItem 19senior careSYNERGY HomeCareHome Instead About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a home care franchise cost? Item 7 ranges in non-medical home care cluster between $80,000 and $440,000 depending on brand and territory count. SYNERGY HomeCare discloses $80,245 to $164,091 and Home Instead discloses $92,640 to $350,550. Franchise fees are tightly grouped: $49,500 to $59,000 covers most of the category, and royalties sit at 5% to 6% of gross sales. ### Which home care franchise is most profitable? No FDD in this category discloses franchisee profit, only revenue, so nobody can answer that from public paper. On revenue per dollar invested, SYNERGY HomeCare leads at 14.4x, followed by Griswold Home Care at 10.7x and Home Instead at 10.2x. Profit depends on your bill rate, your caregiver wage, and your billable hours, none of which the franchisor controls. ### Do you need a medical background to own a home care franchise? Not for non-medical home care, which is the model every brand in this ranking operates. You are running a recruiting, scheduling, and referral-relationship business. Home health, hospice, and skilled nursing franchises are a separate category with clinical licensure requirements and a Director of Nursing on payroll. ### What is the difference between non-medical home care and home health? Non-medical home care covers companionship, bathing, dressing, meal prep, and transportation, is usually paid privately or by long-term care insurance, and needs no clinical license in most states. Home health delivers skilled nursing and therapy under a physician's plan of care, bills Medicare and Medicaid, and carries certification and survey requirements. The FDDs look nothing alike. ### How long does a home care franchise take to break even? No brand in this ranking discloses a payback period, because Item 19 in non-medical home care reports revenue and never profit. Cash-flow breakeven is a function of billable hours: an office generally needs 300 to 500 billable hours a week, or roughly 15 to 25 steady clients, to carry a full overhead load. How fast you get there depends on your referral relationships and your caregiver pipeline, so ask franchisees directly during validation. --- title: "Best HVAC Franchises 2026: Cost, Revenue, Real Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best HVAC franchises, HVAC franchise cost, Aire Serv, One Hour Heating & Air Conditioning, home services franchise, Item 19, franchise fees canonical: https://vetmyfranchise.com/c/claude/blog/best-hvac-franchises about: best HVAC franchises category: blog wordCount: 1868 readingTime: 9 min crawledAt: 2026-08-20 11:06:18 lastVerified: 2026-08-20 11:06:18 site: https://vetmyfranchise.com/c/claude/ --- # Best HVAC Franchises 2026: Cost, Revenue, Real Data ## Summary Best HVAC franchises compared on real Item 19 data: Aire Serv $944,801 median on 172 units, One Hour $884,016 on 364 territories, plus fee traps. ## Key facts - Search our FDD database for a heating and air conditioning franchise and five franchisors come back. - Aggregator listings, and our own database field, show One Hour Heating & Air Conditioning with a $0 initial franchise fee. - A $2,000 difference in initial fee is noise. - Item 7 covers a vehicle, tools, initial inventory, training, and working capital. - With only two credible disclosures, the usual shortlist exercise does not apply. Quick answer Two HVAC franchises disclose usable earnings data. Aire Serv reports a $944,801 median across 172 reporting businesses on a $113,808 to $271,708 investment. One Hour Heating & Air Conditioning reports $884,016 across 364 territories on $143,273 to $286,702. Every other HVAC franchisor in our database discloses almost nothing. ## Two franchisors disclose, three do not Search our FDD database for a heating and air conditioning franchise and five franchisors come back. Two publish an Item 19 you can work with: Aire Serv, with 172 reporting businesses, and One Hour Heating & Air Conditioning, with 364 reporting territories. Of the other three, one has six locations open and an earnings table resting on a single unit, one had no units open at all when it filed, and one makes no financial performance representation. So this is not a top ten list. It is two systems, owned by two competing home-services portfolios, and a long tail of franchisors asking you to take the trade on faith. Aire Serv belongs to Neighborly, alongside Mr. Electric and Mr. Rooter. One Hour belongs to Authority Brands, alongside Mister Sparky and Benjamin Franklin Plumbing. Those sibling brands matter, because they file nearly identical documents and they show you what the same franchisor does with a different trade. | Brand | Parent | Item 7 range | Base initial fee | Item 19 sample | Disclosed median | | --- | --- | --- | --- | --- | --- | | Aire Serv | Neighborly | $113,808 to $271,708 | $45,000 | 172 businesses | $944,801 | | One Hour Heating & Air Conditioning | Authority Brands | $143,273 to $286,702 | $43,000 | 364 territories | $884,016 | | Mr. Electric | Neighborly | $159,500 to $357,425 | $42,500 | 169 businesses, four bands | no system-wide figure | | Mister Sparky | Authority Brands | $133,273 to $276,702 | $33,000 | 185 territories | $455,253 | Aire Serv had 229 businesses open on December 31, 2025, all franchised, none company owned. Its Item 19 covers the 172 that were open and reporting for the full year. The excluded units are itemized: 45 that opened during or after January 2025, 11 that went through a transfer, one that reported nothing, and 24 that closed during the reporting period. A franchisor that prints its closure count inside Item 19 is telling you something about how it expects to be read. The median gross sales figure is $944,801. The average is $1,561,361, and 57 of the 172 businesses (33%) reached it. Whenever an average sits 65% above the median, a handful of large operators are carrying it, and the quartile table confirms that: the top 10% posted a $4,150,679 median across 17 businesses, while the bottom quartile’s median was $143,401 across 43. The reported high was $22,253,990. The reported low was $315. That bottom number is not a typo in our extraction. It is in the filing. Someone held an Aire Serv franchise for a full calendar year and booked $315 in gross sales. ## One Hour’s $0 franchise fee does not exist Aggregator listings, and our own database field, show One Hour Heating & Air Conditioning with a $0 initial franchise fee. It is wrong, and the way it went wrong is instructive. The 2026 FDD sets the base Franchise Fee at $43,000, plus $0.43 for each person above 100,000 in your territory. The 2025 filing said the same thing, then added a sentence three lines down: during fiscal 2024 the franchisor collected fees “ranging from $0 to $62,741.” Automated extraction grabbed the low end of a range describing what discounted buyers actually paid and stored it as the list price. The 2026 document puts the fiscal 2025 collected range at $22,028 to $67,408, and that is the band to plan against. Aire Serv has the same problem in reverse. Its $45,000 initial fee buys a territory of up to 100,000 population, and every additional 1,000 people costs $450. In 2025, the average initial fee an Aire Serv franchisee paid was $68,685, with a range of $39,325 to $115,379. The listed fee is a floor. If you want a metro territory, you are bidding against the census. Both brands publish discount programs, for veterans, women and minority applicants, first responders, and existing franchisees converting an operating HVAC shop. Ask which one you qualify for before you assume the base number applies to you. If you are comparing entry prices across the trades, our breakdown of [home service franchise costs](https://vetmyfranchise.com/c/claude/blog/home-service-franchise-costs-compared) puts these ranges next to plumbing, electrical, and restoration. ## The royalty band will cost you more than the fee gap A $2,000 difference in initial fee is noise. The ongoing structures are not. Aire Serv charges a license fee of 5% to 7% of gross sales, a 2% marketing fee, and local marketing group contributions capped at 3%. At a $944,801 median and the top of those bands, that is roughly $113,000 a year leaving the business. One Hour charges 6% of gross revenue or $1,500 a month, whichever is greater, plus a brand fund contribution of 1.5% on the first $5,000,000 that steps down to 1.25%, then 1%, then 0.75%, and reaches zero above $20,000,000. Read that brand fund schedule again if you plan to build a multi-territory operation. One Hour has designed its marketing charge to decay as you scale; Aire Serv has not. The two systems look nearly identical at one truck and diverge sharply at ten. The minimum royalty cuts the other way: $1,500 a month is a floor One Hour charges whether you invoice anything or not, which matters in a first winter that runs mild. Neither structure is worse. They reward different plans, and the technology and software charges layered on top are worth reading closely too, as we covered in [franchise technology fees](https://vetmyfranchise.com/c/claude/blog/franchise-technology-fees-explained). ## The electrical siblings show what territory size actually buys Mr. Electric, Neighborly’s electrical brand, does something the HVAC brands do not: it splits Item 19 into four tables by territory population. Across 169 reporting businesses, the medians run $352,821 in territories up to 300,000 people, $1,022,586 from 300,001 to 500,000, $1,292,838 from 500,001 to 1,000,000, and $2,004,844 above a million. The four bands hold 87, 30, 32, and 20 units respectively. Mr. Electric publishes no system-wide median at all. Any source quoting one for this brand has picked a band and dropped the label. The modal Mr. Electric franchisee is in the smallest band, where the median is $352,821, roughly a third of what a careless reading would suggest. Mister Sparky, the Authority Brands equivalent, reports a $455,253 median across 185 territories held by 60 franchisees, with a high of $6,790,925 and a low of $14,460. Set that against One Hour’s $884,016 inside the same parent company, the same filing template, and a near-identical Item 7, and you have a clean read on trade mix: HVAC territories out-earn electrical territories by roughly 1.9x in that portfolio. Replacement equipment tickets are simply larger than service calls. The territory structure also explains One Hour’s own quartiles. Its 364 territories are held by just 88 franchisees, an average of 4.1 each. The top quartile of those franchisees generated $125,556,539 across 41 territories, about $5.7 million per owner on 1.9 apiece. The bottom quartile generated $13,553,225 across 97, roughly $616,000 per owner on 4.4 apiece. More territory did not produce more revenue. It produced more thinly covered ground. Browse the full [home services category](https://vetmyfranchise.com/c/claude/franchises/home-services) if you want to see how that pattern repeats across trades. ## A mechanical license decides your opening date Item 7 covers a vehicle, tools, initial inventory, training, and working capital. It does not cover the thing that actually gates your first permit, which is a mechanical license in your state’s name. Most buyers here fall into two groups. Conversion candidates already run a licensed shop and are buying brand, call volume, and back office; One Hour runs a dedicated conversion incentive program aimed squarely at them. Everyone else is hiring a licensed lead technician into a business with no revenue history, in a labor market where that person already has offers. Aire Serv’s $315 outlier and One Hour’s 18 franchisees who ceased operations during fiscal 2025 are most likely staffing stories, not demand stories. The [plumbing](https://vetmyfranchise.com/c/claude/blog/best-plumbing-franchises) and [roofing franchise](https://vetmyfranchise.com/c/claude/blog/best-roofing-franchises) categories run on the same constraint, which is also why the [staffing franchise](https://vetmyfranchise.com/c/claude/blog/best-staffing-franchises) category exists as a business in its own right. ## What to ask, given how thin this category is With only two credible disclosures, the usual shortlist exercise does not apply. The work shifts to validation calls and to the questions Item 19 leaves open. Neither franchisor discloses unit-level costs, so the labor and materials percentage behind those medians has to come from you asking for it. Aire Serv should be able to say what happened to the 24 businesses that closed during 2025 and the 11 that transferred. One Hour should be able to say how many of its 18 departing franchisees held a single territory. The most useful question goes to both: how many of your strongest units were conversions of established shops? A system whose top quartile is mostly conversions has disclosed how well it acquires working businesses, which tells you very little about a startup. The parallel questions for the plumbing side are laid out in our [Mr. Rooter and Roto-Rooter comparison](https://vetmyfranchise.com/c/claude/blog/mr-rooter-vs-roto-rooter-franchise). Then model your own territory instead of the median. Run the Aire Serv fee stack and the One Hour minimum royalty against a realistic first-year revenue figure in our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator), using the bottom-quartile results. A $944,801 median describes a business that has been running for years in a territory someone else already chose. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best HVAC franchisesHVAC franchise costAire ServOne Hour Heating & Air Conditioninghome services franchiseItem 19franchise fees About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does an HVAC franchise cost? Between $113,808 and $286,702 for the two systems that disclose real data. Aire Serv's 2026 Item 7 runs $113,808 to $271,708 and One Hour Heating & Air Conditioning's runs $143,273 to $286,702. Both figures assume you already have or can lease a service vehicle and a small shop, and neither includes the working capital to cover payroll before receivables land. ### Do you need an HVAC license to own one? You need a licensed technician on the payroll, which in most states means either you hold the license or you employ someone who does before you can pull a permit. State mechanical licensing is separate from your franchise agreement, and it is the constraint that decides your hiring order. Several of these systems recruit conversion candidates who already run a licensed shop precisely because the license problem is solved on day one. ### Are HVAC franchises profitable? The disclosures show revenue, not profit, and the spread inside each system is enormous. Aire Serv's 172 reporting businesses ranged from $315 to $22,253,990 in 2025 gross sales, and only 57 of them (33%) reached the system average of $1,561,361. One Hour's bottom quartile of franchisees averaged $616,056 in total revenue across an average of 4.4 territories each. Neither franchisor discloses unit-level costs. ### Aire Serv vs One Hour, which discloses more? One Hour discloses a larger sample (364 territories against 172 businesses) and breaks results into quartiles by franchisee. Aire Serv discloses a finer breakdown (top 10%, four quartiles, bottom 10%) and publishes its actual high and low, $22,253,990 and $315. Aire Serv also tells you how many franchisees closed during the reporting period. Both are above average for home services. ### Can you finance an HVAC franchise with an SBA loan? Both brands appear on the SBA Franchise Directory basis that lenders check, and the investment range fits standard 7(a) sizing. The practical constraint is that lenders underwrite your cash injection and collateral, not the brand. Bring the Item 19 quartile tables to the conversation rather than the headline median, because a lender modeling a bottom-quartile outcome will size the loan very differently. --- title: "Best Garage & Concrete Coating Franchises 2026: Costs" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best garage floor coating franchises, epoxy flooring franchise cost, concrete coating franchise, garage franchise opportunity, Garage Living franchise, GarageExperts franchise cost, home services franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-garage-concrete-coating-franchises about: best garage floor coating franchises category: blog wordCount: 1788 readingTime: 9 min crawledAt: 2026-08-20 11:03:03 lastVerified: 2026-08-20 11:03:03 site: https://vetmyfranchise.com/c/claude/ --- # Best Garage & Concrete Coating Franchises 2026: Costs ## Summary Garage floor coating franchise costs and real Item 19 medians from the 2026 FDDs of Garage Living, GarageExperts, Granite Garage Floors and Hello Garage. ## Key facts - Garage Living’s 2026 FDD reports a median of $1,470,778 in 2025 gross sales. - Garage Living designs, supplies and installs cabinetry, slatwall, overhead racks, car lifts, garage doors and floor coatings, and it does that from a showroom. - Granite’s Item 19 lists all 24 reporting franchises individually, ranked, with the territory count next to each. - The GarageExperts sample is defined by owner type, not by tenure. - Hello Garage discloses something the others do not: average dollars per install, broken out by year in business. Quick answer A garage floor coating franchise runs $95,450 to $246,400 for a van-based model and $246,450 to $323,900 for Garage Living's showroom model. Disclosed 2025 medians range from $488,974 at Granite Garage Floors to $1,470,778 at Garage Living, on samples that cover very different slices of each system. ## The biggest number in this category comes with the most filtering Garage Living’s 2026 FDD reports a median of $1,470,778 in 2025 gross sales. Surface Specialists, in the same batch of filings, reports $132,416. That is an 11x gap between two businesses a buyer can find in the same search results, and it is not a gap in operator quality. That $1,470,778 comes from 30 franchise business operations covering 37 of Garage Living’s 41 US territories. Four operations the franchisor labels non-conforming are excluded, and so is every Canadian franchisee. Surface Specialists gets to $132,416 from all 44 franchisees that ran the full year, including the one that billed $3,725. Its only exclusion is three outlets that closed partway through 2025. The worst surviving result in the system is printed in the document. Completeness of disclosure and size of the disclosed number run in opposite directions across this whole category, which makes ranking by median actively misleading. Sort by what the sample covers instead. ## Whole-garage renovation and floor coating are different businesses Garage Living designs, supplies and installs cabinetry, slatwall, overhead racks, car lifts, garage doors and floor coatings, and it does that from a showroom. Item 7 budgets $30,000 to $35,000 in leasehold improvements, three months of rent at $9,000 to $15,000, and $30,000 to $50,000 in fixtures and displays. The primary-market total runs $246,450 to $323,900. A secondary-market franchise starts at $122,250 and swaps the percentage royalty for a $2,000 monthly flat fee. GarageExperts, Granite Garage Floors and MACH ONE sell a coated floor out of a wrapped truck. No showroom, no lease of consequence, a third to half the capital, and a cost structure much closer to the [outdoor living brands](https://vetmyfranchise.com/c/claude/blog/best-outdoor-living-franchises) than to a retail franchise. Surface Specialists is a different trade again: bathtub, tile and countertop refinishing for homes, hotels and multifamily buildings, at $43,200 to $56,000. It surfaces in coating searches and it belongs in the price comparison, but nobody is coating a garage floor with it. | Brand | Model | Item 7 total | Fee | Royalty + brand fund | 2025 median | Item 19 sample | | --- | --- | --- | --- | --- | --- | --- | | Garage Living | Showroom, full renovation | $246,450 to $323,900 | $60,000 | 6.5% + 2% + 3-6% local | $1,470,778 | 30 operations, 37 of 41 US territories | | GarageExperts | Van, coating + storage | $136,300 to $246,400 | $54,900 | 6% + 1.5% + 6% local | $624,466 | 46 of 58 single-territory owners | | Granite Garage Floors | Van, coating only | $149,500 to $222,200 | $50,000 | 6.5% + 2% | $488,974 | 24 of 26 franchises | | Hello Garage | Van, coating + organization | $165,340 to $205,250 | $59,500 | 5% + 2% | not stated | 25 businesses incl. 2 corporate | | Surface Specialists | Van, bath and kitchen refinishing | $43,200 to $56,000 | $36,000 | 5% + 1% | $132,416 | all 44 franchisees | Capital is bunched between $136,000 and $250,000 for four of these. Revenue is not bunched at all. Most of that spread is the model, and the rest is who got counted. ## Granite Garage Floors prints every franchise, one line at a time Granite’s Item 19 lists all 24 reporting franchises individually, ranked, with the territory count next to each. The top franchise did $3,319,271 across five territories. Number 24 did $23,755. Average gross sales came in at $729,404 and only 10 of the 24 reached it, which is exactly why the $488,974 median is the number to use. The tenure breakdown is the part worth photographing. Franchises open more than eight years post a median of $1,302,908. Open five to eight years, $401,787. Open one to five years, $374,611. Almost no movement between the two younger cohorts, then a jump. Look at the territory counts in the oldest group and the reason shows up: its four biggest earners hold 5, 5, 7 and 5 territories. The two operators in that same cohort running a single territory did $1,069,674 and $983,219. Granite also runs a Franchise Option Program that refunds the $50,000 initial fee in exchange for a royalty of 10.5% instead of 6.5% for the full ten-year term. On $500,000 of annual sales that trade costs $20,000 a year to save $50,000 once. Do that arithmetic before the discovery day, not after. Similar territory-count math applies across the category, and our guide to [franchise territory analysis](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation) walks through the household-density inputs. ## GarageExperts has 110 units and reports on 46 of them The GarageExperts sample is defined by owner type, not by tenure. It covers 46 of the 58 owners who ran a single territory for all of 2025, which leaves out every multi-territory owner in a 110-unit system. Median gross sales were $624,466, the high was $1,538,069, the low $160,409, and average gross profit after labor and cost of goods sold was $330,195. That last figure is the most useful line item any brand in this group discloses, because it is the only published look at margin before overhead. Set it against the cost side: royalty 6%, national advertising 1.5%, and a local advertising minimum of $50,000 in the first year, dropping afterward to no less than 6% of gross sales per quarter. A buyer budgeting $136,300 to $246,400 for the franchise needs that $50,000 sitting somewhere separate. The Item 15 language adds one more staffing cost most candidates miss: the operations manual treats hiring a full-time salesperson at six to nine months as a best practice. Comparing this against adjacent trades is worth an hour. Our roundup of [van-based models](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises) covers businesses with nearly identical capital profiles, and [garage doors](https://vetmyfranchise.com/c/claude/blog/best-garage-door-franchises) are a separate trade that buyers routinely confuse with this one. Every disclosing brand in the category is filterable on our [home services list](https://vetmyfranchise.com/c/claude/franchises/home-services). ## Crew capacity caps this business, not demand Hello Garage discloses something the others do not: average dollars per install, broken out by year in business. It opens at $4,352, then goes $4,996, $5,028, $5,181 and $4,795. The ticket barely moves across five years. Job count is what moves, with the median climbing from 74 installs to 132, 141, 168 and 201. Granite’s prior-year FDD backs the same ticket from a different system. Its 20 reporting franchises turned 3,155 jobs into $14,708,104 of revenue in 2024, or about $4,660 per job. Two unrelated franchisors, two independent samples, one price per garage. Run the ceiling from there. One crew doing one garage a day, five days a week, 48 weeks a year, produces roughly 240 jobs and something near $1.1 million. That is not a coincidence. It is where GarageExperts’ best single-territory owner landed, at $1,538,069, where Granite’s two mature single-territory franchises landed, at $983,219 and $1,069,674, and where Hello Garage’s fifth-year median stalls, at $977,263. Nobody in this category is capped by demand for coated garage floors. They are capped by how many crews they can hire, train and keep. The one Granite franchise above $2 million holds five territories. ## Reading a small-system Item 19 without fooling yourself A 24-franchise sample sounds thin until you notice Granite only has 26 franchises. Coverage is 92%. Compare that to Hello Garage, which reports on 25 outlets while excluding eight franchised businesses operating in 30 territories, none of which were open less than 12 months, and which folds two corporate-owned locations into the same table. The corporate pair averaged $756,894 in year one against a blended year-one average of $372,569. Sample size is not the test. Coverage and composition are. Three more checks before a deposit. First, confirm what a unit is: Garage Living’s median describes a franchise business operation, and 30 of them run 37 territories, so the per-territory figure is lower than the headline. Second, read Item 20 for direction of travel. Garage Living’s franchised outlets went 50 to 49 to 47 over 2024 and 2025. Granite added 30 territories in 2023, 11 in 2024 and 2 in 2025. Surface Specialists went 48 to 47 to 44. GarageExperts lost two outlets in 2023, held flat in 2024, then added six in 2025. Third, notice who says nothing at all. MACH ONE, the veterans-only epoxy and concrete polishing brand from G-FORCE Franchise Group, grew from 3 franchised outlets to 21 in three years and publishes no financial performance representation, which leaves validation calls as your only source. Price two scenarios before you talk to a development rep: one crew at roughly 240 jobs, and two crews at 480, both at a $4,700 ticket, with royalty and the local advertising minimum subtracted. Our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) handles the fee stack, and the [under-$100K home services list](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) covers what is available if that math says the capital is too heavy. The brand that survives both scenarios is the one worth a discovery day. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best garage floor coating franchisesepoxy flooring franchise costconcrete coating franchisegarage franchise opportunityGarage Living franchiseGarageExperts franchise costhome services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a garage floor coating franchise cost? Between $95,450 and $246,400 for the van-based brands. MACH ONE (G-FORCE Franchise Group) discloses $95,450 to $235,500, GarageExperts $136,300 to $246,400 for a standard territory, Granite Garage Floors $149,500 to $222,200, and Hello Garage $165,340 to $205,250. Garage Living sits well above that at $246,450 to $323,900 for a primary market, because the model includes a retail showroom. ### Are epoxy coating franchises profitable? The FDDs disclose revenue, not profit, with one useful exception. GarageExperts reports average gross profit after labor and cost of goods sold of $330,195 against average gross sales of $686,909 for its 2025 single-territory owners, a gross margin around 48%. Garage Living discloses 41.29% cost of goods sold and 24.23% labor, leaving a 34.48% gross margin before rent, insurance, vehicles, royalties and marketing. Neither figure is net income. ### Do you need construction experience to buy a coating franchise? No brand in this group requires it, but every one of them requires you to run the business yourself. Garage Living asks for full time and best efforts. Granite Garage Floors requires an Operating Principal supervising at all times. Surface Specialists requires you to personally manage and operate unless the franchisor approves a designated manager. GarageExperts lets you install a general manager who is not an owner, which is the loosest requirement of the four. ### Garage Living or GarageExperts, which is the better fit? They compete for different buyers. Garage Living sells whole-garage renovation from a showroom: cabinetry, car lifts, garage doors and coatings, at $246,450 to $323,900 and a $60,000 fee, with a 2025 median of $1,470,778. GarageExperts sells coating and storage from a van at $136,300 to $246,400 and a $54,900 fee, with a median of $624,466 across 46 single-territory owners. Garage Living carries a lease and higher fixed cost. GarageExperts carries a $50,000 first-year advertising minimum. ### How fast can a garage coating franchise ramp? Slower than the marketing suggests, and the disclosure shows it. Hello Garage's Item 19 puts median installation revenue at $316,858 in year one, $721,553 in year two, then $758,999 and $762,451 in years three and four. Granite Garage Floors franchises open one to five years post a median of $374,611. The step change happens when an owner adds territory and crews, not when a single territory matures. --- title: "Best Staffing Franchises 2026: Revenue and Cost Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best staffing franchises, staffing franchise cost, Express Employment Professionals, recruiting franchise, B2B franchise, Item 19, gross billings canonical: https://vetmyfranchise.com/c/claude/blog/best-staffing-franchises about: best staffing franchises category: blog wordCount: 2019 readingTime: 10 min crawledAt: 2026-08-20 11:05:50 lastVerified: 2026-08-20 11:05:50 site: https://vetmyfranchise.com/c/claude/ --- # Best Staffing Franchises 2026: Revenue and Cost Data ## Summary Best staffing franchises compared on gross billings vs. gross profit: Express, Spherion, PrideStaff, and AtWork Item 19 and Item 7 data from 2026 FDDs. ## Key facts - Read the sample column before the revenue column. - Spherion’s tenure bands are the most useful table any staffing franchisor publishes. - AtWork’s staffing business runs $165,000 to $250,000 in Item 7, the lowest genuine entry point among the four for a standalone office. - Franchise fees in this category run $20,000 to $40,000. - Express will refund up to $40,000 of the initial franchise fee to a new franchisee who bills 16 or more clients in a single week or generates $65,000 in gross margin within the first 26 weeks. Quick answer PrideStaff's median franchised office billed $2,674,511 in 2025 and kept $404,930 of it. Staffing franchise revenue is gross billings, and gross margin across the category runs about 20% to 23%. Express Employment Professionals posts the largest disclosure at a $4,043,021 median across 526 offices. PrideStaff’s 2026 FDD reports a median of $2,674,511 in gross billings across 53 franchised offices that had operated for at least two years. The same table reports the median gross margin on those billings: $611,549. Then it reports what the franchisee kept after PrideStaff took its 35% share of that margin: $404,930. Three numbers, one office, an 85% drop from the first to the third. That arithmetic explains why a category with the highest per-unit revenue outside food service almost never makes a buyer’s shortlist, and why the buyers who do shortlist it are usually reading the third number instead of the first. Staffing revenue is gross billings. A franchisee bills a client $32 an hour for a warehouse worker and pays that worker roughly $25. The $32 is revenue; the $7 is the business. Payroll passes straight through the P&L. Every staffing brand in our database discloses gross margin between 20% and 23%, so a $4M revenue headline describes an $830,000 business in a $4M costume. Anyone who ranks these brands by Item 19 revenue against a pizza franchise or a home services franchise is comparing two quantities that are not on the same scale, which is the same trap covered in [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims). ## Four brands publish the same three numbers, and only one of them is the headline | Brand (FDD entity) | Median gross billings | Median gross profit | Margin | Item 19 sample | | --- | --- | --- | --- | --- | | Express Employment Professionals (Express Services, Inc.) | $4,043,021 | $830,634 | ~21% | 526 offices open 24+ months | | Spherion (Spherion Staffing, LLC) | $2,870,331 | $690,869 | 21.5% | 64 franchisees, 1+ year | | PrideStaff (PrideStaff, Inc.) | $2,674,511 | $611,549 | 22.8% | 53 offices open 2+ years | | AtWork (AtWork Franchise, Inc.) | $1,842,996 | $381,900 | 20.5% | 63 offices, full year 2025 | Read the sample column before the revenue column. Express reports per office. PrideStaff reports per office. Spherion reports per franchise agreement and aggregates multi-office owners into one line, so 189 units collapse into 64 data points and the median describes an owner rather than a location. Spherion’s table also covers fiscal year 2024, a year behind the other three. Express’s margin is the one ratio here that the FDD does not print as a percentage; it is the median gross margin divided by the median sales, which is close enough to read but not a per-office figure. ## Express Employment Professionals discloses more than the rest of the category combined Express Services, Inc. is the entity that files the FDD for Express Employment Professionals. Its 2026 document reports 758 franchised units and 7 company-owned, and its Item 19 covers 526 of them: every franchised unit open more than 24 months, with three years of history in a single table. For fiscal 2025 those 526 offices produced median annual sales of $4,043,021 and average sales of $5,342,686. Median gross margin came in at $830,634. Median franchisee share of gross margin and gross receipts, which is the number closest to what actually reaches the owner’s operating account, was $563,915. Express also discloses what it collected: royalties averaged 38.0% of gross margin and 8.4% of sales. That 40% share of gross margin is the Express model. Item 6 sets its cut at 40% of Core Occupations gross margin, remits the franchisee’s 60% on the 25th of each month, holds back 1% of gross margin in a reserve account against uncollectible client accounts, and charges an invoice back to the franchisee if it goes unpaid for 75 days. A franchisee’s cash flow becomes a monthly margin remittance rather than a receivables cycle they fund themselves. That structure is the reason Express’s Item 7 numbers look low next to Spherion’s. Express files four separate Item 7 tables and they describe genuinely different businesses. A Core Occupations office runs $131,000 to $287,700, a Professional Occupations office $303,500 to $598,700, and a Healthcare Occupations office $313,150 to $503,100. A branch office added inside an existing territory starts at $39,450. Aggregators quoting Express as a $39,450 opportunity are quoting that branch table, which is not available to a first-time buyer. The ramp is in the same Item 19. Express discloses 22 units in their first 12 months at a median of $892,374 in sales, and 9 units in their second 12 months at $1,840,907. Samples of 22 and 9 are too thin to rank on. Directionally they say what the working capital line says: year one lands near a fifth of the mature median. ## Spherion and PrideStaff sit in the middle and disclose different things well Spherion’s tenure bands are the most useful table any staffing franchisor publishes. Franchisees at one to five years posted a median of $1,054,773 in sales and $293,004 in gross profit. At six to ten years, $3,275,051 and $692,068. At ten-plus years, $4,277,655 and $857,792. Nineteen of the 64 franchisees, or 29.7%, beat the system’s average gross profit percentage, which tells you the average is being pulled by a handful of very large owners. The top of the range is a $46,397,126 sales figure, and it belongs to somebody who has been at this for a decade. PrideStaff discloses the layer almost nobody else does. Its Item 19 prints gross billings, gross margin, and franchisee share side by side, plus an average bill rate of $28.53, an hourly gross margin of $6.52, and an hourly franchisee share of $4.30 at the median office. Six-fifty an hour in margin, four-thirty of which is yours. Multiply that by the hours you can realistically staff in your territory and you have a revenue model that does not require you to trust anyone’s median. Every [staffing and recruiting franchise](https://vetmyfranchise.com/c/claude/franchises/staffing-and-hr) in our database is listed with Item 7, royalty, and Item 19 data on one screen. ## AtWork opens cheapest and prints the most uncomfortable footnote AtWork’s staffing business runs $165,000 to $250,000 in Item 7, the lowest genuine entry point among the four for a standalone office. Its 63-office sample produced median gross revenue of $1,842,996, median gross profit of $381,900, and a 20.48% median gross margin. The tenure split follows the same curve as Spherion’s: seven offices at one to three years posted a $1,449,656 median, while 42 offices at five-plus years posted $2,497,286. Then there is the note that the sample excludes 22 franchised offices that permanently closed during the 2025 calendar year, seven of which had been open fewer than 12 months. AtWork disclosed that itself, in Item 19, in plain language. I am not going to convert it into a rate, because a single year of one brand’s closures is not a failure rate. It does mean the $1.8M median describes the offices that were still open at year end, and you should ask a franchise development rep about those 22 by name. ## The largest line in Item 7 is the one buyers skim Franchise fees in this category run $20,000 to $40,000. That is not the entry price. The entry price is the additional funds line. | Brand | Franchise fee | Additional funds | Total Item 7 | | --- | --- | --- | --- | | Express (Core Occupations) | $20,000 to $40,000 | $75,000 to $175,000 (9 months) | $131,000 to $287,700 | | Spherion | $30,000 | $125,000 to $234,000 (6 to 11 months) | $211,725 to $423,925 | | PrideStaff | $40,000 | $90,000 to $110,000 (3 months) | $151,950 to $244,600 | | AtWork (staffing) | $40,000 | $75,000 to $139,500 (6 to 9 months) | $165,000 to $250,000 | The mechanism is simple and unforgiving. Temporary workers get paid weekly. Clients pay on 30 to 60 day terms. Every new account you win widens that gap before it closes it, so a fast-growing office burns more working capital than a flat one. PrideStaff’s three-month cushion is the thinnest in the table, and the brand’s own resale disclosure asks for a minimum of $100,000 in liquid funds on top of the purchase price, which reads like a correction to its own three-month estimate. Our guide to [how much cash reserve a franchise really needs](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) covers how to size this against your own ramp rather than the franchisor’s. ## The filter is business-to-business selling, not recruiting Express will refund up to $40,000 of the initial franchise fee to a new franchisee who bills 16 or more clients in a single week or generates $65,000 in gross margin within the first 26 weeks. Read that as the franchisor telling you what a successful first six months looks like: sixteen paying employers, found and closed, by someone whose job that week is prospecting. Owners who came from outside sales, territory management, or B2B account work tend to survive that. Owners who bought a staffing franchise because they enjoy interviewing people tend to discover that recruiting is the part the system already solves and selling is the part it does not. The labor question runs both directions here, and the [unit economics framework](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis) worth applying is gross margin per internal employee, not revenue per office. ## Against the rest of the B2B shelf, staffing trades headline for balance sheet Set staffing next to the categories in our [best B2B service franchises](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) roundup and the ranking inverts depending on which column you sort. Commercial cleaning, IT, and consulting brands post far smaller Item 19 revenue, and almost none of theirs is pass-through. A staffing office converts about a fifth of its billings into gross margin, and carries receivables, payroll funding, and employment liability to get there. The same gap between throughput and take-home shows up in [food franchises versus service franchises](https://vetmyfranchise.com/c/claude/blog/food-franchise-vs-service-franchise), where cost of goods plays the role payroll plays here. Sort these four by revenue and Express wins by 40%. Rank them on gross profit per dollar of Item 7 investment and the order shifts, then rank them on how much cash you need on hand in month seven and it shifts again. Before you sign anything, put these fee structures against the wider system: our [franchise fee benchmark report](https://vetmyfranchise.com/c/claude/reports/franchise-fee-benchmark) shows where each brand sits against 2,300+ FDDs on initial fee, royalty, and ad fund. Then pull the Item 19 tables and read the gross margin column first. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best staffing franchisesstaffing franchise costExpress Employment Professionalsrecruiting franchiseB2B franchiseItem 19gross billings About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a staffing franchise cost? A single staffing office runs about $131,000 to $423,925 in total initial investment across the four brands with current Item 19 data. Express Employment Professionals discloses $131,000 to $287,700 for a Core Occupations office, PrideStaff $151,950 to $244,600, AtWork $165,000 to $250,000, and Spherion $211,725 to $423,925. Franchise fees are a small slice: $20,000 to $40,000 at Express, $30,000 at Spherion, $40,000 at PrideStaff and AtWork. ### How profitable is a staffing agency franchise? Judge it on gross margin, never on billings. PrideStaff's median office billed $2,674,511 and produced $611,549 of gross margin, of which the franchisee kept $404,930 after the franchisor's 35% share. Rent, internal staff salaries, insurance, software, and the owner's own pay all come out of that $404,930. Express discloses a median franchisee share of $563,915 on median billings of $4,043,021. ### Do you need recruiting experience to buy a staffing franchise? None of the four brands require it, and the disclosures suggest business-to-business selling matters more. Express offers a refund of up to $40,000 of its initial fee to new franchisees who bill 16 or more clients in a single week or generate $65,000 in gross margin within their first 26 weeks. That incentive describes a sales ramp, not a recruiting one. ### Why do staffing franchises need so much working capital? You pay temporary workers weekly and invoice clients on 30 to 60 day terms, so every new account widens the gap before it closes it. Growth consumes cash rather than generating it. Item 7 reflects this directly: Spherion budgets $125,000 to $234,000 of additional funds for six to eleven months, and PrideStaff budgets $90,000 to $110,000 for three. ### Which staffing franchise has the most units? Express Employment Professionals, at 758 franchised units plus 7 company-owned, per its 2026 FDD. Spherion reports 189 franchised units, AtWork 83, and PrideStaff 65 franchised plus 6 company-owned. Express also discloses the largest Item 19 sample in the category at 526 offices, which makes its median the most statistically useful figure on this page. --- title: "Best Youth Sports Franchises 2026: Cost and Revenue Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best youth sports franchises, youth sports franchise cost, i9 Sports franchise cost, D1 Training franchise, kids sports franchise, athletic training franchise, Item 19 analysis canonical: https://vetmyfranchise.com/c/claude/blog/best-youth-sports-franchises about: best youth sports franchises category: blog wordCount: 1664 readingTime: 8 min crawledAt: 2026-08-20 11:06:31 lastVerified: 2026-08-20 11:06:31 site: https://vetmyfranchise.com/c/claude/ --- # Best Youth Sports Franchises 2026: Cost and Revenue Data ## Summary The best youth sports franchises by disclosed FDD data: i9 Sports at $59,900 with a $359,546 median across 213 units, and D1 Training at $507,699. ## Key facts - An i9 Sports franchisee can open for $59,900. - Almost no franchise quotes a total investment band that narrow. - D1’s headline figure is a $507,699 median gross revenue for 2025. - Revenue comparison flatters D1. - i9 excludes from its own earnings sample any unit that failed to operate a venue in each of the four seasons of the year, which tells you the calendar is the business. Quick answer Two youth sports franchises disclose enough unit data to judge. i9 Sports reports a $359,546 median across 213 units on a $59,900 to $69,900 investment, with no facility to build. D1 Training reports a $507,699 median across 83 facilities that cost $401,776 to $837,381 to open. ## Two very different businesses wear the same label An i9 Sports franchisee can open for $59,900. A D1 Training facility starts at $401,776. Both get shelved under youth sports, and buyers routinely compare them side by side, which is a category error. One sells seasonal league registrations and rents fields it does not own. The other signs a commercial lease, builds out a training floor, and sells monthly memberships. Those two are also the only youth sports brands in our FDD database with earnings disclosures deep enough to judge. i9 Sports reports on 213 units. D1 Training reports on 83 facilities. Everything else in the category either publishes on a per-owner basis, which is not a per-unit number, or reports a handful of outlets. | | i9 Sports | D1 Training | | --- | --- | --- | | Initial investment | $59,900 to $69,900 | $401,776 to $837,381 | | Franchise fee | $24,900 | $62,500 | | Royalty | 7.5% | 7% | | Ad fund | 2% | 2% or $250/mo | | Franchised units | 294 | 155 | | Item 19 median | $359,546 | $507,699 | | Item 19 sample | 213 units | 83 facilities | | Costs disclosed | Yes, full P&L | No, revenue only | i9’s Item 19 reports median registration revenue of $359,546 for calendar 2025. Read the definition before you use the number. Registration revenue means league sign-up sales only; i9 explicitly excludes sponsorships, commissions, merchandise, and concession sales from it. The 213 units in the sample are those with a service start date before 2025 that provided services throughout the full year. Another 81 active units were left out, most of them because they launched mid-year or failed to operate a venue in all four seasons. Average registration revenue was $458,817, and only 38% of units met or beat it. The spread runs from $44,151 to $1,846,038, and i9 publishes exactly what separates the ends: venue count. A single-venue operator averaged $149,590. Owners running six venues or more averaged $1,009,403, and 41 franchisees sit in that top group against 21 at the bottom. Buying a territory and running one field on Saturday mornings is a five-figure business. The six-figure outcomes belong to owners who added venues and added sports. One more line from the same item, which most write-ups skip: six i9 franchise units permanently closed during 2025, one of them within twelve months of opening. ## Why a $10,000 Item 7 spread is unusual Almost no franchise quotes a total investment band that narrow. i9’s 10-year agreement runs $59,900 to $69,900, a spread of exactly $10,000, and the reason sits in the line items. The franchise fee is $24,900 and the territory fee is $15,000, both fixed at a single value. That is $39,900, two-thirds of the low end, with zero variance. The lines that do move are all small: grand opening advertising at $6,000 to $8,000, insurance, legal and accounting, furniture and equipment at $3,000 to $4,000, training expenses, and three months of additional funds at $8,000 to $13,000. There is no real estate line. No buildout, no leasehold improvements, no permits. Construction is where Item 7 ranges blow out, and i9 does not have a construction line, so the estimate is unusually likely to hold. You are not exposed to a contractor’s bid or a landlord’s allowance or a six-week permitting delay. Your exposure is whether parents in your territory register their kids, which is a cleaner risk to underwrite than most. Buyers weighing this against other low-capital options should compare it to the field in our [home-based franchise breakdown](https://vetmyfranchise.com/c/claude/blog/best-home-based-franchises). ## D1 Training: bigger revenue, and a disclosure worth reading twice D1’s headline figure is a $507,699 median gross revenue for 2025. The sample is 83 facilities, and 8 of them are company-owned or affiliate-owned. That distinction moves the number: franchised facilities averaged $534,745, company-owned facilities averaged $717,183, and the blended average D1 leads with is $552,329. To its credit, D1 says so in the document, telling prospects that the franchised-only average of $534,745 may be the most directly comparable data point. Very few franchisors hand you that correction unprompted. The quartiles are wide. The top 21 facilities averaged $888,671; the bottom 20 averaged $297,791, with a floor of $165,489. Facility size explains some of the spread and operating history explains more. The extra-large facilities averaging $1,159,895 carry 16.2 years of history against 3.1 years for the small-format facilities the current FDD actually sells, and D1 flags that comparison itself. Then there is what sits outside the table. Only 75 of D1’s 155 franchised facilities appear in the analysis. Twenty more were placed in a separate bucket for facilities that did not align with the D1 operating model, disclosed at a $287,128 median, roughly $220,000 under the headline. Item 3 discloses a pending arbitration in which a former Naples, Florida franchisee has counterclaimed that the model does not work and that D1’s semi-absentee representations were misleading. D1 states it will defend vigorously. Both facts belong in your read. ## The margin story sits underneath the revenue Revenue comparison flatters D1. i9’s Part II income statement is the more useful page. Across 129 franchisees reporting to a third-party benchmarking consultant for the twelve months ending September 30, 2025, average revenue was $514,066, cost of sales was $149,520, operating expense was $196,999, royalty was $38,257, and average operating profit was $129,290. That is about 25% of revenue. Qualify it properly. That sample is self-selected: 74 units were dropped for reporting data inconsistently with i9’s categories and 32 more did not report at all. Read 25% as what organized operators produced, not as a systemwide expectation. D1 publishes no unit-level costs. Its Item 19 is revenue only, which leaves the buyer to model rent, turf, equipment, and coaching payroll from scratch. A facility carrying all four needs a much larger top line to clear the same dollars of profit as a league operator with none of them. That is not a disqualifier. It is a reason to build the P&L yourself from validation calls before you sign, the same discipline we apply in our [swim school comparison](https://vetmyfranchise.com/c/claude/blog/best-swim-school-franchises), where facility costs decide the outcome. If you are shopping the wider kids category, the [child services and education brands](https://vetmyfranchise.com/c/claude/franchises/child-services-and-education) are all comparable on the same Item 19 fields. ## Seasonality is structural here, not a footnote i9 excludes from its own earnings sample any unit that failed to operate a venue in each of the four seasons of the year, which tells you the calendar is the business. Registration revenue lands in bursts tied to school terms, and a missed season is a missed quarter. D1’s monthly memberships smooth that cash curve and move the pressure to summer retention, when high school athletes scatter. Neither pattern is better. They demand different working capital, and the [part-time ownership math](https://vetmyfranchise.com/c/claude/blog/franchise-ownership-with-day-job-part-time) changes accordingly. ## The brands you cannot rank yet Hi Five Sports discloses a $225,171 median, but it comes from six outlets and the sample mixes franchised units with affiliate-owned ones. Twinkle Star Dance discloses $425,000 from three franchised units. Both numbers are real and neither is evidence. At those sizes a single strong owner sets the median, and an affiliate-owned outlet is not a franchisee outcome. Two much larger systems have a different problem. Amazing Athletes (169 units) and Soccer Stars (170 units) both report Item 19 on a per-owner basis, and many owners hold multiple territories, so the $214,219 Amazing Athletes figure describes a portfolio rather than a unit. Soccer Shots is the largest league-model system in the category at 383 units with a $42,950 to $54,300 investment, and its earnings disclosure is worth pulling in full before you shortlist it. The same rule applies across the kids category, including the [trampoline and entertainment brands](https://vetmyfranchise.com/c/claude/blog/best-children-entertainment-trampoline-franchises) where sample definitions vary just as much. Only i9 and D1 give you enough to underwrite. The rest hand you a number with no way to test it. If you want a read on which model your capital and your calendar actually support before you start requesting FDDs, the [franchise readiness quiz](https://vetmyfranchise.com/c/claude/franchise-readiness-quiz) is the faster first step. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best youth sports franchisesyouth sports franchise costi9 Sports franchise costD1 Training franchisekids sports franchiseathletic training franchiseItem 19 analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a youth sports franchise cost? It depends entirely on whether the model uses a building. i9 Sports, which rents fields and gyms it does not own, discloses a total initial investment of $59,900 to $69,900 under its 10-year agreement. D1 Training, which requires a leased and built-out facility, discloses $401,776 to $837,381. Soccer Shots sits near the low end at $42,950 to $54,300. The franchise fee itself is a small part of either number: $24,900 for i9, $62,500 for D1. ### Is i9 Sports profitable? i9's Item 19 includes a franchisee income statement, which most youth sports brands do not. Across 129 units reporting to a third-party benchmarking consultant for the year ending September 30, 2025, average revenue was $514,066 and average operating profit was $129,290, or about 25% of revenue. Treat that as a filtered result: 74 units were excluded for reporting data inconsistently and 32 more did not report at all, so the surviving sample skews toward organized operators. ### Do you need a coaching background to own a youth sports franchise? Neither brand requires one. i9 franchisees recruit and train volunteer and paid coaches rather than coaching themselves, and the disclosed revenue driver is venue count, not sports expertise. D1 Training facilities employ certified coaches on payroll. What both models actually demand is local sales: filling registration slots or memberships in a defined territory, season after season. ### i9 Sports vs D1 Training, which is the better fit? They suit different buyers. i9 is the fit if your capital is under $100,000, you want no lease exposure, and you are willing to build revenue by adding venues and sports over several seasons. D1 is the fit if you can fund a facility build, want recurring membership revenue instead of seasonal registration bursts, and can absorb the risk that a single location underperforms. Read D1's Item 3 before you decide: a former franchisee has counterclaimed in arbitration that the brand's semi-absentee representations were misleading. ### Can you run a youth sports franchise part time? The league model tolerates it better than the facility model, but i9's own data argues against staying small. Units operating a single venue averaged $149,590 in registration revenue, while units operating six or more venues averaged $1,009,403. A part-time owner running one venue is choosing the bottom of that distribution. A D1 facility with a lease and a payroll is not a part-time business under any reading of its disclosure. --- title: "Crumbl vs Insomnia vs Toll House: $848K Cost, $1.09M AUV (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-07-24 keywords: crumbl, insomnia cookies, nestle toll house, cookie franchise, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/crumbl-vs-insomnia-vs-nestle-toll-house-franchise about: crumbl category: blog wordCount: 1513 readingTime: 8 min crawledAt: 2026-08-20 11:04:51 lastVerified: 2026-08-20 11:04:51 site: https://vetmyfranchise.com/c/claude/ --- # Crumbl vs Insomnia vs Toll House: $848K Cost, $1.09M AUV (2026) ## Summary Crumbl vs Insomnia Cookies vs Nestlé Toll House franchise comparison: investment, royalties, AUV, brand momentum, and which cookie concept fits which buyer. ## Key facts - Cookies have become a substantial franchise category over the past decade, driven by social media, gift-occasion demand, and the rise of late-night ordering. - Is Insomnia Cookies a franchise? - Nestlé Toll House Café & Bakery (operated by Crest Foods, with Nestlé licensing the brand) offers a smaller-format café-bakery model with a broader menu: cookies, brownies, sandwiches, smoothies, coffee. - For all three franchises: - Cookies are a valid franchise category, but the three biggest brands occupy different strategic positions. Quick answer Crumbl is the only one of the three you can actually buy: $848,566–$1,472,533 to open per the 2026 FDD, with an 8% royalty, 1,101 franchised U.S. units, and $1,093,071 median unit revenue (Item 19). Insomnia Cookies is corporate-owned and does not franchise, so there is no Insomnia Cookie franchise cost or application. Nestlé Toll House Café is the smaller mall-format franchise system. Match the concept to your market. ## Three Cookie Concepts, Three Strategic Bets Cookies have become a substantial franchise category over the past decade, driven by social media, gift-occasion demand, and the rise of late-night ordering. Three distinct concepts dominate the U.S. cookie space, though only two of them actually franchise: - **[Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)**: Viral social-media-driven brand with rotating weekly menu, drive-thru and storefront formats - **Insomnia Cookies**: Late-night delivery focus, college-town and urban-density submarkets (corporate-owned; [not available to franchise buyers](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise), included here for model comparison) - **Nestlé Toll House Café & Bakery**: Smaller-format mall and storefront with broader menu Each solves a different problem for a different consumer occasion. This comparison breaks down how the three stack up for franchise buyers in 2026. ## The Side-by-Side Snapshot | Metric | Crumbl | Insomnia Cookies | Nestlé Toll House | | --- | --- | --- | --- | | Concept | Rotating-menu cookie shop | Late-night delivery cookies | Café-bakery (cookies + light menu) | | Typical square footage | 1,000–1,800 sq ft | 800–1,500 sq ft | 1,200–2,200 sq ft | | Total investment | $848,566–$1,472,533 | N/A — does not franchise | $400,000–$650,000 | | Franchise fee | $50,000 | N/A | ~$30,000 | | Royalty | 8% | N/A | 6% | | Advertising fund | 2% | N/A | 2% | | U.S. unit count | 1,101 | 250+ (all corporate) | 100+ | | Item 19 median revenue | $1,093,071 (776 units) | N/A (no FDD exists) | Not disclosed | | Late-night delivery | Limited | Core to model | No | | Social media driver | Heavy (TikTok / Instagram) | Moderate | Low | ([Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) figures come from the 2026 FDD as parsed in VetMyFranchise’s database of 2,000+ FDDs. Insomnia Cookies is corporate-owned and has never filed an FDD, because it [does not franchise](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise). Nestlé Toll House figures are industry estimates as of 2026, since its FDD isn’t yet in the dataset.) [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) scaled from zero to 1,101 U.S. units in under a decade (54 opened and just 10 closed in the most recent year, per the 2026 FDD), driven by: - Weekly rotating menu of 4–6 cookies featured on social media - Iconic pink boxes that became visual brand assets - Strong gift-occasion demand (cookies as a delivery-friendly gift) - Aggressive franchise development with low single-unit barriers The challenge in 2026: comp-store sales pressure as new units compete for the same customer base. Some markets have multiple [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) units within 5–10 miles, which creates territory cannibalization. Buyers should look at [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) cohort data carefully, because initial-year sales are often elevated by novelty; sustained-year sales tell the real story. The current disclosure is still strong: median revenue of $1,093,071 across the 776 franchised units that operated through all of 2025. For a franchise buyer, [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) offers strong brand momentum, but no longer a small check. The 2026 FDD puts total investment at $848,566–$1,472,533, the highest of these three concepts, with concentration risk on top in markets where the brand is now mature. ## Insomnia Cookies: Late-Night Delivery Niche Is Insomnia Cookies a franchise? No. There is no Insomnia Cookie franchise or Insomnia Cookies franchise to buy at any price: the brand is entirely corporate-owned, has never sold a franchise, and has no FDD on file in any state. It appears in this comparison only as a model to study, because its late-night delivery economics are instructive even when you cannot own a unit. Insomnia Cookies built its model around a specific occasion: late-night cookie delivery to college students and young urban professionals. The unit economics work best where two conditions hold: - Substantial nighttime population (college students, dense urban renters) - Late-night ordering culture (third-party delivery apps like DoorDash and Grubhub run heavy 9pm-3am volume) Markets where the model thrives include college towns (State College, Ann Arbor, Athens GA, Austin) and dense urban submarkets in cities like Boston, Philadelphia, and Chicago. Markets where the model struggles include suburban communities without late-night ordering culture and areas with low population density. As covered above, you cannot buy into this model. We break down the ownership history and the reasons behind it in [Is Insomnia Cookies a franchise?](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise) Buyers drawn to the late-night delivery occasion should evaluate how much of it [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s app-driven delivery volume captures, or whether a lower-cost dessert concept in a college market can serve the same demand independently. ## Nestlé Toll House Café & Bakery: The Smaller-Format Option Nestlé Toll House Café & Bakery (operated by Crest Foods, with Nestlé licensing the brand) offers a smaller-format café-bakery model with a broader menu: cookies, brownies, sandwiches, smoothies, coffee. By industry estimates it runs roughly 100 U.S. units as of 2026 (its FDD isn’t in our dataset yet, so treat these numbers as approximate), concentrated in shopping malls and lifestyle centers. The broader menu provides more revenue diversification than single-product cookie concepts, but also more operational complexity. Mall-based locations face the broader retail-traffic challenges that have affected all mall-based franchises in the 2020s. For a franchise buyer, Nestlé Toll House offers brand recognition (Toll House is a household-known brand), broader menu flexibility, and lower category-trend risk (less dependent on single-product viral momentum). The trade-off is a smaller franchise system with less national marketing scale and more dependence on local foot traffic. ## Investment and Operational Comparison | Factor | Crumbl | Insomnia | Nestlé Toll House | | --- | --- | --- | --- | | Capital required | Highest ($848K–$1.47M per 2026 FDD) | N/A (corporate-owned) | Mid | | Operational complexity | Moderate | Moderate (delivery focus) | Higher (broader menu) | | Real estate flexibility | Standard retail | Urban / college markets | Mall + lifestyle center | | Brand momentum | Strong but maturing | Niche-strong | Stable | | Comp-store risk | Higher (saturation) | Lower | Lower | For all three franchises: - [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): Total investment by format - [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise): Financial performance representations, especially important for Crumbl given the recent comp-store dynamics - [Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination): Renewal, transfer, and territory provisions > **Considering a cookie franchise?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack), which maps neatly onto this three-way shortlist. Or use our free [side-by-side comparison tool](https://vetmyfranchise.com/c/claude/compare) for top-line stats. ## Which Cookie Concept Should You Buy? Cookies are a valid franchise category, but the three biggest brands occupy different strategic positions. Crumbl rode social media to rapid growth and now faces comp-store maturity questions. Insomnia Cookies thrives in specific late-night-friendly markets but is corporate-owned and [not available to franchise buyers](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise) at all. Nestlé Toll House offers broader menu and category-trend diversification at the cost of smaller franchise system scale. The right pick depends on your market and your tolerance for category-trend risk. Read all three FDDs carefully (the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) entitles you to each one at least 14 days before signing), with extra attention to Crumbl’s unit-economics trajectory in markets that resemble yours, and validate Item 19 numbers with existing franchisees who have operated for 24+ months. ## Brands mentioned in this post - [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) crumblinsomnia cookiesnestle toll housecookie franchisefranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Why has Crumbl grown so fast? Crumbl built a unique social-media flywheel: a rotating weekly menu of 4–6 cookies featured on TikTok and Instagram, with branded pink boxes that became visual brand assets. The combination drove rapid customer acquisition and franchise demand. The growth strategy raised concerns about per-unit comp-store sales as more units competed for the same customer base; some buyers report slowing same-store performance in 2024–2025. ### Can you buy an Insomnia Cookies franchise? No. Insomnia Cookies is entirely corporate-owned and has never sold franchises, so there is no Insomnia Cookies franchise cost or application process. Its late-night delivery model thrives in college towns and dense urban submarkets, but that model is only available to study, not to buy. Buyers drawn to it should compare Crumbl's app-driven delivery volume or lower-cost dessert concepts instead. ### Is the cookie category sustainable as a franchise category? Cookies as a category have been a profitable franchise space for decades (Mrs. Fields, Great American Cookie, others). The 2020s wave of single-product cookie concepts has been driven by social media and gift-occasion demand. Whether the category remains as profitable as the recent boom suggests depends on consumer behavior post-novelty: when cookies are no longer the trending dessert, do customer counts hold? This is a category-level risk all three franchises share. ### How does Crumbl's per-unit AUV compare? Crumbl's unit volumes remain high relative to other quick-service single-product concepts: the 2026 FDD's Item 19 discloses median revenue of $1,093,071 across 776 franchised units that operated through all of 2025. However, the recent wave of new openings has created comp-store sales pressure in some markets. Buyers should look at Item 19 cohort data carefully and ideally talk to existing franchisees who've operated 24+ months to understand AUV trajectory at unit-economics maturity. --- title: "Best E-2 Visa Franchises 2026: Investment and Job Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best franchises for e-2 visa, e-2 visa franchise investment, treaty investor franchise, franchise for foreign investors, home care franchise, item 15 owner participation canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-e2-visa-investors about: best franchises for e-2 visa category: blog wordCount: 2032 readingTime: 10 min crawledAt: 2026-08-20 11:05:09 lastVerified: 2026-08-20 11:05:09 site: https://vetmyfranchise.com/c/claude/ --- # Best E-2 Visa Franchises 2026: Investment and Job Data ## Summary The best franchises for E-2 visa investors, ranked on Item 7 investment, Item 19 disclosed revenue, and the Item 15 owner-participation language that changes the analysis. ## Key facts - Neighborly’s nineteen North American brands all carry a version of the same sentence in Item 15 of their 2026 disclosure documents. - Nothing in the E-2 regulations sets a dollar floor. - The other recurring concern is marginality: a business with capacity only to produce a living for the investor and their family. - Home care agencies bill hourly against caregiver payroll, which means headcount and revenue move together and the staffing story writes itself. - Owner participation language varies more than the brochures suggest, and the difference matters because E-2 turns on the investor directing or developing the enterprise. Quick answer Nine franchise brands disclose an Item 19 median revenue above $600,000 on an Item 7 investment landing in or near the $100,000 to $400,000 range commonly cited in E-2 practice. Superior Fence & Rail leads at $2,598,212 across 93 franchisees. There is no statutory E-2 minimum, and an immigration attorney makes that call. ## Nineteen franchisors put your visa status in the contract Neighborly’s nineteen North American brands all carry a version of the same sentence in Item 15 of their 2026 disclosure documents. You must obtain and maintain an immigration status that allows you to live, work, own and operate a business in the United States for the initial term of the franchise agreement and for any renewal term. Fall out of status and, in the document’s own words, the agreement “will immediately expire by its terms with no further notice or opportunity to cure.” No refund of fees. Every post-termination covenant, including the non-compete, still binds you. That clause is the sharpest way into a point most E-2 shortlists skip. An FDD tells you nothing about whether a visa will be approved. It tells you what the business costs, what its units bill, what the franchisor demands of the person running it, and what happens contractually if your status changes. Three of those four feed the case your attorney builds. Only an immigration attorney can judge how any of it lands on a specific applicant, and nothing here is legal advice. For treaty-country eligibility, escrow structure, and consular timing, start with the [E-2 visa franchise buying guide](https://vetmyfranchise.com/c/claude/blog/e2-visa-franchise-buying-guide). This post does the other half of the work: ranking brands on what their disclosures actually say. ## The substantial-investment test has no number in it Nothing in the E-2 regulations sets a dollar floor. The question is proportionality: is the investment substantial relative to the total cost of establishing the enterprise? That makes it a ratio. Put $140,000 into a business that costs $140,000 to open and you have funded it completely. Put the same $140,000 against a $900,000 build-out and you have funded a sixth of it. Immigration practitioners commonly describe $100,000 to $400,000 as the band where franchise cases sit comfortably. Treat that as commentary on how cases tend to go, not as a rule anyone can cite to you. The FDD’s contribution is the denominator. Item 7 discloses the full estimated initial investment, low and high, line by line, and that table is what a business plan has to reconcile against. Item 5 and Item 6 tell you how much of it leaves your hands as fees rather than converting into equipment, inventory, or a lease. ## Marginality is the test the Item 19 sample speaks to The other recurring concern is marginality: a business with capacity only to produce a living for the investor and their family. Labor-employing service models answer that more legibly than solo operations, because payroll grows with revenue in a way an examiner can trace through the accounts. Nine brands whose Item 7 ranges land in or just under that band disclose a median above $600,000 on a sample deep enough to mean something. Two of them, Home Instead and SYNERGY HomeCare, start below $100,000 at the low end, which is exactly the proportionality conversation to have with counsel rather than a reason to strike them off. Ranked by disclosed Item 19 median revenue, from 2026 FDDs: | Brand | Item 7 investment | Item 19 median revenue | Franchisees in sample | What the sample covers | | --- | --- | --- | --- | --- | | Superior Fence & Rail | $134,400 to $278,300 | $2,598,212 | 93 | Multi-territory and single-territory franchisees combined | | Home Instead | $92,640 to $350,550 | $2,261,503 | 611 | All franchised units | | SYNERGY HomeCare | $80,245 to $164,091 | $1,763,025 | 523 | Multi-unit and single-unit, open 1 year or more | | Homewatch CareGivers | $142,890 to $194,080 | $1,360,485 | 214 | Franchisees operating the full 2025 fiscal year | | Right at Home | $94,330 to $176,239 | $1,334,579 | 390 | Franchised offices open one year or more | | Mr. Electric | $159,500 to $357,425 | $1,022,586 | 169 | All units reporting a full 52 weeks, grouped by territory population | | Mr. Handyman | $161,900 to $215,000 | $972,424 | 341 | All franchised units | | Aire Serv | $113,808 to $271,708 | $944,801 | 172 | All franchised units | | GarageExperts | $109,900 to $246,400 | $624,466 | 46 | Single-territory franchise owners | Two caveats before anyone builds a plan on that table. Superior Fence & Rail’s median pools multi-territory operators with single-territory ones, so the figure sits above what a first territory should be modeled at. And Mr. Electric’s disclosure is grouped by territory population, meaning the median summarizes bands rather than a single comparable cohort. Read the footnotes in the actual Item 19 before either number goes into a business plan. Sample depth is where home care separates from everything else here. Home Instead reports on 611 franchisees and SYNERGY HomeCare on 523, against 46 for GarageExperts. A median drawn from 611 operators tells you something about the middle of a system. One drawn from 46 tells you about 46 people. Not sure which of these fits the territory you are targeting? [Find my franchise](https://vetmyfranchise.com/c/claude/find-my-franchise) filters the full database by investment range and disclosed earnings in a couple of minutes. ## Home care and trades are the strongest structural fits Home care agencies bill hourly against caregiver payroll, which means headcount and revenue move together and the staffing story writes itself. Home Instead’s $2,261,503 median across 611 franchisees, on an investment starting at $92,640, is an unusual combination of low capital and high billings in the same disclosure. SYNERGY HomeCare and Right at Home run the same model with lower medians and similarly deep samples. Our [home care franchise breakdown](https://vetmyfranchise.com/c/claude/blog/best-home-care-franchises) goes further into how those systems differ on royalty and territory. The trades work differently. Superior Fence & Rail, Aire Serv, Mr. Electric, and GarageExperts all carry crews and trucks, and their Item 7 ranges include vehicles and equipment that convert cash into visible business assets rather than fees. Aire Serv’s quartiles run from $576,772 at the 25th to $4,093,185 at the 75th, which is a reminder that HVAC outcomes spread hard by market. A licensed trade also raises a practical question worth asking early: who holds the electrical or HVAC license in your state, and can a new arrival hold it, or does the business depend on a licensed employee? Brightway Insurance sits just outside this band at $43,425 to $186,900 with a $655,298 median across 272 franchisees. The low end is well under the range practitioners describe, and Item 15 requires a Designated Agency Principal who is licensed by the applicable regulatory authorities and dedicates 40 or more hours per week. State insurance licensing is a real gate for a recent arrival. Worth knowing before it costs you three months. ## Item 15 is where the analysis actually splits Owner participation language varies more than the brochures suggest, and the difference matters because E-2 turns on the investor directing or developing the enterprise. SYNERGY HomeCare requires direct full-time supervision by a Designated Manager who does not need any equity, though the franchisee must maintain supervision of that manager. GarageExperts is similar: a General Manager acceptable to the franchisor, devoting full time solely to the business, with no ownership required. Home Instead accepts either personal supervision by the owner or a full-time, on-premises manager who has completed training and holds franchisor approval. Right at Home goes the other way. Its Operating Principal must hold at least 25% of the ownership interests, make the business their primary business focus, and devote their best efforts to supervision. Homewatch CareGivers requires a Key Person owning at least 5% of the equity who may, at the franchisor’s discretion, be required to work on premises. Superior Fence & Rail requires direct on-site supervision by a Designated Business Manager who may be an employee, with a clause worth reading twice: if the franchisor believes you lack sufficient business experience, it can compel you to appoint one. For a buyer whose trade experience is entirely outside the United States, that discretion is not theoretical. The Neighborly brands sit in a third position. Mr. Electric, Aire Serv, and Mr. Handyman all state that an individual franchisee must directly perform or supervise operations unless the franchisor consents otherwise, and a bona fide manager may substitute only with that consent. Our [Item 15 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee) covers how to read these clauses generally, including where semi-absentee models break down. Bring your attorney the actual Item 15 text for any brand on your list. A structure that permits a salaried manager and one that requires an equity-holding principal on site are different businesses to describe in a filing, and the choice belongs to counsel rather than to a shortlist. ## Ask about non-resident buyers before the 14-day clock starts Most FDDs say nothing about immigration status. Silence is not permission. Franchise development teams vary widely in whether they will contract with an applicant who has not yet been admitted, and the ones who will not usually say so late. Four questions, asked in writing, before you go deep on any brand: has the brand awarded a franchise to an E-2 applicant, will it sign an agreement contingent on visa approval, will it hold the initial fee in escrow until then, and will it provide the Item 7 and Item 19 detail your attorney’s business plan needs. A franchisor with no answer is not necessarily a bad fit, but you will carry more of the documentation work yourself. Then mind the sequence. Federal law requires the FDD in your hands at least 14 days before you sign anything or pay any money, and [the 14-day rule](https://vetmyfranchise.com/c/claude/blog/the-14-day-fdd-rule-explained) runs in parallel with nothing else. Layer on territory selection, a lease or an office commitment, attorney review of both agreements, and consular scheduling, and the realistic path from first franchisor call to open doors runs several months. Check your liquidity against the brand’s stated requirements early too, since the [net worth and liquid capital thresholds](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) franchisors enforce are separate from anything the visa asks. The disclosure work is the part you can finish before you file. A [VetMyFranchise report](https://vetmyfranchise.com/c/claude/pricing) pulls Item 7, Item 15, Item 19, and the unit history for a single brand into one document your immigration attorney and your franchise attorney can both work from, which saves paying two hourly rates to read the same 300 pages. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best franchises for e-2 visae-2 visa franchise investmenttreaty investor franchisefranchise for foreign investorshome care franchiseitem 15 owner participation About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much do you need to invest for an E-2 visa? There is no minimum in the regulations. The test is whether the investment is substantial in proportion to the total cost of establishing the business, which makes it a ratio rather than a threshold. Immigration practitioners commonly describe $100,000 to $400,000 as the range where franchise cases sit comfortably, and that is commentary on practice rather than a rule you can cite. Item 7 of the FDD gives you the denominator: the full estimated initial investment, low and high. ### Is a franchise good for an E-2 visa? A franchise gives you three documents an adjudicator tends to ask about, already written: a disclosed cost breakdown in Item 7, a disclosed earnings basis in Item 19, and a contractual description of your operating role in Item 15. What it does not give you is any assurance of approval. Nothing in an FDD speaks to visa eligibility, and franchisors are not permitted to advise on it. ### How many employees does an E-2 franchise need? No specific headcount appears in the regulations. The concern adjudicators raise is marginality, meaning a business with capacity only to support the investor and their family. Labor-employing service models address that concern more directly than solo operations. Home care agencies staff caregivers per client, fence and HVAC franchises staff install crews, and both scale headcount with revenue in a way an examiner can follow. ### Can you get an E-2 visa with a home-based franchise? Home-based operation is not a disqualifier by itself, but it makes two elements harder to evidence: the at-risk deployment of capital, since there is no lease or build-out to point to, and the economic contribution, since payroll is often the only expansion signal. Several home care and trades brands run from small commercial offices at the low end of Item 7 and from a leased space at the high end. Ask which the franchisor expects in your territory before you file. ### Which franchises accept non-US-resident buyers? Ask Item 15 first, then ask the franchise development team directly and get the answer in writing. Neighborly's nineteen brands state the immigration-status requirement in Item 15 itself, which at least means their legal teams have considered it. Most FDDs say nothing, which is not permission. The questions worth asking are whether the brand has awarded a franchise to an E-2 applicant before, whether it will sign contingent on visa approval, and whether it will hold your fee in escrow until then. --- title: "Best Juice & Smoothie Franchises 2026: Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: best smoothie franchises, juice bar franchise cost, Playa Bowls franchise cost, Smoothie King franchise revenue, acai bowl franchise, Item 19 comparison, healthy food franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-juice-smoothie-franchises about: best smoothie franchises category: blog wordCount: 1921 readingTime: 10 min crawledAt: 2026-08-20 11:05:21 lastVerified: 2026-08-20 11:05:21 site: https://vetmyfranchise.com/c/claude/ --- # Best Juice & Smoothie Franchises 2026: Item 19 Data ## Summary Item 19 data on six juice and smoothie franchises: Smoothie King's $627,210 median on 1,087 units, Playa Bowls' $1,094,086, and what each sample omits. ## Key facts - Playa Bowls franchisees posted a median of $1,094,086 in gross sales for calendar 2025. - Smoothie King’s fiscal 2025 Item 19 covers 1,087 franchised units and labels them exactly what they are: all franchised units. - The label on the Playa Bowls table reads “Operational Franchise Outlets” and “Traditional Outlets,” and three separate exclusions are packed into that phrasing. - Jamba’s fiscal 2025 median across all traditional franchises is $624,754 on 488 stores, which lands $2,456 below Smoothie King’s. - Everbowl is the lowest entry cost in the category at $208,700 to $390,950 against a $39,950 fee. Quick answer Smoothie King discloses a $627,210 median on 1,087 franchised units, the largest and least filtered Item 19 sample in the category. Playa Bowls reports a higher $1,094,086 median, but on 223 traditional outlets that exclude seasonal locations and every store opened during the year. Entry costs start at $208,700. ## A 2.7x revenue gap inside one category Playa Bowls franchisees posted a median of $1,094,086 in gross sales for calendar 2025. Main Squeeze Juice Co. franchisees posted $401,489. Both brands sell cold, fast, health-coded food out of a small retail lease, and both charge a 6% royalty. The gap is 2.7x, and very little of it is explained by the concept. Most of it is explained by which units each franchisor chose to put in the table. Six brands in this category filed a most-recent FDD with an Item 19 revenue figure you can actually use. Here is what they disclose, and on whom. | Brand | Item 7, single-store format | Franchise fee | Item 19 median | Sample | Whose units | | --- | --- | --- | --- | --- | --- | | Poke Bowl United | $224,000 to $506,000 | $45,000 | $1,660,863 | 9 | Company outlets, all in New York City | | Playa Bowls | $281,960 to $1,055,594 | $35,000 | $1,094,086 | 223 | Franchise outlets, operational and traditional only | | Smoothie King | $329,850 to $683,715 | $30,000 | $627,210 | 1,087 | All franchised units | | Jamba | $480,850 to $941,300 | $20,000 | $624,754 | 488 | All traditional franchises | | Main Squeeze Juice Co. | $427,050 to $656,500 | $49,500 | $401,489 | 22 | Qualifying franchised stores | | Everbowl | $208,700 to $390,950 | $39,950 | not published | 58 of 95 | Franchised stores, heavily filtered | Sorting that table by the median column gives you the wrong ranking. Sorting it by the last column gives you the right one. That Item 7 column needs a note, because the ranges circulating for this category are routinely quoted wrong. Several of these brands file more than one investment table, and the widely repeated spans splice the cheapest line of one to the priciest line of another. Smoothie King’s inline and end cap format tops out at $683,715. Its free-standing drive-thru is a separate filing, $639,950 to $1,278,900. Quoting “$329,850 to $1,278,900” as one range describes no store anyone builds. Format choice moves more capital here than brand choice does. ## Smoothie King’s 1,087-unit sample is the benchmark Smoothie King’s fiscal 2025 Item 19 covers 1,087 franchised units and labels them exactly what they are: all franchised units. The arithmetic behind that number is disclosed line by line. The system closed the year with 1,242 units, 1,200 of them franchised. Of those, 1,116 had been open for the full 13-month reporting period. Twenty-nine came out for mechanical reasons the FDD names: not scheduled to be open daily, closed more than eight weeks, or not running the required POS. That leaves 1,087, or 91% of the franchised system. The median is $627,210 and the average is $662,015. A 5.5% gap between those two is small, which tells you the distribution is not badly skewed by a handful of monsters at the top. The range is another matter: $142,703 at the floor, $2,278,731 at the ceiling. The top 10% of units carry a $1,042,045 median. The bottom 25% average $422,136. No brand in this category discloses more units, and none applies fewer filters. So when a competitor’s median beats $627,210, the useful first question is not what that brand does differently in the store. It is how many of its units are in the table. The full fee stack is in our [Smoothie King franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/smoothie-king-franchise-cost), and the closest head-to-head sits in [Tropical Smoothie vs Smoothie King](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-vs-smoothie-king-franchise). ## Playa Bowls posts the highest franchisee median, on a narrower base The label on the Playa Bowls table reads “Operational Franchise Outlets” and “Traditional Outlets,” and three separate exclusions are packed into that phrasing. “Operational” drops every outlet that opened during the year. Playa Bowls opened 85 franchised outlets in 2025, and none of them appear. “Traditional” drops seasonal and non-traditional locations, which matters more than it sounds for a brand that grew out of the Jersey Shore. Twenty-seven of the 250 operational franchise outlets are classified as Other Outlets, and Playa Bowls discloses those separately at a $489,501 median. “Franchise” is the straightforward word in the label: company outlets get their own table. The honest read is two-tiered. A year-round Playa Bowls in a normal retail location has a credible shot at seven figures, and the disclosed quartiles back that up. The top quartile of 55 outlets averaged $1,639,605, and even the bottom quartile averaged $668,207 against a floor of $423,386. A seasonal Playa Bowls is a different business with a median under half a million. Both are franchises of the same brand. Only one of them is inside the headline number. That is the mechanism covered in [Item 19 average vs median and survivorship bias](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias), operating at the segment level rather than the statistic level. The [food and beverage brand list](https://vetmyfranchise.com/c/claude/franchises/food-and-beverage) carries the Item 7 range and unit counts for every filed FDD we hold. ## Jamba matches Smoothie King on revenue and on nothing else Jamba’s fiscal 2025 median across all traditional franchises is $624,754 on 488 stores, which lands $2,456 below Smoothie King’s. Two systems, near-identical median unit volume, very different deals underneath. Item 7 is where they separate, and Jamba files four tables rather than one. A non-traditional Jamba runs $249,025 to $825,200. A traditional store without a drive-thru is $480,850 to $941,300. Add the drive-thru and it becomes $517,000 to $960,700. The $1,811,400 top end that gets quoted around belongs to an Auntie Anne’s co-branded location, a format most candidates are not evaluating. One line in Jamba’s table is worth more than its median. Drive-thru stores posted a $622,111 median across 35 units; stores without a drive-thru posted $626,724 across 453. The drive-thru does not move volume in this system. It moves cost, by roughly $36,000 at the low end of Item 7. Jamba’s sample also leaves out 32 traditional franchises that permanently closed during fiscal 2025, all open at least 12 months before closing. That exclusion is standard and disclosed. It is also about 6% of the traditional base, and no Item 19 here has to show what those stores were doing on the way down. ## Everbowl and Main Squeeze buy in cheap and disclose thin Everbowl is the lowest entry cost in the category at $208,700 to $390,950 against a $39,950 fee. Its Item 19 covers 58 of 95 franchised stores. Among the 37 exclusions are seven stores whose vendors stopped shipping inventory after the stores failed to pay what they owed. A franchisor is entitled to exclude units that could not sell the full menu. A buyer should still register that seven of 95 franchisees were behind with suppliers in a single year. Everbowl also publishes no all-unit median. It publishes halves. The top 29 stores averaged $563,871 with a $481,923 median; the bottom 29 averaged $374,615 with a $369,810 median. The boundary between the two halves falls between $424,142 and $427,881, so the real all-unit median sits in that band, roughly $55,000 below the $481,923 figure that tends to get quoted from the top-half row. Main Squeeze Juice Co. discloses 22 qualifying stores out of 28 franchised, which is too thin to rank on but straightforward about being thin. The median is $401,489 against a $371,108 average, and the range runs $101,476 to $567,856. A top-quartile store averages $516,930. A bottom-quartile one averages $209,721. At 28 total units, a single soft market moves the entire disclosure. ## The biggest number in the category is not a franchisee’s Poke Bowl United reports a $1,660,863 median, higher than anything Playa Bowls discloses. It comes from nine company outlets, all of them in New York City, inside a system of 12 outlets total, 10 company owned and two franchised. Nothing in that table describes a franchisee. The brand is also the only one here that discloses a cost line at all: 22.58% food, 21.41% payroll, 19.44% gross profit against average gross sales. Those percentages are the most useful data in the whole category, and the FDD’s own notes say the outlets behind them pay no royalty and no brand fund contribution. Add 7% of sales back and the margin picture moves. Every other brand on this list discloses revenue and stops. Building a margin model from these documents means working from Item 6 and Item 7 and validation calls, using the method in [franchise unit economics analysis](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis). ## What survives the fee stack Run each median through royalty and ad fund before anything else touches it. Smoothie King charges 6% royalty plus a 3% ad fund, so 9% of $627,210 is $56,449 gone before rent. Playa Bowls charges 6% plus 2%, and 8% of $1,094,086 is $87,527. Jamba charges 6% plus an ad fund of 3% to 5%, which on $624,754 works out to somewhere between $56,228 and $68,723 depending on where that fund lands. Main Squeeze, at 8% of $401,489, gives up $32,119. Playa Bowls leaves the most gross dollars in the store after fees, by a wide margin, and that is the correct read of $1,094,086 as long as the location you are signing is year-round and traditional. Smoothie King owns the most reliable number, because 1,087 units is a sample you can plan a decade against. Those are two different questions and a serious buyer answers both before signing anything. The [açaí side of the category](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) runs on the same rules with a shorter track record. Pull the two or three brands you are actually weighing into a [side-by-side comparison](https://vetmyfranchise.com/c/claude/compare) and read the sample definitions next to each other. In this category the definitions decide the ranking more often than the medians do. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best smoothie franchisesjuice bar franchise costPlaya Bowls franchise costSmoothie King franchise revenueacai bowl franchiseItem 19 comparisonhealthy food franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a smoothie franchise cost? Between $208,700 and $1,278,900, depending on brand and format. Everbowl is the cheapest entry in the category at $208,700 to $390,950 with a $39,950 franchise fee. Smoothie King runs $329,850 to $683,715 for an inline or end cap location and $639,950 to $1,278,900 for a free-standing drive-thru, which is why its published range looks so wide. Playa Bowls discloses $281,960 to $1,055,594 for a single shop. ### Is a juice bar franchise profitable? Item 19 in this category tells you almost nothing about profit. Five of the six brands with a usable disclosure publish revenue and stop there. The only cost lines disclosed anywhere in the category belong to Poke Bowl United, which reports 22.58% food and 21.41% payroll across nine company outlets that pay no royalty. Build a margin model from Item 6, Item 7, and validation calls instead. ### Playa Bowls vs Smoothie King: which earns more? Playa Bowls reports the higher median at $1,094,086 against Smoothie King's $627,210, but the two samples are not comparable. Smoothie King's covers all 1,087 qualifying franchised units. Playa Bowls' covers 223 year-round traditional franchise outlets and excludes 27 seasonal and non-traditional ones plus all 85 outlets that opened during 2025. A year-round Playa Bowls in a normal retail location does clear seven figures on the disclosed quartiles. ### How many franchises does Smoothie King have? 1,242 units as of December 29, 2025, of which 1,200 are franchised and 42 are company operated. The system opened 81 franchised units during that fiscal year. Thirty-three units permanently closed during the reporting period and are excluded from the Item 19 tables, which the FDD discloses directly. ### What's the cheapest smoothie franchise to open? Everbowl, at $208,700 to $390,950 with a $39,950 franchise fee and 95 franchised stores. Nautical Bowls is close behind at $220,200 to $439,850 with a $20,000 fee across 70 units, though it does not disclose a median in a form that supports ranking. Low entry cost in this category tracks with thinner disclosure, so price the diligence work in. --- title: "Best Window Cleaning Franchises 2026: Cost + Item 19" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-25 keywords: best window cleaning franchises 2026, window cleaning franchise cost, window cleaning franchise opportunities, window genie franchise cost, fish window cleaning franchise, shack shine franchise, window gang franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-window-cleaning-franchises about: best window cleaning franchises 2026 category: blog wordCount: 2525 readingTime: 13 min crawledAt: 2026-08-20 11:05:27 lastVerified: 2026-08-20 11:05:27 site: https://vetmyfranchise.com/c/claude/ --- # Best Window Cleaning Franchises 2026: Cost + Item 19 ## Summary Compare the top window cleaning franchises for 2026 — Window Genie, Fish Window Cleaning, Shine, Window Gang, Shack Shine — on FDD investment, fees, royalty, and Item 19. ## Key facts - Every figure above comes from the brand’s most recent FDD. - Total investment runs $92,050 to $305,683 depending on brand and territory size. - Commercial window cleaning runs on different mechanics than residential: - Residential is the higher-volume, lower-ticket half of the category: - Working from the disclosed medians rather than franchisor projections: Quick answer Window cleaning franchises run $92,050 to $305,683 in total investment with franchise fees of $40,000 to $65,000 and royalties of 5 to 8 percent. Window Genie reports a $386,484 median revenue across 94 units per the 2026 FDD; Shack Shine reports $359,378. Most brands need 3 to 5 trucks to clear six-figure owner income. Window cleaning is one of the few home services categories where the capital requirement stayed reasonable while the recurring-revenue mechanics stayed intact. Below is every window cleaning franchise in our [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) database with more than 40 franchised units, compared on the figures that decide whether the deal works. ## Best Window Cleaning Franchises at a Glance | Brand | Total Investment (Item 7) | Franchise Fee | Royalty | Item 19 Revenue | Franchised Units | FDD Year | | --- | --- | --- | --- | --- | --- | --- | | Window Genie | $136,064–$305,683 | $40,000 | 7% + 2% ad fund | $386,484 median (94 units) | 103 | 2026 | | Fish Window Cleaning | $111,900–$179,900 | $59,900 | 5–8% + 1% ad fund | Discloses FPR, 252 outlets, no median published | 275 | 2026 | | Shine | $141,570–$203,095 | $49,900 | 7% + 2% ad fund | Discloses FPR, 69 units, no median published | 75 | 2026 | | Window Gang | $138,600–$246,500 | $65,000 | 6% + 2% ad fund | $161,779 median (45 units) | 52 | 2026 | | Shack Shine | $92,050–$182,200 | $60,000 | 6% | $359,378 median, $481,369 average (40 units) | 44 | 2025 | Every figure above comes from the brand’s most recent FDD. Note what changed against older comparison articles in this category: franchise fees have moved up sharply. Window Gang now charges $65,000, Shack Shine $60,000, and Fish Window Cleaning $59,900. Window Genie, at $40,000, is now the cheapest fee in the category while carrying the highest investment ceiling. ## How Much Does a Window Cleaning Franchise Cost? Total investment runs $92,050 to $305,683 depending on brand and territory size. The spread inside a single brand matters as much as the spread between brands. Window Genie’s Item 7 range is $169,619 wide, which reflects territory population, vehicle count, and whether the franchisee buys or leases the fleet. A realistic cost stack for a single-truck launch: - **Franchise fee**: $40,000–$65,000, paid at signing - **Service truck, wrapped and equipped**: $15,000–$35,000 (water-fed pole system, ladders, pressure washer, supplies) - **Training and travel**: $3,000–$7,000 - **Initial marketing launch**: $10,000–$25,000 - **Insurance, licenses, deposits**: $4,000–$10,000 - **Working capital for the first 3–6 months**: $20,000–$50,000 The equipment line is the reason this category exists as a value proposition. A complete window cleaning truck costs roughly half what a plumbing or restoration truck costs, and there is no master-license holder to hire. Compare that against the [best home services franchises under 100k](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) and the [best painting franchises](https://vetmyfranchise.com/c/claude/blog/best-painting-franchises), where average tickets run higher but equipment and licensing carry more weight. ## Why Window Cleaning Beats Most Home Services on Margins - **No specialized licensing.** Window cleaning does not require state contractor licensing in most jurisdictions, which removes a compliance burden and a hiring bottleneck. - **Low equipment costs.** $15,000–$35,000 per truck versus $80,000–$145,000 for a fully equipped plumbing truck. - **Recurring service economics.** Quarterly and biannual residential plans plus monthly commercial contracts produce predictable revenue. Retention at the established brands runs strong enough that mature units derive the majority of revenue from repeat customers. - **Shallow labor pool requirements.** The technical work is learnable in days. Wages are lower and the candidate pool is deeper than any licensed trade. - **Route-density leverage.** A technician completing 8 stops in a tight neighborhood produces dramatically better margins than the same technician crossing town between jobs. ## Window Genie: Broadest Service Mix, Widest Revenue Spread [Window Genie](https://vetmyfranchise.com/c/claude/franchise/window-genie-spv-llc) is the Neighborly-owned brand and the category’s most-searched name. Per the 2026 FDD, total investment is $136,064–$305,683 with a $40,000 franchise fee, a 7% royalty, and a 2% ad fund contribution. The system has 103 franchised units and no company-owned locations. The Item 19 is the most informative in the category. Across 94 franchised units in operation 12 months or more with a full 52 weeks of reported gross sales during calendar year 2025, Window Genie reports a $386,484 median, a $130,448 25th percentile, and a $976,943 75th percentile. That 7.5x spread between bottom and top quartile is the single most important number in this article. It says brand selection explains far less about outcomes than territory, truck count, and operator quality. The service mix explains the upside. Window Genie franchisees sell window cleaning alongside pressure washing, gutter cleaning, window tinting, and holiday lighting. Cross-sell into pressure washing from an existing window customer exceeds 35% in most markets, which raises revenue per customer without raising customer acquisition cost. If your plan is a single truck doing windows only, model against the bottom quartile, not the median. ## Fish Window Cleaning: The Commercial Account Book [Fish Window Cleaning](https://vetmyfranchise.com/c/claude/franchise/fish-window-cleaning-services-inc) is the largest window cleaning system in our database at 275 franchised units, and it has franchised since 1998. Per the 2026 FDD, total investment is $111,900–$179,900 with a $59,900 franchise fee. The royalty is structured as 5% to 8% of the greater of gross sales or an applicable minimum performance standard, plus a 1% ad fund contribution on the same basis. That minimum performance standard is the clause to read twice. It means royalty is owed on a floor whether or not you hit it, which changes the risk profile of a slow first year materially versus a straight percentage-of-sales royalty. Fish discloses a financial performance representation covering 252 franchised outlets, but no median figure is published in the disclosure our extraction captured. Given the system size, 252 reporting outlets is a large validation pool. Use it: call 8 to 10 franchisees and build your own distribution rather than relying on the franchisor’s summary. Fish is the strongest commercial-focused brand in the category. Residential is secondary. Successful operators build account books through systematic B2B sales to property managers, facility managers, and multi-site retail operations. ## Shine: Mid-Capital, Multi-Service, Growing [Shine](https://vetmyfranchise.com/c/claude/franchise/shine-development-llc) (Shine Development LLC) carries a $141,570–$203,095 investment range with a $49,900 franchise fee, a 7% royalty, and a 2% ad fund per the 2026 FDD. The system has 75 franchised units and no company-owned locations, up from a 2010 founding. Shine discloses a financial performance representation covering 69 franchised units open for the full twelve-month measurement period in fiscal 2025, though no median was captured in the published summary. A 69-of-75 reporting rate is high, which is a good sign: brands that exclude most of their system from the Item 19 usually do so because the excluded units look worse. Shine’s positioning sits between Window Genie’s broad multi-service model and a pure window-cleaning operation. The investment range is narrower than Window Genie’s, which usually signals more standardized territory sizing and less variance in what you actually sign up for. [Window Gang](https://vetmyfranchise.com/c/claude/franchise/window-gang-llc) reports $138,600–$246,500 total investment, a $65,000 franchise fee, a 6% royalty, and a 2% ad fund per the 2026 FDD, across 52 franchised units. The Item 19 is where buyers should slow down. Window Gang reports a $161,779 median across 45 franchised units open the entire fiscal year 2025. That is the lowest disclosed median in the category, paired with the highest franchise fee. A $65,000 fee against a $161,779 median revenue is a materially different return-on-fee profile than Window Genie’s $40,000 fee against a $386,484 median. There may be a good explanation. Window Gang units may skew newer, territories may be smaller, or the reporting cohort may include recent openings. Those are exactly the questions to put to the franchise development team and to existing franchisees. Do not accept a brand’s growth story as a substitute for the disclosed number. ## Shack Shine: Lowest Entry, O2E Operating Systems [Shack Shine](https://vetmyfranchise.com/c/claude/franchise/shack-shine-home-services-llc) is the O2E Brands entry (same parent as 1-800-GOT-JUNK) and has the lowest floor in the category at $92,050, running to $182,200, with a $60,000 franchise fee and a 6% royalty per the 2025 FDD. The system has 44 franchised units. Shack Shine’s Item 19 covers all 40 franchised units for calendar year 2024 and reports $359,378 median with a $481,369 average. The gap between median and average tells you a handful of high performers pull the mean up, which is normal in route businesses and consistent with what Window Genie’s quartiles show. The trade-off at Shack Shine is fee-to-investment ratio. A $60,000 franchise fee inside a $92,050 minimum investment means roughly two-thirds of the entry-level deal is the fee itself, leaving comparatively little for truck, marketing, and working capital. Buyers taking the low end of that range should verify they are not underfunding the launch. ## Best Commercial-Focused Window Cleaning Franchises Commercial window cleaning runs on different mechanics than residential: - **Account sizes**: $180–$1,200 per service, $5,000–$60,000 in annual contract value - **Sales cycles**: 30–90 days from first contact to signed contract - **Service frequency**: monthly to quarterly - **Buyer**: property managers, facility managers, multi-site retail operations Fish Window Cleaning is the clear commercial leader on system depth. Window Gang and Shine both handle commercial work alongside residential. The economics favor owners with B2B sales experience or existing commercial property relationships. Buyers from purely consumer-services backgrounds routinely underestimate the pipeline-building requirement and run out of working capital before the account book matures. ## Best Residential-Focused Window Cleaning Franchises Residential is the higher-volume, lower-ticket half of the category: - **Service tickets**: $185–$420 per residential service - **Service frequency**: quarterly to biannual - **Acquisition**: digital marketing, neighborhood density, referrals - **Operations**: route-based dispatch, recurring scheduling Window Genie, Shack Shine, and Shine all operate primarily residential. Window Genie’s broader service mix (pressure washing, gutter cleaning, holiday lighting) is the main reason its median sits above the category. Holiday lighting in particular converts a dead December into a revenue month, which matters more in northern territories than most pro formas acknowledge. Cash-flow planning across a seasonal service business is covered in [franchise seasonality revenue planning](https://vetmyfranchise.com/c/claude/blog/franchise-seasonality-revenue-planning). ## What Window Cleaning Franchise Owners Actually Earn Working from the disclosed medians rather than franchisor projections: - **Median unit revenue**: $161,779 (Window Gang) to $386,484 (Window Genie) - **Bottom quartile**: $130,448 at Window Genie, which approximates a first- or second-year single-truck unit - **Top quartile**: $976,943 at Window Genie, which is a 4-to-6-truck operation with dense routes - **Net operating margin at maturity**: 18–28% for well-run multi-truck operations Run the median through the margin range and a typical unit produces $65,000 to $108,000 in operating income before debt service and before paying yourself a salary. That is a real business, but it is not the $200,000-plus owner income that franchise brochures imply, and it is not achievable on one truck. Every owner earning at that level in this category is running four or more trucks with disciplined route geography. For the full method on turning an Item 19 into a defensible model, see [build pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) and [franchise unit economics analysis](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis). > 💼 **Validate any window cleaning franchise FDD before signing.** Our $49 brand reports surface the full Item 19 distribution, route density assumptions, and the operational gotchas (seasonal cash flow, technician retention, commercial sales cycles) that brochures gloss over. [See available window cleaning franchise reports →](https://vetmyfranchise.com/c/claude/franchises) ## Why This Category Beats Higher-Capital Home Services on ROI Window cleaning rarely produces the highest absolute revenue in home services. It often produces the strongest return on invested capital. A $140,000 investment reaching a $386,484 median at 20-plus percent margins compares favorably against categories where revenue scales higher but the capital to get there is two to four times greater and the licensing burden is real. The counterargument is the ceiling. A well-run plumbing or restoration franchise can reach $2M-plus per unit. Window cleaning tops out near $1M per territory in the disclosed data. If your goal is a large single-location business, this is the wrong category. If your goal is capital-efficient cash flow you can scale by adding territories, it deserves more consideration than most franchise comparisons give it. For adjacent categories, see the [home services franchise guide 2026](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide) and [best pressure-washing-adjacent picks in best mobile van based franchises](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises). Territory geography is decisive here and is covered in [franchise territory analysis market evaluation](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation). ## The Bottom Line for 2026 Buyers If you have $136,000 to $300,000 and want the broadest service mix with the best-disclosed Item 19, [Window Genie](https://vetmyfranchise.com/c/claude/franchise/window-genie-spv-llc) is the validated default. It also has the lowest franchise fee in the category at $40,000. If your target customer is commercial accounts, [Fish Window Cleaning](https://vetmyfranchise.com/c/claude/franchise/fish-window-cleaning-services-inc) is the deepest system at 275 franchised units. Read the minimum-performance-standard royalty clause carefully before you sign. If you want the lowest entry point, [Shack Shine](https://vetmyfranchise.com/c/claude/franchise/shack-shine-home-services-llc) starts at $92,050 with a $359,378 median across 40 units, though the $60,000 fee consumes most of the low-end range. If you are evaluating [Window Gang](https://vetmyfranchise.com/c/claude/franchise/window-gang-llc), reconcile the $65,000 franchise fee against the $161,779 disclosed median before proceeding. Whatever brand you pick, the success pattern in window cleaning is consistent: build route density aggressively, cross-sell beyond windows where the brand supports it, treat recurring contract retention as the primary revenue driver, and reach 3 to 5 trucks by Year 3. Validate at least 6 existing franchisees during discovery, with at least 3 in markets demographically similar to yours, and ask every one of them where they landed inside the quartile spread. ## Brands mentioned in this post - [Window Genie](https://vetmyfranchise.com/c/claude/franchise/window-genie-spv-llc) - [Fish Window Cleaning](https://vetmyfranchise.com/c/claude/franchise/fish-window-cleaning-services-inc) - [Shine](https://vetmyfranchise.com/c/claude/franchise/shine-development-llc) - [Window Gang](https://vetmyfranchise.com/c/claude/franchise/window-gang-llc) - [Shack Shine](https://vetmyfranchise.com/c/claude/franchise/shack-shine-home-services-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best window cleaning franchises 2026window cleaning franchise costwindow cleaning franchise opportunitieswindow genie franchise costfish window cleaning franchiseshack shine franchisewindow gang franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a window cleaning franchise cost? Total investment runs $92,050 to $305,683 across the five verified brands. Shack Shine starts lowest at $92,050 (2025 FDD) and Window Genie tops out highest at $305,683 (2026 FDD). Franchise fees range from $40,000 at Window Genie to $65,000 at Window Gang. Budget an extra $15,000–$35,000 per additional service truck beyond the Item 7 range. ### What is the cheapest window cleaning franchise? Shack Shine has the lowest floor at $92,050 total investment per the 2025 FDD, followed by Fish Window Cleaning at $111,900 and Window Genie at $136,064. Cheap entry does not mean cheap fees, though. Shack Shine's franchise fee is $60,000, higher than Window Genie's $40,000. Compare the fee and the royalty separately from the Item 7 range. ### How profitable is a window cleaning franchise? The two brands disclosing medians report $359,378 (Shack Shine, 40 units, 2024) and $386,484 (Window Genie, 94 units, 2025). At 18–28% net operating margin, a median unit produces roughly $65,000–$108,000 before debt service. Owners clearing $200,000 or more are running 4–6 trucks with strong route density, not single-truck operations. ### How much can a Window Genie franchise owner make? Window Genie's 2026 FDD reports $386,484 median revenue across 94 units, with the 25th percentile at $130,448 and the 75th percentile at $976,943. A median unit at 20–25% net margin returns $77,000–$97,000 before debt service and owner salary. Top-quartile owners running multiple trucks clear $200,000 or more. The 7.5x quartile spread is the number to interrogate at discovery. ### Is Fish Window Cleaning a good franchise to buy? Fish Window Cleaning is the category's largest system at 275 franchised units and the deepest commercial-account operator, franchising since 1998. Investment is $111,900–$179,900 with a $59,900 franchise fee and a 5–8% royalty tied to a minimum performance standard per the 2026 FDD. It discloses an Item 19 across 252 outlets but publishes no median, so validate revenue with franchisees directly. ### Do you need experience to own a window cleaning franchise? No. Window cleaning requires no state contractor license in most jurisdictions, and franchisor training runs one to three weeks. The owner's job is sales, hiring, dispatch, and retention, not climbing ladders. Buyers from operations, retail, or service-business management backgrounds transition fastest. Commercial-focused brands like Fish Window Cleaning favor owners with B2B sales experience. ### How long until a window cleaning franchise is profitable? Most residential-focused units reach cash-flow breakeven between months 6 and 14. Commercial-focused operations take 9–18 months because property-manager sales cycles run 30–90 days and contract sizes build over time. Year 2 is where recurring contract revenue compounds. Window Genie's $130,448 bottom quartile is roughly what a first-year single-truck unit looks like. --- title: "Franchise Insurance & Workers' Comp: Real Annual Cost" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-08-04 keywords: franchise insurance cost, workers comp franchise cost, general liability franchise, franchise insurance requirements, business insurance for franchise owners, EPLI franchise canonical: https://vetmyfranchise.com/c/claude/blog/franchise-insurance-workers-comp-real-annual-cost about: franchise insurance cost category: blog wordCount: 2238 readingTime: 11 min crawledAt: 2026-08-20 11:02:20 lastVerified: 2026-08-20 11:02:20 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Insurance & Workers' Comp: Real Annual Cost ## Summary What does franchise insurance cost per year? Real annual premium ranges for general liability, workers' comp, property and EPLI, plus how to control them. ## Key facts - Open the franchise agreement and the FDD, and the insurance requirements are usually one of the more concrete sections you’ll find. - Workers’ comp is the single most variable line on this list, and it’s where the placeholder estimates blow up. - The category you’re buying into largely decides where in those ranges you land. - The list above is what the franchisor mandates. - Here’s the part that actually changes a buy/skip decision. Quick answer All-in annual insurance for a single franchise unit runs roughly $3,000 to $25,000+. General liability alone is $500-$3,000, a GL-plus-property BOP $1,200-$5,000, workers' comp $1,000-$15,000+, and EPLI $800-$3,000. Workers' comp is priced per $100 of payroll and swings 5x by class code and state. Insurance absorbs 1-3% of revenue. When buyers build their first franchise pro-forma, they price the franchise fee, the buildout, the royalty, maybe rent. Insurance gets a placeholder line — “$5,000?” — and everyone moves on. Then year one arrives, the certificate-of-insurance requests start piling up, the workers’ comp audit lands, and the placeholder is off by half. This is a fixable mistake. Insurance is one of the few operating costs you can estimate fairly tightly _before_ you sign, because the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) tells you exactly what coverage the franchisor mandates and a broker can quote the rest in a day. The problem is that almost nobody asks until it’s already a sunk obligation. ## The coverages your franchisor will require Open the franchise agreement and the FDD, and the insurance requirements are usually one of the more concrete sections you’ll find. Most franchisors require some combination of: - **Commercial general liability (CGL)** — often $1M per occurrence / $2M aggregate. This covers third-party bodily injury and property damage (the slip-and-fall, the customer’s ruined property). - **Property / contents coverage** — for your equipment, inventory, signage and tenant improvements. - **Workers’ compensation** — required by state law once you have employees; the franchisor simply restates the legal obligation. - **Commercial auto** — if the concept involves delivery or service vehicles. - **Business interruption** — replaces income if a covered event shuts you down. - **EPLI (employment-practices liability)** — covers claims of wrongful termination, discrimination or harassment; increasingly required once you have staff. Two clauses matter as much as the limits. First, the franchisor will require being named an **additional insured** on your policy — meaning your coverage extends to protect them. Second, many agreements let the franchisor _raise_ the required limits over time. Both are standard; both are worth a broker’s eyes before you commit, because they affect what you’ll pay every year, not just at opening. A subtle trap: Item 7 of the FDD (the initial-investment table) usually shows insurance as a small startup line — often just the first one to three months of premium. Buyers read that number as “the cost of insurance” when it’s really the cost of _turning it on_. The annual figure is several times larger, and it recurs forever. ## Workers’ comp: why it varies 5x by category and state Workers’ comp is the single most variable line on this list, and it’s where the placeholder estimates blow up. It’s priced as a rate **per $100 of payroll**, multiplied by a class code that reflects how dangerous the work is, then adjusted by an experience modifier based on your claims history. That structure produces enormous spread. A low-risk class code — say, clerical or light office work — might be priced at well under $1 per $100 of payroll. A high-risk class code — roofing, restaurant kitchen work, certain trades — can run several dollars per $100, sometimes far more. A unit with $300,000 in payroll could pay a few thousand dollars a year at a clerical rate or well into five figures at a high-risk rate. Same payroll, wildly different bill. State matters almost as much as category. Workers’ comp is regulated state by state, so identical concepts in two states can carry meaningfully different rates. A few states run a monopoly state fund; most use private carriers with state-set rate guidance. This is exactly why a national “average insurance cost” for a brand is close to useless — your number depends on your class code, your payroll, your state and your claims record. | Insurance line | Typical annual range (single unit) | Biggest cost driver | | --- | --- | --- | | General liability (standalone) | $500 – $3,000 | Foot traffic, category risk | | Business owner’s policy (GL + property bundle) | $1,200 – $5,000 | Equipment value, square footage | | Workers’ comp | $1,000 – $15,000+ | Payroll size, class-code risk, state | | Commercial auto (if applicable) | $1,500 – $6,000 per vehicle | Vehicle count, driving exposure | | EPLI | $800 – $3,000 | Headcount, state litigation climate | | Total, single unit (typical) | $3,000 – $25,000+ | Category + payroll + state | Treat these as planning ranges, not quotes. They’re meant to replace your “$5,000?” placeholder with a defensible bracket you can then tighten with a real broker quote for your specific concept and location. ## Realistic annual premium ranges by category The category you’re buying into largely decides where in those ranges you land. **Food and restaurant.** The most expensive bucket. Kitchen injuries, high employee counts, customer foot traffic, expensive equipment and (often) delivery vehicles stack the deck. All-in insurance for a full-service or QSR unit commonly runs into the high four or five figures annually, with workers’ comp doing most of the damage. If you’re modeling a food concept, this cost interacts directly with what you actually [take home as an owner](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make) — it’s one more line between gross sales and your draw. **Home and field services** (cleaning, lawn care, pest control, home repair). Mid-range, but commercial auto becomes a major factor because the work happens in trucks and at customer sites. Workers’ comp class codes for trades can be high, so payroll size drives the bill. **Office-based and personal services** (tutoring, staffing, business coaching, some health-and-beauty concepts). Generally the cheapest, often near the low end of the ranges above, because the risk profile is light and payroll may be modest. A largely owner-operated concept with few employees can sometimes keep total insurance under $5,000. If you’re still choosing a category, this is one more reason to weigh the operational reality, not just the revenue headline — the same logic applies to [staffing and labor cost](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide), which directly drives your workers’ comp base. The $49 Tier 2 report rebuilds the full operating-cost picture for any specific brand, pulling the FDD’s required coverage limits into the same model as royalties, ad fund and your projected payroll. [See what a full report includes](https://vetmyfranchise.com/c/claude/pricing) before you guess at this line yourself. ## The coverages your FDD probably does not require The list above is what the franchisor mandates. Mandated coverage protects the franchisor’s brand and liability exposure first; it is a floor, not a complete program. Four policies sit outside most FDD requirements and are where franchisees discover gaps after a claim. **Cyber liability.** Most FDDs written before 2023 do not require it, yet virtually every franchise now processes card payments, stores customer data, or runs on cloud systems. A single breach can cost a small business $50,000 to $200,000 in notification, legal defense, and regulatory fines. Coverage runs roughly $500 to $2,000 a year for $1 million in protection, which makes it the most underpriced policy available to a franchisee. **Umbrella (excess liability).** Picks up where general liability, auto, and employers’ liability run out. If a judgment lands at $3 million and your GL caps at $2 million, the umbrella covers the gap. Budget $1,000 to $3,000 a year for $1 million to $2 million of cover; $1 million to $2 million suits a single unit, $3 million to $5 million suits multi-unit owners or elevated-risk categories like food, fitness, and childcare. Cost per million drops sharply as you add layers. **Professional liability (errors and omissions).** Relevant to service concepts where you give advice or perform a professional service: tax prep, consulting, tutoring, home inspection, real estate. General liability does not respond to negligence claims arising from the service itself. Typically $1,000 to $3,500 a year. **Business interruption sizing.** Many FDDs require the policy but say nothing about the limit. Size it at 12 months of revenue, not three. A unit doing $40,000 a month that loses six months to a fire needs $240,000 or more of cover to survive the gap. ### Five gaps that catch franchisees after the fact - **Equipment breakdown.** Standard property policies cover fire and theft but exclude mechanical and electrical failure. A separate endorsement runs $200 to $500 a year and covers compressor failures and electrical surges, which matters when your kitchen holds $150,000 of equipment. - **Flood and earthquake.** Excluded from standard commercial property. Separate policies required; NFIP flood coverage runs $1,000 to $5,000-plus annually depending on zone and limit. - **Employee dishonesty.** General liability does not cover employee theft. A crime or fidelity bond covering cash theft, shrinkage, and internal fraud costs $200 to $800 a year. - **Spoilage.** Food concepts need explicit spoilage cover for perishable inventory lost to a power outage or equipment failure. Standard property policies often exclude it. Add-on cost $150 to $400 a year. - **Franchisor as additional insured.** Nearly every franchise agreement requires this endorsement on your general liability policy. It is usually free, but it must be requested explicitly, and omitting it can put you in default of the agreement. _Estimates compiled from industry sources; verify current figures in the brand’s FDD and with your broker before relying on them._ ## How insurance erodes net margin Here’s the part that actually changes a buy/skip decision. On a healthy unit, all-in insurance often lands somewhere around 1–3% of revenue. That sounds small until you remember how thin franchise net margins usually are. Take a food unit doing $900,000 in revenue at a 7% net margin — about $63,000 in owner profit. If insurance runs 2% of revenue, that’s $18,000 a year. Trim it to 1% through better class coding and a clean claims history, and you’ve moved roughly $9,000 straight to the bottom line — more than a 14% bump in take-home profit from one operating line. On a thinner-margin concept, the swing between a sloppy insurance program and a tight one can be the difference between a 5% and a 7% net margin. This is also why insurance belongs in your [cash-reserve and working-capital planning](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve), not just your P&L. Premiums are often billed up front or quarterly, and the workers’ comp audit at year-end can produce a true-up bill you didn’t budget for if your actual payroll came in higher than your estimate. Buyers who model insurance as a smooth monthly line get surprised by the lumps. A “this is where buyers get burned” aside: under-insuring to make the pro-forma look better is the worst possible savings. If you carry below the FDD-mandated limits, you’re technically in default of the franchise agreement, and one serious uncovered claim can end the business. Cut the _price_ of coverage, never the coverage itself. ## Ways to control premiums without under-insuring You have more room to push on this line than on royalties, which are fixed by contract. A few moves that actually work: - **Bundle into a BOP.** A business owner’s policy packages general liability and property at a lower combined price than buying each separately — usually the right starting point for a single unit. - **Raise deductibles where you can afford the risk.** A higher deductible lowers the premium; just make sure your cash reserve can absorb the deductible on a real claim. - **Classify employees accurately.** Workers’ comp audits reclassify miscoded staff and bill you retroactively. Getting class codes right up front avoids surprise true-ups and keeps the rate honest. - **Run documented safety programs.** Over time, fewer claims improve your experience modifier, which compounds into lower workers’ comp every renewal. - **Shop at least three brokers who know your category.** Treat the franchisor’s preferred-vendor option as one quote, not the default. Some [technology and program fees](https://vetmyfranchise.com/c/claude/blog/franchise-technology-fees-explained) are non-negotiable; insurance pricing is not. Get the required limits from the FDD, hand them to brokers, and collect real quotes for your exact concept and location before you sign. That single hour of work turns the most variable line in your pro-forma into a known number. Want to see how insurance, royalties and labor stack up across different concepts before you commit? [Browse franchises on VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises) and compare the operating-cost reality, not just the marketing. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Ameriprise Financial Services [Learn more →](https://vetmyfranchise.com/c/claude/franchise/ameriprise-financial-services-llc) #### Jackson Hewitt [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jackson-hewitt-inc) #### H&r Block Tax Services [Learn more →](https://vetmyfranchise.com/c/claude/franchise/hr-block-tax-services-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) franchise insurance costworkers comp franchise costgeneral liability franchisefranchise insurance requirementsbusiness insurance for franchise ownersEPLI franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does franchise insurance cost per year? For a single-unit franchise, total annual insurance commonly runs between roughly $3,000 and $25,000 or more. The low end is a small, home-based or office-style service concept with little payroll; the high end is a full-service restaurant or trade business with a sizable W-2 crew, heavy equipment and a leased buildout. Workers' comp and your payroll size are usually the biggest swing factors. ### Is workers' comp required for a franchise? In almost every state, yes — once you have employees. Workers' comp is mandated by state law, not by the franchisor, and the threshold (often the first one or more employees) and rates vary by state. Sole owner-operators with no staff are sometimes exempt, but the moment you hire W-2 employees you'll almost certainly need a policy, and your lender or landlord may require proof of it. ### What insurance does a franchisor require? Most FDDs require commercial general liability (often $1M per occurrence / $2M aggregate), property/contents coverage, workers' comp per state law, and frequently commercial auto, business interruption and EPLI. The franchisor will require being named as an additional insured and typically sets minimum limits in the franchise agreement. These requirements are spelled out in the FDD and the agreement — but the dollar premium is yours to discover from a broker. ### Does the franchise fee include insurance? No. The initial franchise fee buys you the license to operate under the brand and its initial training and support — it does not include any insurance. Insurance is a recurring operating expense you pay to a separate carrier, and Item 7 of the FDD usually lists only the first few months of premium as a startup line, not the ongoing annual cost. ### How do I lower my franchise insurance premiums without under-insuring? Bundle coverage into a business owner's policy (BOP), raise deductibles where your cash reserves allow, keep a clean claims history, classify employees accurately, and run documented safety programs to improve your workers' comp experience modifier. Shop at least three brokers who know your category. Just never drop below the limits your FDD mandates — a coverage gap can put you in default of the franchise agreement. --- title: "Best Lawn Care Franchises 2026: Cost + Item 19 Data" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-25 keywords: best lawn care franchises 2026, lawn care franchise cost, landscaping franchise opportunities, lawn doctor franchise cost, spring green franchise, weed man franchise cost, us lawns franchise, lawn care franchise income canonical: https://vetmyfranchise.com/c/claude/blog/best-lawn-care-landscaping-franchises about: best lawn care franchises 2026 category: blog wordCount: 2538 readingTime: 13 min crawledAt: 2026-08-20 11:05:32 lastVerified: 2026-08-20 11:05:32 site: https://vetmyfranchise.com/c/claude/ --- # Best Lawn Care Franchises 2026: Cost + Item 19 Data ## Summary Compare the top lawn care and landscaping franchises for 2026 — Lawn Doctor, SpringGreen, Weed Man, NaturaLawn, U.S. Lawns, Grounds Guys — on FDD investment, fees, royalty, and Item 19. ## Key facts - Two figures in that table deserve immediate attention, because both contradict what most lawn care franchise comparisons publish. - Older comparison articles list Lawn Doctor’s franchise fee around $35,000. - This is where most lawn care franchise search traffic concentrates. - Full-service landscaping differs structurally from application work. - Combined royalty plus ad fund on a $400,000 unit: Quick answer Lawn care franchises run $77,500 to $252,850 in total investment. Weed Man is cheapest at $81,150 with a $30,000 fee. Lawn Doctor is the largest system at 672 units but charges a $118,000 equipment-inclusive fee on a 10 percent royalty. U.S. Lawns reports the highest median revenue at $943,856 across 171 units. Lawn care is a recurring-revenue category with the highest royalties in home services. Below is every lawn care and landscaping franchise in our [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) database, compared on the figures that actually decide the deal: [total investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise), the real franchise fee, the full royalty load, and the disclosed Item 19. ## Best Lawn Care Franchises at a Glance | Brand | Total Investment (Item 7) | Franchise Fee | Royalty | Item 19 Revenue | Franchised Units | FDD Year | | --- | --- | --- | --- | --- | --- | --- | | Lawn Doctor | $135,820–$163,902 | $118,000 (equipment bundled) | 10% + 5% ad fund | Discloses FPR, 202 units, no median published | 672 | 2026 | | The Grounds Guys | $107,650–$252,850 | $43,750 | 6% + 2% ad fund | $533,092 median (105 units, 3+ years) | 219 | 2026 | | U.S. Lawns | $113,000–$200,000 | $49,000 | 6% / 5% / 4% tiered | $943,856 median (171 units) | 208 | 2026 | | SpringGreen | $118,898–$135,176 | $45,000 | 10% stepping to 8% + 2% | Discloses FPR, 72 units, no median published | 126 | 2026 | | Weed Man | $81,150–$109,400 | $30,000 | 7% of net sales + 1.2% | Discloses FPR, 149 units, no median published | 121 | 2026 | | NaturaLawn of America | $77,500–$152,650 | $39,500 | 9%, 7% post-renewal + 1% | $1,033,748 median (38 units, 5+ years) | 83 | 2026 | | Heroes Lawn Care | $96,290–$176,686 | Territory fee formula, see note | Not captured | $176,845 bottom quartile (11 units) | 62 | 2026 | | Lawn Pride | $141,215–$243,890 | $47,943 | up to 8% + 2% ad fund | FPR is per-customer sales, not per-unit | 42 | 2026 | | Lawn Squad | $93,930–$132,766 | $45,000 | 7% + 2% ad fund | $99,245 median (7 territories) | 19 | 2026 | Two figures in that table deserve immediate attention, because both contradict what most lawn care franchise comparisons publish. ## Lawn Doctor’s $118,000 Franchise Fee Is Not a Typo Older comparison articles list Lawn Doctor’s franchise fee around $35,000. The 2026 FDD shows $118,000. The reason is structural: Lawn Doctor bundles its proprietary equipment package into the initial franchise fee rather than itemizing trucks and spray rigs as separate Item 7 line items. That is why total investment tops out at $163,902 despite a $118,000 fee, a range that would be impossible if the fee were purely a license payment. The practical effect for a buyer is real but different from what the sticker suggests. You are not paying $118,000 for the brand. You are paying it for the brand plus the equipment that competitors list separately at $35,000 to $70,000. Compare Lawn Doctor’s all-in $135,820 minimum against Weed Man’s $81,150 or SpringGreen’s $118,898 rather than comparing fee to fee. What is not offset is the royalty. Lawn Doctor charges 10% of gross sales plus a 5% ad fund contribution, a combined 15% load that is the highest in this category and among the highest in home services. On a $400,000 unit that is $60,000 leaving before a single operating expense. It buys 672 franchised units of system depth and a 1967 founding, which is the deepest validation pool in the category. ## U.S. Lawns Leads on Disclosed Revenue [U.S. Lawns](https://vetmyfranchise.com/c/claude/franchise/us-lawns-inc) reports a $943,856 median across 171 franchised units open and continuously operating the entire 2025 accounting period, with a $277,298 25th percentile and a $1,419,322 75th percentile. That is roughly double The Grounds Guys and several times what a residential application brand delivers per territory. The explanation is the customer. U.S. Lawns is commercial-focused: HOAs, commercial property managers, corporate campuses, and municipal contracts. A single commercial maintenance contract runs $24,000 to $96,000 annually, against $300 to $700 for a residential lawn application customer. One account replaces forty. The royalty structure is also the best in the category and steps down as you grow: 6% on the first $62,500, 5% from $62,500 to $125,000, and 4% above $125,000. Investment is $113,000 to $200,000 with a $49,000 franchise fee per the 2026 FDD, across 208 franchised units since 1986. The trade-off is the owner profile. Commercial work means RFP responses, bid math, net-60 payment terms, and account management. Buyers who want to run digital ads and dispatch residential routes will be uncomfortable. Buyers with B2B sales or property-services backgrounds have the strongest fit in the entire category here. ## Best Lawn Application & Treatment Franchises This is where most lawn care franchise search traffic concentrates. The model is route-based fertilizer, weed control, and pest application, typically 6 to 8 visits per residential customer per season at $45 to $95 per visit. [Weed Man](https://vetmyfranchise.com/c/claude/franchise/weed-man) is the low-capital pick with real system depth. Per the 2026 FDD, total investment is $81,150 to $109,400 with a $30,000 franchise fee, a 7% royalty on net sales, and a 1.2% ad fund contribution, across 121 franchised units. It has the lowest total cost of entry and the lowest combined fee load of any established application brand. Weed Man discloses a financial performance representation covering 149 franchised locations open the full 2025 calendar year, though no median was captured in the summary. With 149 reporting locations, the validation pool is large enough to build your own distribution from franchisee calls. [SpringGreen](https://vetmyfranchise.com/c/claude/franchise/spring-green-lawn-care-corp) (Spring Green Lawn Care Corp) runs $118,898 to $135,176 with a $45,000 fee and a royalty that starts at 10% and steps down to 8%, plus 2% ad fund, across 126 franchised units since 1977. The Item 19 covers 72 franchised businesses in operation one full calendar year or more. SpringGreen’s Item 7 range is the narrowest in the category at $16,278 wide, which signals standardized territory sizing and less ambiguity about what you are actually buying. [NaturaLawn of America](https://vetmyfranchise.com/c/claude/franchise/naturalawn-of-america-inc) occupies the organic and low-chemical position with a $77,500 to $152,650 range, a $39,500 fee, and a 9% royalty that drops to 7% after renewal if a $500,000 revenue threshold is met, across 83 franchised units. Its $1,033,748 median is the highest disclosed number in the category, but read the cohort: it covers only 38 locations in operation five years or more. That is a maturity benchmark, not a launch benchmark, and the system declined by two units in the most recent year. The organic angle pulls a higher-income customer at a 25% to 40% ticket premium against a smaller addressable base. [Lawn Pride](https://vetmyfranchise.com/c/claude/franchise/lawn-pride-spv-llc) is the Neighborly-owned application brand at $141,215 to $243,890 with a $47,943 fee, a royalty of up to 8%, and a 2% ad fund, across 42 franchised units. Its Item 19 is structured as gross sales per customer rather than per unit, so it cannot be compared directly to the medians in the table above. Ask the franchise development team for unit-level distribution during discovery. [Lawn Squad](https://vetmyfranchise.com/c/claude/franchise/lawn-squad-franchising-llc) is the smallest system here at 19 franchised units, $93,930 to $132,766 investment, a $45,000 fee, and 7% plus 2%. Its disclosed $99,245 median covers 7 territories operating the full 2025 fiscal year. Seven units is not a validated number. Treat it as an early signal and weight franchisee calls heavily. [Heroes Lawn Care](https://vetmyfranchise.com/c/claude/franchise/hpb-lawn-care-llc) runs $96,290 to $176,686 across 62 franchised units per the 2026 FDD, with the territory fee calculated as the greater of $15,000 or $100 per 1,000 general population rather than a flat figure. Two numbers warrant a hard question at discovery: the Item 19 reports a $176,845 bottom quartile across only 11 units, and Item 20 shows 24 closures against 20 openings in the most recent year. A system closing more units than it opens is the single most reliable warning sign in an FDD. ## Best Full-Service Landscaping Franchises Full-service landscaping differs structurally from application work. The mix includes design, installation, maintenance, hardscape, and seasonal services, which means higher equipment requirements, broader technician skills, and typically larger commercial customer focus. [The Grounds Guys](https://vetmyfranchise.com/c/claude/franchise/the-grounds-guys-spv-llc) is the Neighborly full-service brand at $107,650 to $252,850 investment, a $43,750 fee, and 6% plus 2% ad fund, across 219 franchised units. It reports a $533,092 median across 105 franchised businesses in operation at least three years during calendar year 2025. That combination of 219 units, a published median, and a 6% royalty makes it the best-documented full-service option in the category. [U.S. Lawns](https://vetmyfranchise.com/c/claude/franchise/us-lawns-inc) is the commercial specialist covered above. NaturaLawn straddles both segments with application plus broader service capability. The full-service segment requires more capital but produces higher per-account revenue and less seasonality, because installation and hardscape work fills gaps that a pure application route cannot. ## Royalty Load Is the Real Differentiator Combined royalty plus ad fund on a $400,000 unit: - **Lawn Doctor**: 15% = $60,000 - **SpringGreen**: 12% at start, 10% after step-down = $48,000 to $40,000 - **NaturaLawn**: 10%, 8% post-renewal = $40,000 to $32,000 - **Lawn Pride / Lawn Squad**: up to 10% and 9% = $36,000 to $40,000 - **Weed Man**: 8.2% of net sales = roughly $33,000 - **The Grounds Guys**: 8% = $32,000 - **U.S. Lawns**: tiered to 4% at scale = well under $30,000 at maturity That is a $30,000-a-year spread on the same revenue, compounding across a ten-year agreement term. It is the most consequential number in the category and the one most buyer comparisons omit entirely. > 💼 **Validate any lawn care franchise FDD before committing.** Our $49 brand reports parse the full Item 19 distribution, route density assumptions, and the contract retention data the franchisor brochure leaves out. [Browse our franchise database →](https://vetmyfranchise.com/c/claude/franchises) ## Seasonal Market Strategy: Sun Belt vs. Snow Belt Geography reshapes the entire model. **Sun Belt territories** (most of Florida, Texas, Arizona, southern California, much of Georgia and the Carolinas) deliver 10 to 11 month operating seasons. Crews work nearly continuously, cash-flow seasonality is mild, and equipment utilization is high. **Mid-Atlantic and Midwest territories** run 8 to 9 month seasons, mid-March through mid-November. Crews work hard for eight months while the owner manages a four-month off-season focused on retention, marketing, and equipment maintenance. **Snow Belt territories** (New England, upper Midwest, much of New York and Pennsylvania) compress to 7 to 8 months. Successful franchisees pair the application business with snow removal, leaf cleanup, or holiday lighting to hold crews together and smooth revenue. The franchisor’s national pro forma rarely accounts for this. Local-market validation matters more in this category than almost any other. Seasonal cash-flow modeling is covered in [franchise seasonality revenue planning](https://vetmyfranchise.com/c/claude/blog/franchise-seasonality-revenue-planning). The truck and equipment itemized in Item 7 is rarely the total fleet cost over five years. Realistic capex modeling: - **Initial truck, spray rig, spreader**: $40,000–$70,000 (bundled into the fee at Lawn Doctor) - **Second truck, typically Year 2**: $35,000–$65,000 - **Replacement truck Year 5**: $40,000–$80,000 - **Office, signage, small equipment**: $5,000–$15,000 - **Ongoing capex reserve**: $8,000–$15,000 per truck per year Most franchise pro formas understate the reserve line. Build it in before you commit to a debt schedule. ## Territory Density Decides Profitability Two franchises with identical revenue and identical brands can produce dramatically different net income because of route density. A technician completing 16 stops per day at $60 per stop generates $960. The same technician completing 9 stops in a sparse territory generates $540 against similar wage and fuel costs. The variance is almost entirely margin. Successful franchisees protect route density aggressively: declining customers outside route boundaries even when revenue is offered, clustering new acquisitions geographically, and treating the route map as the primary operational asset. Owners who chase scattered revenue underperform, and it shows up in the quartile spreads. U.S. Lawns’ $277,298 bottom quartile against a $1,419,322 top quartile is a 5x spread inside one brand. For method on turning these disclosures into a defensible model, see [build pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19), [franchise territory analysis market evaluation](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation), and [franchise unit economics analysis](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis). Buyers comparing adjacent categories should pair this with the [home services franchise guide 2026](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide) and [best home services franchises under 100k](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k). ## The Bottom Line for 2026 Buyers If your target customer is commercial (HOAs, property managers, municipal contracts), [U.S. Lawns](https://vetmyfranchise.com/c/claude/franchise/us-lawns-inc) is the strongest pick in the category: the highest disclosed median at $943,856, 171 reporting units, and a royalty that steps down to 4%. If you want low capital with real system depth, [Weed Man](https://vetmyfranchise.com/c/claude/franchise/weed-man) at $81,150 to $109,400 with a $30,000 fee and 121 franchised units is the best value entry. If you want the deepest system and best validation pool, [Lawn Doctor](https://vetmyfranchise.com/c/claude/franchise/lawn-doctor-inc) has 672 franchised units and a 1967 founding. Go in understanding that the $118,000 fee includes equipment and that the 15% combined royalty load is the highest here. If you want full-service residential with a published median, [The Grounds Guys](https://vetmyfranchise.com/c/claude/franchise/the-grounds-guys-spv-llc) reports $533,092 across 105 units at an 8% combined royalty. If you are entering a Snow Belt market, build the pro forma on an 8-month season and budget for a complementary winter service or aggressive off-season retention spend. Whatever brand you pick, validate at least 6 to 8 existing franchisees with at least 3 in geographically similar markets, and ask each one where they land inside the disclosed quartile range. Lawn care economics live and die on local territory dynamics, and no FDD captures that. Fence, deck, lighting, and irrigation brands share the same crew-constrained economics and post some of the strongest revenue-to-capital ratios in franchising. We rank them in [best outdoor living franchises](https://vetmyfranchise.com/c/claude/blog/best-outdoor-living-franchises). ## Brands mentioned in this post - [Lawn Doctor](https://vetmyfranchise.com/c/claude/franchise/lawn-doctor-inc) - [SpringGreen](https://vetmyfranchise.com/c/claude/franchise/spring-green-lawn-care-corp) - [Weed Man](https://vetmyfranchise.com/c/claude/franchise/weed-man) - [NaturaLawn of America](https://vetmyfranchise.com/c/claude/franchise/naturalawn-of-america-inc) - [U.S. Lawns](https://vetmyfranchise.com/c/claude/franchise/us-lawns-inc) - [The Grounds Guys](https://vetmyfranchise.com/c/claude/franchise/the-grounds-guys-spv-llc) - [Heroes Lawn Care](https://vetmyfranchise.com/c/claude/franchise/hpb-lawn-care-llc) - [Lawn Pride](https://vetmyfranchise.com/c/claude/franchise/lawn-pride-spv-llc) - [Lawn Squad](https://vetmyfranchise.com/c/claude/franchise/lawn-squad-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best lawn care franchises 2026lawn care franchise costlandscaping franchise opportunitieslawn doctor franchise costspring green franchiseweed man franchise costus lawns franchiselawn care franchise income About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a lawn care franchise cost? Total investment runs $77,500 to $252,850 across the verified brands. NaturaLawn starts lowest at $77,500 and Lawn Pride tops out at $243,890, with The Grounds Guys reaching $252,850 on the full-service side. Franchise fees range from $30,000 at Weed Man to $118,000 at Lawn Doctor, where the equipment package is bundled into the fee. ### What is the cheapest lawn care franchise? Weed Man has the lowest ceiling in the category at $81,150–$109,400 total investment with a $30,000 franchise fee per the 2026 FDD. NaturaLawn has the lowest floor at $77,500. Lawn Squad runs $93,930–$132,766 and Heroes Lawn Care $96,290–$176,686. Weed Man is the strongest low-capital pick because it also has 121 franchised units behind it. ### How much can you make owning a lawn care franchise? The disclosed medians are $943,856 at U.S. Lawns (171 units), $533,092 at The Grounds Guys (105 units), and $1,033,748 at NaturaLawn (38 units open five years or more). At 12–20% net operating margin, a $533,092 median unit produces $64,000–$107,000 before debt service. Owners clearing $250,000 or more run 4 to 8 trucks. ### Which lawn care franchise is most profitable? On disclosed revenue, U.S. Lawns leads at a $943,856 median across 171 units, driven by commercial contracts worth $24,000–$96,000 annually versus $300–$700 for a residential application customer. Its royalty is also the lowest in the category, stepping from 6% down to 4% as revenue grows. NaturaLawn's $1,033,748 median is higher but covers only mature five-year-plus locations. ### Is a lawn care franchise worth it? It depends on royalty tolerance. Lawn Doctor charges 10% plus a 5% ad fund, so 15% of gross revenue leaves before any operating cost. Weed Man charges 7% plus 1.2%, and U.S. Lawns steps down to 4% at scale. On a $400,000 unit, that spread is $32,000 to $60,000 a year in fees. Model it before you sign. ### Are lawn care franchises seasonal businesses? Most are. Application franchises operate 7–11 months depending on geography, with revenue concentrated March through October. Sun Belt territories run 10–11 months; Snow Belt territories compress to 7–8. Successful Snow Belt owners add leaf cleanup, snow removal, or holiday lighting to keep crews employed. Build your pro forma on your local season, not the franchisor's national average. ### Do you need landscaping experience to buy a lawn care franchise? No, but you need labor management experience. The franchisor trains the technical side. The owner hires, schedules, and retains a 4 to 10 person seasonal crew while running acquisition and retention. Buyers from construction, retail, or service-business backgrounds transition faster than career office workers. Commercial brands like U.S. Lawns additionally require RFP and account-management discipline. ## Content not visible to non-JS crawlers - $1,033,748, --- title: "Franchise Due Diligence Checklist: 10 Steps + FDD Data" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist category: blog wordCount: 2984 readingTime: 15 min crawledAt: 2026-08-20 11:06:27 lastVerified: 2026-08-20 11:06:27 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Due Diligence Checklist: 10 Steps + FDD Data ## Summary Complete 50-question franchise due diligence checklist covering financials, legal terms, operations, market analysis, and franchisor health before you invest. ## Key facts - Most franchise buyers start with a brand they like and work toward justifying it. - Two caveats worth stating plainly. - Take your available equity, divide by 0. - A franchise with no [Item 19](https://vetmyfranchise. - Once you have an Item 19, the discipline is refusing to read the flattering number. Quick answer Franchise due diligence runs 60 to 90 days across ten steps: set a capital ceiling, screen for Item 19 disclosure, price the fee load, read Item 20 unit trends, test the contract, vet the franchisor, call 15 to 20 franchisees, then stress-test the model before signing. ## Why Most Buyers Run This Backwards Most franchise buyers start with a brand they like and work toward justifying it. The result is a process that confirms a decision already made. Reverse the order. Screen on numbers that apply to every system, narrow the field to the handful that clear your bars, and only then let brand preference decide among the survivors. The [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) makes this possible: every franchisor selling in the United States discloses the same 23 items in the same order, which means the documents are directly comparable in a way that marketing sites never are. The benchmarks below come from our own extraction of 2,364 Franchise Disclosure Documents, 2,177 of them filed in 2025 or 2026. They exist to answer one question a generic checklist cannot: is the number in front of me normal, or is it an outlier? This checklist assumes you already have the documents in hand. If you are still gathering them, [how to research a franchise](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise) covers where to pull any brand’s FDD free and which public records to check first. ## What 2,364 FDDs Say Before You Start | Benchmark (data as of July 2026) | Figure | Systems measured | | --- | --- | --- | | Disclose Item 19 financial performance | 1,614 (72%) | 2,237 with a definite reading | | Median total investment, Item 7 high end | $493,000 | 2,131 | | Middle half of Item 7 high end (25th–75th pct) | $217,500 – $1,009,000 | 2,131 | | Median initial franchise fee | $40,000 | 2,216 | | Median royalty rate | 6.0% of sales | 1,986 | | Royalty, 10th to 90th percentile | 4.0% – 8.0% | 1,986 | | Median ad fund contribution | 2.0% of sales | 1,649 | | Royalty + ad fund at 10% of sales or more | 279 (18%) | 1,525 | | Do not grant an exclusive territory | 591 (57%) | 1,032 with a definite reading | | Disclose at least one Item 3 legal action | 493 (46%) | 1,075 | | Offer direct or arranged franchisor financing | 181 (17%) | 1,068 | | Agreement term of 10 years or less | 775 (92%) | 846 | Two caveats worth stating plainly. Counts differ by row because not every field is present or unambiguous in every filing, so each figure reports only the systems where we have a usable reading. And royalty percentiles exclude the roughly 50 systems whose royalty is charged on gross margin, commissions, or profit rather than gross sales, because those rates run 18% to 90% and are not comparable. ## Step 1: Set Your Capital Ceiling Before You Shortlist Take your available equity, divide by 0.25, and treat the result as your realistic project ceiling. That reflects a 10% to 20% SBA equity injection plus reserves the lender will want to see left over. Then read [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) at the **high end**, never the midpoint. Most franchisees land at or above the middle of the range, and Item 7 typically funds only three months of operating shortfall. Median Item 7 high end by category in our data, data as of July 2026: Business Services $152,540 (n=87), Real Estate $207,000 (n=77), Home Services $227,409 (n=251), Senior Care $246,000 (n=110), Cleaning & Maintenance $286,850 (n=127), Child Services & Education $294,110 (n=135), Retail $405,049 (n=116), Pet Services $485,250 (n=48), Automotive $548,800 (n=59), Health & Beauty $634,480 (n=86), Fitness & Wellness $736,465 (n=151), Food & Beverage $825,000 (n=728). **Checklist:** total investment high end, initial franchise fee ([Item 5](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure)), working capital beyond Item 7’s estimate (budget 6 to 12 months, not 3), and 6 to 12 months of personal living expenses held separately from business capital. ## Step 2: Screen for Item 19 Disclosure Before Anything Else A franchise with no [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) is one you cannot underwrite. You would be building a financial model out of a salesperson’s anecdotes. Item 19 is voluntary, and 623 of the 2,237 systems where we have a definite reading disclose nothing. Disclosure rates vary sharply by category (data as of July 2026): | Category | Systems | Disclose Item 19 | | --- | --- | --- | | Health & Beauty | 93 | 82% | | Senior Care | 122 | 80% | | Home Services | 255 | 79% | | Pet Services | 56 | 79% | | Cleaning & Maintenance | 146 | 78% | | Business Services | 93 | 75% | | Retail | 125 | 74% | | Fitness & Wellness | 159 | 72% | | Child Services & Education | 149 | 72% | | Hospitality & Travel | 80 | 70% | | Food & Beverage | 727 | 68% | | Automotive | 69 | 65% | | Real Estate | 79 | 53% | A blank Item 19 is not automatically disqualifying, particularly in a young system with too few units to disclose meaningfully. It does mean the burden of proof shifts entirely onto your validation calls. Our guide on [what a missing Item 19 actually means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) covers when to accept the gap and when to walk. ## Step 3: Price the Total Fee Load, Not the Royalty Buyers compare royalties. Lenders and accountants compare the total percentage of revenue leaving before operating costs. Add the royalty, the ad fund, technology and software fees, mandatory local marketing minimums, and any required supplier markups from [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) and [Item 8](https://vetmyfranchise.com/c/claude/blog/fdd-item-8-supply-chain-vendor-requirements). Our median is 6.0% royalty plus 2.0% ad fund, so a normal system takes roughly 8% of sales. In 279 of 1,525 systems where both rates were readable, that combined figure is 10% or higher. At 10% of sales on a $600,000 unit, $60,000 leaves before rent, labor, and cost of goods. On thin-margin concepts, that is the entire owner’s income. **Checklist:** royalty basis (gross sales, net sales, or gross margin changes the math entirely), ad fund percentage and whether it has a floor, technology fees, renewal and transfer fees ([Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination)), and whether required suppliers are franchisor-affiliated. ## Step 4: Read Item 19 Like an Underwriter Once you have an Item 19, the discipline is refusing to read the flattering number. Use the **median**, not the average. Note the sample size and what fraction of the system it represents; a median drawn from the top third of units is a marketing statistic, not a benchmark. Check the reporting period, and whether the disclosure separates mature units from first-year units and company-owned units from franchised ones. Among the 749 systems where we extracted a specific Item 19 median revenue figure, the median of those medians is $759,368, with quartiles at $400,837 and $1,292,915. Use that band to sanity-check any projection handed to you. Item 19 almost never shows profit. Build the profit yourself: median revenue, minus cost of goods (30% to 40% for food, 10% to 20% for services), minus labor (25% to 35%), minus rent (8% to 12%), minus the total fee load from step 3, minus everything else. Our walkthrough on [building a pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) shows the full sequence, and [the common ways Item 19 misleads](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data) covers the presentation tricks to watch for. ## Step 5: Check Which Direction the Unit Count Is Moving [Item 20](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) gives you three years of openings, closures, transfers, and terminations. It is the closest thing in the FDD to a franchisee satisfaction survey, because leaving is expensive and people do it anyway. Calculate closures as a percentage of units at the start of each year, not of the current total. Above 5% annually warrants investigation; above 7% is serious. Then separate closures from transfers, because a system with heavy transfer volume and few closures is telling you something different from one with the reverse. Our guide to [calculating the true closure rate](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation) walks through the arithmetic that franchisors present in the least legible form. Also map the Item 20 location list against your proposed territory. Existing density tells you more about saturation than any franchisor market study. ## Step 6: Test the Three Clauses That Decide Your Exit Most buyers read the contract for what happens if things go well. Read it for what happens if they do not. **Territory ([Item 12](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained)).** 591 of 1,032 systems with a definite reading grant no exclusive territory, which means the franchisor may open or license a competing unit near yours. If the territory is exclusive, check whether it is protected against the franchisor’s own channels: delivery apps, e-commerce, wholesale, and company-owned locations. **Owner participation ([Item 15](https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee)).** If Item 15 says you must devote full time and best efforts with no designated-manager carve-out, any semi-absentee plan is contractually dead regardless of what a salesperson said. **Renewal, termination, and non-compete ([Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination)).** 775 of 846 systems in our data have terms of 10 years or less, and 613 sit at exactly 10 years. Confirm whether renewal is a right or a request, whether you must sign the then-current agreement (which may be worse), what cure periods apply to default, and how far the post-term non-compete reaches. Read the actual language in [Item 22’s sample contracts](https://vetmyfranchise.com/c/claude/blog/fdd-item-22-sample-contracts), not the Item 17 summary. ## Step 7: Audit the Franchisor, Not Just the Concept You are buying a decade-long relationship with a company, and its condition is disclosed. - **[Item 2](https://vetmyfranchise.com/c/claude/blog/fdd-item-2-business-experience):** leadership tenure and franchise-specific experience. Rapid executive turnover in a small system is a warning. - **[Item 3](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research):** 493 of 1,075 systems disclose at least one legal action, so the presence of litigation is not itself unusual. Patterns are. Repeated suits over territory encroachment, earnings claims, or terminations describe how the franchisor behaves under pressure. - **[Item 4](https://vetmyfranchise.com/c/claude/blog/fdd-item-4-bankruptcy-history):** prior bankruptcy by the franchisor or its principals. - **[Item 21](https://vetmyfranchise.com/c/claude/blog/franchise-audited-financial-statements-item-21):** audited financials. Look for positive operating cash flow, and specifically for any going-concern qualification. Also check whether revenue comes mainly from royalties or from selling new franchises, because that ratio tells you which activity the franchisor is actually organized around. - **[Item 11](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations):** training length and content, field support frequency, and whether the technology stack is a service or a fee. ## Step 8: Call 15 to 20 Franchisees, Including Former Ones This is the step buyers skip and the step that most often changes the answer. Item 20 includes contact information for current franchisees and, critically, for those who left in the past year. Call both groups. Start with the franchisor’s reference list, then get well past it by calling owners in markets similar to yours, owners who opened in the last 18 months, and every departure you can reach. Ask for actual revenue against what was represented, months to break even, the biggest post-opening surprise, the quality and frequency of field support, and whether they would do it again. Our [franchise validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) has the full question set and the call mechanics, and it is worth reading before your [discovery day](https://vetmyfranchise.com/c/claude/blog/franchise-discovery-day-guide) rather than after. ## Step 9: Build the Model, Then Break It Turn steps 1 through 8 into a three-year projection, then attack it. Model revenue at 70%, 85%, and 100% of your base case. If the business cannot survive 18 months at 70%, the deal is thinner than it looks. Calculate the monthly revenue at which fees, rent, labor, and debt service net to zero, and how many months of reserve it takes to get there. Then check the same model against current financing costs, since debt service on a $400,000-plus loan is often the largest fixed line in year one. Our [cash flow stress test using 2026 SBA rates](https://vetmyfranchise.com/c/claude/blog/franchise-cash-flow-stress-test-2026-sba-rates) provides the framework. Run this against three to five comparable systems in the same investment band, so your benchmarks come from real alternatives rather than one sales presentation. ## Step 10: Run the Final-Week Checklist The last stretch before signing is a final due diligence pass, not a formality. Your leverage is highest and your cost to walk away is lowest, and both invert the moment you sign. - **The final agreement matches the FDD and every verbal promise.** Read them side by side. An integration clause makes unwritten representations legally worthless, so get it in writing or value it at zero. - **A franchise attorney has read the termination, renewal, territory, and non-compete clauses.** These decide what happens when things go wrong, which is where franchisor-favorable defaults hide. - **Your validation went past the curated reference list.** - **Financing is committed, not pre-qualified,** with a commitment letter and closing date, and a lease term that mirrors the franchise term. - **You understand what the [personal guarantee](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) obligates.** It is presumptively unlimited unless capped, reaches personal assets, and survives the business. - **The FTC 14-day disclosure clock has fully elapsed.** A franchisor cannot legally accept your signature or your money before then, and pressure to sign early is itself a signal. Before you sign anything, read the item-by-item guide to [red flags across all 23 FDD items](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items). If you are past discovery day and still undecided, our [post-discovery-day decision framework](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) is the right next read. ## What the Timeline Looks Like After You Sign Due diligence ends at signature. The clock does not. Buyers routinely model the diligence window and then get surprised by the six to twelve months of capital burn between signing and opening, so it belongs in the same plan. Most concepts run 3 to 9 months from serious research to opening day. Home-based and mobile service brands with no build-out can compress to 8 to 12 weeks. Brick-and-mortar with real estate, permitting, and construction can stretch past 12 months. Build-out is usually the long pole: | Concept type | Typical build-out | | --- | --- | | Quick-service restaurant | 3-6 months | | Full-service restaurant | 4-8 months | | Fitness studio or gym | 3-6 months | | Retail storefront | 2-4 months | | Office-based service | 2-4 weeks | | Home-based service | None | Permitting is the variable that wrecks schedules. Some municipalities turn permits in two weeks; others take three to four months, and you are paying rent throughout. Site selection itself typically runs one to four months depending on market conditions and how prescriptive the franchisor is about square footage, traffic counts, and co-tenancy. Three things to sequence in parallel rather than in series, because doing them one at a time is what pushes openings past budget: - **Financing.** SBA approval commonly takes 45 to 90 days. Start before you sign, not after. - **Training.** Most systems require one to four weeks at corporate plus one to two weeks on site, usually two to six weeks before you open. - **Hiring.** Begin recruiting 10 to 12 weeks out so your team is trained before day one rather than during week one. Then track from the first day: weekly revenue, labor percentage, customer counts, average ticket. Franchisors concentrate their support in the first 90 days, so use every field visit you are entitled to. The operators who reach profitability fastest are the ones measuring weekly rather than waiting for a quarterly report to surface a problem. ## How to Track It Build a spreadsheet with one row per step and, for each, record the answer, the source (FDD item number, franchisee call, independent research), your confidence, and any follow-up needed. Compare at least three systems in the same columns. Any step you cannot complete is a gap in your due diligence. Any answer that surprises you needs a second source before you sign. ## Accelerate Your Due Diligence Our FDD analysis extracts the Item 5, 6, 7, 12, 15, 17, 19, and 20 data points above from the full disclosure document and presents them from the buyer’s side. Browse the [franchise library](https://vetmyfranchise.com/c/claude/franchises) for free key facts on 2,000-plus systems, or use the [compare tool](https://vetmyfranchise.com/c/claude/compare) to put three to five candidates in the same columns. Thorough due diligence is not optional. It is the difference between a life-changing investment and a life-altering mistake. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) due diligencechecklistfranchise researchFDD analysisbuyer guidefranchise selectionbefore signing a franchise agreement About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What should I check before buying a franchise? Check ten things in order: your capital ceiling against the Item 7 high end, whether Item 19 discloses financial performance at all, the combined royalty and ad fund load as a percentage of sales, the Item 19 numbers themselves (medians, not averages), the direction of the Item 20 unit count over three years, the territory, owner-participation, and renewal and termination clauses, the franchisor's own litigation history and audited financials, what 15 to 20 current and former franchisees say, and whether your own three-year model survives a 30% revenue shortfall. Everything except the franchisee calls can be verified from the FDD. ### How long does franchise due diligence take? Plan 60 to 90 days. The FTC requires you to receive the FDD at least 14 days before signing or paying, but 14 days is a legal floor, not a working timeline. A realistic schedule is two weeks of document review, two to four weeks of franchisee validation calls (15 to 20 calls rarely fit into one week of callbacks), one to two weeks of attorney and accountant review running in parallel, and two to four weeks for financing to move from pre-qualification to a commitment letter. Compressing below 45 days usually means dropping the validation calls, which is the step that most often changes a buyer's mind. ### Do I need a franchise attorney to review the FDD? Yes, and specifically a franchise attorney rather than a general business attorney. Expect $5,000 to $15,000 to review the FDD and franchise agreement. The clauses that matter most are the ones a generalist reads past: renewal conditions, termination and cure periods, post-term non-compete scope, transfer approval rights, and the dispute-resolution venue. ### What is the biggest red flag in franchise due diligence? A declining unit count over three years in Item 20. If more franchisees are leaving the system than joining it, the people with the most information about the business are voting against it. Investigate closures specifically rather than net growth, because a system can mask heavy closures with aggressive new-unit sales. ### How many franchise opportunities should I compare before choosing one? Three to five in the same industry or investment band. Comparing multiple FDDs is the only way to know whether a 7.5% royalty, a $75,000 franchise fee, or a five-year term is normal for that category. Our database median royalty is 6.0% of sales and the median initial franchise fee is $40,000, but category norms vary widely. ### Can I negotiate the franchise agreement? Rarely for single-unit deals. Franchisors generally offer uniform terms to avoid disclosure complications, so the core agreement is close to fixed. Multi-unit and area development deals are different, and sometimes carry reduced per-unit fees, larger territories, or development-schedule flexibility. A franchise attorney can tell you which specific terms in a given system have historically moved. ### What should I confirm the week before signing a franchise agreement? That the final agreement matches the FDD and every verbal promise, that a franchise attorney has read the termination, renewal, territory, and non-compete clauses, that your validation went past the franchisor's reference list, that financing is committed rather than pre-qualified and your lease term mirrors the franchise term, that you understand what the personal guarantee obligates, and that the FTC 14-day disclosure clock has fully elapsed. ### What does a personal guarantee commit me to? It makes you, not your LLC, personally responsible for the franchise's debts and obligations if the business cannot pay. Personal guarantees are near-universal in franchising and are presumptively unlimited unless the agreement expressly caps them, so the guarantee can reach personal assets and outlive the business. Read the exact wording and ask your attorney whether any cap, sunset, or release is available. --- title: "Five Guys vs Wingstop Franchise Comparison 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-25 dateModified: 2026-07-24 keywords: five guys, wingstop, qsr franchise, franchise comparison, chicken franchise canonical: https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise about: five guys category: blog wordCount: 1758 readingTime: 9 min crawledAt: 2026-08-20 11:02:18 lastVerified: 2026-08-20 11:02:18 site: https://vetmyfranchise.com/c/claude/ --- # Five Guys vs Wingstop Franchise Comparison 2026 ## Summary Five Guys vs Wingstop franchise comparison covering investment, AUV, operating model, multi-unit reality, and which QSR brand fits which buyer profile. ## Key facts - Five Guys and [Wingstop](https://vetmyfranchise. - The top-line investment ranges are not as close as buyers assume. - Average unit volumes are where the two brands really separate from each other. - Five Guys is a cook-heavy operation. - This dimension quietly disqualifies most buyers from one of the two brands. Quick answer Wingstop opens for $310,000 to $1.01 million with $1.8M-$2.2M mature AUV and a 6% royalty plus 5.5% ad fund, but only awards multi-unit deals of three to five stores. Five Guys runs $978,000 to $1.38 million, $1.4M-$1.8M AUV, 6% plus a 2% to 4% ad fund, and accepts single-unit operators. ## The Quick Verdict: Two Very Different QSR Bets Five Guys and [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) occupy a narrow band of the franchise market that looks similar from 30,000 feet and almost nothing alike on the ground. Wingstop opens a single location for roughly $310,000 to $1 million; Five Guys runs meaningfully higher, roughly $978,000 to $1.38 million. Both sit firmly in QSR, and both routinely show up on the same buyer’s shortlist. The similarity stops there. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) is a small-format take-out-and-delivery business that the franchisor will not award to a single-unit operator. Five Guys is a dine-in-friendly carryout concept that still welcomes the owner-operator with a single store. One runs assembly-line economics on a 1,400-square-foot box. The other runs cook-to-order economics on a 2,400-square-foot box with a 25-person crew. Picking between them is less about wings versus burgers and more about whether the buyer wants to build a portfolio or run a restaurant. ## The Investment Story: Build-Out Differences The top-line investment ranges are not as close as buyers assume. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) runs roughly $310,000 to $1.01 million. Five Guys runs roughly $978,000 to $1.38 million, so its [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 7 floor sits right around Wingstop’s ceiling. A first-time buyer glancing at the two brands might still lump them into one investment tier. They should not, and the composition tells the rest of the story. The composition diverges. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s smaller real estate footprint (1,400 to 1,800 square feet versus Five Guys’ 2,200 to 2,800 square feet) pulls construction and rent costs in opposite directions. A [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) store needs no dining-room build-out beyond a small counter area, no booth fabrication, no expanded restrooms. Five Guys needs all of it. The Five Guys kitchen also needs more capacity (flat-top grills, fry stations, and prep space for hand-formed patties and fresh-cut fries), which adds equipment dollars and ventilation hood spend. Real estate availability shapes the math too. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s smaller footprint makes it viable in strip-center end caps, second-generation restaurant space, and shadow-anchor positions that Five Guys generally cannot use. That flexibility tends to lower [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s median rent. Five Guys’ need for visible street-front real estate with parking and dine-in flow pushes it toward higher-rent inline retail or freestanding pads. For a deeper Item 7 breakdown on either brand, our [Five Guys franchise cost guide](https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost) and [Wingstop franchise cost guide](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost) walk through each line item with current figures. ## Item 19 AUV Comparison and What Drives Each Average unit volumes are where the two brands really separate from each other. Here is the comparison most buyers want to see in one place: | Metric | Five Guys | Wingstop | | --- | --- | --- | | Typical mature AUV | $1.4M – $1.8M | $1.8M – $2.2M | | Footprint | 2,200 – 2,800 sq ft | 1,400 – 1,800 sq ft | | Sales per square foot | ~$600 – $700 | ~$1,100 – $1,400 | | Digital order mix | 25 – 40% | 60%+ | | Typical staffing | 25 – 40 | 15 – 25 | | Operator distribution range | $80K – $200K | $200K – $400K | | Single-unit awards | Yes | No | | Royalty + ad fund | 6% + 2%–4% | 6% + 5.5% | The AUV gap is real but it tells only part of the story. Wingstop’s higher AUV is squeezed out of a smaller footprint, which means dramatically higher sales per square foot and a more efficient labor-to-revenue ratio. The 60%+ digital order mix means fewer front-counter staff and more kitchen throughput. Five Guys’ digital mix has grown but the format still leans on walk-in dine-in and carryout, which requires the front-of-house labor Wingstop has largely eliminated. Operator distributions follow the same pattern: Wingstop’s wider range reflects capitalized multi-unit groups optimizing aggressively across stores, while Five Guys distributions cluster lower because labor and dining-room overhead consume more of every AUV dollar. ## Labor Models: Cook-Heavy vs Assembly-Heavy Five Guys is a cook-heavy operation. Every burger is hand-formed in store from never-frozen beef. Fries are cut in-house from whole potatoes. The kitchen runs hot all day. With no pre-cooking and no heat lamps for hold time, staffing climbs to 25 to 40 employees per store across all shifts. A buyer walking into a Five Guys at 7pm on Saturday is looking at 12 to 18 people working at once. Wingstop is an assembly operation. Wings are cooked to order, but the prep and cooking steps are highly proceduralized and depend on fewer skill positions. The high digital order mix means most tickets enter the kitchen pre-routed, with no order taking, no upselling, and no dine-in service to manage. A mature store typically runs 15 to 25 total employees, with peak shifts of 6 to 10. At $15 per hour fully loaded, the gap between a 35-person Five Guys roster and a 20-person Wingstop roster runs into six figures of annual labor cost. The implication for operator selection is direct. A buyer who wants to walk the floor and run a hospitality-oriented restaurant will find Five Guys satisfying. A buyer who wants to manage a throughput-optimized operation will find Wingstop a better fit. Buyers tend to be miserable in the wrong format. Here is where the FDD math gets quietly important. Five Guys runs roughly 6% royalty plus a 2% to 4% advertising fund contribution, for 8% to 10% off the top. Wingstop runs roughly 6% royalty plus a 5.5% national ad fund, for a total of 11.5%. That is a gap of two to three-plus points, every week, on every dollar of revenue. On a Wingstop store doing $2M AUV, the 5.5% ad fund alone is $110,000 per year, roughly two to three times what a Five Guys operator pays on a $1.6M store (a 2% to 4% fund, or $32,000 to $64,000). The math has a real defense: Wingstop’s national ad spend has been a major driver of the brand’s traffic growth, and operators broadly view the 5.5% as well-spent. The brand’s digital ordering infrastructure and national TV presence don’t exist without that capital pool. Still, for back-of-the-envelope take-home, the royalty and ad stack difference is the single largest line item beyond labor. ## Multi-Unit Reality and Territory Availability This dimension quietly disqualifies most buyers from one of the two brands. Wingstop does not award new single-unit franchises. New operator awards come with multi-unit development agreements, typically three to five stores over a defined timeframe with committed deposits. The brand has consciously chosen to grow through capitalized restaurant operators rather than first-time owner-operators, and the financial qualification reflects it. Five Guys is the opposite. The brand accepts single-unit applicants in available markets, and a meaningful share of the system is owned by single-unit and small-portfolio operators. A buyer with $400,000 in liquid capital who wants to own one store and run it themselves can realistically apply to Five Guys. That same buyer cannot apply to Wingstop on the same terms. Territory availability is also asymmetric. Wingstop’s multi-unit-only development has left fewer large white-space markets, and most desirable metros are spoken for by existing area developers. Five Guys’ saturation is uneven, with strong availability in secondary metros and infill opportunities in major markets. Request a current market availability map early in conversations either way. For buyers comparing Wingstop against other wing concepts, our [Wingstop vs Buffalo Wild Wings comparison](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-buffalo-wild-wings-franchise) breaks down the full-service alternative, and the wider [sports bar and grill franchise landscape](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) prices ten bar-anchored brands that still award single units. For broader category context, see our roundups of the [best burger franchises](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises) and [best chicken franchises](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises). ## Verdict by Buyer Type Three buyer profiles dominate inquiries on this comparison, and each maps cleanly to a different recommendation. The capitalized multi-unit restaurant operator ($2M+ liquid, prior restaurant ownership, bandwidth for a three-to-five store commitment) should be looking at Wingstop. The model is built for them. The royalty stack is justified by the brand investment. The territory structure rewards committed capital. A hands-on first-time buyer ($400K to $700K liquid, no prior restaurant ownership, intent to be a working owner-operator at a single store) should be looking at Five Guys. The single-unit pathway is real, the dine-in operation rewards floor presence, and the lower ad fund means more take-home. The small-portfolio operator, already running two or three units of something else, can credibly look at either, but should let labor philosophy be the tiebreaker. If the existing operation is hospitality-heavy, Five Guys extends that muscle. If it’s throughput-heavy, Wingstop is the cleaner fit. The wrong move with either brand is forcing the fit. Buyers who try to single-unit their way into Wingstop wash out of the application process. Buyers who multi-unit Five Guys without restaurant experience underestimate the labor lift. Pick the brand that matches the buyer profile. > 💼 **Comparing both?** Our [3-pack of $99 FDD AI Reports](https://vetmyfranchise.com/c/claude/buy/3-pack) gives you Five Guys, Wingstop, and a third QSR brand: side-by-side AI-parsed Item 19, Item 6 fees, and Item 17 development requirements. Three full reports for $99 total. ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) five guyswingstopqsr franchisefranchise comparisonchicken franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which is more profitable per unit? Wingstop typically produces higher AUV ($1.8M–$2.2M mature) with operator distributions of $200K–$400K per store. Five Guys mature stores produce AUV in the $1.4M–$1.8M range with operator distributions of $80K–$200K per store. Wingstop's smaller footprint and high digital mix produce stronger per-unit operator economics, but the multi-unit-only requirement means total commitment is higher. ### What's the labor model difference? Five Guys runs cook-heavy with hand-formed burgers and fresh-cut fries, so typical staffing is 25–40 employees per store. Wingstop runs assembly-heavy with chicken-frying operations and high digital order throughput, so typical staffing is 15–25 employees per store. The cook-to-order versus assembly-line distinction drives most operational differences. ### Which is easier to multi-unit? Wingstop is structurally designed for multi-unit operators, and the brand only awards new development to multi-unit commitments. Five Guys supports single-unit operators and multi-unit operators alike, with less rigid development requirements. Both scale to multi-unit but Wingstop forces it from day one. ### Are either accepting new single-unit applicants? Five Guys accepts single-unit franchise applicants in available markets, though most new awards favor operators with restaurant experience. Wingstop does not award new single-store franchises; new operators commit to multi-unit development agreements of typically 3–5 stores. The two brands' development philosophies are opposite on this dimension. ### Which has better margins? Wingstop typically delivers stronger operator margin as a percentage of revenue due to lower labor intensity and smaller real estate footprint. Five Guys margins are pressured by hand-formed cook operations and higher labor count. Both brands are viable from a margin standpoint, but Wingstop's structural margin advantage is real. --- title: "FDD Review Process and Timeline: 30-Day Plan (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan category: blog wordCount: 1911 readingTime: 10 min crawledAt: 2026-08-20 11:07:10 lastVerified: 2026-08-20 11:07:10 site: https://vetmyfranchise.com/c/claude/ --- # FDD Review Process and Timeline: 30-Day Plan (2026) ## Summary How long to review an FDD? The 14-day FTC rule is a floor, not a finish line. A 30-day, week-by-week plan covering attorney review, validation calls. ## Key facts - The Federal Trade Commission’s Franchise Rule sets 14 calendar days as the minimum waiting period between FDD delivery and the moment you can sign a franchise agreement or pay any money to the franchisor. - Week one is yours alone. - Week two is when the meter starts running. - By week four you have data. - Sometimes 30 days is not enough. Quick answer A thorough FDD review takes 28 to 45 days, not the 14 the FTC requires. Days 1 to 7 are your own read and triage, days 8 to 14 go to attorney review and Item 19 substantiation, days 15 to 21 to validation calls, days 22 to 28 to financial modeling, and days 29 to 30 to the decision. The FTC requires a 14-day review window. The buyers who actually pass due diligence take 28 to 45 days. That gap between the legal floor and the realistic timeline is where most franchise mistakes get made. A 14-day sprint is enough to read the document. It is not enough to validate [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) earnings claims, complete 10 franchisee calls, model unit economics against a real lender, and negotiate the franchise agreement. The buyers who close on time and stay solvent through year three almost always took the long version. This post is about the process and the clock. If you need the document itself explained first, our [Franchise Disclosure Document guide](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) walks all 23 items. Here is the day-by-day plan we recommend, the email language for requesting an extension when you need one, and the trigger points that tell you to walk away. ## The 14-day FTC minimum vs. the realistic timeline The Federal Trade Commission’s Franchise Rule sets 14 calendar days as the minimum waiting period between FDD delivery and the moment you can sign a franchise agreement or pay any money to the franchisor. Some state regulators add layers on top — Maryland, Michigan, New York, and a handful of others operate registration regimes with their own waiting periods and disclosure requirements. Fourteen days is a floor. It exists so that you cannot be steamrolled into signing the same week you receive a 300-page legal document. It does not exist because two weeks is enough time to actually evaluate a franchise. Realistic timelines look like this: | Phase | Days | What happens | | --- | --- | --- | | Solo read-through and triage | 1-7 | Read all 23 items, flag concerns, build question list | | Attorney review and substantiation | 8-14 | Franchise attorney redlines agreement, you request Item 19 backup | | Validation calls | 15-21 | 10 calls with current and former franchisees | | Financial modeling and lender pre-qual | 22-28 | Build P&L model, secure SBA or conventional financing pre-approval | | Decision and negotiation | 29-30 | Go/no-go meeting, send negotiation requests | Thirty days is the floor for buyers who treat this as a real investment. Some of the best buyers we work with stretch to 45 days, especially when the franchise agreement comes back with serious redlines. If you’ve just received the FDD and need a tighter daily playbook for the FTC 14-day window itself, our [7-day post-FDD action plan](https://vetmyfranchise.com/c/claude/blog/received-fdd-7-day-action-plan) walks through what to do each day before the 30-day plan takes over. ## Days 1-7: solo read-through and triage Week one is yours alone. No attorney, no validation calls, no lender. The goal is to read the entire FDD cover to cover and decide whether this concept survives a first pass. Read in this order: [Item 1](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background) (the franchisor and its parents), Item 3 (litigation), [Item 4](https://vetmyfranchise.com/c/claude/blog/fdd-item-4-bankruptcy-history) (bankruptcy), Item 19 (financial performance representations), Item 20 (franchisee turnover and contact info), then circle back to the rest. Items 3 and 4 will end the process for some buyers on day one. Item 19 sets the ceiling on how excited you should let yourself get. By the end of day seven you should have: - A flagged list of every clause in the franchise agreement that worries you - Names and phone numbers from Item 20 sorted into “current franchisees in similar markets” and “exited franchisees from the past three years” - A first-draft list of substantiation requests for Item 19 - A preliminary build-out budget using [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) ranges This is the week to map your week against our [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) so you know what artifacts you need before you bring in paid help. ## Days 8-14: attorney review and substantiation requests Week two is when the meter starts running. A franchise attorney — not your real estate attorney, not your business attorney, a franchise attorney — should redline the franchise agreement against the FDD. Expect a flat fee in the $1,500 to $3,000 range for a focused review and a brief negotiation memo, and more once negotiation is added; we break every tier down in [what an FDD review costs](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost). While the attorney works, send the franchisor your substantiation request for Item 19. Federal regulations require franchisors to maintain written substantiation for any financial performance representation. Ask for it. The exact request: > Per the FTC Franchise Rule, please provide the written substantiation supporting the financial performance representations made in Item 19 of the FDD I received on \[date\]. Specifically, I am requesting the underlying data set (anonymized as needed), the methodology used to calculate the averages or medians presented, and the date range of the underlying transactions. Most franchisors will provide some version of this. The ones that refuse — or who get cagey about methodology — are telling you something. Pair this work with a structured [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) so nothing slips between attorney review and validation calls. ## Days 15-21: validation calls (the 10-call rule) Ten calls. Not three. Not five. Ten. The math is simple: any single franchisee call gives you one data point shaped by that operator’s territory, capitalization, and personality. Three calls give you a vibe. Ten calls give you a distribution. You will start hearing the same complaints repeated by call six, and that repetition is the signal. Build your call list from Item 20. Aim for: - Five current franchisees who have been operating 18+ months - Two current franchisees in their first year - Three former franchisees who exited in the past three years The exited franchisees are non-negotiable. They will tell you things current operators will not, including the real reason they left and what the franchisor did or did not do to help. Our [franchise validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) has the exact 23-question script we use. Block 30 to 45 minutes per call. Stretch this work across all seven days of week three so you have time to follow up on threads that emerge. * * * **Compress the timeline without cutting corners.** Our [$49 Research Report](https://vetmyfranchise.com/c/claude/) puts a senior analyst on your FDD with a 5-business-day turnaround. You get a 40-point risk assessment, Item 19 unit economics analysis, and a prioritized list of negotiation requests — so weeks one and two collapse into one. [See a sample report.](https://vetmyfranchise.com/c/claude/pricing) * * * ## Days 22-28: financial modeling and lender pre-qual By week four you have data. Now you build the model. A real franchise financial model has three sheets: a build-out budget driven by Item 7, a year-one P&L driven by validation call data (not the franchisor’s pitch deck), and a five-year cash flow projection that includes royalty escalations, ad fund contributions, and renewal fees. The output you care about: month-by-month cash position, debt service coverage ratio, and the month you reach break-even. Run the model with conservative assumptions. If the unit economics only work at the top quartile of Item 19 performers, the unit economics do not work. We dig into how to weight Item 19 cohorts in our [score methodology](https://vetmyfranchise.com/c/claude/score-methodology). Parallel track this with lender pre-qualification. [SBA 7(a)](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) is the standard path for first-time franchisees, and the SBA Franchise Directory listing matters — if the brand is not on it, your loan options narrow fast. Get a soft pull pre-qualification from at least two lenders before day 28. Lenders will ask for the FDD; have it ready. ## Days 29-30: go/no-go decision and negotiation push Two days. One decision. Day 29 is the decision meeting with whoever is funding this — yourself, your spouse, your investors. Walk through the model, the validation call summary, and the attorney’s redline memo. Use a forced ranking: would you put this same money into the S&P 500 instead, and if so, why is this franchise the better risk-adjusted return? Day 30 is the negotiation push. The franchise agreement is more negotiable than the franchisor wants you to believe. Common requests that get accepted: territory protection refinements, reduced personal guarantee scope, transfer fee caps, post-termination non-compete narrowing, and a longer cure period on default provisions. Royalty rates and ad fund percentages are almost never negotiable. Knowing the difference saves you from looking naive at the table. Send your negotiation requests in writing. Get responses in writing. If the franchisor refuses to put answers in email, that is the answer. ## When to ask for an extension (and how to phrase it) Sometimes 30 days is not enough. The franchise attorney is on vacation, validation calls are taking longer than expected, your lender needs another two weeks to underwrite. Ask for an extension. Most franchisors grant them. The phrasing matters. You are not asking permission to take more time — the FDD does not expire. You are signaling to your development rep that you are still serious so they do not pull you from the pipeline. Send this: > \[Rep name\] — quick update on my timeline. I want to make sure I do this right rather than fast, and I’m tracking about 10 to 14 days behind my original target because \[specific reason: attorney availability / completing validation calls / lender underwriting\]. I’m still fully committed to the process and expect to be ready for a final decision by \[specific date\]. Can we schedule a check-in for \[date\] so I can share where things stand and answer any questions on your end? Two things this email does. It gives a specific reason, which signals seriousness. It proposes a check-in, which keeps you in the active pipeline. Vague extension requests are what get candidates dropped. * * * **Get a second set of eyes before you sign.** The [$49 Research Report](https://vetmyfranchise.com/c/claude/) is built for buyers who want analyst-grade scrutiny without spending $4,000 on attorney hours for a document that may not survive your validation calls. Five business days. Forty risk factors scored. [Order a report.](https://vetmyfranchise.com/c/claude/) * * * Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) fdd review processfdd review timelinedue diligence timelinefranchise buying About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How long does an FDD review take? Plan on 28 to 45 days. The FTC's 14-day waiting period is only the minimum gap between FDD delivery and signing, not an estimate of how long evaluation takes. A realistic process runs a week of solo reading, a week of attorney review and Item 19 substantiation requests, a week of validation calls, a week of financial modeling and lender pre-qualification, then two days to decide. ### What are the steps in an FDD review? Five, in order. Read the whole FDD yourself and triage red flags. Have a franchise attorney redline the agreement while you request written substantiation for Item 19. Run ten validation calls with current and former franchisees from the Item 20 list. Build a build-out budget, a year-one P&L, and a five-year cash flow, and get lender pre-qualification. Then hold a go/no-go meeting and send negotiation requests in writing. ### Can a franchisor rush you past the 14-day rule? No. Federal law sets 14 calendar days as the minimum waiting period between FDD delivery and signing any binding agreement or paying any money. A franchise development rep can pressure you, but they cannot legally shorten the window. If a franchisor pushes for a same-week signing, treat that pressure as a data point about how they will behave once you are a franchisee. ### What happens if you sign before 14 days? Signing inside the 14-day window is an FTC Franchise Rule violation by the franchisor, not by you. The agreement may still be enforceable, but the franchisor exposes itself to FTC enforcement and state-level penalties. Some state regulators will void the agreement on those grounds. The cleaner path: refuse to sign early and document the request in writing. ### Can the franchisor withdraw the FDD if you take too long? Yes. The FDD is an offer, and offers can be withdrawn. Franchisors typically pull a candidate from the pipeline after 60 to 90 days of inactivity, and most update FDDs annually around April, which can trigger a fresh delivery and a new 14-day clock. If you need 30 days, communicate the timeline early and stay in weekly contact with your development rep. ### Does the 14-day clock reset if the FDD is amended? It depends on what changed. A material amendment to the FDD or franchise agreement restarts the 14-day waiting period. A clean re-delivery without changes does not. Items 5, 6, 7, 19, and 20 are the usual culprits for material changes. Ask the franchisor in writing whether the redlined version triggers a new clock — and get the answer in email, not on a call. --- title: "FDD Review Cost 2026: Attorney Fees and Service Tiers" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: VetMyFranchise Team datePublished: 2026-07-10 canonical: https://vetmyfranchise.com/c/claude/blog/fdd-review-cost category: blog wordCount: 1866 readingTime: 9 min crawledAt: 2026-08-20 11:05:55 lastVerified: 2026-08-20 11:05:55 site: https://vetmyfranchise.com/c/claude/ --- # FDD Review Cost 2026: Attorney Fees and Service Tiers ## Summary An FDD review costs $1,500–$3,000 with an attorney or $49 with an AI analysis as of 2026. What each covers, what each misses, and the smart order to buy. ## Key facts - An FDD runs 23 items plus exhibits, usually 150–300 pages, and the exhibits include the franchise agreement you will actually sign. - As of 2026, the typical published flat fee for a focused franchise attorney FDD review is **$1,500–$3,000**: a read of the FDD and franchise agreement, a written risk memo, and a debrief call. - A VetMyFranchise FDD Analysis costs **$49 per franchise**, or **$99 for a 3-pack** ($33 per report) when you are comparing finalists. - Nothing but time, and you should spend some of that time no matter what else you buy. - Four drivers explain most of the spread in quoted fees, and knowing them keeps you from overpaying: Quick answer A professional FDD review costs $1,500–$3,000 as a flat attorney fee in 2026, or $5,000+ with agreement negotiation. An AI-powered FDD analysis costs $49 and handles the benchmarking half of the job. Most buyers get the best value from the $49 analysis first, then an attorney on the one brand they're ready to sign. An FDD review costs anywhere from nothing to more than $5,000, and the spread comes down to who is doing the reading. As of 2026, a franchise attorney charges $1,500–$3,000 flat for a focused review, more with negotiation. An AI-powered FDD analysis costs $49. Reading the document yourself is free and takes most buyers 10–20 hours per brand. Those three options are not interchangeable, and the buyers who get hurt usually treated them as if they were: either paying attorney rates for arithmetic a $49 report does better, or skipping the lawyer entirely and signing a 200-page contract on a data report and a hunch. Here is what each option costs, what each one actually catches, and the sequence that buys the most protection per dollar. If you need the document itself explained first, start with our [Franchise Disclosure Document guide](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), which walks all 23 items. ## What counts as an FDD review? An FDD runs 23 items plus exhibits, usually 150–300 pages, and the exhibits include the franchise agreement you will actually sign. The franchisor must deliver it at no charge under the FTC Franchise Rule ([16 CFR Part 436](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)), so nothing you pay for is the document. What you are buying is someone’s time and judgment on it. “Reviewing” that document is really two different jobs: - **The data job.** Do the numbers hold up? Is the Item 19 earnings claim typical for the category or dressed up? Is the Item 7 investment range realistic? What does the Item 20 table say about how many owners quit or closed? - **The legal job.** What does the contract commit you to? How broad is the personal guarantee, what do the termination and non-compete clauses really mean, and which state addenda change your rights? Every review option on the market is a different answer to which of those jobs gets done, by whom, at what price. And all of it runs on the same clock: [the 14-day rule](https://vetmyfranchise.com/c/claude/blog/the-14-day-fdd-rule-explained) is a floor, not a schedule, so the earlier you start, the more of these options stay open. Our [30-day FDD review plan](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan) shows where each paid step lands in a realistic timeline. ## How much does a franchise attorney charge for an FDD review? As of 2026, the typical published flat fee for a focused franchise attorney FDD review is **$1,500–$3,000**: a read of the FDD and franchise agreement, a written risk memo, and a debrief call. Add active negotiation and the total climbs to **$5,000 or more**, because redlines and correspondence with the franchisor’s counsel bill on top of the base review. Multi-unit and area-development deals run higher still, often $5,000–$10,000+, since the development schedule and entity structure add legal surface area. Attorneys who bill hourly typically charge roughly **$300–$650 an hour** depending on market and firm. For a straight review, take the flat fee when it’s offered; an FDD has no natural stopping point, and hourly billing turns a thorough read into an open-ended invoice. We break the full fee structure down tier by tier in [what a franchise attorney FDD review actually costs](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-fdd-review-cost). The short version: the attorney fee is money well spent exactly once per purchase, on the contract you are actually going to sign. It is an expensive way to evaluate three brands you are still comparing. ## How much does an AI FDD analysis cost? A VetMyFranchise FDD Analysis costs **$49 per franchise**, or **$99 for a 3-pack** ($33 per report) when you are comparing finalists. It is document analysis plus benchmarking, not legal advice: the system reads the brand’s FDD, verifies the Item 19 figures against the source document, and scores the deal against comparable franchises drawn from a database of 2,000+ brands. What you get is a 17-section analyst report: every Item 5–7 cost line, unit economics with a payback model, the Item 19 earnings breakdown benchmarked against the category, multi-year network health from Item 20, litigation risk from Items 3–4, a plain-English contracts summary, and four sections personalized to your capital and market, all fronted by a one-page Decision Memo. It is delivered in minutes, not weeks. What it does not do matters just as much. It will not interpret your specific agreement draft, negotiate terms, or tell you how a state addendum modifies your rights. That is the legal job, and it stays with a lawyer. For the full scope of what an analysis covers item by item, see [what an FDD analysis includes](https://vetmyfranchise.com/c/claude/blog/what-is-an-fdd-analysis). ## What does reviewing an FDD yourself cost? Nothing but time, and you should spend some of that time no matter what else you buy. Plan on 10–20 hours for a careful first read of one FDD, more if it is your first ever. The problem with pure DIY is not effort, it is context. You can read that a franchisor charges a 6% royalty or closed 40 units last year, but nothing on the page tells you whether either number is normal for the category or a five-alarm warning. Franchisors also write these documents; the disclosures are accurate, but the framing is theirs. Our [50-question due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) structures the read so the questions that kill bad deals don’t get skimmed. ## Why do FDD review prices vary so much? Four drivers explain most of the spread in quoted fees, and knowing them keeps you from overpaying: - **Negotiation.** The jump from $3,000 to $5,000+ is almost always redlining. A read-and-memo engagement is a bounded job; rounds of correspondence with the franchisor’s counsel are not. - **Deal structure.** Multi-unit and area-development agreements add a development schedule, territory language, and entity questions, each of which adds billable surface. - **Registration states.** If you’ll operate in a state like California, New York, or Minnesota, the attorney also has to work through the state addenda that modify the base agreement. - **Resales.** Buying an existing unit adds transfer documents and an operating history to evaluate on top of the standard FDD. Get the scope in writing before you agree to a fee, and confirm whether negotiation is included or extra. A $2,500 review that quietly becomes a $6,000 engagement is the most common billing surprise in this market. ## Which FDD review option should you use? | | DIY read | FDD Analysis ($49) | Franchise attorney | | --- | --- | --- | --- | | Typical 2026 cost | $0 plus 10–20 hours | $49 ($99 for 3 brands) | $1,500–$3,000 flat; $5,000+ with negotiation | | Turnaround | 1–2 weeks of evenings | Minutes | 3–7 business days | | Item 19 benchmarking vs. peers | No | Core strength | Rarely, and billed hourly if so | | Item 20 closure math | Only if you build it | Yes | Rarely | | Fee load vs. category | No | Yes | No | | Contract terms, riders, state addenda | Partial at best | No | Core strength | | Negotiation support | No | No | Yes, billed on top | | Legal advice | No | No | Yes | | Best used for | Every brand, first pass | Narrowing finalists on the numbers | The one agreement you’re ready to sign | **See exactly what $49 buys before you spend it:** [view a real sample FDD Analysis](https://vetmyfranchise.com/c/claude/fdd-analysis-example) built from a live Panera, LLC report, then [pull the same analysis for any of 2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises). ## What’s the smartest order to spend your review budget? Cheapest input first. If you are seriously weighing three brands, attorney-reviewing all three costs $4,500–$9,000 at 2026 flat rates, and most of that spend evaluates franchises you were never going to buy. The sequence that protects you for the least money: 1. **Read each FDD yourself.** Free, and it makes every paid review sharper because you arrive with questions instead of a blank page. 2. **Run the $49 analysis on each contender.** The $99 3-pack covers a three-brand shortlist. Let the benchmarking kill the weak deals: a below-category Item 19, a closure rate the sales team never mentioned, a fee stack heavier than its peers. 3. **Hire the attorney once, for the finalist.** Hand them the analysis so the expensive hours go to the personal guarantee, the termination clause, and the state addendum instead of re-deriving numbers you already have. Total for a three-brand search: roughly **$1,600–$3,100** as of 2026 ($99 in analysis plus one $1,500–$3,000 attorney review), versus $4,500–$9,000 for legal review of all three. Same protection at the signing table, at about a third of the cost. Reverse the order and the math punishes you twice. You pay premium hourly rates for spreadsheet work, and the benchmarking often never happens at all, because once a lawyer has blessed the contract most buyers stop asking whether the underlying business is any good. ## When is the attorney non-negotiable? Before you sign. A $49 analysis narrows the field and arms you with the numbers; it does not read your specific agreement draft, and nobody should sign a franchise agreement no lawyer has seen. The FTC’s own [consumer guidance on buying a franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) recommends professional legal and accounting help before you commit, and on this point the cheap option and the expensive option agree. Think of it as a division of labor rather than a competition. The analysis tells you whether the deal is worth signing. The attorney makes sure the thing you sign says what you think it says. If your budget only stretches to one paid review while you are still comparing brands, buy analysis. If you are down to one brand and the numbers have already convinced you, buy the lawyer. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### First-Year Franchise Turnover Rates: The Metric That Predicts Everything [Learn more →](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-turnover-rates-by-industry) fdd review costhow much does an fdd review costfranchise attorney feesfdd reviewfranchise due diligence cost About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to have a lawyer review an FDD? As of 2026, a focused franchise attorney FDD review typically costs $1,500–$3,000 as a flat fee: a read of the FDD and franchise agreement, a written risk memo, and a debrief call. Add negotiation and redlining and the total commonly passes $5,000. Hourly engagements run roughly $300–$650 an hour, which is worth avoiding for a straight review because the document has no natural stopping point. ### Is a $49 FDD analysis a substitute for a franchise attorney? No, and any service claiming otherwise should worry you. An FDD analysis is document analysis and benchmarking: it verifies the Item 19 figures, scores fees and closures against comparable brands, and produces a written verdict. It does not interpret your specific agreement draft, negotiate terms, or give legal advice. The two tools answer different questions, which is why the smart sequence uses both. ### Can I review an FDD for free? Yes. The franchisor must give you the FDD at no cost at least 14 calendar days before you sign or pay anything, and reading it yourself costs only time: plan on 10–20 hours for a careful first pass. The limit of free review is context. You can read that a brand charges a 6% royalty or closed 40 units, but without benchmarks you can't tell whether those numbers are normal for the category or a warning. ### How much should I budget for FDD review if I'm comparing three franchises? About $1,600–$3,100 as of 2026 if you sequence it well: a $99 3-pack of FDD analyses to benchmark all three brands and eliminate the weak ones, then one $1,500–$3,000 attorney review on the finalist's agreement before signing. Attorney-reviewing all three brands instead would cost $4,500–$9,000 at typical flat rates, with most of that spent on franchises you were never going to buy. --- title: "Laundromat Franchise Opportunities 2026: Cost & Profit" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/laundromat-franchise-opportunities category: blog wordCount: 2992 readingTime: 15 min crawledAt: 2026-08-20 11:07:57 lastVerified: 2026-08-20 11:07:57 site: https://vetmyfranchise.com/c/claude/ --- # Laundromat Franchise Opportunities 2026: Cost & Profit ## Summary Laundromat franchise opportunities 2026: investment $200K-$1.2M, top brands (Wash Club, Tide Cleaners). Real revenue and how passive they actually are. ## Key facts - Every figure below comes from the brand’s most recent FDD as parsed into our database. - Laundromats have gone through a quiet renaissance over the past five years. - A small leased independent store in a tertiary market can come in around $200,000, and a mid-sized leased store in a healthy market lands at $400,000-$700,000. - The real estate decision is the most consequential one in laundromat economics, and it is bigger than the brand decision. - Three manufacturers dominate the franchise category. Quick answer Laundromat franchise cost runs from $359,105 at WaveMAX Laundry's low end to $2,241,750 for a large freestanding Laundry Spot build, per each brand's latest FDD. Speed Queen discloses a $605,334 median store revenue and LaundroLab $561,740. Equipment is the biggest line item, and mature stores clear 25-40% net operating margins. Laundromat franchise opportunities let you buy into a modern, tech-enabled laundry business. Five laundromat brands have a parsed [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) in VetMyFranchise’s database, and the entry cost spans a wide band: $359,105 at WaveMAX Laundry’s low end, $1.03 million to $2.24 million for the big freestanding Speed Queen, LaundroLab, and Laundry Spot builds. A small independent, unbranded store opens for around $200,000. Mature stores generate $300,000-$650,000 a year at 25-40% net operating margins, which puts laundromats among the [most profitable franchises to own](https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own). The popular “passive income” label oversells the work involved: plan on 10-20 hours a week of real operator attention. ## Laundromat Franchises at a Glance Every figure below comes from the brand’s most recent FDD as parsed into our database. Royalty is stated as royalty plus ad fund. | Brand | Total investment (Item 7) | Franchise fee | Royalty | Item 19 revenue | Franchised units | FDD year | | --- | --- | --- | --- | --- | --- | --- | | WaveMAX Laundry | $359,105 – $1,633,800 | $54,950 | 6% + 1% | $436,114 median (n=56) | 65 | 2026 | | Speed Queen Laundry | $1,199,663 – $1,983,000 | $49,500 | 4% + 1% | $605,334 median (n=13) | 15 | 2026 | | LaundroLab | $1,032,785 – $1,873,965 | $49,500 | 6% + 2% | $561,740 median (n=10) | 22 | 2025 | | The Laundry Spot | $1,268,500 – $2,241,750 | $60,000 | 5% + 1% | 4 affiliate-owned stores only | 4 | 2026 | | Tons of Bubbles | Not disclosed | $30,000 | 6.5% + 2% | No Item 19 | 4 | 2026 | | ZIPS Cleaners (dry clean) | $226,200 – $1,287,000 | $40,000 | 6% + 5% | FPR disclosed, n=31 | 52 | 2026 | Two things stand out. Royalties here are low by retail-franchising standards, with Speed Queen at 4% of gross sales against a 6-8% norm in most service categories. And the Item 19 samples are thin everywhere except WaveMAX (n=56), so validation calls with existing operators carry more weight in this category than in a mature one. ## Why Laundromats Are Suddenly Hot Again Laundromats have gone through a quiet renaissance over the past five years. Multiple forces converged: rising rents pushed renters into smaller units without in-unit laundry, delivery platforms unlocked pickup-and-delivery as a real revenue layer, payment technology eliminated the drag of coin-only stores, and remote monitoring made it possible to run a store without a full-time on-site attendant. What emerged looks nothing like the 1990s coin-op operation most people picture. Search volume around “laundromat passive income” reflects that real shift, but the marketing overstates how hands-off the model actually is. ## Laundromat Franchise Cost: $200K Independent to $2.2M Franchised A small leased independent store in a tertiary market can come in around $200,000, and a mid-sized leased store in a healthy market lands at $400,000-$700,000. On the franchised side, the spread is wider than most category roundups admit. WaveMAX Laundry’s 2026 FDD opens at $359,105 for its smallest build, which overlaps the independent range, and runs to $1,633,800 at the top. Speed Queen Laundry ($1,199,663-$1,983,000, 2026 FDD), LaundroLab ($1,032,785-$1,873,965, 2025 FDD), and The Laundry Spot ($1,268,500-$2,241,750, 2026 FDD) are all large freestanding builds with no small-format option disclosed. For how those ranges are constructed and where franchisors bury soft costs, see [FDD Item 7 estimated initial investment](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment); the [cheapest franchises report](https://vetmyfranchise.com/c/claude/reports/cheapest-franchises) ranks entry costs across the full database. | Component | Typical Range | | --- | --- | | Real Estate (Lease Deposits or Down Payment) | $10,000 – $300,000+ | | Build-Out / Leasehold Improvements | $40,000 – $150,000 | | Equipment (Washers, Dryers, Payment Systems) | $150,000 – $400,000 | | Initial Inventory & Supplies | $5,000 – $15,000 | | Working Capital | $20,000 – $80,000 | | Franchise Fee (if franchised) | $30,000 – $60,000 | | Other (insurance, training, professional fees) | $10,000 – $40,000 | Equipment is the dominant line item. A modern store with 30-50 high-efficiency washers and dryers, card or app payment infrastructure, and a backup utility system runs $200,000-$350,000 just for the machines. Adding wash-and-fold or service-by-pound capabilities pushes equipment cost higher. ## Real Estate Math: Lease vs. Own The real estate decision is the most consequential one in laundromat economics, and it is bigger than the brand decision. Three paths: **Lease.** Lower upfront capital, faster to open, but every operating dollar is exposed to rent inflation and renewal risk. Most franchised laundromats lease, particularly first-time operators. **Buy the building.** Higher upfront capital ($300K-$1M+ for the real estate alone) but every payment builds equity and occupancy cost is inflation-protected. Owners frequently report better long-term outcomes than tenants. **Sale-leaseback.** Buy the property, then sell it to a real estate investor and lease it back. Frees up capital while keeping operating control. Common in established multi-unit operations. ## Equipment Costs: Speed Queen, Continental, Dexter Three manufacturers dominate the franchise category. **Speed Queen**, owned by Alliance Laundry Systems, is the durability benchmark: premium pricing, highest resale value, and its own franchise program covered below. **Continental Girbau** competes on mid-range pricing and higher-efficiency models. **Dexter Laundry**, employee-owned, is popular in independent and small-chain builds for serviceability. Equipment selection materially affects unit economics: a washer using 30% less water compounds savings over a 7-year life, and a machine that lasts 15 years avoids a mid-cycle replacement. When evaluating any specific franchise, the equipment package mandated in Item 8 of the FDD (one of the 23 disclosures required by the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)) matters as much as the brand. Some franchisors lock you into specific models; others give you flexibility. The economics flow from the equipment, not the logo. ## Attended vs. Unattended, Card vs. Coin: The Choices That Move Margins Two decisions shape a store’s cost structure more than the brand on the door: how it’s staffed, and how it takes payment. **Fully attended stores** keep a person on-site during all open hours. Labor climbs, but so does wash-and-fold throughput, upsell revenue, and equipment uptime: someone catches the flooded machine before it runs for three hours. **Partially attended stores** cover peak windows and lean on cameras the rest of the day. **Unattended stores** run on locks, timers, and software, carrying the lowest labor cost and the highest exposure to vandalism, unreported breakdowns, and stalled drop-off revenue. Most modern franchise builds land in the partially attended middle. Utilities and rent quietly decide the outcome: water, gas, and electricity run 18-25% of revenue, and rent runs 8-15% where the lease is sane. Payment is the last lever. Card and app systems unlock dynamic pricing, loyalty, remote refunds, and the usage data that makes subscription and delivery models work, which is why very few new franchised stores go coin-only. ## Best Laundromat Franchise Brands: The FDD-Verified List ### WaveMAX Laundry: the largest system and the lowest entry point [WaveMAX Laundry](https://vetmyfranchise.com/c/claude/franchise/wavemax-franchise-llc) is the biggest laundromat franchise in our database by unit count, with 65 franchised units per the 2026 FDD, and the only one whose disclosed floor lands under $400,000. Item 7 runs $359,105 to $1,633,800, the initial franchise fee is $54,950, and ongoing fees are 6% royalty plus 1% ad fund. The Item 19 is also the most usable in the category: a $436,114 median across 56 franchised outlets that operated the entire 2025 calendar year. That n=56 sample is four times larger than any competitor’s, which matters because a 10-store sample can be moved by one outlier store. The trade-off is that WaveMAX’s median sits below Speed Queen’s and LaundroLab’s. That is partly a format effect. A system that includes smaller-footprint stores will report a lower median than one built exclusively around large freestanding sites. Model against the format you intend to build, not the system-wide number. One filing note to raise in discovery: our parse shows two 2026 WaveMAX FDD entities with near-identical Item 7 ranges, so confirm which offering document governs your deal. ### Speed Queen Laundry: highest median, lowest royalty **Speed Queen**, owned by Alliance Laundry Systems, runs its own [Speed Queen laundromat franchise program](https://vetmyfranchise.com/c/claude/franchise/speed-queen-laundry-franchise-llc) alongside its equipment business. The 2026 FDD discloses $1,199,663 to $1,983,000 total investment, a $49,500 franchise fee, and the lowest ongoing fee load in the category at 4% of gross sales plus 1% ad fund. Over a store’s life, that two-point royalty gap versus a 6% brand is worth roughly $11,000 a year on a $560,000 store. Item 19 discloses a $605,334 median across 13 franchised stores open the entire period, the highest median of any laundromat franchise we have parsed, against a reported average of $837,552. That $232,000 gap between median and average is the tell: a few high performers are pulling the mean up, exactly the pattern our guide to [Item 19 average versus median](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) tells buyers to test. With 13 stores in the sample and 15 franchised units in the system, this is a young franchise program attached to a very old manufacturer. ### LaundroLab: the mid-market attended model [LaundroLab](https://vetmyfranchise.com/c/claude/franchise/laundrolab-inc) is built around attended stores with wash-and-fold and app payments rather than pure self-serve. The 2025 FDD discloses $1,032,785 to $1,873,965 total investment, a $49,500 franchise fee, 6% royalty, and a 2% ad fund. Item 19 reports a $561,740 median across all 10 franchisee-owned LaundroLab businesses for calendar year 2024, with a $537,787 average. When median and average sit that close together, the distribution is tight, which is a better underwriting signal than a high median with a wide spread. The system had 22 franchised units and 2 company-owned units at the time of the filing, and the brand was founded in 2020. That is enough operating history for meaningful validation calls but not enough for confident multi-unit forecasting. Ask specifically about the 12 units that had not yet reported a full year at the time of the Item 19 sample. ### The Laundry Spot: newest system, most expensive build [The Laundry Spot](https://vetmyfranchise.com/c/claude/franchise/the-laundry-spot-franchise-llc) has the highest disclosed build cost in the category, $1,268,500 to $2,241,750 per the 2026 FDD, plus a $60,000 franchise fee, 5% royalty, and 1% ad fund. It is also the youngest: founded in 2025, with 4 franchised and 4 company-owned units. The critical caveat is the Item 19. It covers 4 affiliate-owned Laundry Spot businesses for calendar year 2025, not franchisee-owned stores. Affiliate-owned numbers reflect corporate site selection, corporate capital, and corporate management, none of which transfers to a first-time franchisee. Treat this disclosure as a ceiling reference, not a forecast, and read our note on [what no usable Item 19 actually means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) before you build a pro forma on it. ### Smaller and adjacent options [Tons of Bubbles](https://vetmyfranchise.com/c/claude/franchise/tons-of-bubbles-laundromat-franchise-inc) discloses a $30,000 franchise fee, 6.5% royalty, and 2% ad fund in its 2026 FDD, but no Item 7 investment range and no Item 19 across its 4 franchised and 3 company-owned stores. The low fee is attractive; the absence of a disclosed investment range means you cannot underwrite the deal from the document alone. [ZIPS Cleaners](https://vetmyfranchise.com/c/claude/franchise/zips-franchising-llc) is dry cleaning rather than self-serve laundry, but it is the largest garment-care franchise in our database with 52 franchised units and a 2026 FDD disclosing $226,200 to $1,287,000 total investment, a $40,000 franchise fee, and 6% royalty plus an unusually heavy 5% ad fund. It makes a legitimate cross-shop if your interest is laundry-adjacent recurring revenue rather than coin-op specifically. ### Brands without a parsed FDD in our database | Brand | Initial Franchise Fee | Total Investment Range | Royalty | Notable Differentiator | | --- | --- | --- | --- | --- | | Wash Club | $30K-$45K | $400K-$1.0M | 6% | App-driven member subscription model | | Tide Cleaners | $20K-$50K | $698K-$2.5M | 6.5% | P&G brand affiliation, dry cleaning + laundry combo | | Wash House | $30K-$45K | $350K-$800K | 6% | Wash-and-fold + delivery focus | These figures are approximations from public franchisor materials as of 2026. None of the three has a parsed FDD in our database, so treat them as directional and confirm against each brand’s most recent filing. For Tide Cleaners specifically, see our [Tide Cleaners cost breakdown](https://vetmyfranchise.com/c/claude/blog/tide-cleaners-franchise-cost). **Considering a franchise in this category?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example). Or browse the [franchise directory](https://vetmyfranchise.com/c/claude/franchises) to shortlist laundry brands first. ## Is a Laundromat Franchise Profitable? At the unit level, yes, and the Item 19 disclosures back it up. The four disclosed medians cluster between $436,114 (WaveMAX) and $605,334 (Speed Queen), which is consistent with the operating ranges independent operators report: | Metric | Range | | --- | --- | | Gross monthly revenue | $25,000 – $55,000 | | Annual revenue | $300,000 – $650,000 | | Utilities (water, gas, electric) | 18-25% of revenue | | Rent (if leased) | 8-15% of revenue | | Labor (attendants, wash-and-fold) | 8-20% of revenue | | Repairs, maintenance, supplies | 5-8% of revenue | | Royalty + ad fund (franchised) | 5-11% of revenue | | Net operating margin | 25-40% | Note the royalty line. Across the four brands with parsed FDDs, combined royalty plus ad fund runs 5% (Speed Queen, 4% + 1%) to 8% (LaundroLab, 6% + 2%), and ZIPS on the dry-clean side reaches 11%. On a $560,000 store, that spread is worth about $17,000 a year in operating income, which is why the fee structure deserves as much attention as the headline investment. See [franchise royalty fees explained](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained) for how these clauses typically escalate. Run the profit math against a real disclosed median rather than a round number. A store at LaundroLab’s $561,740 median, at a 30% net margin, produces about $169,000 in operating cash flow before debt service. Against that brand’s $1.03M-$1.87M build cost, simple payback lands somewhere between 6 and 11 years depending on where in the range you build, before any real estate appreciation. That is a longer runway than most food or service franchises, which is the honest cost of the category’s high margins. Our guide to [how long until a franchise is profitable](https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable) sets that against other categories. The economics improve materially when stacked with [multi-unit franchise ownership](https://vetmyfranchise.com/c/claude/blog/best-franchises-multi-unit-ownership) and real estate equity buildup. ## Wash-and-Fold, Pickup-and-Delivery, Subscription: The Service Layer The most successful modern laundromats are service businesses with a self-service base layer that subsidizes the store’s existence. LaundroLab’s attended, wash-and-fold-forward model is the clearest example among the brands with a parsed FDD. The high-growth revenue layers: - **Wash-and-fold (drop-off service)**, typically priced $1.50-$3.00 per pound, contributing 20-40% of total revenue at stores that execute it well - **Pickup-and-delivery**: app-driven service where the customer never enters the store, often priced at $2.00-$4.00 per pound, the fastest-growing service in the category - **Subscription / membership**, flat monthly fees for unlimited self-serve laundry, popular with renters in dense markets, typically priced $35-$60/month These layers materially increase revenue and operational complexity together. A pure self-serve store can be loosely managed; a store running a 5-day-per-week pickup-and-delivery operation requires real management attention. ## Is It Really Passive? The Honest Answer The “passive income” framing oversells the model. Even a highly automated, remote-monitored laundromat needs 15-30 hours a week of real operator attention for a single store: equipment maintenance and breakdown response (5-10 hours), cleaning and restocking (5-10 hours), customer service issues like reversed payments and lost items (2-5 hours), bookkeeping and vendor management (2-5 hours), and local marketing (2-8 hours). Hiring full-time attendants cuts your hours but adds labor cost that compresses margins. Operators who try to run truly hands-off frequently see revenue underperformance and equipment-life problems within 12-18 months. The realistic framing is “low-touch business,” not “passive investment.” If laundromats fit your capital, market, and operational appetite, read the FDD carefully on equipment requirements, territory definitions, and service-layer mandates. The FTC’s [consumer guide to buying a franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) covers the baseline questions. Those clauses are where the difference between a 30%-margin store and an 18%-margin store originates. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) laundromat franchiselaundry franchisepassive incomefranchise investmentretail franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a laundromat franchise cost? Laundromat franchise cost starts at $359,105 for WaveMAX Laundry's smallest build and tops out at $2,241,750 for a large freestanding Laundry Spot store, per each brand's latest FDD. Speed Queen discloses $1,199,663-$1,983,000 (2026 FDD) and LaundroLab $1,032,785-$1,873,965 (2025 FDD). Franchise fees run $30,000 to $60,000. A small independent, unbranded store opens for around $200,000. ### Is a laundromat franchise profitable? Yes, at the unit level, and the FDDs show it. Speed Queen discloses a $605,334 median store revenue across 13 franchised stores and LaundroLab $561,740 across 10, both per their latest FDDs. Mature stores run 25-40% net operating margins, so a $560,000 store throws off roughly $140,000-$220,000 before debt service. Against a $1M+ build, payback typically runs 5-8 years. ### How profitable is a laundromat? Mature laundromats in strong locations typically generate net operating margins of 25-40%, which is among the highest in retail franchising. A store generating $400,000 in annual revenue at 30% net margin produces $120,000 in operating cash flow. The high margin reflects low variable costs (water, electricity, gas, supplies) relative to revenue and minimal direct labor for self-serve operations. ### Are laundromat franchises actually passive income? Not as passive as the marketing suggests. Even highly automated stores require 10-20 hours of weekly attention for routine maintenance, customer service, supply restocking, equipment monitoring, and (if you offer it) wash-and-fold or pickup service execution. The passive income framing is closer to a 'low-touch' business than a true passive investment. Operators who treat them passively from day one often see revenue underperformance. ### What is the best laundromat franchise to buy? On disclosed data, Speed Queen has the highest Item 19 median ($605,334) and the lowest royalty (4% of gross sales), WaveMAX Laundry has the largest system (65 franchised units) and the lowest entry point ($359,105), and LaundroLab sits between them at a $561,740 median. The Laundry Spot's Item 19 covers only 4 affiliate-owned stores, so it cannot anchor underwriting yet. ### How much money do laundromats make per month? Mature laundromats in strong locations typically generate $25,000-$55,000 in monthly gross revenue. Stores adding wash-and-fold and pickup-and-delivery services frequently exceed $60,000-$80,000 in monthly revenue. Stores in weak locations or with poor equipment maintenance can generate $10,000-$15,000 per month, which often runs at or below breakeven once rent and utilities are paid. ### Is a launderette franchise the same as a laundromat franchise? Yes. 'Launderette' (sometimes spelled 'laundrette') is the British and Irish word for what Americans call a laundromat: the same self-service, coin- or card-operated laundry store. The business model is identical, from rows of commercial washers to optional wash-and-fold service and the 25-40% net margins strong locations produce. The U.S. figures in this guide, from $359,105 at WaveMAX's low end to $2,241,750 for a large Laundry Spot build, apply under either name. --- title: "Is Five Guys a Franchise? Franchise Model Explained (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-19 dateModified: 2026-08-19 keywords: five guys, franchise model, burger franchise, multi-unit franchise, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-five-guys-a-franchise about: five guys category: blog wordCount: 2405 readingTime: 12 min crawledAt: 2026-08-20 11:07:08 lastVerified: 2026-08-20 11:07:08 site: https://vetmyfranchise.com/c/claude/ --- # Is Five Guys a Franchise? Franchise Model Explained (2026) ## Summary Yes, Five Guys is a franchise. Learn how the Five Guys franchise model works, why multi-unit commitments are required, current franchisee requirements. ## Key facts - Five Guys overwhelmingly favors **area development agreements (ADAs)** over single-unit franchise awards. - Five Guys maintains a higher percentage of company-operated locations than most mature franchise systems. - Five Guys’ origin story is one of the more unusual narratives in franchising. - Five Guys figures are per the 2025 FDD; other brands are as of 2026. - Five Guys does not publish a formal application on its website. Quick answer Yes. Five Guys franchises through multi-unit area development deals: $977,850 to $1,375,750 per restaurant, a $25,000 franchise fee, 6% royalty, and a 2-4% ad fund per the 2025 FDD. The system runs 945 franchised locations against 613 company-owned, and single-unit grants are rare. ## Is Five Guys a Franchise? (Direct Answer) Yes, [Five Guys](https://vetmyfranchise.com/c/claude/franchise/five-guys-franchisor-llc) Enterprises LLC operates as a franchise system. The 2025 FDD parsed in VetMyFranchise’s database counts **1,558 locations: 945 franchised and 613 company-operated**. However, Five Guys’ approach to franchising is considerably more restrictive than brands like [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc), Subway, or [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc). The Murrell family, founders Jerry Murrell and his sons, maintain significant control over the brand and are selective about who they award franchise rights to. If you’re new to franchising, our guide on [what a Franchise Disclosure Document is](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) provides essential context for evaluating any franchise opportunity. ## How the Five Guys Franchise Model Works ### Area Development Agreements vs. Single-Unit Deals Five Guys overwhelmingly favors **area development agreements (ADAs)** over single-unit franchise awards. An ADA commits the franchisee to developing multiple locations (typically **5 or more units**) within a defined geographic territory over a set timeline, usually 5-8 years. Ongoing fees run a 6% royalty and a 2.0-4.0% ad fund per the 2025 FDD, on a 10-year franchise agreement term per unit. The ADA structure means Five Guys franchisees are not individual owner-operators running one restaurant. They’re multi-unit developers building and managing a portfolio of locations. This requires not just capital, but organizational infrastructure: district managers, training systems, HR processes, and supply chain coordination across multiple sites. For context on how multi-unit ownership works, our [multi-unit franchise ownership guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) covers the operational and financial differences between single-unit and multi-unit strategies. ### Why Five Guys Almost Never Sells Single Units Five Guys’ preference for multi-unit developers stems from several strategic considerations: **Operational consistency.** When one franchisee operates 5-15 locations in a market, quality control is more predictable than when 15 different owners each run a single unit. The franchisee develops market-specific expertise and can cross-train staff between locations. **Faster market penetration.** A committed multi-unit developer opens locations on a defined schedule, allowing Five Guys to build market density quickly. Single-unit owners develop markets one store at a time. **Franchise support efficiency.** Five Guys’ corporate team can manage relationships with 200 multi-unit groups more effectively than 1,500 individual operators. Field support, communication, and brand compliance all become more manageable. **Financial stability.** Multi-unit developers have deeper capital reserves and more sophisticated business operations, reducing the risk of franchise failures that damage the brand. The downside for prospective franchisees is clear: if you want to own one Five Guys, the brand probably isn’t interested. You need the financial capacity and business experience to commit to a multi-unit development plan. ## Five Guys Corporate vs. Franchised Locations: The Split | Metric | 2025 FDD Figure | | --- | --- | | Franchised locations | 945 (~61%) | | Company-operated locations | 613 (~39%) | | Total locations | 1,558 | | Franchised openings (latest year) | 35 | | Franchised closures (latest year) | 14 | Five Guys maintains a higher percentage of company-operated locations than most mature franchise systems. [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) is 95% franchised; [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) is roughly 99% franchised. Five Guys’ roughly 39% company-owned ratio reflects the Murrell family’s desire to maintain direct operational presence and keep corporate locations as benchmarks for franchise performance. The company-owned locations are concentrated in the Virginia/D.C. metro area, the brand’s original market, and serve as testing grounds for menu changes, technology rollouts, and operational improvements before they’re pushed to the franchise system. **Considering Five Guys?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ## How the Murrell Family Built (and Still Controls) the Brand Five Guys’ origin story is one of the more unusual narratives in franchising. Jerry Murrell and his wife Janie opened the first Five Guys in Arlington, Virginia, in 1986. The “five guys” were their four sons (a fifth came later). The family operated a handful of locations in the D.C. metro area for nearly two decades before opening franchising in 2003. What happened next was explosive. Five Guys went from a regional cult favorite to a national brand in under a decade, growing from 5 locations to over 1,000 by 2013. The growth was fueled almost entirely by franchise development, but the Murrell family retained control through several mechanisms: **Private ownership.** Five Guys Enterprises has never gone public. There’s no board of directors answering to public shareholders. Jerry Murrell and his sons make strategic decisions without external pressure for quarterly earnings growth. **Family members in key roles.** Multiple Murrell sons hold operational leadership positions within the company, maintaining direct oversight of franchise relations, menu development, and quality standards. **Restrictive franchise agreements.** Five Guys’ franchise agreements give the franchisor significant control over sourcing, menu, pricing, and operational standards. Franchisees have less autonomy than in many other QSR systems. **Selective growth.** Unlike brands that maximize unit count for franchise fee revenue, Five Guys has been willing to slow growth to maintain quality. The brand reportedly turned down numerous franchise applications during its peak growth years. ## How Five Guys Franchising Differs from Shake Shack, In-N-Out, and Smashburger | Factor | Five Guys | Shake Shack | In-N-Out | Smashburger | | --- | --- | --- | --- | --- | | Franchise model | ADA (multi-unit) | Not franchised | Not franchised | Single + multi-unit | | Can you franchise it? | Yes | No | No | Yes | | Total investment per unit | $978K-$1.38M | N/A | N/A | $575K-$1.1M | | Minimum units required | 5+ (typical) | N/A | N/A | 1 (multi preferred) | | Family/founder controlled? | Yes (Murrell family) | No (public company) | Yes (Snyder family) | No (private equity) | | Menu customization allowed? | None | N/A | None | Limited | | Drive-through offered? | Rarely | Some | Yes (all) | Some | Five Guys figures are per the 2025 FDD; other brands are as of 2026. The “better burger” segment is dominated by company-owned brands. If you want to own a premium burger restaurant through franchising, Five Guys and Smashburger are essentially your options. Five Guys has stronger brand equity and higher AUVs but demands a much larger commitment. Smashburger is more accessible for first-time franchise investors. Compare these and other brands in our [franchise directory](https://vetmyfranchise.com/c/claude/franchises). ## Is Five Guys Still Accepting New Franchisees? (Current Status) [Five Guys](https://vetmyfranchise.com/c/claude/franchise/five-guys-franchisor-llc) continues to award franchise agreements, but growth has slowed considerably from the explosive 2008-2015 era; the 2025 FDD shows 35 franchised openings against 14 closures in the latest year. The brand is more focused on **international expansion** (U.K., Europe, Middle East, Asia-Pacific) than adding domestic U.S. units. In the U.S., new franchise awards tend to focus on: - Underserved secondary and tertiary markets - Territories where existing franchisees want to add units within their ADAs - Markets where company-owned locations have validated demand Major U.S. metros (New York, Los Angeles, Chicago, Dallas, Atlanta) are largely built out. If you’re targeting one of these markets, the opportunities may be limited to acquiring existing franchised locations from operators looking to exit rather than developing new territories. The best way to gauge current availability is to contact Five Guys’ franchise development team directly or work with a franchise broker who has relationships with the brand. Our [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) outlines how to approach brands and evaluate opportunities. ## Who Qualifies to Become a Five Guys Franchisee **Financial requirements (as of 2026):** - Minimum net worth: $1,000,000+ - Minimum liquid capital: $250,000+ - Ability to fund a multi-unit development schedule (5+ locations) **Experience requirements:** - Multi-unit restaurant or retail management experience strongly preferred - Existing franchise operator experience viewed favorably - Real estate development or commercial construction background helpful for build-out management **Operational requirements:** - Must be actively involved in operations (absentee ownership not permitted for initial development) - Must develop locations according to the ADA timeline - Must maintain Five Guys operational standards across all units Five Guys does not publish a formal application on its website. Prospective franchisees typically initiate contact through franchise brokers, industry events, or direct outreach to the franchise development team. ## How to Open a Five Guys Franchise: Step by Step Once you meet the financial and experience bar above, the path from first contact to opening day follows a predictable sequence. Plan for 12 to 18 months from application to grand opening, and note that permitting or site-selection delays commonly stretch this to 20 to 24 months. 1. **Make initial contact.** Five Guys does not publish an application form. Reach the development team through a franchise broker, at industry events like the [IFA](https://www.franchise.org/) Annual Convention, or by contacting Five Guys Enterprises LLC directly. Expect to submit a personal financial statement up front. 2. **Complete qualification and territory discussion.** Five Guys runs a background check and financial verification (typically 2 to 4 weeks) while presenting available territories. Because many major metros are already allocated, most new openings target secondary and tertiary markets. 3. **Review the Franchise Disclosure Document.** The [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires you receive the FDD at least 14 days before signing anything. Focus on [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) (initial investment), [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) (financial performance), and Item 20 (franchisee contacts), and have a [franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) review every clause. 4. **Run franchisee validation calls.** Use the Item 20 list to call 10 to 15 current and former operators about actual costs, time to breakeven, and how responsive corporate is. Our [validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) covers what to ask. 5. **Attend Discovery Day.** Five Guys invites qualified candidates to corporate headquarters to tour operations, meet leadership, and finalize the territory and development timeline. See our [Discovery Day guide](https://vetmyfranchise.com/c/claude/blog/franchise-discovery-day-guide). 6. **Sign the Area Development Agreement.** You sign both an ADA (committing to a set number of units on a timeline) and an individual franchise agreement for your first unit, then pay the $25,000 franchise fee plus the area development fee. Total upfront fees for a 5-unit ADA typically run $100,000 to $125,000. Line up your [financing](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) well before this stage. 7. **Complete training.** Owners and operating partners attend the brand’s initial training program (10 days of formal training per the 2025 FDD), combined with hands-on time in a certified restaurant. Budget $15,000 to $25,000 for travel and lodging. 8. **Select a site and negotiate the lease.** Five Guys’ real estate team must approve your site (typically 1,500 to 2,500 square feet) before you sign a lease. In competitive markets this stage alone can take 3 to 6 months. 9. **Build out and open.** After site approval, budget 5 to 8 months and $250,000 to $600,000 for permitting, construction, equipment installation, and a soft-opening period before your grand opening. ## Pros and Cons of the Five Guys Franchise Model **Pros:** - **Exceptional brand recognition.** Five Guys ranks among the top 5 burger brands in the U.S. by consumer awareness and preference. Customers seek out Five Guys. You’re not building brand awareness from scratch. - **Proven unit economics.** Reported average unit volumes of $1.1-$1.3 million as of 2026, in a modest footprint, deliver strong revenue per square foot. - **Simple operations.** Limited menu, no freezers, no drive-through (usually), no breakfast daypart. Operational complexity is low relative to full-service or multi-daypart QSR concepts. - **Private ownership stability.** No public market pressure to over-expand, cut quality, or chase short-term earnings. The Murrell family thinks in decades, not quarters. **Cons:** - **Multi-unit commitment required.** You can’t test the concept with one unit. The minimum commitment is 5+ locations and hundreds of thousands in development fees upfront. - **Limited menu flexibility.** Five Guys’ menu is fixed by corporate. You cannot add local items, seasonal specials, or regional variations. Some franchisees find this constraining. - **No drive-through advantage.** Most Five Guys locations lack drive-throughs, which became a significant competitive disadvantage during COVID-19 and continues to limit convenience-driven traffic. - **High food costs.** Fresh, never-frozen beef and hand-cut fries cooked in peanut oil cost more than the frozen products competitors use. Food costs of 30-33% are above the QSR industry average. - **Slower growth trajectory.** If you want to add units beyond your ADA or expand into adjacent territories, Five Guys may not move quickly. The brand’s conservative growth philosophy can frustrate ambitious operators. Weigh these factors against your personal goals and financial situation. Our [franchise vs. starting your own business](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business) analysis can help you decide whether franchising is the right path at all, and [Discovery Day](https://vetmyfranchise.com/c/claude/blog/franchise-discovery-day-guide) is where you’ll get the most candid read on a brand’s culture and expectations. ## Brands mentioned in this post - [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) - [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) five guysfranchise modelburger franchisemulti-unit franchisebrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Five Guys a franchise or corporate? Five Guys is both. Five Guys Enterprises LLC is a privately held company owned by the Murrell family that operates as a franchisor. Per the 2025 FDD, 945 locations are franchised (about 61%) while 613 are company-operated (about 39%), the company stores concentrated primarily in the Virginia/D.C. metro area. ### Can you buy a single Five Guys franchise? Five Guys very rarely awards single-unit franchise agreements. The brand strongly prefers area development agreements requiring franchisees to commit to opening 5 or more locations within a defined territory. You need the financial capacity and business experience to manage multiple locations. ### How much does it cost to open a Five Guys franchise? The total investment for a single Five Guys location ranges from $977,850 to $1,375,750 per the 2025 FDD. The franchise fee is $25,000 per unit. Because Five Guys requires multi-unit commitments, the real capital requirement across a 5-unit development agreement can reach $4.9 million or more. ### How much is the Five Guys franchise fee? The Five Guys franchise fee is $25,000 per unit, per the 2025 FDD. That fee sits on top of a total initial investment of $977,850 to $1,375,750 per restaurant and ongoing fees of a 6% royalty plus a 2% to 4% ad-fund contribution. Because Five Guys awards multi-unit area development agreements, you pay the $25,000 fee for each unit in your development schedule, so total upfront fees for a five-unit deal typically run $100,000 to $125,000. ### Is Five Guys still selling franchises? Yes, Five Guys continues to award franchise agreements, though growth has slowed from its peak expansion years (2008-2015). Current focus is primarily on international expansion and underserved U.S. secondary markets. Major U.S. metros are largely built out, and new domestic opportunities may be limited to acquiring existing franchised locations. ### Why doesn't Five Guys have a drive-through? Most Five Guys locations were designed as inline retail or endcap restaurants without drive-through infrastructure. The brand's open kitchen concept and made-to-order model don't align well with the speed requirements of drive-through service. Some newer locations have experimented with pickup windows, but traditional drive-throughs remain rare in the system. ### How long does it take to open a Five Guys franchise? The process from initial application to grand opening typically takes 12 to 18 months, though 20 to 24 months is common once permitting delays and site selection challenges are factored in. The build-out phase alone runs 5 to 8 months after you sign a lease. ### Does Five Guys allow absentee ownership? No. Five Guys requires franchisees to be actively involved in daily operations, especially during the initial development phase. You or a qualified operating partner with an equity stake must run the business full-time. --- title: "Franchise Costs 2026: How Much It Costs to Open a Franchise" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise category: blog wordCount: 4069 readingTime: 20 min crawledAt: 2026-08-20 11:02:32 lastVerified: 2026-08-20 11:02:32 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Costs 2026: How Much It Costs to Open a Franchise ## Summary Complete breakdown of franchise costs in 2026 by industry. Learn about Item 7, hidden costs, working capital needs, and financing options before you invest. ## Key facts - Most cost articles stop at a range like “$50,000 to $500,000. - This is the number buyers fixate on, and it is the smallest one. - Category is the single best predictor of what a franchise costs, because it determines whether you need a building. - “Food & Beverage” is too coarse to budget against, so the library tags restaurant brands by format. - Industry medians tell you the neighborhood. Quick answer The median franchise costs $204,046 to $494,000 to open, based on Item 7 of the 2,185 Franchise Disclosure Documents in VetMyFranchise's library that disclose a complete initial investment range. The median initial franchise fee (Item 5) is $40,000. At the low end, 246 brands start under $50,000; at the high end, 545 brands run past $1 million. ## The short answer, from 2,185 real Item 7 filings **The median franchise costs $204,046 to $494,000 to open.** That is the median of the low estimate and the median of the high estimate across every brand in VetMyFranchise’s library with a complete [Item 7 estimated initial investment](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) range, drawn from 2,373 [Franchise Disclosure Documents](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) filed with state regulators. The midpoint of the median brand’s range is $362,381. Most cost articles stop at a range like “$50,000 to $500,000.” That is technically true and practically useless, because it describes a market where the 10th percentile brand opens for a $83,790 midpoint and the 90th percentile brand opens for $1,681,773. Here is the actual distribution. | Where the brand sits | Item 7 midpoint | | --- | --- | | 10th percentile (cheapest tenth) | $83,790 | | 25th percentile | $159,950 | | Median (50th percentile) | $362,381 | | 75th percentile | $716,550 | | 90th percentile (priciest tenth) | $1,681,773 | _Midpoint of each brand’s own Item 7 low-to-high range, across 2,185 FDDs. 92% of the library is a 2025 or 2026 filing._ Two counts put edges on that: **557 brands have an Item 7 low estimate under $100,000**, 246 of them under $50,000, and **545 brands have a high estimate above $1 million.** So roughly a quarter of the franchise market is a seven-figure commitment and roughly a quarter is under six figures at the entry point. Nothing in the middle of those two facts is “typical.” ## How much is the average initial franchise fee? This is the number buyers fixate on, and it is the smallest one. Across the **2,239 brands that disclose a non-zero initial fee in [Item 5](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure), the median is $40,000 and the mean is $48,882.** The gap between those two is the tell: a handful of brands charging six figures drag the average above what a normal buyer will actually pay. | Percentile | Initial franchise fee (Item 5) | | --- | --- | | 10th | $17,750 | | 25th | $30,000 | | Median | $40,000 | | 75th | $50,000 | | 90th | $60,000 | _2,239 brands with a disclosed non-zero initial franchise fee._ The distribution is remarkably compressed. **1,749 brands (78%) charge $50,000 or less**, 448 (20%) charge $25,000 or less, and only 56 charge $100,000 or more. A further 23 brands disclose no separate initial fee at all. If a franchise fee quote lands far outside $30,000 to $60,000, that is the anomaly worth asking about, in either direction. Now the part that reframes the whole question: **across 2,095 brands, the initial franchise fee is a median of just 10.4% of the Item 7 midpoint.** For 68% of brands it is under a fifth of the total. You are not buying a franchise fee. You are buying a build-out. Our [franchise fee benchmark](https://vetmyfranchise.com/c/claude/reports/franchise-fee-benchmark) ranks every brand’s fee against its category. ## Franchise cost by industry Category is the single best predictor of what a franchise costs, because it determines whether you need a building. The table below is the median low estimate, median high estimate and median Item 5 fee for every brand in each industry with a complete Item 7. | Industry | Brands with a full Item 7 | Median Item 7 low | Median Item 7 high | Median franchise fee | | --- | --- | --- | --- | --- | | Hospitality & Travel | 81 | $1,349,901 | $10,776,122 | $38,000 | | Food & Beverage | 745 | $358,500 | $822,250 | $35,000 | | Health & Beauty | 89 | $320,891 | $599,500 | $49,500 | | Fitness & Wellness | 155 | $309,249 | $710,900 | $49,500 | | Pet Services | 51 | $194,750 | $470,450 | $49,500 | | Automotive | 59 | $188,350 | $622,500 | $35,000 | | Retail | 118 | $181,550 | $387,757 | $35,000 | | Home Services | 253 | $128,368 | $227,409 | $49,975 | | Cleaning & Maintenance | 134 | $127,440 | $269,885 | $45,000 | | Child Services & Education | 138 | $124,025 | $316,824 | $49,000 | | Senior Care | 114 | $118,030 | $242,840 | $50,000 | | Staffing & HR | 18 | $100,050 | $177,950 | $49,000 | | Technology | 11 | $93,762 | $147,450 | $40,000 | | Business Services | 89 | $77,500 | $152,100 | $49,500 | | Financial Services | 29 | $55,700 | $111,500 | $30,000 | | Real Estate | 79 | $50,000 | $207,000 | $25,000 | _Hospitality & Travel is dominated by hotel brands, which is why its median high estimate is an order of magnitude above every other category. Treat that row as a separate market._ Three things stand out. First, **the cheapest categories cost roughly one seventh of the most expensive non-hotel category** at the low end, and the reason is real estate, not brand strength. Real Estate, Financial Services and Business Services all sit under $80,000 at the median low estimate because none of them require a customer-facing build-out. Second, **the median franchise fee barely moves across the table.** It sits between $25,000 and $50,000 in every single category, including the ones where total investment differs by a factor of ten. Third, Senior Care carries the highest median fee in the table ($50,000) while sitting near the bottom on total investment, which is exactly the kind of inversion the fee-as-proxy assumption gets wrong. If you would rather slice by budget than by category, see the [franchise cost breakdown by investment tier](https://vetmyfranchise.com/c/claude/blog/franchise-cost-breakdown-by-investment-tier), the [best low-cost franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k), or the live list of [franchises under $100,000](https://vetmyfranchise.com/c/claude/reports/franchises-under-100k) sorted by real Item 7 data. ## Cost to open a restaurant franchise, by format “Food & Beverage” is too coarse to budget against, so the library tags restaurant brands by format. This is where the range inside a single industry becomes obvious. | Restaurant format | Brands | Median Item 7 low | Median Item 7 high | Median fee | Median Item 19 revenue | | --- | --- | --- | --- | --- | --- | | Chicken | 42 | $580,250 | $1,869,550 | $35,000 | $1,838,301 | | Burgers | 39 | $517,300 | $1,375,750 | $35,000 | $1,379,766 | | Bakery & breakfast | 60 | $409,450 | $829,000 | $39,500 | $1,100,988 | | Sandwiches & subs | 40 | $366,220 | $830,850 | $30,000 | $871,099 | | Mexican & Latin | 36 | $351,000 | $856,900 | $35,000 | $1,157,173 | | Pizza | 62 | $346,720 | $855,433 | $30,000 | $969,285 | | Coffee & beverage | 116 | $281,530 | $637,129 | $35,000 | $793,853 | | Ice cream & dessert | 42 | $228,590 | $638,000 | $35,000 | $543,599 | _The revenue column is the median of the brand-level Item 19 median revenue figures, across the brands in each format that publish one (14 to 37 brands per row). It is gross revenue, not profit, and not every brand in the format reports._ A chicken concept costs roughly 2.5x an ice cream concept at the median low estimate. It also reports roughly 3.4x the revenue. Whether that trade is worth it depends entirely on the cost structure underneath, which Item 19 does not disclose. ## What real brands cost to open Industry medians tell you the neighborhood. A specific brand’s Item 7 tells you the price. Every row below is that brand’s own filing, already including the franchise fee, build-out, equipment and opening working capital. | Brand | Total investment (Item 7) | Franchise fee (Item 5) | FDD year | | --- | --- | --- | --- | | Home Instead | $92,640 – $350,550 | $54,000 | 2026 | | Right at Home | $94,330 – $176,239 | $49,500 | 2026 | | Budget Blinds | $100,500 – $211,250 | $19,950 | 2026 | | Kumon | $101,630 – $233,780 | $2,000 | 2026 | | Mathnasium | $127,316 – $165,846 | $49,000 | 2026 | | Dunkin’ | $142,000 – $1,832,500 | $40,000 | 2026 | | Great Clips | $187,800 – $419,900 | $20,000 | 2026 | | Subway | $227,000 – $630,000 | $15,000 | 2026 | | Qdoba | $234,500 – $1,294,000 | $40,000 | 2025 | | Sport Clips | $236,800 – $580,500 | $30,000 | 2026 | | Denny’s | $255,000 – $3,056,874 | $30,000 | 2026 | | SERVPRO | $263,305 – $385,570 | $100,000 | 2026 | | Tropical Smoothie Cafe | $275,500 – $770,500 | $35,000 | 2026 | | Taco Bell | $287,950 – $857,700 | $22,500 | 2026 | | Wingstop | $310,400 – $1,013,500 | $25,000 | 2026 | | European Wax Center | $331,600 – $776,950 | $45,000 | 2026 | | Jersey Mike’s | $436,176 – $1,162,228 | $20,000 | 2026 | | Popeyes | $504,545 – $3,923,245 | $50,000 | 2026 | | Chick-fil-A | $585,500 – $3,437,000 | $10,000 | 2026 | | Moe’s Southwest Grill | $644,425 – $1,968,450 | $35,500 | 2026 | | Orangetheory Fitness | $764,577 – $1,104,920 | $59,950 | 2026 | | Taco John’s | $802,310 – $2,010,750 | $15,000 | 2026 | | Crumbl | $848,566 – $1,472,533 | $50,000 | 2026 | | Five Guys | $977,850 – $1,375,750 | $25,000 | 2025 | | Planet Fitness | $1,282,500 – $5,386,000 | $40,000 | 2026 | | Culver’s | $3,406,350 – $10,294,100 | $65,000 | 2026 | _Item 7 discloses total project investment. FDD years vary by brand and every range changes at the next annual filing, so confirm the live figures on each brand’s page before you budget._ ### The franchise fee tells you almost nothing about the cost Read that table by the fee column and it stops making sense. Kumon charges $2,000 and Chick-fil-A charges $10,000, both less than a fifth of what Home Instead charges, yet Chick-fil-A’s Item 7 runs to $3,437,000. Taco John’s charges $15,000 and needs $802,310 at the low end. SERVPRO charges $100,000, the highest fee in the table, against a $263,305 to $385,570 range that is one of the narrower ones there. The pattern holds across the whole library, not just these brands. Fee and total investment are close to unrelated, and the median fee is 10.4% of the total. Anyone selling you on a “low franchise fee” is quoting the one line item that was never going to decide whether you can afford the deal. ### Your market can double the number The other reason a single quoted figure misleads: **the typical brand’s own Item 7 high estimate is 2.09x its low estimate**, and 574 brands have a high at least 3x their low. Dunkin’ ranges from $142,000 for a small-format store to $1,832,500 for a freestanding drive-thru. Denny’s runs $255,000 to $3,056,874. Popeyes runs $504,545 to $3,923,245. That spread is real estate, format and market. Building out in the Bay Area, Boston or New York puts you at or above the high estimate. A conversion of an existing space in a secondary market puts you near the low one. Budgeting from the low estimate because it is the number in the brochure is the most common way franchise buyers end up undercapitalized. ## Cost to open vs. cost to own Opening cost is a one-time number. Owning cost is a percentage of everything you ever sell, and it starts the day you unlock the door. Across the FDDs that disclose a rate, **the median royalty is 6% of sales** (mean 6.01%, with 69% of brands at 6% or below) and **the median advertising or brand fund contribution is 2%**. For the 1,667 brands that disclose both, **the combined median is 8% of gross sales**, and 59% of them are at 8% or higher. That is charged off the top, before rent, payroll, food cost, debt service or anything you pay yourself. | Brand | Royalty | Ad / brand fund | FDD year | | --- | --- | --- | --- | | Culver’s | 4% | 2.5% | 2026 | | Home Instead | 5% of gross sales | 2% | 2026 | | Crumbl | 8% | 2% | 2026 | | Great Clips | 6% of biweekly gross sales | 5% | 2026 | | Wingstop | 6% | 5.5% of gross sales | 2026 | | Subway | 8% | 4.5% | 2026 | | Little Caesars | 6% | 7% | 2026 | _Item 6 of each FDD discloses the full list of continuing fees. Several brands charge flat amounts instead of or alongside percentages, such as Anytime Fitness’s $900 per month advertising fee._ On a store doing $1 million in sales, the difference between Culver’s 6.5% combined and Little Caesars’ 13% combined is $65,000 a year, every year, for the length of the agreement. Over a ten-year term that gap is larger than almost any initial franchise fee in the library. Our [royalty burden index](https://vetmyfranchise.com/c/claude/reports/royalty-burden-index) ranks brands by total ongoing fee load, and [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) is where you should look before you look at Item 7. ## What you get for the money, where it is disclosed Cost only means something against revenue. **Only 1,641 of 2,373 brands (69%) publish an [Item 19](https://vetmyfranchise.com/c/claude/reports/item19-transparency-leaderboard) financial performance representation at all**, and fewer still publish a clean median. Where they do, the numbers are worth putting side by side with the cost. | Brand | Item 7 range | Item 19 median revenue | Units in the sample | | --- | --- | --- | --- | | Right at Home | $94,330 – $176,239 | $1,334,579 | 390 | | Home Instead | $92,640 – $350,550 | $2,261,503 | 611 | | Budget Blinds | $100,500 – $211,250 | $522,826 | 282 | | Great Clips | $187,800 – $419,900 | $390,685 | 4,158 | | Sport Clips | $236,800 – $580,500 | $416,189 | 1,645 | | The Joint Chiropractic | $245,250 – $543,000 | $526,397 | 799 | | Tropical Smoothie Cafe | $275,500 – $770,500 | $931,173 | 1,431 | | Wingstop | $310,400 – $1,013,500 | $1,890,866 | 2,116 | | Jersey Mike’s | $436,176 – $1,162,228 | $1,285,259 | 2,606 | | Club Pilates | $403,289 – $1,029,811 | $978,300 | 1,005 | | Anytime Fitness | $539,329 – $905,482 | $398,982 | 1,656 | | Popeyes | $504,545 – $3,923,245 | $1,785,736 | 2,248 | | Planet Fitness | $1,282,500 – $5,386,000 | $1,863,300 | 2,291 | _Item 19 medians are gross revenue, not profit, and each brand chooses which units to include. Sample size is the number of units in that brand’s own reported group._ Note what the ratio does. Home Instead’s $2,261,503 median revenue is roughly ten times its Item 7 midpoint, because home care is a payroll business with no build-out. Planet Fitness’s $1,863,300 is roughly half its Item 7 midpoint, because the gym is the asset. Anytime Fitness’s $398,982 is about 55% of its midpoint. A high revenue-to-investment ratio is not automatically better, since the low-investment models usually run on thinner gross margins, but a ratio well under 1.0 means you are financing a long payback and should be reading the debt terms as carefully as the Item 7. Across the 776 brands with a clean Item 19 median in the library, the median of those medians is $759,740. And for the 31% of brands that publish no Item 19 at all, no amount of cost analysis will tell you what a unit earns. That absence is information. ## Breaking down Item 7: where the money goes ### The initial franchise fee (Item 5) A one-time payment for the right to operate under the brand, the initial training program and pre-opening support. Median $40,000, and a median of 10.4% of your total. It does not cover build-out, equipment, working capital or a single dollar of ongoing royalty. ### Real estate and build-out Almost always the largest line item for brick-and-mortar. Leasehold improvements, construction, signage, architectural fees. This is the line that produces the 2.09x median spread between a brand’s low and high estimate, and franchisors typically quote it off national averages. ### Equipment and fixtures Kitchen equipment, gym equipment, service vehicles. More predictable than real estate because franchisors have established vendor relationships and often mandate suppliers. ### Initial inventory and supplies The stock you need on hand to open. Food inventory and packaging for restaurants, opening product order for retail. ### Insurance and deposits Lease security deposits, utility deposits, first insurance premiums. Routinely underestimated in buyer spreadsheets. ### Working capital The reserve that covers operating expenses before the business is self-sustaining. **Item 7 typically estimates three months.** During those months you are paying payroll, rent, utilities, grand-opening marketing, and a combined median 8% of every dollar of sales in royalty and ad fund contributions. ### Professional fees Legal review of the franchise agreement, accounting setup, entity formation. Budget $5,000 to $15,000 for a qualified franchise attorney and CPA. Item 7 is filed under penalty of regulatory scrutiny, so it is honest. It is also bounded by what the franchisor can reasonably estimate about your specific deal. **Build-out overruns.** Permitting delays, change orders and unexpected building conditions routinely add 10-20%. Budget a 15% contingency on top of the Item 7 high estimate. **Pre-opening labor.** You hire and train staff before revenue exists. Depending on the concept that can mean 5 to 25 people on payroll one to four weeks before opening. **Your living expenses.** Item 7 covers the business, not you. Leaving a salary means funding your mortgage and personal expenses for 6 to 12 months while the unit ramps. **Local marketing beyond the ad fund.** National advertising does not fill your specific location on day one. Budget an additional 2-5% of projected first-year revenue for local marketing and grand opening. **Technology upgrades.** Many systems are mid-cycle on POS or platform migrations. You can buy the current system and face a mandatory upgrade inside two years. ## How to estimate your true total investment You can [estimate your total investment](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) with our calculator, then layer in the buffers: 1. **Start with the Item 7 high estimate.** Not the low one, and not the midpoint. 2. **Add a 15% build-out contingency.** 3. **Add 3 to 6 months of working capital** beyond Item 7’s three. 4. **Add 6 to 12 months of personal living expenses** if this replaces your income. 5. **Add $10,000 to $20,000** for professional fees, local marketing and the miscellaneous. **Worked example on a $500,000 Item 7 high estimate:** | Line | Amount | | --- | --- | | Item 7 high estimate | $500,000 | | Build-out contingency (15%) | $75,000 | | Additional working capital | $50,000 | | Personal living expenses (6 months) | $30,000 | | Professional fees and miscellaneous | $15,000 | | Realistic total | $670,000 | That is 34% above the disclosed figure, which is a large part of why so many franchisees describe their first year as undercapitalized. ## Financing a franchise in 2026 **[SBA 7(a) loans](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide)** are the most common vehicle: up to $5 million, 10-20% down, prime plus 1.5% to 3%, 10 to 25 year terms. The brand must be on the SBA Franchise Directory, and most established systems are. **Franchisor financing.** Some brands offer in-house financing or preferred-lender relationships. Always compare the terms against an SBA quote rather than assuming the in-house option is favorable. **ROBS (Rollover for Business Startups).** Uses 401(k) or IRA funds without early withdrawal penalties. Legal, but structurally complex enough to require a specialist provider. **Home equity.** A HELOC is cheap capital. It also collateralizes your house against a business with a real failure rate. ## What investment level is right for you - **Liquid capital.** Most lenders want 20-30% of the total investment in cash. - **Net worth.** SBA lenders typically look for net worth of at least 1.5x the loan amount. - **Risk tolerance.** A $100,000 loss you can absorb is a different decision from a $500,000 one you cannot. - **The 50% rule.** Do not put more than half of your liquid net worth into a single franchise. Franchising carries no guarantee, so read the [data on franchise failure rates](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) before you commit. ## Brand-specific cost questions ### How much does a Chipotle franchise cost to open? You cannot open one at any price. Chipotle Mexican Grill does not franchise: every U.S. location is company-owned, the brand files no FDD, and it appears in no registry, so there is no Item 7, no franchise fee and no way to buy in. The closest franchised comparisons in the library are [Qdoba](https://vetmyfranchise.com/c/claude/franchise/qdoba-franchisor-llc) at $234,500 to $1,294,000 and [Moe’s Southwest Grill](https://vetmyfranchise.com/c/claude/franchise/moes-franchisor-spv-llc) at $644,425 to $1,968,450. The Mexican and Latin format median is $351,000 to $856,900. ### How much does a Pancheros franchise cost? Pancheros Mexican Grill does franchise, but its FDD is not in our library, so we publish no Item 7 figures for it. The Mexican and Latin restaurant format in the library has a median Item 7 of $351,000 to $856,900 and a median franchise fee of $35,000, which is the right order of magnitude for the class. Read Item 7 of Pancheros’ current FDD for its actual numbers. Treat the format median as context, not a quote. ### How much does a Texas Roadhouse franchise cost? Texas Roadhouse is effectively closed to new domestic franchisees, so for most buyers there is nothing to open. The overwhelming majority of U.S. locations are company-operated and the remaining franchising is legacy and international, so we publish no buy-in figure. If you want a full-service, full-bar restaurant, budget against the Food & Beverage category median of $358,500 to $822,250 and look at what a franchised full-service brand actually discloses: [Denny’s](https://vetmyfranchise.com/c/claude/franchise/dfo-llc) runs $255,000 to $3,056,874 in its 2026 FDD, which shows how much format and market swing the number. ## Compare the real numbers before you commit Every figure on this page came out of a filed Franchise Disclosure Document, not a franchise development brochure. Use the [compare tool](https://vetmyfranchise.com/c/claude/compare) to put brands side by side, browse the [franchise library](https://vetmyfranchise.com/c/claude/franchises) filtered by investment range, or start from the [cheapest franchises ranked by total investment](https://vetmyfranchise.com/c/claude/reports/cheapest-franchises), the [franchise fee benchmark](https://vetmyfranchise.com/c/claude/reports/franchise-fee-benchmark) and the [franchise pricing index](https://vetmyfranchise.com/c/claude/reports/franchise-pricing-index). The cost to open a franchise is the first number you will be quoted and the least useful one on its own. Pair it with Item 5, Item 6 and Item 19 before you sign anything. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) franchise costsinvestmentitem 7item 5franchise feefinancingstartup costs About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to open a franchise? The median franchise costs $204,046 to $494,000 to open, measured across the 2,185 Franchise Disclosure Documents in VetMyFranchise's library that disclose a complete Item 7 initial investment range. The midpoint of the median brand's range is $362,381. The spread is wide and real: 557 brands have an Item 7 low estimate under $100,000, 246 are under $50,000, and 545 brands have a high estimate above $1 million. Item 7 already includes the franchise fee, build-out, equipment, opening inventory and the first three months of working capital. ### How much does a franchise cost on average? Averages and medians differ enough here to matter. The median initial franchise fee is $40,000 while the mean is $48,882, because a small number of brands charging $100,000 or more pull the average up. For total investment, the median brand's Item 7 midpoint is $362,381, but the 90th percentile brand sits at $1,681,773. When a source quotes one "average franchise cost," ask whether it is a median or a mean, and across how many FDDs. ### How much is the average initial franchise fee? Across 2,239 brands that disclose a non-zero initial franchise fee in Item 5, the median is $40,000 and the average is $48,882. The distribution is tight in the middle: the 25th percentile is $30,000, the 75th percentile is $50,000, and the 10th and 90th percentiles are $17,750 and $60,000. In total, 1,749 brands (78%) charge $50,000 or less, 448 (20%) charge $25,000 or less, and only 56 charge $100,000 or more. A further 23 brands disclose no separate initial fee at all. ### How much does it cost to start a franchise? Budget the Item 7 high estimate, not the low one, then add to it. Across the library the median Item 7 high estimate is $494,000, and the typical brand's high estimate is 2.09x its own low estimate because build-out and real estate vary by market. Item 7 also funds only the first three months of working capital, so a realistic startup budget adds a build-out contingency, additional operating reserves, and your personal living expenses through the ramp. ### What is a typical franchise startup cost by industry? It depends almost entirely on whether the concept needs a building. Median Item 7 ranges run from $50,000 to $207,000 in Real Estate and $55,700 to $111,500 in Financial Services, up to $358,500 to $822,250 in Food & Beverage and $1,349,901 to $10,776,122 in Hospitality & Travel, where hotel brands dominate. Home Services sits at $128,368 to $227,409 and Senior Care at $118,030 to $242,840. ### How much does it cost to own a franchise each year? Owning is a separate cost from opening. Across the FDDs that disclose a rate, the median royalty is 6% of sales and the median advertising or brand fund contribution is 2%, for a combined median of 8% of gross sales. That is charged from the day you open, before rent, payroll, debt service or your own pay. Real examples from 2026 filings: Subway charges 8% royalty plus 4.5% advertising, Great Clips 6% plus 5%, Wingstop 6% plus 5.5%, Home Instead 5% plus 2%, and Culver's 4% plus 2.5%. ### What is the cheapest franchise to open? The lowest-cost categories are Real Estate (median Item 7 of $50,000 to $207,000, median fee $25,000), Financial Services ($55,700 to $111,500, median fee $30,000) and Business Services ($77,500 to $152,100). Across all industries, 246 brands have an Item 7 low estimate under $50,000 and 557 are under $100,000. What they have in common is no build-out and low working-capital needs, not a cheaper brand name. ### How much does it cost to open a fast food franchise? It depends on the format more than the brand. Using the Food & Beverage subcategories in the library, median Item 7 ranges are $228,590 to $638,000 for ice cream and dessert, $281,530 to $637,129 for coffee and beverage, $346,720 to $855,433 for pizza, $366,220 to $830,850 for sandwiches and subs, $517,300 to $1,375,750 for burgers, and $580,250 to $1,869,550 for chicken. Chicken concepts are the most expensive quick-service format in the library by a wide margin. ### What does the franchise fee actually cover? The Item 5 initial fee buys the right to use the brand, the initial training program, access to the operating system, and pre-opening support. It does not cover build-out, equipment, inventory, working capital, or any ongoing royalty. That is why the fee is a poor proxy for cost: across 2,095 brands the initial fee is a median of just 10.4% of the Item 7 midpoint, and Taco John's charges $15,000 to open a restaurant with an $802,310 low estimate. ### What is Item 7 in a Franchise Disclosure Document? Item 7 is the section of the FDD that lists the estimated initial investment. It breaks the total into line items such as the franchise fee, build-out, equipment, inventory, deposits and the first three months of working capital, each with a low and a high estimate. It is the most reliable starting point for budgeting a franchise purchase, and it is filed with state regulators rather than written for marketing. ### How much working capital do I need to open a franchise? Item 7 typically covers three months of working capital. Experienced owners budget six to twelve months of operating expenses instead, because royalties and advertising fees (a combined median of 8% of gross sales) start the day you open, while revenue ramps over the following year. Working capital has to cover payroll, rent, utilities, marketing and those fees during that gap. ### What are the ongoing costs of owning a franchise? Beyond the initial investment you pay a royalty (median 6% of sales) and an advertising or brand-fund contribution (median 2%), plus technology, renewal and transfer fees. Item 6 of the FDD discloses every continuing fee. Some brands charge flat amounts instead of percentages, such as Anytime Fitness's $900 per month advertising fee. Over a ten-year agreement these recurring fees usually dwarf the one-time franchise fee. ### Can I get an SBA loan to open a franchise? Yes. The SBA 7(a) program is the most common franchise financing vehicle. You will typically need 10-20% down, a credit score above 680, relevant business experience, and the franchise must appear on the SBA Franchise Directory. Terms run 10 to 25 years depending on use of funds. ### Why is the real cost higher than what the FDD shows? Item 7 is thorough but bounded. It does not fully account for build-out overruns in high-cost markets, pre-opening labor, your personal living expenses during the ramp, local marketing beyond the national ad fund, or the working capital most new owners need past month three. Start from the Item 7 high estimate rather than the low one, then add a contingency. --- title: "How to Research a Competitor Franchise Brand (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-10 dateModified: 2026-08-10 keywords: franchise competitor analysis, competitive intelligence, franchise development, FDD analysis, franchisor strategy, benchmarking, Item 19 comparison canonical: https://vetmyfranchise.com/c/claude/blog/how-to-research-competitor-franchise about: franchise competitor analysis category: blog wordCount: 1414 readingTime: 7 min crawledAt: 2026-08-20 11:02:33 lastVerified: 2026-08-20 11:02:33 site: https://vetmyfranchise.com/c/claude/ --- # How to Research a Competitor Franchise Brand (2026) ## Summary A franchise competitor analysis workflow for franchisors: mine a rival's FDD for fees, Item 19 economics, Item 20 churn, and Item 21 financial health. ## Key facts - If you run franchise development, your competitor hands you a full teardown of their business once a year. - Your prospects comparison-shop you on price whether you like it or not, and the price they compare is not your franchise fee. - Item 19 is where a competitor shows what their units earn, and how they choose to show it is as informative as the numbers. - Item 20 is five tables of unit movement over three years: system-wide counts, transfers, terminations, non-renewals, reacquisitions, and projected openings. - Item 21 attaches audited financial statements. Quick answer Research a competitor franchise through its FDD: Items 5 to 7 show their full fee stack, Item 19 shows unit economics, Item 20 shows three years of openings, closures, and terminations, and Item 21 shows their audited financials. FDDs refresh within 120 days of fiscal year end, so build an annual review cadence. ## The Intel File Your Rival Publishes Every Spring If you run franchise development, your competitor hands you a full teardown of their business once a year. Their buyer-facing pricing, their units’ earnings, three years of openings and closures, their litigation record, and their audited balance sheet are all in their [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), updated within 120 days of their fiscal year end, and in several states filed in databases anyone can search. Most FranDev teams know this in the abstract. Very few read rival FDDs systematically, which is why the teams that do keep finding surprises: a royalty increase nobody announced, or a going-concern footnote in a brand that projects strength. This is the workflow for doing it properly, item by item. One scope note before the teardown: this guide is for franchisors and suppliers researching competing systems. If you are a prospective buyer researching a franchise to purchase, the buyer-side workflow is here: [how to research a franchise before you buy](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise). ## Start With the Fee Stack: Items 5, 6, and 7 Your prospects comparison-shop you on price whether you like it or not, and the price they compare is not your franchise fee. It is the whole stack. Item 5 is the initial fee and any deposit structure. Item 6 is the recurring table: royalty, ad fund, technology fees, training charges, transfer fees, renewal fees, and the audit and late-payment terms. Item 7 is the full estimated initial investment, line by line, low and high. Read a competitor’s three fee items next to your own and you have the exact economics a buyer’s spreadsheet shows. The useful questions: - Is their combined royalty plus ad fund above or below yours? Small gaps here compound over a ten-year term, and sophisticated buyers model exactly that. - Where does their Item 7 high end land against yours? If they can credibly quote $150,000 less to open, your development team needs an answer prepared. - What is buried in their Item 6 that buyers dislike? Mandatory technology fees and marketing minimums are frequent objection material, theirs and yours. ## Item 19: Their Unit Economics, Disclosed Item 19 is where a competitor shows what their units earn, and how they choose to show it is as informative as the numbers. Read the definition footnotes first. Which units are in the sample: all outlets, or only ones open 24 months, or only franchisee-operated, or a “reporting units” subset that quietly drops the weakest performers? Averages or medians? Revenue only, or gross margin and unit-level costs too? Then place their disclosure against yours from a buyer’s chair. A rival publishing a full quartile breakdown with cost data is making a confidence statement, and buyers read it that way. If your own Item 19 is thinner than your competitors’, that asymmetry surfaces in validation calls and broker conversations where nobody from your team is present. Our [industry benchmarks post](https://vetmyfranchise.com/c/claude/blog/franchise-performance-benchmarks-by-industry) shows what strong disclosure looks like by category. ## Item 20: The Churn Story They Don’t Press-Release Item 20 is five tables of unit movement over three years: system-wide counts, transfers, terminations, non-renewals, reacquisitions, and projected openings. It is the least spinnable part of any FDD and the fastest way to test a growth narrative. The reads that matter for competitive work: - **Net growth vs. gross churn.** A system adding 60 units and terminating 45 is a very different machine than one adding 20 and losing 3, even though the first one’s press releases sound better. Termination patterns by state also show you where their model struggles. - **Transfers.** Elevated transfer counts often mean tired owners finding their own exits. A wave of transfers two years after a private equity acquisition is a recognizable pattern; we wrote up the buyer-side version in [franchise termination rates by industry](https://vetmyfranchise.com/c/claude/blog/franchise-termination-rates-by-industry). - **Projected vs. actual openings.** Item 20 discloses last year’s projection; compare it to what actually opened. A franchisor that projected 100 and opened 30 has a development problem you can quantify from public paper. - **The franchisee exhibits.** The same contact lists buyers use for validation calls tell you who left a rival’s system last year. Former franchisees of a competitor are informative conversations, and occasionally conversion candidates. ## Item 21: How Healthy Is Their War Chest Item 21 attaches audited financial statements. For a competitor read, three things: revenue mix, equity position, and any going-concern language. Revenue mix is strategy in a single ratio. A franchisor earning predominantly royalties is compounding on franchisee success; one earning predominantly initial fees is compounding on sales velocity, and behaves accordingly in every deal you compete for. Thin equity or auditor doubt at a rival changes your talking points with candidates, lenders, and brokers, because their buyers will eventually notice too. ## Litigation, Territory Policy, and Sentiment Item 3 lists material litigation; PACER and registration-state enforcement records extend it. Repeated franchisee suits over earnings claims or support failures are objection-handling gold and, more importantly, an early-warning indicator of validation problems that will surface in your shared candidate pool. The buyer-side method in our [Item 3 litigation guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research) applies unchanged. Item 12 shows their territory policy. A rival granting protected territories while you do not (or vice versa) is a structural difference buyers weigh heavily; know which side of it you are on in each market. Public sentiment rounds it out: franchisee association activity, forum threads, and how their owners talk on validation calls your candidates report back from. ## Build the Benchmark Table and Put It on a Calendar A competitive teardown that lives in someone’s head decays fast. Put five to eight rivals in one table with a row per metric: franchise fee, royalty, ad fund, Item 7 range, Item 19 median and sample definition, three-year net unit change, terminations, projected vs. actual openings, equity position, litigation count. A thorough version runs to about 20 rows once territory policy and renewal terms are in. Then review it every spring. FDD updates land within 120 days of fiscal year end, so most of your competitive set refreshes by April. The year-over-year deltas are where the real intelligence lives: a termination line that doubled says more than any single year’s snapshot. Building that table from raw FDDs takes a working day per brand, which is exactly the labor our [competitive intelligence report](https://vetmyfranchise.com/c/claude/for-franchisors) removes. It is the same item-by-item teardown, benchmarked against 2,300+ systems, delivered in minutes for $299 per competitor, and free on your own brand when you purchase your first buyer lead. Your prospects are already reading these documents side by side. It helps to have read them first. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Psp Franchise Operations [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchise-operations-spv-llc) #### Psp [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) #### Woof Gang Bakery [Learn more →](https://vetmyfranchise.com/c/claude/franchise/woof-gang-bakery-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) franchise competitor analysiscompetitive intelligencefranchise developmentFDD analysisfranchisor strategybenchmarkingItem 19 comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is it legal to analyze a competitor's FDD? Yes. The FDD is a disclosure document created for public consumption, and several registration states publish filed FDDs in open databases. Reading, benchmarking, and internally circulating a competitor's FDD is ordinary competitive research, the same as reading a public company's 10-K. What you cannot do is copy their copyrighted materials into your own. ### Where do I get a competitor's FDD? Registration-state portals publish them: California's DocQnet, Wisconsin's DFI franchise database, Minnesota's CARDS, and Indiana's securities portal all offer filed FDDs to anyone. A filing in any state describes the whole system nationwide. If the brand isn't registered in a portal state, FDD research services and platforms like ours maintain archives. ### How often do FDDs update? Annually, within 120 days of the franchisor's fiscal year end, plus interim amendments for material changes. Since most franchisors close their books December 31, fresh FDDs cluster in April each year. Registration-state renewals follow on the same cycle, which makes late spring the right time for an annual competitive teardown. ### What should a franchise competitive analysis cost? Doing it yourself costs time: figure a full working day per competitor for a careful first pass across the fee items, Item 19, Item 20, and Item 21, and a few hours per brand for annual updates. Our competitive intelligence report runs the same teardown from the current FDD for $299 per brand, and it is free on your own brand when you purchase your first buyer lead. ### Can I see how buyers compare my brand to competitors? Directionally, yes. Comparison platforms surface which brands prospects place side by side, and your own development team hears it in objections. The sharper question is what those buyers see when they look: if a rival disclosed a strong Item 19 median and you disclose averages only, that gap is shaping conversations you are not in the room for. --- title: "Is Insomnia Cookies a Franchise? No — What to Buy Instead" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-17 dateModified: 2026-07-24 keywords: insomnia cookies, is insomnia cookies a franchise, cookie franchise, dessert franchise, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise about: insomnia cookies category: blog wordCount: 1499 readingTime: 7 min crawledAt: 2026-08-20 11:08:32 lastVerified: 2026-08-20 11:08:32 site: https://vetmyfranchise.com/c/claude/ --- # Is Insomnia Cookies a Franchise? No — What to Buy Instead ## Summary No, Insomnia Cookies is not a franchise. All 200+ stores are corporate-owned. Here's why it doesn't franchise, plus the cookie franchises you can actually buy. ## Key facts - Insomnia Cookies looks like a franchise. - Seth Berkowitz started Insomnia Cookies in 2003 in his University of Pennsylvania dorm room, delivering warm cookies to students studying (or partying) after every other food option had closed. - Krispy Kreme acquired majority ownership of Insomnia Cookies in 2018, when the brand had fewer than 150 stores. - The demand Insomnia serves (dessert as a delivery occasion, cookies as gifts, late-night cravings) is addressable through brands that actually franchise. - There is one more useful takeaway in Insomnia’s refusal to franchise. Quick answer No. Insomnia Cookies is not a franchise: all of its 200+ U.S. stores are corporate-owned, and the company has never offered franchises. Founded in 2003 by Seth Berkowitz, it was majority-owned by Krispy Kreme from 2018 until 2024, when Verlinvest and Mistral Equity Partners acquired it. Buyers wanting a cookie franchise should look at Crumbl ($848,566-$1,472,533 per the 2026 FDD) or lower-cost alternatives. Insomnia Cookies is **not a franchise**. Every one of its 200+ U.S. stores is corporate-owned, the company has never sold a franchise in its 20-plus-year history, and there is no Franchise Disclosure Document on file with any state regulator, because there has never been a franchise to disclose. If you searched “Insomnia Cookies franchise” hoping to buy one, the honest answer is that you can’t. What you can do is understand why the brand stays corporate, and which cookie franchises with real FDDs fill the same demand. ## The Short Answer: There Is No Insomnia Cookies Franchise Insomnia Cookies looks like a franchise. It has the footprint of one: hundreds of small-format stores near college campuses and in dense urban neighborhoods, a recognizable brand, a focused menu, and a delivery model that scales. Brands with that profile usually franchise their way to growth, which is why so many prospective buyers assume Insomnia works the same way. It doesn’t. The company grew every store with corporate capital, the way Chipotle and Olive Garden did. In VetMyFranchise’s database of 2,000+ parsed FDDs, there is no Insomnia Cookies filing in any year, which is the structural tell: a company that franchises must deliver an FDD to prospective buyers under the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), and Insomnia has never had one because it has never offered a franchise. Plenty of listicle sites publish an “Insomnia Cookies franchise cost” anyway, usually a made-up range with a made-up fee. Treat any specific number you see for this brand as fiction. There is nothing to buy, so there is no price. ## How Insomnia Cookies Grew Without Franchisees Seth Berkowitz started Insomnia Cookies in 2003 in his University of Pennsylvania dorm room, delivering warm cookies to students studying (or partying) after every other food option had closed. The insight wasn’t the cookie; it was the occasion. Between roughly 9pm and 3am, in college towns and dense urban zip codes, there is real demand and almost no supply. That occasion shaped everything about the company’s structure: - **Late-night hours are the product.** Stores commonly run deliveries past midnight, with many locations open until 1am-3am. Those hours are brutal to staff and supervise, and they are exactly what a franchisee would quietly cut to save labor costs. - **Delivery is first-party core, not an add-on.** Insomnia built its business on its own drivers and delivery radius math long before third-party apps normalized late-night food delivery. - **The customer is temporary.** College students graduate and move. The brand re-acquires its customer base every fall, which demands consistent marketing execution near campuses. Corporate ownership solves all three problems at once. The company controls hours, staffing, and delivery standards directly instead of policing hundreds of independent operators. That is the strategic reason there is no Insomnia franchise, and it is unlikely to change casually. ## The Krispy Kreme Chapter and the 2024 Sale Krispy Kreme acquired majority ownership of Insomnia Cookies in 2018, when the brand had fewer than 150 stores. Under Krispy Kreme, Insomnia roughly doubled its footprint while staying fully corporate-owned. In 2024, Krispy Kreme sold its majority stake to two investor groups, Verlinvest and Mistral Equity Partners, in a transaction that valued Insomnia at roughly $350 million. Berkowitz stayed on to lead the company. New private-equity ownership occasionally precedes a franchising pivot (it is one of the standard levers for accelerating unit growth without deploying capital), but as of 2026 the new owners have announced nothing of the kind, and the company’s own materials still state plainly that it does not offer franchises. If that ever changes, the first hard evidence will be an FDD filing in registration states like California, Minnesota, or Wisconsin. VetMyFranchise ingests new FDD filings continuously, so a genuine Insomnia Cookies franchise program would show up in our [franchise directory](https://vetmyfranchise.com/c/claude/franchises) quickly. Until then, ignore any site implying you can apply. ## What to Buy Instead: Cookie Franchises With Real FDDs The demand Insomnia serves (dessert as a delivery occasion, cookies as gifts, late-night cravings) is addressable through brands that actually franchise. The numbers below come from real disclosure documents, not estimates. | Brand | Total Investment | Franchise Fee | Royalty | Item 19? | Model | | --- | --- | --- | --- | --- | --- | | Crumbl | $848,566–$1,472,533 (2026 FDD) | $50,000 | 8% + 2% ad | Yes: $1,093,071 median revenue | Storefront + app-driven delivery | | Cinnabon | $241K–$503K | $30,500 | 6% + 4% ad | See FDD | Mall/venue bakery counter | | Great American Cookies | ~$200K–$350K (industry figures) | ~$35,000 | 6% | Not in our dataset | Mall-format cookie counter | | Mobile Cookie Company | Under $150K | $15,000 | Flat monthly | Yes | Mobile/event-based | **[Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) is the closest substitute at scale.** It is the brand that actually captured the social-media cookie moment as a franchise system: 1,101 franchised U.S. units per the 2026 FDD, median unit revenue of $1,093,071, and app-based delivery that overlaps a meaningful slice of Insomnia’s occasion. It is also a big check with real saturation questions in mature markets. Start with [is Crumbl a franchise](https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise) for how the model works, then the [Crumbl cookie franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/crumbl-cookie-franchise-cost) for the full Item 7 math. **Smaller checks exist if the occasion matters more than the brand.** [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) plays the impulse-dessert occasion at a fraction of [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s investment. Mall-format cookie counters like Great American Cookies run lower still, with mall-traffic risk attached. And mobile-format concepts like [Mobile Cookie Company](https://vetmyfranchise.com/c/claude/franchise/mobile-cookie-company-llc) get you into the category for under $150K with a real Item 19 on file. For the wider field, see the [best bakery and donut franchises](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises) and our three-way [Crumbl vs Insomnia vs Nestlé Toll House comparison](https://vetmyfranchise.com/c/claude/blog/crumbl-vs-insomnia-vs-nestle-toll-house-franchise), which covers Insomnia’s model in depth precisely because buyers keep asking about it. > **Comparing cookie franchises?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ## The Late-Night Lesson for Franchise Buyers There is one more useful takeaway in Insomnia’s refusal to franchise. When a brand’s economics depend on something operationally painful (3am deliveries, in this case), the franchisor has two choices: keep it corporate and control it, or franchise it and build enforcement machinery into the agreement. Insomnia chose control. When you evaluate any franchise whose model depends on hard-to-police behavior, such as late hours, aggressive local marketing, or strict labor staffing, read [Item 11’s](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) support obligations and the operations-manual provisions carefully, and ask existing franchisees whether the painful parts actually get done. A model that only works when someone forces the issue is a model you should underwrite skeptically. The bottom line: you cannot buy an Insomnia Cookies franchise at any price, and anyone quoting you one is guessing. The cookie category has real franchisable options with real disclosure documents, and the smart move is comparing those on their actual FDD numbers rather than chasing a brand that has never been for sale. ## Brands mentioned in this post - [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) insomnia cookiesis insomnia cookies a franchisecookie franchisedessert franchisebrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Insomnia Cookies a franchise or corporate-owned? Insomnia Cookies is entirely corporate-owned. All of its 200+ U.S. stores are owned and operated by the parent company, not by franchisees. The company has never offered franchise opportunities, and because it does not franchise, it has never been required to file a Franchise Disclosure Document with state regulators. ### How much does an Insomnia Cookies franchise cost? There is no Insomnia Cookies franchise cost, because the company does not sell franchises. Any website quoting an Insomnia Cookies franchise fee or investment range is publishing speculation. If you want a comparable storefront cookie business, Crumbl's 2026 FDD puts total investment at $848,566-$1,472,533, and smaller-format dessert concepts start in the $200K-$500K range. ### Who owns Insomnia Cookies? Insomnia Cookies is owned by investor groups Verlinvest and Mistral Equity Partners, which acquired majority ownership from Krispy Kreme in 2024 in a deal that valued the brand at roughly $350 million. Founder Seth Berkowitz, who started the company in 2003 as a University of Pennsylvania student, continued to lead the business through the transition. ### Will Insomnia Cookies ever franchise? The company has announced no plans to franchise. Its growth model has always been corporate-funded store openings, which lets it control late-night hours, delivery logistics, and product consistency directly. Ownership changes sometimes precede strategy shifts, so it is worth re-checking, but as of 2026 there is no franchise program and no FDD on file in any state. ### What cookie franchises can you actually buy? Crumbl is the largest franchisable cookie brand, with 1,101 franchised U.S. units and a total investment of $848,566-$1,472,533 per the 2026 FDD. Cinnabon ($241K-$503K) and Great American Cookies (roughly $200K-$350K, mall-format) franchise in the broader dessert category, and mobile cookie concepts offer entry points under $150K. Compare Item 19 earnings data before choosing. ### Why doesn't Insomnia Cookies franchise its stores? Control. The brand's model depends on late-night operations (stores commonly deliver until 1am-3am), tight delivery logistics, and a consistent experience aimed at college students and young urban professionals. Enforcing 3am delivery standards across hundreds of independent owners is much harder than running the stores directly, so the company has kept every location corporate. --- title: "Jeff's Bagel Run Franchise Cost 2026: What's Disclosed" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: jeffs bagel run franchise cost, bagel franchise, JBR Franchise Co, item 19, emerging franchise, franchise validation, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/jeffs-bagel-run-franchise-cost about: jeffs bagel run franchise cost category: blog wordCount: 1690 readingTime: 8 min crawledAt: 2026-08-20 11:02:41 lastVerified: 2026-08-20 11:02:41 site: https://vetmyfranchise.com/c/claude/ --- # Jeff's Bagel Run Franchise Cost 2026: What's Disclosed ## Summary Jeff's Bagel Run franchise cost in 2026: $575,722 to $997,972, a $30,000 fee, 6% royalty, 14 franchised stores, and an Item 19 covering affiliate stores. ## Key facts - Two lines there deserve a second read. - Table 2-A of the 2026 FDD sorts affiliate-operated stores open the entire 2025 calendar year into three sales bands. - A franchisor incorporated in 2023 with 14 franchised stores, most of them open a matter of months, has almost nothing honest to report about franchisee profitability. - Item 20 records no terminations, non-renewals, transfers, or closures across 2023, 2024, and 2025. Quick answer A Jeff's Bagel Run franchise costs $575,722 to $997,972 per the 2026 FDD, including a $30,000 franchise fee plus a $10,000 training fee, with a 6% royalty and a 2% ad fee. The system had 14 franchised stores at the end of 2025, and Item 19 reports affiliate-operated results only. ## What the 2026 FDD discloses, and what it leaves out Fourteen. That is the number of franchised [Jeff’s Bagel Run](https://vetmyfranchise.com/c/claude/franchise/jbr-franchise-co) stores in existence on December 31, 2025, the cutoff date of the 2026 FDD, and thirteen of them opened during that single year. Another eleven stores are affiliate-owned, putting the whole system at 25 outlets. The franchisor, JBR Franchise Co, is a Florida corporation formed in March 2023 that began offering franchises that October. Search interest in the brand runs far ahead of the system size, and most of that traffic is people hunting for a bagel rather than a franchise agreement. Discount the “everyone is searching for it” pitch accordingly. The 2026 FDD does carry an Item 19. What it does not carry is a single profit figure describing a franchisee’s store, and the franchisor says so directly: JBR Franchise Co “has not yet collected financial statements from its franchisees, thus it cannot provide full financial information on the performance of its franchisees.” ## $575,722 to $997,972, line by line | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $30,000 | $30,000 | | Initial training fee | $10,000 | $10,000 | | Construction and leasehold improvements | $250,000 | $439,204 | | Kitchen equipment | $122,358 | $222,141 | | Furniture, fixtures, POS hardware | $63,287 | $106,046 | | Signage | $5,941 | $17,223 | | Architectural fee | $7,500 | $18,775 | | Grand opening fee | $10,000 | $10,000 | | Additional funds, 3 months | $58,000 | $85,000 | | Total | $575,722 | $997,972 | Two lines there deserve a second read. The franchise fee gets quoted everywhere as $30,000, but a first-time buyer also owes a $10,000 initial training fee at signing, so the check on day one is $40,000. And the working capital line covers three months, on a store carrying up to $439,204 of leasehold improvements. Three months of reserve against a build that size is thin, and any ramp shortfall lands on your own balance sheet. One useful detail buried in the Item 7 footnotes: in 2025 the franchisor negotiated tenant improvement allowances ranging from $0 to $73,365, so the landlord contribution is a live variable worth pushing on before you sign a lease. The recurring stack is heavier than the headline suggests. Item 6 sets a 6% royalty on gross sales, debited daily by a third-party processor, plus a 2% advertising fee. Section 8.2 of the franchise agreement then obligates you to spend another 2% of gross sales on local advertising. Roughly 10% of every dollar is committed before payroll, rent, or a single bag of flour. Item 15 closes the loop on your time: an individual franchisee must directly supervise the store on premises, and an entity must name an Operating Principal who devotes full time and best efforts solely to that store. [Pull the full JBR Franchise Co data sheet](https://vetmyfranchise.com/c/claude/franchise/jbr-franchise-co) ## There is an Item 19, and it describes the founders’ stores Table 2-A of the 2026 FDD sorts affiliate-operated stores open the entire 2025 calendar year into three sales bands. | 2025 affiliate store band | Average sales | Total expenses | Net margin | | --- | --- | --- | --- | | Over $1.4M | $1,421,960 | 53.6% | 18.5% | | $1.2M to $1.39M | $1,260,719 | 54.6% | 16.3% | | Below $1.2M | $821,416 | 65.1% | 2.4% | A separate table follows eight affiliate stores through their first year, with average monthly sales climbing from $78,453 in months one through three to $95,848 in months ten through twelve, and net margin moving from 6.8% to 13.5%. Read the label on all of it. Every one of those numbers comes from stores the franchisor or its affiliates own and operate. Four more affiliate stores were excluded from the analysis outright, two because a director’s entity owns 65% of them and JBR keeps neither the books nor day-to-day control, two because they sit under the company president with an unusual compensation structure. Royalty is imputed rather than actually paid on the two original legacy stores. What survives is a real, unusually detailed cost breakdown of company-side operations, and zero evidence about what an independent operator earns. ## An absent franchisee sample is not automatically a red flag A franchisor incorporated in 2023 with 14 franchised stores, most of them open a matter of months, has almost nothing honest to report about franchisee profitability. The FTC Franchise Rule requires a reasonable basis for any performance claim. Publishing a median drawn from a handful of partial-year stores would manufacture precision that does not exist, and disclosing affiliate results with the segment labeled is more forthcoming than the alternative many young franchisors pick, which is no Item 19 at all. The consequence still lands on you. Where a franchisor discloses franchisee economics, validation calls confirm or puncture a number you already hold. Here there is no number to test, so the entire underwriting burden shifts onto the calls themselves, and the call list is 14 people long. Our guide to [what a missing Item 19 means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) covers the general case, and the [under-50-unit risk profile](https://vetmyfranchise.com/c/claude/blog/emerging-franchise-under-50-units-risk) covers what else tends to be unsettled at this stage: supply chain, field support ratios, and a franchise agreement that has not been stress-tested by a dispute. ## Einstein Bros. shows what a franchisee-only disclosure looks like | | Jeff’s Bagel Run | Einstein Bros. Bagels | | --- | --- | --- | | Initial investment | $575,722 to $997,972 | $650,000 to $1,247,500 | | Franchise fee | $30,000 plus $10,000 training | $35,000 | | Royalty | 6% | 5% | | Ad fund | 2% plus 2% local | 4% | | Franchised units | 14 | 69 | | Company or affiliate units | 11 | 395 | | Item 19 median | none for franchisees | $1,033,905 | | Item 19 sample | affiliate stores | 63 franchised units | Einstein Bros. Bagels Franchise Corporation reports a $1,033,905 median across 63 franchised restaurants for the 53-week period ending December 31, 2024. The segment label carries as much weight as the figure. “All franchised units” is the cleanest description an Item 19 can wear, because nothing has been filtered to units open two years, or top-quartile performers, or company stores with corporate accounting behind them. This is not an argument that Einstein is the better purchase. A system with 69 franchised restaurants against 395 company ones tells its own story about where that brand’s growth actually happens. The difference is what you can underwrite. One document hands you a franchisee number and a sample size. The other hands you a well-built P&L from stores you will never own. For the wider category, see our [bakery and donut franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises). ## Validating a system with 14 franchisees Item 20 records no terminations, non-renewals, transfers, or closures across 2023, 2024, and 2025. That is a clean record and a young one. A system cannot fail a test it has not yet sat. Three specifics change how you work the call list. First, three affiliate stores were sold to franchisees during 2025, which means several of your 14 contacts bought a store with an existing trading history rather than building one from raw space. Those are the most informative conversations available and the least representative of what you would be doing. Second, ask the franchisor for the Item 19 table covering franchise-operated monthly sales through month eighteen, then ask how many stores sit in each grouping. Third, ask what changed between the 2025 and 2026 filings: the earlier document could only report on two stores over a year old, and the trajectory between the two versions tells you how fast the disclosure is maturing. Then run the ordinary [validation process](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) against every name on the list rather than the three the development team suggests, and read the [emerging-brand checklist](https://vetmyfranchise.com/c/claude/blog/should-you-buy-emerging-franchise-under-100-units) before you commit capital. The brand is growing quickly and the affiliate-side cost structure looks competent. Neither of those facts is the same as evidence that a franchisee makes money, and the 2026 FDD does not offer that evidence yet. [Get the full Jeff’s Bagel Run FDD analysis for $49](https://vetmyfranchise.com/c/claude/pricing) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Jeff's Bagel Run numbers with you. We'll email you the **Jeff's Bagel Run FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Jeff's Bagel Run data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) jeffs bagel run franchise costbagel franchiseJBR Franchise Coitem 19emerging franchisefranchise validationFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Jeff's Bagel Run franchise cost? The 2026 FDD estimates $575,722 to $997,972 for a single store. That includes a $30,000 initial franchise fee, a $10,000 initial training fee, $250,000 to $439,204 of construction and leasehold improvements, $122,358 to $222,141 of kitchen equipment, and $58,000 to $85,000 of additional funds covering the first three months. Experienced Managers who spent two or more years running a Jeff's Bagel Run store pay a reduced $20,000 franchise fee and no training fee. ### Does Jeff's Bagel Run disclose earnings? Partially. The 2026 Item 19 reports sales and expenses for affiliate-operated stores, including a 2025 table with three sales bands topping out at $1,421,960 in average annual sales. None of the profit-and-loss data describes a franchisee. JBR Franchise Co states in Item 19 that it has not yet collected financial statements from its franchisees and can only report franchise-operated sales pulled from its point-of-sale system. ### How many locations does Jeff's Bagel Run have? The 2026 FDD counts 25 outlets as of December 31, 2025: 14 franchised and 11 affiliate-owned. Franchised units went from 1 to 14 during 2025. The brand's own press releases put the count at 35 open with more than 120 in development as of May 2026, which is a marketing figure rather than a disclosed one. Item 20 projects 31 new franchised outlets and lists 26 signed agreements not yet open. ### Is a bagel franchise profitable? It depends on which disclosure you read. Einstein Bros. Bagels reports a $1,033,905 median across 63 franchised restaurants for the 53-week period ending December 31, 2024. Jeff's Bagel Run's affiliate-operated stores in the top 2025 band averaged $1,421,960 in sales at an 18.5% net margin, while its lowest band averaged $821,416 with expenses consuming 65.1% of sales. The spread inside one small brand is the useful signal. ### Should you buy a franchise with under 20 units? Only if you can replace the missing data with your own work. A system this size has no statistically meaningful Item 19, no long operating history to test, and a franchisee list short enough to call in a week. That last part is an advantage: call all 14, not the three the development team suggests. The risk is not that the brand is bad, it is that nothing in the document can tell you either way. --- title: "Mathnasium vs Kumon Franchise: 2026 Tutoring Comparison" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-25 dateModified: 2026-07-25 keywords: mathnasium, kumon, kumon vs mathnasium, tutoring franchise, education franchise, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/mathnasium-vs-kumon-franchise about: mathnasium category: blog wordCount: 2641 readingTime: 13 min crawledAt: 2026-08-20 11:02:43 lastVerified: 2026-08-20 11:02:43 site: https://vetmyfranchise.com/c/claude/ --- # Mathnasium vs Kumon Franchise: 2026 Tutoring Comparison ## Summary Mathnasium vs Kumon franchise comparison: 2026 FDD investment, franchise fee, royalty, unit counts, per-student revenue, and which tutoring brand fits which operator. ## Key facts - Two lines in that table do most of the work. - Both open in the low six figures, both serve the same K-12 parent demographic, and both sit well under the $369,698 average Item 7 floor across the 135 child services and education FDDs in our database. - Everything else in this comparison flows from one decision: how each brand chose to deliver math instruction. - On paper the Item 7 ranges look similar. - This is where prospective buyers get misled most often, so be precise about it. Quick answer Kumon costs less to enter: $101,630 to $233,780 with a $2,000 franchise fee and 1,705 North American centers per its 2026 FDD. Mathnasium runs $127,316 to $165,846 with a $49,000 fee, a 10% royalty, and 1,047 centers. Kumon suits low-touch operators, Mathnasium hands-on ones. If you’ve spent any time researching tutoring franchises, the conversation almost always narrows to two names. [Kumon](https://vetmyfranchise.com/c/claude/franchise/kumon-north-america-inc) and [Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc) dominate the supplemental math category, and they couldn’t operate more differently. One handed worksheets to a generation of parents. The other turned tutoring into a coaching session. Picking between them isn’t really about which brand is better. It’s about which operating model fits the way you actually want to run a business, and which fee structure you’d rather live under for the next decade. Every figure below comes from each brand’s 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) as parsed in VetMyFranchise’s database of 2,368 Franchise Disclosure Documents. Where a field isn’t in the filing, we say so rather than filling the gap. ## Mathnasium vs Kumon Franchise: The Head-to-Head Numbers | Metric (2026 FDD) | Kumon | Mathnasium | | --- | --- | --- | | Total investment (Item 7) | $101,630–$233,780 | $127,316–$165,846 | | Initial franchise fee | $2,000 (up to $3,000) | $49,000 | | Royalty | Per-student monthly fee; no percentage stated in Item 6 | 10% of Gross Receipts | | Royalty floor | None disclosed | $1,500/month minimum from month 24 | | Item 19 | Earnings claim disclosed; no per-center figure parsed | Earnings claim covering 914 centers open 12+ months (Jan 1–Dec 31, 2025) | | Franchised units | 1,705 | 1,047 | | Company-owned units | None disclosed | 4 | | Opened / closed (latest year) | 62 / 23 | 48 / 63 | | Exclusive territory | Not stated in our parse | Granted | | Item 3 litigation | None parsed | 2 matters | | Renewal fee | Not stated in our parse | $7,000 | Two lines in that table do most of the work. The first is the franchise fee gap: $2,000 versus $49,000. The second is the royalty structure, because that gap closes fast once a center fills. ## Quick Verdict: When Each Brand Wins - **Pick [Kumon](https://vetmyfranchise.com/c/claude/franchise/kumon-north-america-inc) if** you want the lowest entry cost in the category, the strongest brand recognition with parents, and a model that scales toward multi-center ownership without requiring you on the floor every afternoon. - **Pick [Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc) if** you want higher per-student revenue, are comfortable being the on-site educational leader (or hiring a strong center director), and want a brand that competes on instructional outcomes rather than repetition. Both open in the low six figures, both serve the same K-12 parent demographic, and both sit well under the $369,698 average Item 7 floor across the 135 child services and education FDDs in our database. The differences are in operating shape and fee mechanics, not headline capital. ## The Curriculum Philosophy Gap: Self-Paced vs Targeted Instruction Everything else in this comparison flows from one decision: how each brand chose to deliver math instruction. **Kumon** is a self-paced worksheet system. A student arrives, picks up the next set of worksheets in their personal progression, works through them, and an instructor checks the work. Pace is dictated by mastery, so students don’t advance until they hit accuracy benchmarks. The instructor grades, identifies stuck points, and assigns the next packet. The curriculum is the product. **[Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc)** is a targeted-instruction model. A student is assessed, gaps are identified across specific skills, and the center builds a custom learning plan. Sessions involve direct interaction with instructors who walk students through concepts they’re struggling with. The instructor is a much larger part of the experience, which is consistent with the owner-operator requirement flagged in Mathnasium’s 2026 filing. That single split drives everything downstream: - Kumon needs fewer instructors per student because students mostly work independently. - Mathnasium needs more instructors per student because instruction is the deliverable. - Kumon centers can run a higher student-to-staff ratio without quality slippage. - Mathnasium centers feel like a classroom; Kumon centers feel like a quiet study hall. - Kumon’s training emphasis is curriculum discipline; Mathnasium’s is teaching technique. Neither is right. They optimize for different parent buyers, and for different operator personalities. ## Investment and Fees: Where the $47,000 Gap Actually Goes On paper the Item 7 ranges look similar. The composition differs, and so does what you pay after opening. Kumon’s $2,000 franchise fee is real, and it sits at the very bottom of the category: our benchmark data puts it in the 1st percentile of the 135 child-education brands we’ve parsed, against a $46,314 category average. But the fee is not the whole entry cost. Kumon’s Item 5 also discloses a separate $2,000 materials fee and a $1,000 refundable deposit for the training kit, credited toward the franchise fee once training is complete. Kumon then captures its economics through a per-student monthly royalty rather than a percentage of revenue, and Item 6 in the 2026 filing does not express that as a percentage. That’s a real due-diligence item, not a footnote: you cannot model Kumon’s ongoing cost from a rate card, you have to model it from enrollment. Mathnasium is the opposite shape. You pay $49,000 up front, then 10% of gross receipts, with a floor of $1,500 per month beginning in month 24. That floor matters more than the headline rate for anyone opening in a slow-ramp market, because it converts a variable cost into a fixed one at exactly the point a new center is still building enrollment. Renewal runs $7,000. Mathnasium’s filing also grants an exclusive territory, which Kumon’s parse does not confirm. For full line-item breakdowns, see our [Kumon franchise cost guide](https://vetmyfranchise.com/c/claude/blog/kumon-franchise-cost) and the [Mathnasium franchise cost guide](https://vetmyfranchise.com/c/claude/blog/mathnasium-franchise-cost). Build-out differs too. Mathnasium’s larger footprint (roughly 1,200 to 1,800 sq ft in most markets) reflects the seating-and-instruction model, where students need workstations an instructor can pull a chair up to. Kumon’s smaller footprint (roughly 800 to 1,200 sq ft) reflects the worksheet-and-quiet-work model. That square-footage delta drives lease cost, which is the largest recurring expense for either brand and the one line Item 7 understates most often. ## Item 19 Reality: What Neither Brand Actually Discloses This is where prospective buyers get misled most often, so be precise about it. Both brands confirm a financial performance representation in Item 19. Neither one produces a parsed per-center revenue figure in our extraction. Mathnasium’s Item 19 covers 914 existing franchised centers in the United States that were open and operated by the same franchisee for 12 months or longer as of December 31, 2025, for the period January 1 through December 31, 2025. That is a well-constructed sample, and it deliberately excludes first-year centers, which means the disclosed performance is not what your year one will look like. Kumon’s filing confirms an earnings claim without a revenue figure surviving our parse. Because neither brand gives you a clean number, category peers are the honest benchmark. Here is what comparable tutoring and STEM brands disclose in their 2026 filings: | Brand | Item 19 median revenue | Reporting units | Period | | --- | --- | --- | --- | | Huntington Learning Center | $533,106 | 232 | FY2025 | | LearningRx | $315,310 | 40 | FY ending Sep 30, 2025 | | Code Ninjas | $217,479 | 224 | 2025 | | Sylvan Learning | Not parsed | 409 | FY2025 | | Kumon | Not parsed | Not stated | Not stated | | Mathnasium | Not parsed | 914 | Jan 1–Dec 31, 2025 | The takeaway: a mature supplemental-education center in this category is a $200,000 to $550,000 revenue business, not a million-dollar one. Model your center against Huntington’s $533,106 as an upper marker and Code Ninjas’ $217,479 as a lower one, then ask franchisees in markets that resemble yours where they actually land. Item 19 is the one place the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) permits an earnings claim, and when a franchisor discloses a sample without a figure, that absence is itself information worth raising at discovery day. ## Kumon vs Mathnasium: The Same Decision From the Other Side Most buyers arrive at this comparison already leaning toward Kumon, usually because they recognize the name. Running the comparison in the other direction changes what you notice. Start from Kumon and the case for switching to Mathnasium comes down to three things. First, revenue per student: Mathnasium’s longer, instructor-led sessions support $200 to $350 per month against Kumon’s typical $130 to $200, so a Mathnasium center hits the same revenue on fewer enrolled families. Second, territory: Mathnasium’s 2026 filing grants an exclusive territory, and Kumon’s parse doesn’t confirm one, which matters in a metro where a second center could open two miles away. Third, competitive positioning: if your market already has three Kumon centers, you are competing against your own brand for the same parents, and Mathnasium’s differentiated pitch gets easier to sell. Start from Mathnasium and the case for switching to Kumon is equally concrete. The $47,000 franchise fee difference is roughly a year of a part-time director’s wages. Kumon’s unit count is growing (62 openings against 23 closures) while Mathnasium’s is contracting (48 against 63), and a growing system usually means more co-op marketing dollars and more nearby franchisees to learn from. And Kumon’s ongoing royalty has no disclosed monthly floor, so a slow first two years costs you less than Mathnasium’s $1,500 minimum from month 24. The order you compare them in shouldn’t change the answer. It usually does, which is why running it both ways is worth 20 minutes. ## Center Capacity and Staff Model Differences Capacity is where the two models really separate. **Kumon** centers can run 200 to 350+ enrolled students with a small instructor team because students do most of the work independently. A center owner running 250 students might have one director (often the franchisee) and four to six part-time instructors during peak hours. Labor as a percent of revenue typically lands in the 18% to 25% range. **Mathnasium** centers usually cap out at 150 to 250 enrolled students because each session requires more direct instructor time. The instructor-to-student ratio during sessions typically runs 1:3 to 1:4, versus Kumon’s 1:8 to 1:12. Labor as a percent of revenue typically runs 30% to 40%. The implication for an operator: Kumon is easier to lean toward absentee, because the curriculum is the system and instructors execute against it. Mathnasium rewards a hands-on operator or a strong center director, and its FDD’s owner-operator requirement makes that explicit rather than optional. If you’re evaluating either for a semi-absentee structure, our [semi-absentee vs owner-operator guide](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) walks through what realistic operator presence looks like across categories. ## Marketing Reality: Kumon’s Brand Awareness Edge This is the gap nobody wants to discuss until they’re 90 days into a launch. Kumon has been franchising in the US since 1958 and its 2026 FDD lists 1,705 franchised centers in North America, with the company reporting more than 25,000 centers globally. Most American parents in the target demographic already know what Kumon is. They grew up with the brand, their neighbor’s kid went there, or they’ve driven past the sign for years. The franchisor’s brand spend gets amplified by more than six decades of cultural presence. Mathnasium launched in the US in 2002 and reached 1,047 franchised centers plus four company-owned per the 2026 FDD. It has solid recognition in many markets but doesn’t carry the same parental default. A new Mathnasium center in a market without existing locations often has to explain what the brand is before it can sell a plan. In dollar terms this typically shows up as a meaningfully lower customer acquisition cost for a new Kumon center in a comparable market, especially where Kumon has been established for a decade or more. A new Mathnasium operator should budget higher local marketing in years one and two to close that gap, and should treat any franchisor marketing estimate as a floor. For broader category context, see our [child education franchise guide](https://vetmyfranchise.com/c/claude/blog/child-education-franchise-guide) and the [best tutoring and STEM education franchises](https://vetmyfranchise.com/c/claude/blog/best-tutoring-stem-education-franchises) roundup. ## Unit Growth: The Line That Changed Through the 2010s, Mathnasium was the faster-growing brand and Kumon was the incumbent. The 2026 FDDs invert that story. Kumon opened 62 franchised centers against 23 closures, net growth of 39. Mathnasium opened 48 against 63 closures, a net loss of 15. One year of data is not a trend, but it is a question you should put directly to both franchise development teams and to current franchisees: which markets closed, were those closures transfers or true exits, and what changed in the two years before they closed. The category peers show the same pressure. [Sylvan Learning](https://vetmyfranchise.com/c/claude/franchise/sylvan-learning-llc) closed 55 against 12 openings, and [Huntington Learning Center](https://vetmyfranchise.com/c/claude/franchise/huntington-learning-centers-inc) closed 21 against four. Supplemental education is consolidating, and the brands with net growth are the ones worth a closer look. ## Which Fits Your Operator Profile? **The investor-operator with a day job still attached.** You want a franchise you can grow toward two or three units without being on-site every afternoon. You’ll hire a strong director and visit a few times a week. **Kumon.** The model tolerates operator distance better, and the curriculum-led system makes director hiring less make-or-break. **Former educators and hands-on owners.** You have a teaching background or genuinely want to be in the room. You see the business as part mission, part livelihood. **Mathnasium.** The instructional model rewards your involvement, the brand positioning aligns with how you’d naturally talk about math education, and the FDD’s owner-operator requirement is a fit rather than a constraint. **The pure-economics buyer who hasn’t picked a category.** You’re optimizing for return and don’t have a strong preference for tutoring over another service. Pull both FDDs, then compare their Item 19 disclosures against fitness, home services, and food brands in the same investment range. Tutoring is a reasonable category at this capital level. It is not the only one, and the two leaders here disclose less revenue detail than several alternatives do. There are successful franchisees in both systems and unhappy franchisees in both systems. The brand doesn’t make the business work. Operator-to-model fit does, and that fit is something you can diagnose before you sign. > 💼 **Researching both?** Our [3-pack of $99 FDD AI Reports](https://vetmyfranchise.com/c/claude/buy/3-pack) gives you Kumon, Mathnasium, and a third education-services brand: side-by-side AI-parsed Item 19, Item 6 fees, and Item 11 franchisor obligations. Three full reports for $99 total, or [$49 for a single brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example). ## Brands mentioned in this post - [Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) mathnasiumkumonkumon vs mathnasiumtutoring franchiseeducation franchisefranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Mathnasium vs Kumon franchise: which is the better investment? Neither dominates. Kumon opens for $101,630 to $233,780 with a $2,000 franchise fee and no stated percentage royalty; Mathnasium runs $127,316 to $165,846 with a $49,000 fee and a 10% royalty on gross receipts. Kumon has 1,705 centers and net unit growth; Mathnasium has 1,047 and closed 63 against 48 openings in its latest 2026 FDD year. ### Kumon vs Mathnasium: which franchise costs less to open? Kumon, at the floor. Its 2026 FDD Item 7 starts at $101,630 against Mathnasium's $127,316, and its franchise fee is $2,000 against $49,000. Kumon's ceiling is higher though, at $233,780 versus $165,846, because its range spans more build-out scenarios. On the low end Kumon saves roughly $73,000 in day-one capital. ### Which has higher per-student revenue? Mathnasium, on published market pricing rather than FDD data. Mathnasium typically charges $200 to $350 per student monthly for two to four longer sessions; Kumon typically runs $130 to $200 for two 30-minute sessions. Neither brand's 2026 Item 19 discloses per-center revenue in our parse, so treat tuition math as directional, not disclosed. ### Is Mathnasium or Kumon growing faster? Kumon, per the 2026 FDDs. Kumon opened 62 franchised centers against 23 closures for net growth of 39, reaching 1,705 centers. Mathnasium opened 48 against 63 closures, a net loss of 15, ending at 1,047 franchised centers plus four company-owned. Ask both franchisors which markets closed and why. ### Can you run either as semi-absentee? Kumon is closer. Its self-paced worksheet model needs less instructor time per student, so a director can carry the floor. Mathnasium requires hands-on instruction and its 2026 FDD flags an owner-operator requirement, which limits absentee structures. Neither is truly passive; Kumon simply tolerates operator distance better across multiple centers. ### Which is better for a first-time owner? Kumon for buyers who want the lowest entry cost, the strongest parent-side brand recall, and a lighter daily load. Mathnasium for buyers with a teaching background who want to lead instruction and accept a $49,000 fee plus a 10% royalty. Both sit well below the $369,698 average Item 7 floor for the 135 child-education FDDs in our database. --- title: "How to Research a Franchise Before You Buy (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: VetMyFranchise Team datePublished: 2026-08-10 canonical: https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise category: blog wordCount: 1663 readingTime: 8 min crawledAt: 2026-08-20 11:06:08 lastVerified: 2026-08-20 11:06:08 site: https://vetmyfranchise.com/c/claude/ --- # How to Research a Franchise Before You Buy (2026) ## Summary Where to find a franchise's FDD free, which items to read first, how to check litigation and talk to franchisees. A research workflow built on 2,364 FDDs. ## Key facts - The franchise sales process is built to move you forward, not to inform you. - Six questions decide whether a franchise deserves your money. - The FDD is the center of gravity for franchise research, and you do not need the franchisor’s permission to read one. - A full FDD read takes hours. - Item 3 lists the franchisor’s material litigation, but it is a starting point, not the whole record. Quick answer Research a franchise in six moves: pull the FDD free from a state portal like California's or Wisconsin's, read Items 7, 19, 20, and 21 for the money story, check Item 3 litigation, call 15 to 20 franchisees, verify state registrations, and study your local market. Budget 60 to 90 days. ## The Research Problem Nobody Warns You About The franchise sales process is built to move you forward, not to inform you. Discovery days and development-rep calls arrive on the franchisor’s schedule, framed the franchisor’s way. Buyers who rely on that pipeline learn exactly what the seller wants them to know. The counterweight is public information. Every franchisor selling in the United States must file a [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) covering the same 23 items in the same order, and much of the surrounding record, including litigation dockets, state registration status, and franchisee contact lists, is open to anyone who knows where to look. Researching a franchise well is mostly a matter of pulling those sources in the right order, before the sales process starts setting your pace. Here is the workflow we use, built on the 2,364 FDDs in our database. ## What Your Research Has to Answer Six questions decide whether a franchise deserves your money. Everything you collect should feed one of them. 1. What will it actually cost to open and survive to break-even? 2. What do existing units earn, and does the franchisor even disclose that? 3. Are franchisees joining this system or leaving it? 4. Is the franchisor itself financially healthy and litigation-light? 5. What do current and former owners say when the franchisor isn’t listening? 6. Can your specific market support your specific unit? A brand can score well on five and fail on one, and that one can sink you. Keep all six open until the document trail closes them. ## Where to Get the FDD Free The FDD is the center of gravity for franchise research, and you do not need the franchisor’s permission to read one. Roughly a quarter of states require franchisors to register before selling there, and several of those publish every filed FDD: - **California**: the DFPI’s DocQnet portal, searchable by brand name - **Wisconsin**: the Department of Financial Institutions’ franchise database - **Minnesota**: the Commerce Department’s CARDS system - **Indiana**: the Secretary of State’s securities portal An FDD filed in Wisconsin describes the same fees, the same contract, and the same Item 19 as the version handed to a buyer in Florida, so any of these portals works no matter where you live. FDDs update annually, typically within 120 days of the franchisor’s fiscal year end, so most current-year documents appear each spring. You can also simply ask. Franchisors must deliver the FDD at least 14 days before you sign anything or pay anything, and most will send it to any qualified prospect on request. The advantage of pulling it yourself from a registry is quieter: you can read it before you are in anyone’s sales funnel. Our [franchise directory](https://vetmyfranchise.com/c/claude/franchises) summarizes the key extracted data from each brand’s current FDD if you want the numbers before the 200-page PDF. ## Read the Money Items First A full FDD read takes hours. Four items carry most of the signal, and reading them first tells you whether the rest of the document deserves your evening. **Item 7 sets your real budget.** It is a table of the estimated initial investment, from franchise fee through working capital. Read the high end of every range, then treat that as your planning number. Across our database the median Item 7 high end is $493,000, and the middle half of systems span roughly $217,000 to $1,000,000. Our [Item 7 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) covers the line items franchisors habitually lowball, working capital being the chronic one. **Item 19 is the earnings evidence, when it exists.** About 72% of systems with a definite reading disclose some financial performance representation. The other 28% tell you nothing about what units earn, which means you would be underwriting the purchase on faith. When Item 19 is present, check whose numbers they are: all units or a favorable subset, medians or averages, revenue only or actual profitability. **Item 20 is the migration pattern.** Three years of openings, closures, terminations, and transfers, system-wide and by state. A growing brand with quietly rising closures is a different investment than its marketing suggests. The [Item 20 guide](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) walks through the five tables and what each one hides. **Item 21 is the franchisor’s own audited financials.** A franchisor burning cash has strong incentives to sell franchises aggressively, since franchise fees are revenue. Thin equity, going-concern language, or heavy reliance on initial fees over royalties all belong in your risk column. While you are reading, benchmark the fees. Median initial franchise fee across our data: $40,000. Median royalty: 6.0% of sales, with the 10th-to-90th percentile band running 4.0% to 8.0%. A brand asking 8%+ plus a large ad fund is asking for a double-digit share of your gross before rent and payroll, and it should have an exceptional story to justify that. ## Check Litigation and Registrations Item 3 lists the franchisor’s material litigation, but it is a starting point, not the whole record. Search the brand and its corporate entity in federal court records (PACER) and in the registration states’ enforcement actions. Patterns matter more than single cases: a system with repeated franchisee-initiated suits about earnings claims is showing you its future. Our [Item 3 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research) covers how to pull and weight what you find. Registration status itself is a signal. A franchisor that has withdrawn from registration states, or has been ordered to stop selling in one, has a story you want in full before proceeding. ## Talk to the People Who Already Bought Documents describe the system; franchisees describe living in it. Item 20’s exhibits include the name and contact information of every current franchisee, plus everyone who left in the last fiscal year. That list is your real reference pool, not the three enthusiastic owners the development rep suggests. Plan 15 to 20 calls, weighted toward owners two to five years in and toward people who exited. Ask what they would do differently, what surprised them about costs, and whether the franchisor’s support matched the pitch. One caution from the current enforcement climate: some franchisors have used gag clauses and NDAs to silence unhappy owners, a practice the FTC has been cracking down on. Our [validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) has the full call script, and the [gag clause explainer](https://vetmyfranchise.com/c/claude/blog/franchise-gag-clauses-validation-calls) covers why silence from former owners is itself information. By this point you have spent perhaps two weeks and zero dollars. If the brand still looks strong, the last mile is local. ## Research Your Market, Not Just the Brand A healthy system can still fail at your address. Map the existing units near you, check what protection Item 12 actually grants (57% of systems with a definite reading in our data grant no exclusive territory), and study whether the local demographics match the customer profile the successful units serve. The [territory analysis guide](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation) covers drive times, daytime population, and the saturation math. This is also where you compare. Three to five brands in the same category, FDDs side by side, is the only way to know whether the deal in front of you is category-normal or an outlier. Comparison platforms are worth using here; we reviewed the major options in our [franchise research tools roundup](https://vetmyfranchise.com/c/claude/best/franchise-research-tools). ## When to Pay for Help Free research takes you a long way, and there are exactly two places where paying makes sense. A **franchise attorney** belongs at the end, once a specific agreement is on the table. Expect $5,000 to $15,000 for FDD and agreement review, and hire franchise-specific counsel rather than a generalist. An **analyst-grade FDD review** belongs earlier, when you are narrowing a shortlist and want the extraction done for you. Our [$49 report](https://vetmyfranchise.com/c/claude/pricing) turns any brand’s current FDD into the benchmarked numbers above: fee load against category norms, Item 19 distribution, three-year unit trends, and the red flags that take a first-time reader hours to spot. It is the research phase, compressed. When your shortlist survives all of that, move to the decision stage: the [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) sequences the final ten steps between research and signature, with the benchmarks to score each one. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) franchise researchhow to research a franchiseFDD accessdue diligencebuyer guidestate franchise registriesfranchise information sources About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How long does it take to research a franchise? Plan 60 to 90 days from first FDD download to a signing decision. Document review takes about two weeks, franchisee validation calls take two to four weeks because 15 to 20 conversations rarely schedule quickly, and attorney review plus financing run in parallel for another few weeks. The FTC's 14-day disclosure window is a legal minimum, not a research timeline. ### Is the FDD free to get? Yes. Franchisors must give you the FDD free once you are a serious prospect, and you do not have to wait for them. California's DocQnet, Wisconsin's DFI database, and Minnesota's CARDS system publish filed FDDs that anyone can download. An FDD filed in one state describes the same system nationwide, so a Wisconsin filing is perfectly useful to a buyer in Texas. ### Can I trust the numbers in Item 19? Trust them as far as the fine print allows. Item 19 figures are real disclosures with legal consequences for fabrication, but franchisors choose the presentation: averages instead of medians, top-quartile subsets, mature units only, or gross revenue with no cost data. Read the footnotes that define which units are included, and prefer medians. If a brand discloses averages only, ask why. ### How many franchisees should I call before buying? Fifteen to twenty, split between current owners and people who left the system. Item 20's exhibits list every franchisee with contact information, which means you are not limited to the references the development team offers. Former owners in particular will tell you why they exited, and that answer is worth more than any brochure. ### Do I need an attorney to research a franchise? Not for the research phase, but yes before signing. You can pull the FDD, read the money items, check litigation, and call franchisees on your own. Once a specific agreement is in front of you, a franchise attorney (typically $5,000 to $15,000) should review termination, renewal, territory, and non-compete clauses. Bring them a shortlist, not a first draft. --- title: "Is Crumbl a Franchise? Yes: $849K–$1.5M to Open (2026 FDD)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-19 dateModified: 2026-07-24 keywords: crumbl cookies, is crumbl a franchise, dessert franchise, brand analysis, franchise model canonical: https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise about: crumbl cookies category: blog wordCount: 3179 readingTime: 16 min crawledAt: 2026-08-20 11:06:09 lastVerified: 2026-08-20 11:06:09 site: https://vetmyfranchise.com/c/claude/ --- # Is Crumbl a Franchise? Yes: $849K–$1.5M to Open (2026 FDD) ## Summary Yes, Crumbl Cookies is a franchise. Learn how the Crumbl franchise model works, qualification requirements ($250K liquid, $500K net worth), franchise fees. ## Key facts - Crumbl Cookies LLC, the franchisor, is privately held by co-founders Sawyer Hemsley and Jason McGowan. - As of early 2026, Crumbl continues to award franchise agreements, but the landscape has changed significantly from the brand’s hypergrowth phase (2020-2023). - Crumbl doesn’t require previous restaurant or bakery experience, though it certainly helps. - If you clear the financial bar above, opening a Crumbl location follows a defined path. - Whether Crumbl is a good franchise depends heavily on which cohort you would be joining and which market you would enter. Quick answer Yes, Crumbl is a franchise: 1,101 of its locations are franchisee-owned per the 2026 FDD. Opening one costs $848,566 to $1,472,533, including a $50,000 franchise fee, with an 8% royalty plus 2% marketing fund. Median unit revenue was $1,093,071 across 776 stores in 2025. ## Is [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Cookies a Franchise? (Yes, Here’s How It Works) [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Cookies is a franchised business. The company was founded in 2017 by Sawyer Hemsley and Jason McGowan in Logan, Utah, and began franchising almost immediately. Today, virtually every [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) location you see is owned and operated by a franchisee, not by the corporate entity. [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Cookies LLC serves as the franchisor, providing the brand, recipes, supply chain, technology platform, and marketing support. Individual franchise owners invest the capital, hire the staff, and run the day-to-day operations. As of the 2026 FDD parsed in VetMyFranchise’s database, [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) operates **1,101 franchised locations across the United States** (54 opened and 10 closed in the latest disclosed year), making it one of the fastest-growing franchise brands in the country by unit count. The company went from zero to 1,000+ units in roughly seven years, a pace that rivals or exceeds the early growth trajectories of brands like Subway and [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc). For a full breakdown of costs, see our [Crumbl Cookie franchise cost analysis](https://vetmyfranchise.com/c/claude/blog/crumbl-cookie-franchise-cost). If you’re ready to explore the application process, see the [step-by-step process for opening a Crumbl franchise](https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise#how-to-open-a-crumbl-franchise) further down this page. ## How the [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Franchise Model Works ### The Franchisor-Franchisee Relationship [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s model follows the standard franchise structure with some distinctive features: **What the franchisor (Crumbl Cookies LLC) provides:** - Brand name, trademarks, and intellectual property - Proprietary recipes: the rotating weekly menu is developed by the corporate test kitchen - Supply chain and approved vendor network - Technology platform (POS system, online ordering, Crumbl app) - National marketing and social media strategy - Ongoing operational support through franchise business consultants - Site selection criteria and real estate guidance **What the franchisee provides:** - All capital for the initial investment ($848,566–$1,472,533 per location, per the 2026 FDD) - Local real estate: finding, leasing, and building out the location - All staffing: hiring, training, and managing the team - Day-to-day operations management - Local marketing efforts beyond national campaigns - Ongoing royalty and marketing fund payments This division of responsibilities is typical in franchising, but Crumbl’s model has a distinctive wrinkle: the weekly rotating menu. Unlike most food franchises where the menu stays fixed for months or years, Crumbl introduces a new lineup of 4-6 cookie flavors every Monday. The corporate test kitchen develops and tests all recipes. Franchisees receive the upcoming week’s recipes, ingredient specifications, and preparation instructions in advance. This rotating model drives social media buzz and repeat customer visits; nobody wants to miss the new flavors. But it also demands operational flexibility from franchisees. Your team must consistently execute new recipes each week, manage inventory for changing ingredient lists, and handle the labor scheduling complexity that comes with variable production requirements. ### Franchise Fee and Ongoing Costs | Fee | Amount (2026 FDD) | | --- | --- | | Initial franchise fee | $50,000 per unit | | Royalty fee | 8% of gross sales | | Marketing fund | 2% of gross sales | | Technology fee | Included in royalty/marketing | | Total ongoing fees | 10% of gross sales | The $50,000 franchise fee is on the higher end for food franchises. [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) charges $45,000, [Chick-fil-A](https://vetmyfranchise.com/c/claude/franchise/chick-fil-a-inc) charges $10,000 (but retains ownership of everything). The ongoing fee burden of 10% sits at the top of the typical 7-10% band most QSR and fast casual brands charge in combined royalty and marketing fees, and it comes directly out of your operating margin. **Considering Crumbl?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ### How Crumbl Differs from Other Dessert Franchises The dessert franchise category has expanded significantly in recent years. Here’s how Crumbl stacks up against the competition: | Feature | Crumbl Cookies | Insomnia Cookies | Nothing Bundt Cakes | Cinnabon | | --- | --- | --- | --- | --- | | Franchise fee | $50,000 | Does not franchise | $35,000 | $30,500 | | Total investment | $849K–$1.47M | N/A (corporate-owned) | $361K–$600K | $241K–$503K | | Royalty rate | 8% | N/A | 5% | 6% | | Marketing fund | 2% | N/A | 2% | 4% | | Menu style | Rotating weekly | Fixed + weekly specials | Fixed (seasonal additions) | Fixed | | Delivery focus | Moderate (app orders) | High (late-night delivery) | Moderate | Low | | Social media presence | Dominant (8M+ TikTok) | Strong | Moderate | Moderate | | Typical store size | 1,200–1,800 sq ft | 800–1,500 sq ft | 1,200–1,800 sq ft | 600–1,200 sq ft | Crumbl figures are per the 2026 FDD; competitor figures are as of 2026. Insomnia Cookies is corporate-owned and [does not franchise](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise); it appears here for model comparison only. Crumbl’s social media engine is its most significant competitive advantage. The brand’s TikTok presence generates millions of organic impressions weekly. New store openings benefit from this built-in awareness in a way that most dessert franchises simply cannot match. Flavor reveal videos routinely surpass 5 million views, and the weekly rotation creates a content cycle that keeps the brand perpetually in customer feeds. The trade-off is operational complexity. A fixed-menu franchise is simpler to run. When your team makes the same products day after day, consistency is easier to maintain, waste is more predictable, and training is straightforward. Crumbl’s rotating model requires more skilled bakers, better inventory management, and a team that can adapt quickly to new recipes each week. ## Who Owns Crumbl? Corporate vs. Franchise Stores Crumbl Cookies LLC, the franchisor, is privately held by co-founders Sawyer Hemsley and Jason McGowan. The company is headquartered in Lindon, Utah. Unlike many franchise brands that operate a mix of company-owned and franchised locations, virtually all Crumbl stores are franchised. A small number of locations may be company-operated for testing purposes or in the Utah home market, but the overwhelming majority (north of 99%) are independently owned by franchisees. This is relevant because it means: - The franchisor’s revenue comes primarily from franchise fees, royalties, and marketing fund contributions, not from operating cookie stores directly - Franchisees bear the full operational risk and capital investment - System-wide performance depends on franchisee execution, not corporate operations teams This heavily franchised model accelerated Crumbl’s growth. Rather than deploying corporate capital to open each location, the company used franchisee investment to fund expansion. It’s the same model that powered [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc), Subway, and most of the largest franchise systems in the world. ## Is Crumbl Still Accepting New Franchisees? As of early 2026, Crumbl continues to award franchise agreements, but the landscape has changed significantly from the brand’s hypergrowth phase (2020-2023). Several factors affect current franchise availability: **Market saturation in major metros.** Many top-25 MSAs have reached or are approaching full build-out. If you’re targeting markets like Dallas, Phoenix, Atlanta, or Miami, available territory may be limited to specific suburban corridors rather than prime locations. **[Multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) requirements.** In most available markets, Crumbl now requires multi-unit development commitments. Single-unit agreements are increasingly rare. If you want to open one store and see how it goes before committing further, Crumbl may not accommodate that approach. **Selectivity has increased.** With thousands of applications submitted annually, Crumbl can afford to be selective. The brand reportedly approves a small percentage of applicants. Financial qualifications, business experience, and market fit all factor into the decision. **Emerging market opportunities.** The strongest opportunities for new franchisees likely exist in secondary and tertiary markets: smaller cities and suburban communities where Crumbl hasn’t yet established a presence. These markets may offer less competition for sites and lower real estate costs, though they also come with smaller customer bases. If you’re interested in applying, submit your application through the Crumbl Cookies corporate website. The franchise development team reviews applications on an ongoing basis and reaches out to qualified candidates. ## Qualification Requirements for Crumbl Franchise Ownership ### Financial Requirements | Requirement | Minimum (2026) | | --- | --- | | Liquid capital | $250,000 | | Net worth | $500,000 | | Franchise fee | $50,000 per unit | | Total investment (single unit) | $848,566–$1,472,533 | | Multi-unit total (3 units) | ~$2.5M–$4.4M | ### Experience and Background Crumbl doesn’t require previous restaurant or bakery experience, though it certainly helps. The brand evaluates candidates on: - **Business acumen.** Demonstrated success in managing or owning a business, even outside the food industry - **Leadership and people management.** The ability to build, train, and retain a team of 15-30 employees per location - **Financial management.** Understanding of P&L management, cash flow, and basic accounting - **Community involvement.** Crumbl values franchisees who are engaged in their local communities - **Commitment to the brand.** Genuine enthusiasm for the Crumbl brand and its culture ### Operational Expectations Crumbl expects franchisees to be actively involved in their business, particularly during the first 12-18 months. Semi-absentee ownership is not part of the standard model, though multi-unit operators inevitably transition to a more managerial role as they scale to 3+ locations with qualified general managers in each store. ## How to Open a Crumbl Franchise If you clear the financial bar above, opening a Crumbl location follows a defined path. The full process from application to grand opening typically runs 10-18 months. 1. **Submit the application.** Crumbl’s application lives on their corporate website. It collects your background, management experience, financial summary, preferred markets, and whether you want single or multi-unit development. Submit one application, not several for different markets. 2. **Initial screening call.** Within a few weeks, the franchise development team schedules a phone or video screening. Expect questions about why Crumbl specifically, financial verification, market availability, and whether you plan to be an owner-operator or hire a general manager. 3. **Market and territory discussion.** If you pass screening, Crumbl reviews available territories with you. Availability shifts quickly, most desirable markets now require multi-unit commitments, and the brand favors affluent suburban areas with strong family demographics. 4. **FDD review and legal due diligence.** Crumbl provides the [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). The [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires you to hold it at least 14 days before signing anything or paying any money. Scrutinize [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) (ongoing fees), [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) (investment range), [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) (financial performance), and Item 20 (franchisee contacts). Hire an attorney who reviews franchise agreements regularly, not a general business lawyer. 5. **Franchisee validation.** Use the Item 20 list to call current and former operators. Aim for at least 10, mixing newer owners, established owners with 2+ years, and multi-unit operators. Ask how actual build-out cost compared to the Item 7 estimate, how revenue has trended, and how responsive corporate is. Former franchisees tend to be the most candid. 6. **Discovery Day.** Approved candidates are invited to Crumbl’s Lindon, Utah headquarters to meet the executive team, tour the test kitchen, visit operating stores, and review supply chain, technology, and marketing systems. Treat it as a two-way interview. 7. **Sign the agreement and pay the fee.** Multi-unit deals involve both a Development Agreement (unit count, territory, and timeline) and an Individual Franchise Agreement for the first store. The franchise fee is $50,000 per unit per the 2026 FDD. 8. **Training at headquarters.** Franchisees and key managers train for roughly 2-3 weeks at corporate and a certified location, covering cookie production, point-of-sale and technology, inventory, staffing, and marketing coordination. Travel and lodging are at your expense. 9. **Site selection and build-out.** This is the longest phase, averaging 5-9 months. Crumbl stores run 1,200-1,800 sq ft with an open-kitchen layout so customers can watch cookies being made. A second-generation restaurant space costs far less to convert than raw retail, and permitting delays are the most common cause of timeline slips. 10. **Grand opening.** New openings benefit from Crumbl’s social media reach. Coordinate local marketing with corporate accounts, plan community sampling, and staff for the first-week surge, which usually far exceeds steady-state traffic. | Stage | Estimated duration | | --- | --- | | Application and screening | 4-8 weeks | | Qualification and territory | 4-8 weeks | | FDD review and validation | 4-8 weeks | | Discovery Day | ~30 days | | Agreement and training | 4-8 weeks | | Site selection and build-out | 5-9 months | | Total | 10-18 months | ## Pros and Cons of the Crumbl Franchise ### Advantages **Exceptional brand awareness.** Crumbl’s social media presence is a genuine competitive moat. With over 8 million TikTok followers and dominant Instagram presence, new stores open with built-in customer awareness that most franchise brands spend years trying to build. The weekly flavor reveal content cycle keeps the brand in consumer feeds constantly. **Proven rapid growth.** Going from 0 to 1,000+ units in seven years validates the concept across diverse markets. The system has been tested in urban, suburban, and smaller markets across different regions. **Rotating menu drives repeat visits.** Customers return weekly to try new flavors. This frequency-driven model generates stronger same-store sales growth than fixed-menu concepts where purchase occasions are less urgent. **Workable investment-to-revenue math.** Crumbl’s 2026 Item 7 range of $848,566-$1,472,533 sits in the same band as other high-volume food concepts, and against the system’s $1,093,071 median unit revenue (Item 19, 2025 calendar year) the investment-to-revenue ratio remains reasonable for stores that perform near the median. **Simple product category.** Cookies are operationally simpler than full restaurant menus. No cooking hoods, no grease traps, no complex kitchen equipment. Build-out costs and facility requirements are manageable. ### Disadvantages **High ongoing fees.** The combined 10% royalty and marketing burden sits at the top of the industry’s typical range. On $1 million in annual revenue, you’re paying $100,000 in fees before covering rent, labor, ingredients, or any other operating costs. **Menu complexity despite simple product.** The rotating weekly menu sounds fun in theory but creates real operational challenges. Ingredient procurement changes weekly, staff must learn new recipes constantly, and waste management requires careful planning. **Rapid growth concerns.** Some franchise systems that grow too fast stretch their support infrastructure thin. With 1,000+ locations added in seven years, questions about quality control, territory saturation, and long-term unit economics are worth investigating during your due diligence. **Limited track record.** Crumbl started franchising in 2017. There isn’t 10-15 years of performance data to evaluate. Long-term unit economics, franchisee satisfaction trends, and brand durability through a full economic cycle are still unproven at the system level. **Trend sensitivity.** The cookie and dessert category benefits from current consumer trends and social media virality. Whether that demand sustains over a 10-year franchise term, or whether consumer preferences shift to the next trending dessert concept, is an open question. Franchise agreements lock you in for years regardless of category trends. **Increasing competition.** Crumbl’s success has attracted competitors. New cookie and dessert franchise concepts have launched specifically to capture market share in the category Crumbl popularized. More competition means more pressure on site selection, customer acquisition, and margins. ## Is Crumbl a Good Franchise to Buy? Whether Crumbl is a good franchise depends heavily on which cohort you would be joining and which market you would enter. Stores that opened in Crumbl’s early years (roughly 2018-2020) posted [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) sales figures that turned builds into fast paybacks and drew thousands of applicants. Stores opened more recently show measurable sales compression, especially in markets that already have one or more Crumbl locations. For calibration, the 2026 FDD’s Item 19 reports median revenue of $1,093,071 across the 776 franchised units that operated through all of 2025. The system has matured, so the underwriting math now has to work on lower-quartile performance, not on the system average. Saturation is the dominant risk. Before signing, pull up a map of any proposed site and count existing Crumbl locations within a 5-mile radius (direct cannibalization), a 15-minute drive (customer overlap), and a 30-minute drive (occasional visits). If two or more Crumbls already sit inside your 15-minute radius, treat the lower quartile of recent performance as your ceiling. Read Item 12 of the FDD closely: territory protection is limited, and a small protected radius does not stop a new Crumbl from opening just outside it. **Crumbl still works well for:** - Operators in undersaturated secondary and tertiary markets, where national brand awareness arrives ahead of local competition - Multi-unit operators who can absorb development costs and spread back-of-house support across several stores - Buyers with food, retail, or prior franchise experience who can handle the weekly operating tempo - Buyers who underwrite against lower-quartile results and keep a downside cushion **Crumbl is a poor fit for:** - Absentee or semi-absentee investors expecting passive income - Buyers in metros that already have several locations - First-time owners with no food-service or retail background - Buyers who lack working capital for the first 6-9 months on top of the build-out The honest bottom line: this is no longer a “buy any territory you can get” opportunity. The buyer profile that still fits is narrower than it was a few years ago, but it exists. The operators who do best model realistic current-year expectations, map their local saturation, and walk away if the numbers only work on early-cohort assumptions. ## Brands mentioned in this post - [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Crumbl numbers with you. We'll email you the **Crumbl FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Crumbl data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) crumbl cookiesis crumbl a franchisedessert franchisebrand analysisfranchise model About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Crumbl Cookies a franchise or corporate-owned? Crumbl Cookies is a franchise. Virtually all 1,000+ locations are independently owned and operated by franchisees. Crumbl Cookies LLC serves as the franchisor, providing the brand, recipes, supply chain, technology, and marketing support. A very small number of locations in the Utah home market may be company-operated, but the overwhelming majority are franchised. ### Is it Crumbl or Crumble Cookies? The brand officially spells its name Crumbl, with no 'e', so the correct name is Crumbl Cookies. Searchers frequently type 'Crumble Cookies' with an e, but it refers to the same company. Either spelling points to the same answer: yes, Crumbl is a franchise, with 1,101 franchisee-owned locations per the 2026 FDD and a total investment of $848,566 to $1,472,533 per store. ### How much does a Crumbl franchise cost? The total investment for a single Crumbl location ranges from $848,566 to $1,472,533 per the 2026 FDD. The franchise fee is $50,000 per unit. You need at least $250,000 in liquid capital and $500,000 in net worth to qualify. In most available markets, Crumbl requires multi-unit commitments of 3-5 stores, which multiplies the total investment. ### Is Crumbl still selling franchises in 2026? Yes, Crumbl continues to award franchise agreements, though the pace has moderated from the brand's peak growth years. Major metro areas are largely built out, and current opportunities focus on secondary and tertiary markets. Multi-unit commitments are required in most available territories. The brand is selective, approving a small percentage of applicants. ### What is the Crumbl franchise royalty rate? Crumbl charges an 8% royalty on gross sales plus a 2% marketing fund contribution per the 2026 FDD, totaling 10% of gross revenue in ongoing fees. This sits at the top of the typical range for food franchises, where combined royalty and marketing fees usually run 7-10%. ### Do you need baking experience to own a Crumbl franchise? No, baking or restaurant experience is not required. Crumbl provides comprehensive training covering all aspects of cookie production and store operations. The brand evaluates candidates based on business acumen, leadership ability, financial qualifications, and community involvement rather than industry-specific experience. ### How long does it take to open a Crumbl franchise? The full process from application to grand opening typically takes 10-18 months. Application and qualification run about 2-4 months, followed by 5-9 months for site selection and build-out. Permitting delays are the most common reason timelines stretch. ### Is Crumbl a good first franchise? Usually not. The operating intensity is high, with a weekly menu rotation, late hours, heavy social media expectations, and perishable inventory to manage. First-time owners with no food-service or retail background tend to struggle. Crumbl fits best as a second or third franchise, or a first franchise for someone who already has food, retail, or operations experience. --- title: "How Long Until a Franchise Is Profitable? 455 FDDs, by Category" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: VetMyFranchise Team datePublished: 2026-03-17 canonical: https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable category: blog wordCount: 3427 readingTime: 17 min crawledAt: 2026-08-20 11:06:07 lastVerified: 2026-08-20 11:06:07 site: https://vetmyfranchise.com/c/claude/ --- # How Long Until a Franchise Is Profitable? 455 FDDs, by Category ## Summary How long until a franchise is profitable? Most break even in 12-24 months and repay the full investment in 2-5 years. See 2026 timelines by industry. ## Key facts - “Twelve to twenty-four months” is the answer everyone gives. - Each row divides the brand’s Item 19 median unit revenue by the midpoint of its Item 7 range, then reports the category median. - Category is one lens. - Every figure below is from the brand’s most recent FDD in our library. - The most persistent myth in this category is that low investment equals quick payback. Quick answer VetMyFranchise ran the payback math on 455 brands whose FDDs disclose both an Item 7 investment range and an Item 19 median unit revenue. There is no single timeline. Senior care units earn a median 6.9x their Item 7 midpoint in annual revenue; fitness units earn 0.93x. Repaying Item 7 in 24 months requires a net margin above 20% at 72% of those brands. ## The Answer Is Two Numbers in the FDD, Not an Industry Average “Twelve to twenty-four months” is the answer everyone gives. It is also an average of categories that behave nothing alike, and averaging them destroys the only information you actually need. Time to payback is governed by one relationship: how much annual revenue a unit produces relative to how much capital it took to open. Both figures are disclosed. Item 7 gives the estimated initial investment as a range. Item 19 gives unit revenue, where the franchisor chooses to disclose it. Divide the second by the first and you get a ratio that predicts payback far better than the industry label on the brochure. We ran that division across our [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) library. Of 2,126 analyzed FDDs, 1,462 contain an Item 19 at all, and only 573 disclose a usable median unit revenue figure. After filtering to disclosures our extraction judge marked as supported, with a reported sample of at least 10 units, 455 brands remained (404 from 2026 filings, 51 from 2025). The spread is not subtle. ## Revenue-to-Investment by Category: 455 FDDs Each row divides the brand’s Item 19 median unit revenue by the midpoint of its Item 7 range, then reports the category median. The right-hand column inverts it into a testable question: what net margin would a unit have to clear to return the entire Item 7 midpoint in 24 months, assuming full-strength revenue from day one? | Category | Brands | Item 19 median ÷ Item 7 midpoint | Net margin needed for 24-month payback | | --- | --- | --- | --- | | Senior Care | 25 | 6.91x | 7.2% | | Home Services | 69 | 3.04x | 16.5% | | Financial Services | 8 | 2.55x | 19.8% | | Cleaning & Maintenance | 37 | 2.54x | 19.7% | | Automotive | 9 | 2.24x | 22.4% | | Retail | 29 | 1.98x | 25.2% | | Business Services | 19 | 1.64x | 30.5% | | Pet Services | 12 | 1.42x | 35.5% | | Child Services & Education | 30 | 1.17x | 42.7% | | Food & Beverage | 128 | 1.17x | 42.8% | | Health & Beauty | 29 | 1.08x | 46.2% | | Fitness & Wellness | 39 | 0.93x | 53.6% | That right-hand column is a model, not a disclosure. It contains exactly two inputs, both FDD-sourced: the Item 7 midpoint and the Item 19 median. It assumes no ramp, no debt service, and no owner draw, all of which make real payback slower. It is a ceiling on optimism. Read it that way and the standard answer collapses. Repaying Item 7 in 24 months would require a net margin above 20% at 327 of the 455 brands, or 71.9%. Above 25% at 286 of them. A senior care or home services buyer can hit the 12-24 month range on plausible economics. A fitness buyer is being told a timeline that would require keeping more than half of every revenue dollar as profit. The ordering survives the most generous possible reading. Run the same calculation against the **low** end of each Item 7 range rather than the midpoint, treating every buyer as the cheapest possible build, and fitness and wellness still needs 37.5%, food and beverage still needs 23.1%, and senior care drops to 5.3%. ## The Same Math, Sliced by Investment Size Category is one lens. Capital is the other, and it moves in the opposite direction from what most first-time buyers assume. | Item 7 midpoint | Brands | Median Item 7 midpoint | Median Item 19 revenue | Ratio | Net margin needed for 24-month payback | | --- | --- | --- | --- | --- | --- | | Under $100K | 39 | $64,900 | $147,096 | 2.57x | 19.5% | | $100K-$250K | 134 | $177,368 | $472,596 | 2.77x | 18.1% | | $250K-$500K | 97 | $369,602 | $601,671 | 1.69x | 29.5% | | $500K-$1M | 97 | $701,600 | $923,111 | 1.27x | 39.4% | | $1M+ | 88 | $1,621,938 | $1,692,504 | 0.85x | 58.7% | Revenue does not scale with capital. Moving from the $100K-$250K tier to the $1M+ tier multiplies the money at risk by roughly 9x while multiplying median unit revenue by roughly 3.6x. The ratio falls from 2.77x to 0.85x, and the required margin more than triples. Note also that the franchisor’s cut does not fall to compensate. Median royalty by tier runs 9.0%, 6.0%, 6.0%, 6.0%, and 5.0% from smallest to largest, with a median ad fund of 2.0% in every tier except the largest, where it is 2.2%. The largest investments carry the thinnest revenue coverage and near-identical fee loads. ## Four Real Brands, Four Different Answers Every figure below is from the brand’s most recent FDD in our library. Item 7 is the disclosed investment range, Item 5 the initial franchise fee, Item 6 the ongoing royalty and ad fund, Item 19 the disclosed median with its reported sample and unit population. ### Home Instead (FDD 2026): The Payback Test Clears Easily - Item 7: $92,640 to $350,550 (midpoint $221,595) - Item 5 initial fee: $54,000 - Royalty: 5% of Gross Sales. Ad fund: 2% - Item 19 median: $2,261,503 across 611 franchised units, “all franchised units,” calendar year 2025 Ratio: 10.21x. A 4.9% net margin returns the Item 7 midpoint in 24 months. The franchisor’s 7% take at that median is $158,305 a year, which is real money, and the unit still clears the payback test on modest margins because revenue dwarfs the capital required. [Senior care franchises](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities) top the category table for the same structural reason: the model is labor, not build-out. See the full [Home Instead FDD breakdown](https://vetmyfranchise.com/c/claude/franchise/home-instead-inc). ### Mr. Handyman (FDD 2026): The Fast End of Home Services - Item 7: $161,900 to $215,000 (midpoint $188,450) - Item 5 initial fee: $67,000 - Royalty: 7% of Gross Sales. Ad fund: 2% - Item 19 median: $972,424 across 341 units, “all franchised units,” January 1 to December 31, 2025 Ratio: 5.16x. A 9.7% net margin returns the Item 7 midpoint in 24 months; roughly 19% does it in 12. Royalty and ad fund together take $87,518 a year at that median. This is what the “12 months to profitability” claim looks like when it is actually supportable. More at [Mr. Handyman](https://vetmyfranchise.com/c/claude/franchise/mr-handyman-spv-llc) and in our [home services franchise guide](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide). ### Great Clips (FDD 2026): The Case That Breaks the Average - Item 7: $187,800 to $419,900 (midpoint $303,850) - Item 5 initial fee: $20,000 - Royalty: 6% of Biweekly Gross Sales. Ad fund: 5% - Item 19 median: $390,685 across 4,158 salons, “all franchised salons eligible to be open during the entire 2025 period” Ratio: 1.29x. A 38.9% net margin would be required to return the Item 7 midpoint in 24 months. Meanwhile 11% of every revenue dollar is contractually spoken for before rent, payroll, or product: $42,975 a year at the disclosed median. Add the payback requirement and roughly half of each revenue dollar is allocated before the first stylist is paid. This is the most instructive row in the dataset because Great Clips is widely described as a simple, low-drama, accessible franchise, and the sample is 4,158 salons rather than a handful of stars. The concept is not the problem. The ratio is. Full data on the [Great Clips FDD page](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc). ### Anytime Fitness (FDD 2026): Where 24 Months Is Not Arithmetic - Item 7: $539,329 to $905,482 (midpoint $722,406) - Item 5 initial fee: $42,500 - Royalty: up to 8% of Gross Revenue. Ad fund: $900 per month - Item 19 median: $398,982 across 1,656 “franchised centers using AF Coaching,” 12 months ended February 28, 2026 (75th percentile: $746,996) Ratio: 0.55x. Returning the Item 7 midpoint in 24 months would require a 90.5% net margin. No franchise category operates there. Even at the 75th percentile of the disclosed distribution the required margin stays above 48%. The honest read is that this is a five-year-plus payback asset, and any conversation that starts at “12 to 24 months” is describing a different business. [Anytime Fitness detail](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc). > **Want this run for the brand you are actually considering?** The 12-section FDD analysis pulls Item 7, Items 5 and 6, and the full Item 19 table into one payback model with a buyer verdict for your capital position: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or compare ratios across [2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises) first. ## Cheap Does Not Mean Fast The most persistent myth in this category is that low investment equals quick payback. The data does not support it as a rule, only as a tendency, and the exceptions are large. | Brand (FDD year) | Item 7 midpoint | Item 19 median | Sample | Ratio | Margin needed for 24-month payback | | --- | --- | --- | --- | --- | --- | | Jackson Hewitt (2025) | $59,950 | $86,880 | 2,663 units | 1.45x | 34.5% | | i9 Sports (2026) | $64,900 | $359,546 | 213 units | 5.54x | 9.0% | | Wingstop (2026) | $661,950 | $1,890,866 | 2,116 units | 2.86x | 17.5% | | Sport Clips (2026) | $408,650 | $416,189 | 1,645 units | 1.02x | 49.1% | Jackson Hewitt and i9 Sports sit within $5,000 of each other on Item 7 midpoint and are separated by a factor of 3.8 on revenue coverage. Wingstop costs roughly 10x either of them and still returns capital faster than Jackson Hewitt on this measure, because its median unit clears $1.89 million. Sport Clips costs 6.8x Jackson Hewitt and lands in a similar place. Jackson Hewitt’s royalty is disclosed as 3.0% to 15.0% with a 6.5% ad fund on Gross Volume of Business, so at the high end the franchisor’s share alone approaches a fifth of revenue. i9 Sports takes 7.5% plus 2%, or $34,157 a year at its median. Same investment tier, entirely different math. If speed is the priority, screen on the ratio, not the sticker. Our roundup of [quick-payback franchises](https://vetmyfranchise.com/c/claude/blog/quick-payback-franchises-2026-sub-3-year-roi) applies exactly this filter, and the [most profitable franchises to own](https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own) are frequently not the fastest. This is where most payback estimates quietly break, and it is the single most useful thing to check before you trust any timeline. Of the 455 brands analyzed, at least 152 (33.4%) restrict their reported Item 19 population with a maturity or qualification screen. The exact language matters: - **Sport Clips (2026):** “mature franchised stores with more than 2 years in operations” - **Wild Birds Unlimited (2026):** “franchised units open and operational for at least 24 months” - **Right at Home (2026):** “franchised offices open one year or more” - **Crumbl (2026):** “franchised units that operated continuously through all of 2025” - **Anytime Fitness (2026):** “franchised centers using AF Coaching” - **Club Pilates (2026):** “Qualified Studios” - **Merry Maids (2026):** “Qualified Franchises” - **Auntie Anne’s (2026):** “Enclosed Mall Franchises” Every one of those phrases removes the exact units you are asking about. A median calculated on stores with more than two years of operations tells you where you might land after the ramp, not what you will earn during it. Applying that median to month one overstates first-year cash flow, and every dollar of that overstatement pushes the real payback date later than the model says. Two habits fix this. First, read the segment line before the number. Second, prefer brands that break Item 19 out by unit age or tenure cohort, because the gap between the first-year cohort and the mature cohort is your ramp curve drawn from the franchisor’s own data. Our [year-one Item 19 benchmarks](https://vetmyfranchise.com/c/claude/blog/franchise-year-one-item-19-benchmarks) and the guide to [building a pro forma from the Item 19 tables](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) both work from that cohort split. Where a franchisor discloses quartiles, the distribution around the median is wide enough to move payback by years. | Brand (FDD 2026) | 25th percentile | Median | 75th percentile | Sample | | --- | --- | --- | --- | --- | | Budget Blinds | $340,525 | $522,826 | $921,140 | 282 | | Merry Maids | $253,140 | $427,425 | $644,057 | 306 | | Marco’s | $289,736 | $832,403 | $1,288,466 | 997 | | Dunkin’ | $952,914 | $1,297,694 | $1,703,007 | 7,010 | | Auntie Anne’s | $103,731 | $732,705 | $2,939,851 | 489 | Budget Blinds’ 75th percentile is 2.7x its 25th. Auntie Anne’s spans 28x between quartiles on 489 mall franchises. Modeling your payback off the median implicitly assumes you land in the middle of that distribution. Ask existing franchisees in your market which quartile the local units fall into before you accept the middle as your plan. ## The Franchisor’s Cut Comes Off the Top Royalty and ad fund are the two payback inputs buyers most often treat as rounding errors. In dollars, at each brand’s own Item 19 median, they are not. | Brand (FDD 2026) | Royalty | Ad fund | Combined | Annual cost at Item 19 median | | --- | --- | --- | --- | --- | | Wingstop | 6% | 5.5% | 11.5% | $217,450 | | Burger King | 4.5% | 4.5% | 9.0% | $151,664 | | Dunkin’ | 5.9% | 5.0% | 10.9% | $141,449 | | Crumbl | 8% | 2% | 10.0% | $109,307 | | Club Pilates | 8% | 2% | 10.0% | $97,830 | | Mr. Handyman | 7% | 2% | 9.0% | $87,518 | | Sport Clips | 6% | 5% | 11.0% | $45,781 | | Great Clips | 6% | 5% | 11.0% | $42,975 | | Wild Birds Unlimited | 4% | 1% | 5.0% | $39,048 | | Merry Maids | 7% | 1.3% | 8.3% | $35,476 | | Budget Blinds | 3.5% | none recorded | 3.5% | $18,299 | Budget Blinds and Wingstop differ by a factor of 3.3 on combined rate and by nearly $200,000 a year in absolute cost. These are not negotiable line items and they begin the month you open, which is why a brand with a modest ratio and a heavy fee load is the slowest configuration in the dataset. The full picture of what leaves the business is in [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) and our breakdown of [total ongoing franchise fees](https://vetmyfranchise.com/c/claude/blog/total-ongoing-franchise-fees-true-cost). ## Where “12 to 24 Months” Is Actually Right The generic range is not fabricated. It is just misapplied. It holds up where the ratio supports it: - **Senior care and non-medical home care.** Median 6.91x across 25 brands. Right at Home’s FDD 2026 shows a $1,334,579 median across 390 offices against a $135,284 Item 7 midpoint, requiring 5.1% net margin for a 24-month payback. - **Home services and restoration.** Median 3.04x across 69 brands. Stanley Steemer’s FDD 2026 shows a $1,179,370 median across 208 units against a $342,715 midpoint, requiring 14.5%. - **[Cleaning and janitorial](https://vetmyfranchise.com/c/claude/blog/cleaning-janitorial-franchise-guide).** Median 2.54x across 37 brands, with a 19.7% required margin. Low build-out and recurring contracts are what produce the ratio. Where it does not hold: fitness and wellness (0.93x), health and beauty (1.08x), food and beverage (1.17x). In those three categories, covering 196 of the 455 brands, the median unit would need to clear a 42% to 54% net margin to repay Item 7 in two years. Treat any 12-24 month claim in those categories as a claim about operational breakeven at best, not capital recovery. Keep the two milestones separate: - **Operational breakeven:** monthly revenue exceeds monthly expenses. This is what most franchise sales conversations mean. - **[Total investment](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) payback:** cumulative profit equals the Item 7 total. This is what the tables above measure, and it is the number that determines whether the deal was worth doing. ## How to Run This for Your Brand Four numbers, all disclosed, no estimates required: 1. **Item 7 total investment.** Use the midpoint of the range, and check the “additional funds” line inside it. That line covers only the short initial period the franchisor states, and it is not a full ramp reserve. See our [Item 7 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment). 2. **Item 19 median unit revenue**, plus the segment line describing which units are included. If Item 19 is absent, as it is for 664 of the 2,126 FDDs we analyzed, you cannot do this calculation and neither can the salesperson. Read [what Item 19 is and is not](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). 3. **Items 5 and 6:** the initial fee, royalty rate, and ad fund. Convert the percentages to dollars at the Item 19 median so the cost is concrete. 4. **Item 20:** unit counts, transfers, and terminations. A brand with a strong ratio and heavy early-year closures is telling you the median is not being achieved by the people who bought in most recently. Our [Item 20 guide](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) covers how to read the tables, and the [franchise failure rate data](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) puts closure counts in context. Then divide. Item 19 median ÷ Item 7 midpoint gives you the ratio. Item 7 midpoint ÷ (2 × Item 19 median) gives you the net margin a unit would have to clear for a 24-month payback. If that number is above 25%, the brand’s own disclosures are telling you the two-year story is not on the table. ## The Runway You Actually Need Item 7 is the cost of opening. It is not the cost of surviving until the ratio starts working for you. - **Item 7 total:** whatever the FDD discloses (example: $200,000) - **Working capital reserve:** 6-12 months of operating expenses ($60,000-$120,000) - **Personal living expenses:** 12-18 months of household costs assuming no franchise income ($60,000-$90,000) - **Contingency:** 10-15% of the total ($30,000-$45,000) A $200,000 Item 7 realistically requires $350,000 to $455,000 in available capital. Undercapitalization is the mechanism behind most delayed paybacks: run out of cash at month eight and you stop funding the marketing that drives the ramp, which extends the ramp, which drains more cash. If you are financing, model the payment before you sign. An SBA 7(a) loan at 2026 prime-linked rates is a fixed monthly cost that lands on top of rent, labor, and the royalty and ad fund figures above, and it does not wait for revenue to ramp. Our [cash-flow stress test at 2026 SBA rates](https://vetmyfranchise.com/c/claude/blog/franchise-cash-flow-stress-test-2026-sba-rates) shows how a higher payment reshapes the first two years, and the [due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) covers what to validate with existing franchisees before you commit. For the underlying investment and revenue benchmarks by sector, see the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). To compare ratios directly, browse [2,000+ franchise profiles](https://vetmyfranchise.com/c/claude/franchises), each built from the brand’s own Item 7 and Item 19 disclosures. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) franchise profitability timelinehow long until franchise profitablefranchise breakevenfranchise ROI timelineitem 19 payback analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How long does it take for a franchise to break even? It depends on the ratio between Item 7 investment and Item 19 revenue, which varies by roughly 7x across categories. Across 455 FDDs that disclose both, senior care brands show a median Item 19 revenue of 6.91x their Item 7 midpoint and would need a 7.2% net margin to repay the investment in 24 months. Fitness and wellness brands show 0.93x and would need 53.6%. The commonly cited 12-24 month range is realistic for the first group and arithmetically out of reach for the second. ### What franchise categories pay back fastest? Senior care leads by a wide margin. Across 25 senior care brands with usable Item 19 data, the median unit generates 6.91x the Item 7 midpoint in annual revenue. Home services follows at 3.04x (69 brands), financial services at 2.55x (8 brands), and cleaning and maintenance at 2.54x (37 brands). Home Instead's FDD 2026 shows a $2,261,503 median across 611 franchised units against a $221,595 Item 7 midpoint, a 10.2x ratio. ### Can a franchise really become profitable in 12 months? For a low-overhead service brand, yes. Mr. Handyman's FDD 2026 discloses a $972,424 Item 19 median across 341 units against a $188,450 Item 7 midpoint, so a 9.7% net margin would repay the full investment in 24 months and roughly 19% would do it in 12. For a capital-heavy brand the same math breaks. Burger King's FDD 2026 shows a $1,685,154 median across 4,730 traditional franchised restaurants against a $2,784,900 Item 7 midpoint, which would require an 82.6% net margin to repay in 24 months. ### Does the FDD tell you how long until a franchise is profitable? Not as a disclosed number, and franchisors are prohibited from projecting one outside Item 19. But Item 7 gives you the capital at risk, Item 19 gives you unit revenue where disclosed, and Items 5 and 6 give you the royalty and ad fund that come off the top. Those four figures let you calculate the net margin a unit would have to clear to repay the investment on any timeline you pick. Item 20 then tells you how many franchisees did not last long enough to find out. ### Why is the Item 19 median not the same as a first-year number? Because a third of Item 19 tables exclude new units. Of the 455 brands analyzed, at least 152 restrict the reported population to units meeting a maturity or qualification screen. Sport Clips (FDD 2026) reports on "mature franchised stores with more than 2 years in operations." Wild Birds Unlimited (FDD 2026) reports on units "open and operational for at least 24 months." Anytime Fitness (FDD 2026) reports on "franchised centers using AF Coaching." The disclosed median describes the survivors, not your first twelve months. ### How much money do I need in reserve when opening a franchise? Beyond your Item 7 total, plan for 6-12 months of business operating expenses as working capital, 12-18 months of personal living expenses assuming no franchise income, and a 10-15% contingency buffer. A franchise with $200,000 in Item 7 costs realistically requires $350,000-$455,000 in total available capital. Note that Item 7 already contains an "additional funds" line, but it covers only the short initial period the franchisor states and almost never covers a full ramp. ### Do royalty and ad fund payments delay the payback date? They reduce every revenue dollar before you see it. At Wingstop's FDD 2026 Item 19 median of $1,890,866, the 6% royalty and 5.5% ad fund total $217,450 a year. At Great Clips' $390,685 median, the 6% royalty and 5% ad fund total $42,975. At Burger King's $1,685,154 median, the 4.5% royalty and 4.5% ad fund total $151,664. Those are contractual, they start when you open, and they do not wait for the unit to ramp. ### How do SBA loan payments affect when a franchise becomes profitable? SBA loan payments push owner-income breakeven later because the payment is a fixed cost sitting on top of rent, labor, and royalties that does not wait for revenue to ramp. Most buyers use an SBA 7(a) loan with a variable rate tied to the prime rate plus a lender spread, and with prime elevated through 2026, debt service takes a larger bite of early cash flow than it did in the cheap-money years. The larger your loan relative to Item 7, the longer full payback takes. --- title: "Most Profitable Franchises 2026: 660 Item 19 Medians" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-18 dateModified: 2026-07-25 keywords: most profitable franchises, most profitable franchises to own, highest profit margin franchises, profitable franchise to buy, franchise profit by industry, high roi franchises canonical: https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own about: most profitable franchises category: blog wordCount: 2919 readingTime: 15 min crawledAt: 2026-08-20 11:03:13 lastVerified: 2026-08-20 11:03:13 site: https://vetmyfranchise.com/c/claude/ --- # Most Profitable Franchises 2026: 660 Item 19 Medians ## Summary Median Item 19 revenue per invested dollar across 660 franchise systems' 2024-2026 FDDs. Senior care leads at 4.36x, food and beverage trails at 1.25x. ## Key facts - We analyzed Item 19 disclosures across 2,280 franchise systems’ 2024-2026 FDDs in the VetMyFranchise database, then narrowed to the systems where the disclosure yields a comparable number. - For a single brand, we ranked established systems, defined as those with at least 100 franchised units, by revenue per invested dollar. - The inverse list is more useful than it sounds, and nobody publishes it. - Two things hide inside every figure above. - Once you have narrowed to a category and a few brands, the work shifts from ranking to rebuilding. Quick answer Across 660 franchise systems with a parseable Item 19 median in their 2024-2026 FDDs, the median unit turns $408,700 of investment into $755,100 of annual revenue, or $1.58 per invested dollar. Senior care leads all industries at 4.36x and fitness trails at 0.93x. Item 19 discloses revenue, never owner profit. Search “most profitable franchises” and you get a list of logos. The lists rarely agree, almost never cite a source, and none of them show their work. So we did the arithmetic instead. This post ranks franchise industries and brands on two numbers taken directly from official Franchise Disclosure Documents: the median revenue figure a franchisor discloses in Item 19, and the total initial investment range it discloses in Item 7. Data as of July 2026. Three findings stand out. First, across the 660 systems with a usable Item 19 median in their 2024-2026 FDDs, the median unit reports **$755,100 in annual revenue against a $408,700 median investment**, or $1.58 of revenue per invested dollar. Second, ranking industries by revenue and ranking them by revenue-per-dollar produce nearly opposite lists: food and beverage posts the highest median revenue of any large category ($1,047,115 across 217 systems) and the second-worst capital efficiency (1.25x). Third, **154 of those 660 systems report a median unit revenue below their own median cost to open a unit.** In fitness and wellness, that describes 28 of 51 systems. None of these numbers are profit. Item 19 discloses revenue, and the gap between the two is where most franchise buyers lose money. We come back to that repeatedly below, because it is the single most important caveat attached to every figure on this page. ## How we measured this We analyzed Item 19 disclosures across 2,280 franchise systems’ 2024-2026 FDDs in the VetMyFranchise database, then narrowed to the systems where the disclosure yields a comparable number. **Inclusion criteria.** A system is in the core set (n=660) if it is an active, non-duplicate record with a 2024, 2025 or 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document); if Item 19 produced a parseable median annual revenue figure of at least $50,000; and if our extraction judge did not mark that figure unsupported by the source document. The $50,000 floor removes 16 records whose parsed value is implausible as annual unit revenue, such as a national gym system that came through at $1,759. We also drop rows where the Item 7 range tops out at or below the franchise fee alone, which is arithmetically impossible and flags a corrupted parse. That guard removed four systems, including one whose live investment range still reads $2,500 to $3,500 against a $34,000 franchise fee. **Investment.** We use the midpoint of each system’s Item 7 low-to-high total initial investment range. Ratios are computed per system, then the median of those per-system ratios is reported, so one enormous outlier cannot carry a category. **Disclosure is voluntary, and coverage is uneven.** Of 2,280 systems with a 2024-2026 filing, 1,579 include an Item 19 at all. Only 828 of those produce a single systemwide revenue figure our pipeline can compare; the rest disclose segment tables, gross-profit lines, expense-only models or per-territory data that does not reduce to one number. So the 660-system core set is not a census of franchising. It is the subset that chose to publish a comparable revenue figure, which is already a self-selected group of more confident systems. **Item 19 reports revenue, not owner profit.** A franchisor does not know your rent, your wage market or your debt load, so it cannot disclose your bottom line. Every dollar figure in this post is top-line revenue. **Survivorship bias is real and measurable.** Franchisors choose the reporting group. Across the 587 systems where we can compare the Item 19 sample size to the franchised unit count, the median disclosure covers 79% of units, but 255 of them (43%) report on fewer than three-quarters, and 124 (21%) report on fewer than half. Systems that closed units mid-year, or that never got a struggling location past its first twelve months, are frequently outside the reporting group by construction. We unpack the mechanics in [average vs median and survivorship bias in Item 19](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) and walk one system’s numbers line by line in [the Subway Item 19 survivorship-bias breakdown](https://vetmyfranchise.com/c/claude/blog/subway-item-19-survivorship-bias-explained). **Small samples stay out of the headline table.** Six industries have fewer than 15 qualifying systems and are excluded from the ranking below: staffing and HR (n=4, 11.68x median ratio), technology (n=4, 3.18x), hospitality and travel (n=7, 1.29x), financial services (n=8, 2.55x), real estate (n=9, 2.38x) and a small “other” bucket (n=5, 0.64x). Treat those as directional only. Here is the core table: every industry with at least 15 qualifying systems, ranked by the median Item 19 revenue figure its systems disclose. The last two columns are the ones the logo lists never show. | Industry | Systems (n) | 25th pct revenue | Median revenue | 75th pct revenue | Median investment | Revenue per invested $ | Share of systems with revenue below cost to open | | --- | --- | --- | --- | --- | --- | --- | --- | | Automotive | 16 | $618,915 | $1,147,736 | $1,454,122 | $450,625 | 2.11x | 13% | | Food & Beverage | 217 | $727,535 | $1,047,115 | $1,596,761 | $764,250 | 1.25x | 30% | | Senior Care | 34 | $409,741 | $927,582 | $1,365,270 | $185,687 | 4.36x | 3% | | Retail | 39 | $436,114 | $780,955 | $1,067,313 | $387,150 | 2.10x | 10% | | Health & Beauty | 37 | $438,909 | $587,086 | $862,165 | $570,330 | 1.08x | 35% | | Home Services | 93 | $318,744 | $549,358 | $1,033,748 | $185,925 | 3.01x | 6% | | Child Services & Education | 45 | $219,449 | $541,256 | $1,301,531 | $362,592 | 1.28x | 27% | | Fitness & Wellness | 51 | $398,982 | $515,779 | $807,976 | $619,578 | 0.93x | 55% | | Cleaning & Maintenance | 47 | $339,352 | $500,496 | $688,694 | $227,650 | 2.42x | 15% | | Pet Services | 15 | $147,096 | $390,448 | $826,432 | $383,617 | 1.53x | 20% | | Business Services | 29 | $158,316 | $340,250 | $592,916 | $125,332 | 2.16x | 14% | _Item 19 median annual revenue per unit and Item 7 total investment midpoint, VetMyFranchise FDD database, 2024-2026 filings, data as of July 2026. Revenue figures are not profit._ Read the table twice. The first read, down the revenue column, produces the ranking every other article publishes: automotive and food and beverage on top, business services and pet services at the bottom. The second read, down the revenue-per-dollar column, reorders almost everything. Senior care jumps from third to first because its median system asks for $185,687 and reports $927,582. Food and beverage falls from second to tenth because its median system asks for $764,250, the second-highest capital requirement in the table, to produce $1,047,115. That is not a margin argument, and we are careful not to make one. Revenue per invested dollar measures capital efficiency, not profitability. A senior care agency at 4.36x still pays out most of its revenue in caregiver wages. But capital efficiency is the part of profitability the FDD can actually prove, and it is the part that determines how much of your own money is exposed if the unit underperforms. The spread inside a category is also wider than the gap between categories, which is the caveat that keeps this table honest. Food and beverage runs from $469,711 at the 10th percentile to $2,434,728 at the 90th. Home services runs from $165,307 to $1,398,994. Picking the right industry narrows your odds; it does not pick your brand. ## What is the most profitable franchise to own? For a single brand, we ranked established systems, defined as those with at least 100 franchised units, by revenue per invested dollar. Established systems matter here because a 6-unit brand with a flattering ratio has told you almost nothing. | Brand | Industry | Franchised units | Item 19 median revenue | Item 7 investment | Revenue per invested $ | Reporting group | FDD year | | --- | --- | --- | --- | --- | --- | --- | --- | | Premier Pools & Spas | Home Services | 125 | $3,052,327 | $58,950–$122,190 | 33.70x | 104 units open all of 2025 | 2026 | | Pop-A-Lock | Automotive | 309 | $4,637,356 | $117,565–$190,610 | 30.10x | top 30% of franchisees owning 5+ outlets | 2026 | | ActiKare | Senior Care | 150 | $879,976 | $32,530–$57,550 | 19.54x | 54 units, 35+ hrs/week, 24+ months, same owner | 2026 | | Precision Garage Door Service | Home Services | 147 | $4,925,952 | $164,285–$360,294 | 18.78x | 116 units open the full 52 weeks | 2026 | | SYNERGY HomeCare | Senior Care | 626 | $1,763,025 | $80,245–$164,091 | 14.43x | 523 units open 1+ year | 2026 | | POOLWERX | Home Services | 107 | $1,613,596 | $105,400–$140,525 | 13.12x | 31 units running mobile plus retail | 2026 | | iTrip | Real Estate | 105 | $1,767,339 | $119,400–$153,000 | 12.98x | 100 units, all franchised | 2026 | | Superior Fence & Rail | Home Services | 310 | $2,598,212 | $134,400–$278,300 | 12.59x | 93 single and multi-territory franchisees | 2026 | | Griswold | Senior Care | 114 | $1,492,691 | $99,600–$180,600 | 10.65x | 59 units | 2026 | | Home Instead | Senior Care | 626 | $2,261,503 | $92,640–$350,550 | 10.21x | 611 units, all franchised | 2026 | | Right at Home | Senior Care | 566 | $1,334,579 | $94,330–$176,239 | 9.86x | 390 offices open 1+ year | 2026 | | ReBath | Home Services | 145 | $2,548,254 | $275,875–$606,925 | 5.77x | 113 units open a full year | 2026 | _All figures from each brand’s own 2025 or 2026 FDD as extracted in the VetMyFranchise database, data as of July 2026._ The “reporting group” column is the one to read first, because it is where the ranking earns or loses its credibility. Home Instead discloses on 611 of its 626 franchised units, so its $2,261,503 median describes essentially the whole system. Pop-A-Lock discloses on the **top 30% of franchisees who own five or more outlets**, which is a different claim entirely: its $4,637,356 is a figure about high-performing multi-unit veterans, not about the unit you would open. POOLWERX reports on 31 of 107 units, Superior Fence & Rail on 93 of 310, and ActiKare on owner-operated units running full-time under the same owner for two years. Every one of those filters is legal and disclosed. Every one also removes the units most likely to be struggling. The pattern underneath the table is consistent with the industry data: eleven of these twelve systems are senior care, home services or real estate, and every one asks for less than $610,000 at the top of its Item 7 range. Capital efficiency in franchising comes from not needing a building. ## The systems where revenue does not cover the cost to open The inverse list is more useful than it sounds, and nobody publishes it. These are large, recognizable systems whose disclosed median unit revenue is at or below their own median investment. Every figure is the franchisor’s own 2025 or 2026 disclosure. | Brand | Industry | Item 19 median revenue | Item 7 investment | Revenue per invested $ | Reporting group | | --- | --- | --- | --- | --- | --- | | Buffalo Wild Wings | Food & Beverage | $3,433,937 | $2,463,945–$4,900,320 | 0.93x | all 532 franchised units | | Crunch Fitness | Fitness & Wellness | $2,848,462 | $2,147,500–$5,367,000 | 0.76x | 331 units open 12-59 months | | Applebee’s | Food & Beverage | $2,822,904 | $616,682–$5,822,933 | 0.88x | 1,351 units | | The Learning Experience | Child Services & Education | $2,168,511 | $805,799–$5,658,799 | 0.67x | 266 units | | Kiddie Academy | Child Services & Education | $2,075,740 | $590,000–$8,530,000 | 0.46x | 293 mature academies open 24+ months | | Planet Fitness | Fitness & Wellness | $1,863,300 | $1,282,500–$5,386,000 | 0.56x | 2,291 units, middle third | | Burger King | Food & Beverage | $1,685,154 | $2,249,200–$3,320,600 | 0.61x | 4,730 traditional franchised restaurants | | Tommy’s Express Car Wash | Automotive | $1,749,041 | $3,482,389–$7,529,460 | 0.32x | 197 outlets open 12+ months | A ratio under 1.0 does not mean these are bad businesses. Several are excellent ones. It means the capital intensity is high enough that revenue takes more than a year to equal the check you wrote, so the payback math depends entirely on margin and on how long you hold the asset. It also means that if the unit lands at the 25th percentile instead of the median, the hole is deep and the fixed costs do not shrink to match. That is the risk a revenue-ranked list hides completely. Worth noting on this table: Planet Fitness discloses the **middle third** of its franchised units, a genuinely useful framing that a lot of systems avoid. Kiddie Academy discloses mature academies open 24 months or more. Both are narrower than “all units,” and both are clearly labeled in the FDD. ## Why Item 19 revenue is not profit Two things hide inside every figure above. The first is that it is revenue, so the entire cost stack is yours to subtract: cost of goods or materials, labor, occupancy, the Item 6 fee load, and debt service. The median royalty across our 2024-2026 set is **6.0% of gross sales** (n=1,143 systems with a single flat percentage disclosed), and it is charged on revenue in a losing month exactly as it is in a winning one. Our breakdown of the [true cost of ongoing franchise fees](https://vetmyfranchise.com/c/claude/blog/total-ongoing-franchise-fees-true-cost) shows how that stack compounds against a thin margin. The second is that an average or median can be dragged upward by strong units and by the choice of who counts. Both effects point the same way: they make a brand look more profitable than the middle owner experiences. We catalogue the specific mechanisms, from selective sampling to top-quartile framing to missing cost lines, in [Item 19 red flags and misleading data](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data). The honest version of profitability is two numbers multiplied: the margin the category supports, and what you keep after paying yourself a market-rate salary for the hours you actually work. If you work 60 hours a week in your own store, part of what feels like profit is really wages. We walk through that wage adjustment and what counts as a healthy result in [what makes a good franchise cash-on-cash return](https://vetmyfranchise.com/c/claude/blog/good-franchise-cash-on-cash-return), and we run the full revenue-to-take-home waterfall on these same medians in [how much franchise owners actually make](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make). The short version: the median disclosed system’s $755,100 of revenue leaves roughly $54,000 of owner return once a manager’s wage and debt service on 70% of the investment come out. ## How to verify a specific brand Once you have narrowed to a category and a few brands, the work shifts from ranking to rebuilding. Take the brand’s Item 19 top line, check the reporting group the way we did in the tables above, haircut it for a realistic first-year single unit, layer in cost of goods, labor and occupancy as a percentage of sales, subtract the Item 6 fee stack and your debt service, and only then pay yourself. Our walkthrough on how to [build a pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) takes that line by line, and our [franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) filters brands by investment level so you are only weighing concepts whose economics could plausibly clear your number. If you want the rebuild done for you, our $49 Tier 2 report on [our pricing page](https://vetmyfranchise.com/c/claude/pricing) reconstructs a specific brand’s unit economics from its own FDD, including the reporting-group check. The aggregates on this page tell you where to look. They cannot tell you what one unit in your market will earn, and any page that claims otherwise is selling you something. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) most profitable franchisesmost profitable franchises to ownhighest profit margin franchisesprofitable franchise to buyfranchise profit by industryhigh roi franchises About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the most profitable franchise to own? No single brand wins for every buyer, but the data narrows it sharply. Across 660 systems in our 2024-2026 FDD set, senior care returns the most revenue per invested dollar at a 4.36x median, followed by home services at 3.01x and cleaning at 2.42x. Among established systems, Premier Pools & Spas reports the highest ratio we found: a $3,052,327 median on a $59,000 to $122,190 investment. ### Which franchise industries have the highest median revenue? By median Item 19 revenue across our 2024-2026 set: automotive $1,147,736 (n=16), food and beverage $1,047,115 (n=217), senior care $927,582 (n=34), retail $780,955 (n=39) and health and beauty $587,086 (n=37). Revenue rank is not profit rank. Food and beverage also carries the second-highest median investment at $764,250, which is why its capital efficiency lands near the bottom. ### How do I know if a franchise is actually profitable? Start with Item 19, then treat it as a revenue figure. Subtract cost of goods, labor, occupancy, the Item 6 royalty and ad-fund stack, debt service and a market-rate salary for the hours you will personally work. The median royalty in our 2024-2026 set is 6.0% of gross sales (n=1,143), charged on revenue whether or not you make money. ### Does a high-revenue franchise mean high profit? No. Buffalo Wild Wings reports a $3,433,937 median revenue on a $2.46M to $4.90M investment, a ratio of 0.93. Precision Garage Door Service reports $4,925,952 on a $164,285 to $360,294 investment, a ratio of 18.78. Both are real Item 19 figures from 2026 FDDs. Revenue tells you the size of the machine, not what it returns on the capital you put in. --- title: "FDD Item 6 Other Fees: Recurring Franchise Costs Explained" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-08-04 keywords: item 6, franchise fees, other fees, fdd, financial analysis canonical: https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees about: item 6 category: blog wordCount: 2243 readingTime: 11 min crawledAt: 2026-08-20 11:06:50 lastVerified: 2026-08-20 11:06:50 site: https://vetmyfranchise.com/c/claude/ --- # FDD Item 6 Other Fees: Recurring Franchise Costs Explained ## Summary How to read FDD Item 6 — recurring franchise fees, technology fees, training fees, transfer fees, and the line items most buyers overlook. ## Key facts - Most franchise buyers see “royalty 6%” and “ad fund 2%” in Item 6 of the [franchise disclosure document](https://vetmyfranchise. - Item 6 must disclose every fee a franchisee may have to pay during the term of the franchise agreement. - The fastest-growing Item 6 line item. - After reading enough Item 6 disclosures, a few patterns warrant scrutiny: - Item 6 is the section that separates franchise buyers who project total cost of ownership accurately from those who get surprised by their P&L 18 months in. Quick answer FDD Item 6 lists every recurring and situational fee, typically 12 to 25 line items beyond royalty and ad fund. Technology fees run $200-$800 monthly, transfer fees are 25%-50% of the original franchise fee, audit fees $5,000-$25,000, and renewal 25%-100% of the current fee. Total Item 6 cost often exceeds 10-15% of cumulative revenue over 10 years. ## Why Item 6 Is the Most Underread Section in the FDD Most franchise buyers see “royalty 6%” and “ad fund 2%” in Item 6 of the [franchise disclosure document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) and stop reading. That’s the problem. The royalty and ad fund lines are what franchisors talk about; the rest of Item 6 is where the surprises live. A typical Item 6 table has between 12 and 25 line items. Royalty and ad fund are usually the first two. The remaining 10–23 lines describe technology fees, training fees, audit fees, transfer fees, renewal fees, late payment penalties, software access fees, supplier-administration fees, and a long tail of situational charges that can add tens of thousands of dollars to the total cost of ownership over a 10-year term. The buyers who succeed long-term are the ones who model **all** of Item 6 into their five-year cash projection. The buyers who get surprised by their actual cost structure are the ones who only modeled the royalty and ad fund. ## What the FTC Requires Item 6 to Disclose Item 6 must disclose every fee a franchisee may have to pay during the term of the franchise agreement. For each fee, the disclosure must include: - The name and amount (or formula) of the fee - The due date or trigger - The recipient - A brief description of what the fee covers - Any notes on adjustment, refundability, or applicability Item 6 is presented as a table for readability. Most FDDs use a standardized format that makes line-by-line reading feasible. ## The 15 Item 6 Fees Buyers Most Often Overlook ### 1\. Technology Fee The fastest-growing Item 6 line item. Typical 2026 ranges: - QSR / restaurant: $300–$700/month - Fitness / wellness: $200–$500/month - Home services / van-based: $150–$400/month - Retail: $200–$500/month Read carefully whether this fee covers required software, hardware, or both. Some franchisors charge a flat monthly tech fee plus require franchisees to separately purchase or lease the actual hardware (POS terminals, kitchen displays, network equipment) — meaning the monthly fee in Item 6 understates the true tech cost. ### 2\. Training Fees Beyond Initial Training Initial training is typically included in the franchise fee disclosed in [Item 5](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure). But training for new managers, new locations, or required ongoing training is often a separate fee. Common pattern: $1,500–$3,000 per attendee for the franchisor’s training program, plus travel, lodging, and salaries to send your staff. ### 3\. Marketing Cooperative Fees Beyond the national ad fund, some franchisors require franchisees in defined geographic regions to contribute to a regional marketing cooperative. Typical: 0.5%–1% of revenue, paid to the cooperative. ### 4\. Local Advertising Spend Requirements Some FDDs require a minimum local advertising spend (separate from the national ad fund). Typical: 1%–3% of revenue, paid to your own local marketing efforts but with documentation requirements and franchisor approval of media plans. ### 5\. Transfer Fees When you sell your franchise (often after 5–10 years of ownership), you typically owe a transfer fee. Standard ranges: - 25%–50% of the original franchise fee — most common - Flat $10,000–$25,000 — older or simpler franchise systems - 1%–3% of the sale price — newer, sophisticated systems Transfer fees are often presented as routine but can be material when you exit. A $35,000 transfer fee on the sale of a $1.2M business is real money to a buyer or seller. ### 6\. Audit Fees If the franchisor audits your books and finds discrepancies in royalty reporting (typically more than 2–5% under-reporting), you owe a separate audit fee on top of the corrective royalty. Common ranges: $5,000–$25,000 plus expenses. ### 7\. Late Payment Fees and Interest Most royalty and ad fund payments are due weekly or monthly. Late payments typically trigger: - Late fee: $50–$250 per occurrence - Interest: 1.5%–2.0% per month on the unpaid balance (which compounds quickly) ### 8\. Renewal Fees At the end of your initial term (typically 10 years), you may have the option to renew. Renewal often requires: - A renewal fee: 25%–100% of the then-current franchise fee - Updated training: separate cost - Required remodel or refresh: substantial separate cost (often $25K–$150K depending on category) Read [Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination) carefully for the full renewal-cost picture. ### 9\. Required Inspection Fees Some franchisors charge fees for periodic inspections of your location. Typical: $500–$1,500 per visit, with 1–2 visits per year mandated. ### 10\. Required Refresh / Remodel Most franchise agreements require periodic remodels (typically every 5–7 years). The cost is borne by the franchisee, not disclosed as a fee in Item 6, but may be referenced. Cost range varies wildly — $25K for service-business refreshes, $150K+ for full restaurant remodels. ### 11\. Insurance Requirements The franchisor will require specific insurance coverages with specific limits, often through approved providers. Cost is paid to insurance companies, not to the franchisor, but factor it into your operating cost: typically $200–$800/month depending on category and location. ### 12\. Supplier Administration Fees Some franchisors charge approved suppliers a “rebate” or administrative fee that’s effectively passed through to franchisees in supplier prices. This can show up in Item 6 as a separate fee or be embedded in [Item 8](https://vetmyfranchise.com/c/claude/blog/fdd-item-8-supply-chain-vendor-requirements) supplier disclosures. ### 13\. Mystery Shopper / Compliance Fees Larger franchise systems use mystery shoppers and compliance audits. Typical: $50–$150 per shop, with multiple shops per year mandated. Failed shops can trigger remediation requirements. ### 14\. Initial Inventory Re-Order Fee Some franchisors charge a fee for reordering proprietary inventory beyond the initial stock. Usually small, but adds up over a 10-year term. ### 15\. Post-Term Audit Fee At the end of your franchise agreement (whether through expiration, transfer, or termination), the franchisor often performs a final audit. The cost is borne by the franchisee. Typical: $5K–$15K. The national ad fund is the line everyone reads. It is rarely the whole marketing bill. Once you add the local spend requirement, the regional co-op, the mandated digital or technology marketing fee, and the one-time grand opening package, the combined obligation is usually two to three times the headline percentage. | Advertising fee type | Typical range | Who controls it | Transparency | | --- | --- | --- | --- | | National ad fund | 1% – 4% of gross revenue | Franchisor | Varies; some publish annual reports, many do not | | Local ad spend requirement | 1% – 3% of gross revenue | Franchisee, subject to franchisor approval | High, you direct the spend | | Regional co-op | 0.5% – 2% of gross revenue | Co-op committee | Moderate, committee oversight | | Technology / digital marketing fee | $200 – $1,500 per month | Franchisor | Low to moderate | | Grand opening marketing | $10,000 – $50,000 one-time | Franchisor-directed | Varies by system | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ Add those together and many systems land between **3% and 7% of gross revenue** in total marketing obligations. On a unit doing $1 million, that is $30,000 to $70,000 a year, which is a cost line most buyers never model separately from the royalty. ### Cross-check Item 6 against Item 11 Item 6 tells you what you pay. [Item 11](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) tells you what the franchisor owes you in return, and it is the section that reveals whether the ad fund is accountable. Look specifically for whether the franchisor must provide an annual audited accounting of fund expenditures, whether it contributes fund dollars from its own company-owned locations, what share of the fund may be spent on administrative overhead rather than media, and who controls creative and media buying. A fund with no reporting obligation in Item 11 is a fee you pay into a black box. Four questions worth putting to existing franchisees during validation, because they separate a fund that works from one that only collects: - Do you see a direct impact from national advertising in your market? - What share of your customers mention seeing brand advertising? - Does the franchisor share performance data on ad spend? - If you could opt out of the ad fund, would you? The last one is the honest satisfaction test. A 2% fund that produces measurable traffic is worth far more than a 1% fund that produces nothing. ## How to Model Item 6 in Your Cash Projection A pragmatic approach: | Fee Type | How to Model | | --- | --- | | Royalty | % of revenue, monthly, full term | | Ad Fund | % of revenue, monthly, full term | | Technology | Fixed monthly amount, full term | | Training (recurring) | One-time per new hire, estimated turnover | | Transfer Fee | One-time at exit (year 10 in most models) | | Audit Fee | Skip in base case; sensitivity test at $25K | | Renewal Fee | One-time at year 10, plus remodel cost | | Insurance | Fixed monthly, full term | | Marketing Coop / Local | % of revenue, monthly, full term | Build all of these into your 10-year P&L projection. The total Item 6 fee cost over 10 years often exceeds 10–15% of cumulative revenue, materially more than the headline royalty rate suggests. One framing that makes the royalty land properly: it is charged on _gross_ sales, but you pay it out of _net_ profit. At a 30% gross margin, a 6% royalty consumes roughly a fifth of your gross profit before any operating cost. Expressed against typical net profit, the same rate looks very different at different revenue levels: | Annual gross sales | Royalty rate | Annual royalty | Share of typical net profit | | --- | --- | --- | --- | | $500,000 | 6% | $30,000 | 30-60% | | $1,000,000 | 6% | $60,000 | 25-40% | | $2,000,000 | 6% | $120,000 | 20-30% | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ The pattern matters more than the exact percentages. Royalty burden is most punishing at low volume, which is precisely where a new unit spends its first two years. ## Common Item 6 Red Flags After reading enough Item 6 disclosures, a few patterns warrant scrutiny: - **A long list of fees with vague triggers**: Open-ended fee structures give the franchisor flexibility you may not want - **A technology fee that has increased rapidly in recent FDDs**: Read prior years’ FDDs (often available from prior franchisees) to see the trend - **A transfer fee structure that escalates dramatically with franchise value**: Some franchisors recently shifted from flat to percentage-based transfer fees, which can be punitive on successful franchises - **An audit fee tied to small under-reporting thresholds**: A 2% threshold is much harsher than a 5% threshold and rewards aggressive franchisor audit behavior - **Multiple supplier-administration fees that effectively pass through to franchisees**: Inflates true royalty equivalent - [Item 5](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure): Initial franchise fee — paid once at signing - [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): Total initial investment, including up-front costs - [Item 8](https://vetmyfranchise.com/c/claude/blog/fdd-item-8-supply-chain-vendor-requirements): Required purchases and approved suppliers - [Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination): Renewal terms and fees > **Want a 12-section deep-dive on the franchise you’re considering?** A [$49 Research Report](https://vetmyfranchise.com/c/claude/franchises) from VetMyFranchise models all of Item 6 into a 10-year cash projection so you can see the true total cost of ownership before signing. ## Bottom Line Item 6 is the section that separates franchise buyers who project total cost of ownership accurately from those who get surprised by their P&L 18 months in. The royalty and ad fund are visible and easy to model. The other 15 fees are where margin quietly disappears. Build every line of Item 6 into a 10-year P&L projection, ask the franchisor specifically about the trajectory of technology and training fees in their last three FDD updates (the trend matters more than the snapshot), and stop thinking of the fee schedule as small print. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) item 6franchise feesother feesfddfinancial analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Item 6 in a Franchise Disclosure Document? Item 6 is the section of the FDD that lists every recurring fee, periodic payment, and on-demand fee that a franchisee may have to pay during the term of the agreement. It is presented as a table with the fee name, amount or formula, due date, and description. It includes royalties, advertising fund contributions, technology fees, transfer fees, audit fees, training fees, and others. ### Are all the fees in Item 6 always paid? No. Some fees are paid weekly or monthly (royalty, ad fund, technology) and apply to all franchisees. Others are situational — transfer fees only apply when you sell your franchise, audit fees only apply when the franchisor inspects your books, training fees only apply when you send new staff to corporate training. Read each line for its trigger. ### Can I negotiate the fees in Item 6? Generally no for the recurring fees that apply to all franchisees (royalty, ad fund, technology). Franchisors will rarely modify these because doing so creates a precedent and may violate the implied promise of equal treatment among franchisees. Situational fees (transfer fees in the context of a specific sale, training fees for unusual staff scenarios) are more often subject to case-by-case discussion, though typically not modification of the FDD-disclosed schedule itself. ### What's a typical technology fee in 2026? Technology fees vary widely by category. QSR concepts often charge $300–$700 per month for POS, kitchen-display systems, online-ordering platforms, and franchisor app access. Service-business concepts often charge $150–$400 per month for CRM, scheduling, and dispatch software. The fee has been growing as franchisors invest in proprietary tech stacks and pass the costs through. --- title: "Franchise Failure Rates 2026: Closure Data From 858 FDDs" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics category: blog wordCount: 3937 readingTime: 20 min crawledAt: 2026-08-20 11:07:08 lastVerified: 2026-08-20 11:07:08 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Failure Rates 2026: Closure Data From 858 FDDs ## Summary Real franchise failure rate data for 2026. SBA loan default rates, failure by industry, and how to assess risk from FDD data before investing. ## Key facts - You have probably heard the statistic: “franchises have a 90% success rate” or “franchise businesses are 80% more likely to succeed than independent businesses. - Every franchisor files an Item 20 table titled “Status of Franchised Outlets. - Industry-wide statistics are useful for calibration. - The same 858 systems, grouped by industry. - Item 20 tells you what happened in one year. Quick answer The median franchise system closes 4.7% of its franchised units in a single fiscal year, based on the Item 20 outlet tables in 858 current FDDs that VetMyFranchise reconciled line by line. The spread is what matters: the healthiest quarter of systems close under 1.9% annually, the worst tenth close over 16.2%, and 34% of systems closed more units than they opened. SBA-backed franchise loans default at roughly 20-25% over a ten-year window. **The median franchise system closes 4.7% of its franchised units in a single fiscal year.** That number comes from the Item 20 outlet tables in 858 current Franchise Disclosure Documents, each one reconciled line by line so that outlets at the start of the year plus openings minus every loss column equals outlets at the end. It is not an estimate, a survey, or an industry average. It is arithmetic on what franchisors are legally required to disclose. The average hides the only thing that matters. In the same twelve-month window, Wingstop closed 4 of 2,154 franchised units and 9Round closed 59 of 199. Same country, same economy, same labor market, a 156-fold difference in outcome. ## The Franchise Success Myth You have probably heard the statistic: “franchises have a 90% success rate” or “franchise businesses are 80% more likely to succeed than independent businesses.” These numbers are cited endlessly in franchise sales presentations, industry publications, and even some business textbooks. **The problem: these statistics are not real.** There is no credible study that supports a 90% franchise success rate. The most commonly cited version traces back to a misquoted and now-retracted study. The franchise industry has perpetuated this myth because it sells franchises. That does not mean franchises are bad investments. It means you need real data, not marketing slogans, to assess your risk. ## What 858 Reconciled FDDs Show Every franchisor files an Item 20 table titled “Status of Franchised Outlets.” It reports, for each of the last three fiscal years, how many outlets the system started with, how many opened, how many were terminated, how many were not renewed, how many the franchisor reacquired, how many ceased operations for other reasons, and how many were left at year end. We parsed that table out of every FDD in our library, took the most recent fiscal year, and kept only the systems where the arithmetic foots exactly. Closures are terminations plus non-renewals plus ceased operations for other reasons. Reacquisitions are excluded because those outlets keep serving customers under franchisor ownership. Restricting to systems with at least 25 franchised outlets, so a single closure cannot swing the percentage, leaves 858 brands. ### The distribution of annual closure rates | Percentile | Annual closure rate | | --- | --- | | 25th | 1.9% | | 50th (median) | 4.7% | | 75th | 9.5% | | 90th | 16.2% | | 95th | 21.3% | _Source: Item 20, Table 3 of 858 current FDDs (2025 and 2026 filings), systems with 25+ franchised outlets, VetMyFranchise analysis._ Grouped a different way: - **10.1%** of systems closed zero franchised units - **34.7%** closed under 3% of their units - **30.1%** closed between 3% and 7% - **35.2%** closed 7% or more - **23.7%** closed 10% or more More than a third of franchise systems close at least one unit in every fourteen. Nearly a quarter close one in ten. Neither of those systems is unusual or scandalous. They are the ordinary lower half of a market that sells itself as a 90% success story. ### A third of systems are shrinking Openings alone tell you nothing. What matters is whether the system is net positive. - **34%** of systems closed more franchised units than they opened - **37%** ended the fiscal year with fewer franchised outlets than they started with - Median closure-to-opening ratio: **0.50**, meaning the typical system closes one unit for every two it opens - 75th percentile ratio: **1.33**; 90th percentile: **3.25** This is where a widely repeated benchmark falls apart. A closure-to-opening ratio above 0.3 gets cited constantly as a warning sign. Against the real distribution, **64.7% of systems sit at or above 0.3**. A threshold that flags two-thirds of the market is not a filter. The line that actually separates outcomes is 1.0, the point where a system closes more than it opens, and one system in three crosses it. ## Closure Rates for 23 Brands You Know Industry-wide statistics are useful for calibration. What they cannot do is tell you whether the brand in front of you is at the 10th percentile or the 90th. This is the table an AI summary cannot generate, because it requires reading 858 PDFs. | Brand (filing entity) | Franchised units at start | Opened | Closed | Annual closure rate | Net change | | --- | --- | --- | --- | --- | --- | | Planet Fitness | 2,201 | 100 | 3 | 0.14% | +97 | | Wingstop | 2,154 | 384 | 4 | 0.19% | +375 | | Domino’s Pizza (traditional) | 6,751 | 214 | 15 | 0.22% | +197 | | McDonald’s USA | 12,887 | 221 | 46 | 0.36% | +175 | | Servpro | 2,286 | 79 | 11 | 0.48% | +68 | | The UPS Store | 5,350 | 187 | 49 | 0.92% | +137 | | 7-Eleven | 7,229 | 283 | 78 | 1.08% | +45 | | Jimmy John’s | 2,647 | 123 | 33 | 1.25% | +90 | | Wendy’s (Quality Is Our Recipe, LLC) | 5,552 | 100 | 71 | 1.28% | -6 | | Burger King | 5,524 | 83 | 76 | 1.38% | -6 | | Kumon | 1,671 | 62 | 28 | 1.68% | +34 | | Sonic | 3,144 | 32 | 56 | 1.78% | -24 | | Firehouse Subs | 1,206 | 73 | 30 | 2.49% | +43 | | Sport Clips | 1,732 | 14 | 44 | 2.54% | -30 | | Panera Bread | 1,105 | 33 | 32 | 2.90% | +1 | | Anytime Fitness | 2,290 | 53 | 72 | 3.14% | -19 | | Arby’s (U.S.) | 2,286 | 136 | 78 | 3.41% | +58 | | Jack in the Box (Different Rules, LLC) | 2,040 | 20 | 75 | 3.68% | -55 | | KFC (U.S.) | 3,558 | 9 | 156 | 4.38% | -154 | | Jackson Hewitt | 2,981 | 76 | 142 | 4.76% | -237 | | Subway (Doctor’s Associates LLC) | 19,502 | 499 | 1,076 | 5.52% | -729 | | Supercuts | 1,935 | 11 | 137 | 7.08% | -234 | | 9Round | 199 | 3 | 59 | 29.65% | -56 | _Source: Item 20, Table 3 of each brand’s current FDD. Figures cover the most recent fiscal year disclosed: fiscal 2025 for all brands except Planet Fitness (fiscal 2024) and Jackson Hewitt (fiscal year ended April 30, 2025). Closed = terminations + non-renewals + ceased operations for other reasons. Net change = outlets at end of year minus outlets at start, and therefore also reflects franchisor reacquisitions, which were material at 7-Eleven (160), Jackson Hewitt (171), Supercuts (108), and Wendy’s (35). Subway’s totals row does not foot by 4 outlets._ Four things in that table are worth sitting with. **The spread within a single industry is larger than the spread between industries.** Wingstop, Domino’s, Jimmy John’s, Sonic, Arby’s, Jack in the Box, KFC, and Subway are all quick-service restaurants. Their annual closure rates run from 0.19% to 5.52%, a 29-fold range. Picking the right brand matters more than picking the right industry, which is the entire argument for reading the FDD instead of the category write-up. If you are working the other direction and screening on returns first, our roundup of the [most profitable franchises to own](https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own) is the companion filter. **Openings can mask decline.** Arby’s opened 136 units and closed 78. Wingstop opened 384 and closed 4. Both systems grew. Only one of them is growing because the units work. **Some systems are shrinking without closing much.** KFC’s U.S. system closed 156 units, a 4.38% rate that sits just below the median. What makes it alarming is the 9 openings against it. A system that closes at a normal rate but has stopped opening is not stable, it is draining. **Subway is the outlier at scale.** In fiscal 2025 Subway disclosed 4 terminations, 46 non-renewals, and 1,026 outlets that ceased operations for other reasons, against 499 openings. Its systemwide table shows franchised outlets falling from 20,576 to 20,133 to 19,502 to 18,773 across three years, with zero company-owned outlets in any of them. That is 1,803 net franchised units gone in three years from the largest sandwich system in the country. If you are weighing that category specifically, our [best sandwich franchises](https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises) breakdown puts Subway’s numbers next to Jersey Mike’s, Jimmy John’s, and Firehouse. ## Closure Rates by Industry The same 858 systems, grouped by industry. Only categories with at least 15 reconciled systems are shown. | Industry | Systems | 25th pct | Median | 75th pct | | --- | --- | --- | --- | --- | | Real Estate | 40 | 4.3% | 7.7% | 10.4% | | Financial Services | 18 | 4.1% | 7.3% | 16.3% | | Fitness & Wellness | 49 | 1.7% | 6.8% | 11.6% | | Home Services | 119 | 4.1% | 6.7% | 11.2% | | Retail | 65 | 1.9% | 5.7% | 10.0% | | Business Services | 46 | 1.9% | 5.0% | 9.1% | | Cleaning & Maintenance | 73 | 2.1% | 4.7% | 9.7% | | Hospitality & Travel | 32 | 2.9% | 4.3% | 7.0% | | Food & Beverage | 198 | 1.7% | 3.8% | 9.3% | | Automotive | 29 | 1.0% | 3.8% | 7.0% | | Senior Care | 47 | 1.6% | 3.5% | 7.9% | | Pet Services | 22 | 1.7% | 2.9% | 5.6% | | Child Services & Education | 55 | 1.2% | 2.8% | 4.8% | | Health & Beauty | 42 | 0.9% | 2.5% | 6.4% | _Source: Item 20, Table 3 of 858 current FDDs, VetMyFranchise analysis._ **This ranking runs backwards from the conventional story.** The standard advice is that restaurants are the risky category and low-overhead service businesses are the safe one. On an annual closure basis, food and beverage sits at a 3.8% median while home services sits at 6.7% and real estate brokerage at 7.7%. The reconciliation is capital, not survival. A restaurant that fails costs its owner a six or seven-figure build-out, so the loss per closure is severe and the operator fights hard to avoid it. A home services or brokerage franchise can be exited for the cost of walking away from a van lease and a territory fee, so marginal operators leave quickly and quietly. Low entry cost and low closure rate are different things, and the categories that market themselves on the first frequently score worst on the second. That is also why lifetime SBA default rates and annual Item 20 closure rates can rank industries differently: one measures debt written off, the other measures doors that shut. > **Vetting a specific brand?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or start by comparing closure data across [2,000+ franchises](https://vetmyfranchise.com/c/claude/franchises). ## SBA Loan Default Rates: The Lifetime View Item 20 tells you what happened in one year. SBA loan data tells you what happens over a decade. The most reliable long-horizon franchise failure data comes from the [U.S. Small Business Administration](https://www.sba.gov/). SBA loans are the most common financing vehicle for franchise purchases, and the SBA tracks default rates by brand, which we compile in our [SBA loan default rates by franchise](https://vetmyfranchise.com/c/claude/blog/sba-loan-default-rates-by-franchise) breakdown. **Key findings from SBA franchise loan data:** - The overall franchise loan default rate is approximately **20-25%** over the life of the loan (typically 7-10 years) - Some franchise brands have default rates **above 40%** - The best-performing brands have default rates **under 5%** - Default rates vary dramatically within the same industry ### Why SBA data beats any “success rate” claim Most “franchise success rate” claims lean on numbers the franchisor supplies, and franchisors have every reason to count generously. SBA loan defaults work differently. They come from a third party, a federally guaranteed lender with real money at stake and no interest in flattering the brand. When a franchisee stops paying, the default gets recorded whether or not the franchisor calls that unit a success. That makes lender data the cleanest available proxy for real-world failure, and we break it down brand by brand in our analysis of [SBA franchise default rates by category](https://vetmyfranchise.com/c/claude/blog/sba-franchise-default-rates-by-category). Franchisor-reported figures also carry survivorship bias. Item 19 earnings claims usually describe the units that stayed open and reported for the full year. The ones that closed mid-year, never opened, or quietly changed hands drop out of the sample, so a brand can post a healthy “average” while the median tells a grimmer story and the bottom quartile bleeds cash. That is why the [gap between average and median Item 19 figures](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) tells you more than any single advertised number. None of this makes SBA data flawless. It only captures debt-financed units, so cash buyers and non-SBA lenders stay invisible, and a brand new to the loan market simply has too few loans to judge. Read the default rate as one strong signal, not the final verdict. ### Bureau of Labor Statistics context The BLS reports that approximately **20% of all new businesses fail within the first year**, and about **50% fail within five years**. For franchises specifically, the first-year failure rate is lower, roughly 10-15%, but the five-year failure rate narrows the gap noticeably. **Why the gap narrows over time:** Franchise fees, royalties, and operational restrictions create ongoing financial pressure that independent businesses do not face. A franchise that survives year one is not necessarily on solid ground if the unit economics are marginal after royalties and fees. Ramp-up matters too: a unit that takes years to break even burns through reserves long before it ever fails outright. Our breakdown of [how long it typically takes a franchise to turn profitable](https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable) shows why the second and third years often decide the outcome. ## What Actually Predicts Franchise Failure Across VetMyFranchise’s analysis of 2,000+ FDDs, these are the factors most strongly correlated with franchise failure, and the data points to focus on during your [due diligence](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist). ### 1\. Declining system size ([Item 20](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide)) The single strongest predictor of future failure is a system that is already shrinking. Thirty-seven percent of the systems we reconciled ended their most recent fiscal year smaller than they started it, so this is common enough that you will meet it, and serious enough that you should treat it as disqualifying until the franchisor explains it. **What to calculate:** Net unit change = (new units opened) - (units closed + terminated + not renewed). If this number is negative for two or more consecutive years, proceed with extreme caution. Anytime Fitness, in the table above, ran net negative in all three disclosed years: -20, -8, then -19. ### 2\. Openings that have stopped A high closure rate with healthy openings is churn. A moderate closure rate with almost no openings is abandonment. KFC’s U.S. system opened 9 franchised restaurants against 156 closures. Supercuts opened 11 against 137. When a franchisor cannot sell new units in its own system, the people closest to the economics have already voted. ### 3\. Thin unit economics When [Item 19 data](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) is available, calculate estimated owner cash flow after all expenses including royalties, advertising fund contributions, debt service, and a reasonable manager salary (even if you plan to owner-operate, because your time has value). **Red flag:** If the median unit cannot generate at least $60,000-$80,000 in owner benefit after all costs, the system likely has marginal unit economics that leave little room for error. ### 4\. Franchisor financial instability (Item 21) If the franchisor itself is losing money or has going concern warnings from auditors, the support infrastructure you are paying royalties for may not survive. A franchisor bankruptcy can devastate franchisees even when their individual units are performing well. ### 5\. Excessive litigation (Item 3) A pattern of franchisee lawsuits, particularly those alleging misrepresentation of earnings or territorial encroachment, suggests systemic problems that drive failure. ### 6\. Unrealistic [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) estimates When the actual [cost to open](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) consistently exceeds the Item 7 high-end estimate, franchisees start undercapitalized. Undercapitalization is one of the leading causes of small business failure across all categories. ## How to Calculate a Brand’s Closure Rate Yourself ### Step 1: Find Table 3 in Item 20 It is titled “Status of Franchised Outlets” and it is broken out by state with a totals row at the bottom. Use the totals row for the most recent fiscal year. Ignore Table 4, which covers company-owned outlets, and Table 1, which reports only net change. If you have not read one of these documents before, start with [what a Franchise Disclosure Document contains](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). ### Step 2: Add the three loss columns Closures = terminations + non-renewals + ceased operations for other reasons. **Do not include “reacquired by franchisor.”** Those outlets keep operating; the franchisor just owns them now. Counting them as closures inflates the rate, and leaving them out of the net-change math understates the decline, which is why the table above reports both. ### Step 3: Check that the row foots Outlets at start + opened - terminations - non-renewals - reacquisitions - ceased operations should equal outlets at end. About one table in four fails this check. Common causes are transfers, relocations booked into the ceased column, and temporary closures that reopen in a later year. A gap is not automatically fraud, but it is a fair question for the franchisor. ### Step 4: Divide and place it on the curve Closures divided by outlets at start of year gives the annual closure rate. Then place it: under 1.9% is top-quartile, 4.7% is median, above 9.5% is bottom-quartile, above 16.2% is bottom-decile. For a full worked example, see [how to calculate a franchise’s true closure rate](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation). Prefer to skip the arithmetic? Our [franchise network health report](https://vetmyfranchise.com/c/claude/reports/franchise-network-health) scores openings, closures, and net unit change for hundreds of brands so you can see the closure trend at a glance. ### Step 5: Validate the unit economics behind it If Item 19 exists, model your expected cash flow using the median revenue figure (not the average), the high end of Item 7 costs, and all fees from [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees). Our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) totals those upfront costs and fees for you. If Item 19 does not exist, that silence is itself a signal, and [here is what a missing Item 19 usually means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means). Either way, contact at least 10-15 franchisees from the Item 20 contact list, and ask specifically for names of operators who left. ### Step 6: Stress-test your assumptions What happens if revenue comes in 20% below the median? Can you survive 18 months of below-average performance? Do you have reserves beyond what Item 7 recommends? Our [cash-flow stress test built on 2026 SBA rates](https://vetmyfranchise.com/c/claude/blog/franchise-cash-flow-stress-test-2026-sba-rates) walks through the math at today’s higher borrowing costs, where debt service alone can sink an otherwise viable unit. ### Step 7: Compare against peers Do not evaluate a franchise in isolation. Compare its closure rate, fee structure, and investment requirements against other franchises in the same industry. Our [comparison tool](https://vetmyfranchise.com/c/claude/compare) makes this straightforward, and the [elevated-risk brands](https://vetmyfranchise.com/c/claude/franchise/elevated-brands-franchising-llc) in any category are usually obvious once you line the numbers up. ## Methodology and Limits Every figure on this page except the SBA and BLS statistics comes from Item 20, Table 3 of a current FDD, with these rules: - Only 2025 and 2026 filings, taken from the most recent fiscal year each document discloses - Only systems with 25 or more franchised outlets at the start of the year, so one closure cannot distort a percentage - Only tables where outlets at start + opened - all loss columns = outlets at end, exactly. Tables that failed this check were dropped rather than adjusted, which removed roughly a quarter of the parsed population - Closures exclude franchisor reacquisitions - 858 systems met all criteria What this does not measure: franchisees who sold at a loss but kept the unit open, units that transferred hands three times before closing, systems too new to have a meaningful denominator, and any brand not yet in our library. A one-year closure rate is a snapshot, not a lifetime failure probability, which is why the SBA default figures still belong on this page. ## So What Should You Do? Franchise failure rates are not as low as the industry claims and not as catastrophic as the critics suggest. The real finding is that **averages are close to useless** when the median system closes 4.7% of its units annually, the best close 0.14%, and the worst close 29.65%. Your job as a prospective franchisee is not to memorize an industry statistic. It is to open Item 20 for the specific brand you are considering, add three columns, divide by one, and see where the answer lands on the curve above. The [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) makes the franchisor hand you the numbers. Item 20 tells you how many units closed. Item 19 tells you what the survivors earn. Item 21 tells you whether the franchisor is solvent. Item 3 tells you who is suing. Use them. [Browse our franchise library](https://vetmyfranchise.com/c/claude/franchises) to see closure rates, system growth trends, and AI-powered risk assessments for 2,000+ franchise brands. Or use our [compare tool](https://vetmyfranchise.com/c/claude/compare) to evaluate multiple brands side by side before you invest. ## Brands mentioned in this post - [Elevated](https://vetmyfranchise.com/c/claude/franchise/elevated-brands-franchising-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) failure ratesstatisticsdue diligencefranchise risksSBA loansItem 20 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the real franchise failure rate? There is no single franchise failure rate. Measured annually from Item 20 of the FDD, the median franchise system closed 4.7% of its franchised units in its most recent fiscal year across the 858 systems VetMyFranchise reconciled. Measured over the life of a loan, roughly 20-25% of franchise-backed SBA loans default. Both numbers hide an enormous spread, so the only figure that matters for your decision is the one in the FDD of the brand you are considering. ### What percentage of franchises fail? About 20-25% of franchise-backed SBA loans default over the life of the loan, typically 7 to 10 years. On an annual basis, 35.2% of the 858 franchise systems we reconciled closed 7% or more of their franchised units in one year and 23.7% closed 10% or more. For context, the BLS reports roughly 20% of all new businesses fail in year one and about 50% within five years. ### How many franchise systems are shrinking? Of the 858 systems with 25 or more franchised outlets whose Item 20 tables we reconciled, 34% closed more franchised units than they opened in their most recent fiscal year and 37% ended the year with fewer franchised outlets than they started with. A shrinking system is the single loudest warning in the entire FDD. ### What is a good franchise closure rate? Against the real distribution, an annual closure rate under 1.9% puts a system in the healthiest quartile and under 4.7% puts it in the better half. Between 4.7% and 9.5% is the third quartile. Above 9.5% puts a brand in the worst quarter of systems, and above 16.2% in the worst tenth. Judge the rate against that curve rather than against a round number. ### How can I check a specific franchise's failure rate? Open Item 20 of the FDD and find Table 3, Status of Franchised Outlets. Take the most recent year's totals row and add the terminations, non-renewals, and outlets that ceased operations for other reasons. Do not include outlets reacquired by the franchisor, since those keep operating. Divide that sum by the outlets at the start of the year. Then check that outlets at start plus opened minus every loss column equals outlets at end; if it does not foot, the table has a reporting quirk you should ask about. ### Which franchise industries have the highest closure rates? On an annual Item 20 basis the ranking runs opposite to the usual story. Real estate brokerages posted the highest median annual closure rate at 7.7%, followed by financial services at 7.3%, fitness and wellness at 6.8%, and home services at 6.7%. Food and beverage came in at 3.8% and health and beauty lowest at 2.5%. Food service still carries higher capital at risk per unit, which is why lifetime SBA default rates tell a different story than annual closure rates. ### Are franchises safer than independent businesses? On average franchises have somewhat lower failure rates than fully independent startups, but the gap is smaller than commonly claimed. The BLS reports about 20% of all new businesses fail within the first year, compared to roughly 10-15% for franchises. Franchises also carry higher upfront costs and ongoing fee obligations, so the financial loss from a franchise failure is often larger. ### Does the franchisor have to disclose franchise closures? Yes. The FTC Franchise Rule requires every franchisor to disclose unit openings, closings, terminations, non-renewals, reacquisitions, and transfers in Item 20 of the FDD, covering the three most recent fiscal years. It is the most reliable indicator of system health in the document because it is a count, not an estimate. ### Is a closure-to-opening ratio above 0.3 really a red flag? Not by itself. Across the systems we reconciled, the median closure-to-opening ratio is 0.50 and 64.7% of systems sit at or above 0.30, so that threshold flags the majority of franchising rather than the outliers. A ratio above 1.0, meaning the system closed more than it opened, is the line that actually separates shrinking systems from growing ones, and 34% of systems crossed it. ### Why do some Item 20 tables not add up? Reconciliation gaps come from transfers between franchisees, temporary closures that reopen in a later year, relocations counted in the ceased-operations column, and outlets that change format mid-year. Subway's fiscal 2025 totals row, for example, is off by four outlets. About one in four of the tables we parsed failed a strict arithmetic check, which is why we excluded them from the statistics on this page rather than quietly rounding them in. ### Do closure rates predict whether my unit will fail? Not on their own, but they set your baseline. A system closing 1% of units a year is telling you the model works in most markets with most operators. A system closing 15% a year is telling you that a meaningful share of people who did exactly what you are about to do stopped. Pair the closure rate with Item 19 unit economics, Item 21 franchisor financials, and calls to at least 10 to 15 current franchisees from the Item 20 contact list. --- title: "Franchise Red Flags in All 23 FDD Items | Warning Guide" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items category: blog wordCount: 2793 readingTime: 14 min crawledAt: 2026-08-20 11:07:09 lastVerified: 2026-08-20 11:07:09 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Red Flags in All 23 FDD Items | Warning Guide ## Summary Identify franchise red flags across all 23 FDD items. Learn which warning signs are deal-breakers vs. worth investigating with severity ratings and examples. ## Key facts - Most franchise buyers read the [FDD](https://vetmyfranchise. - Before diving into all 23 items, here are the red flags that should get your immediate attention: - Everything above is a flag you find _inside_ the document. - Don’t try to memorize every flag. Quick answer Prioritize Items 3, 20, and 21: pattern franchisee litigation, net unit loss, and negative franchisor net worth are deal-breakers, as is a going-concern qualification. Annual turnover above 15% is a serious caution. Healthy systems carry 3-5 caution-level flags with reasonable explanations; clusters of 8-10 signal systemic problems. Budget $2,000-$5,000 for professional review. ## Why a Systematic FDD Review Catches What Casual Reading Misses Most franchise buyers read the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) front-to-back once, focus on Items 7 and 19, and move on. That approach catches the obvious problems but misses the patterns that experienced franchise analysts spot: the connections between items, the trends hidden in year-over-year comparisons, and the omissions that reveal as much as what’s disclosed. The FDD contains 23 items, each mandated by the FTC to disclose specific information. Red flags exist in every single one. Some are deal-breakers. Others are yellow lights that warrant investigation. Knowing which is which separates informed buyers from hopeful ones. This guide organizes red flags by FDD item with severity ratings so you know exactly where to focus your [due diligence effort](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist). ## Top 10 Most Dangerous Franchise Red Flags Before diving into all 23 items, here are the red flags that should get your immediate attention: | Rank | Red Flag | FDD Item | Severity | | --- | --- | --- | --- | | 1 | Net unit loss (more closures than openings) | Item 20 | Fatal flaw | | 2 | Franchisor negative net worth or declining assets | Item 21 | Fatal flaw | | 3 | Pattern litigation from multiple franchisees | Item 3 | Automatic no | | 4 | Criminal history of executives | Item 2 | Automatic no | | 5 | Earnings data showing declining revenue trends | Item 19 | Stop-the-deal | | 6 | Turnover rate above 15% annually | Item 20 | Caution to fatal flaw | | 7 | Unreasonably low Item 7 estimates vs. franchisee reality | Item 7 | Caution | | 8 | Franchisor earns undisclosed revenue from required suppliers | Item 8 | Caution | | 9 | Restrictive transfer/termination with no cure periods | Items 15, 17 | Caution | | 10 | Non-compete that prevents you from earning a living post-termination | Item 15 | Caution | ## Item-by-Item Red Flag Guide ### Item 1: The Franchisor and Its Parents, Predecessors, and Affiliates **What it covers:** Corporate history, structure, and related entities. **Red flags:** - Multiple predecessor companies or corporate restructurings in a short period — could indicate attempts to distance from past problems - The franchisor is a newly formed entity with no operating history (even if the brand has been around) - Parent company with unrelated businesses suggesting the franchise is a side venture **Severity:** Caution — investigate the reasons behind corporate changes. ### Item 2: Business Experience of Key Executives **What it covers:** Professional backgrounds of directors, officers, and franchise executives. **Red flags:** - Leadership team with no prior franchise industry experience - High executive turnover — three or more VP-level departures in 2 years - Key personnel previously involved in failed franchise systems - Franchise development staff (salespeople) outnumbering operations support staff **Severity:** Caution to deal-breaker depending on the pattern. ### Item 3: Litigation History **What it covers:** Past and pending lawsuits involving the franchisor, its predecessors, and key personnel. **Red flags:** - Multiple franchisee-initiated lawsuits alleging fraud, misrepresentation, or breach of contract - Pattern litigation — similar complaints from different franchisees in different markets - Government enforcement actions (FTC, state attorneys general) - Cases settled with confidentiality agreements (they’re still listed but details are sealed) - Executives with personal litigation history from prior franchise systems **Severity:** Deal-breaker if pattern litigation exists. See our [deep dive on Item 3 red flags](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research). ### Item 4: Bankruptcy History **What it covers:** Bankruptcies of the franchisor, predecessors, affiliates, and key personnel. **Red flags:** - Franchisor bankruptcy within the past 10 years - Key executives with personal bankruptcies — raises questions about financial judgment - Affiliate bankruptcies that could affect support services available to franchisees **Severity:** Caution to deal-breaker — recent franchisor bankruptcy is a deal-breaker for most buyers. ### Item 5: Initial Fees **What it covers:** All fees paid before opening. **Red flags:** - Franchise fee significantly above or below industry norms (below $10,000 for a brick-and-mortar concept raises questions about franchisor solvency) - Non-refundable technology fees, training fees, or “startup packages” that inflate the true initial cost - Fees payable to franchisor affiliates that inflate total initial costs **Severity:** Worth investigating — cross-reference with Item 7. ### Item 6: Other Fees **What it covers:** All ongoing fees — royalties, advertising fund, technology, transfer fees, renewal fees. **Red flags:** - Royalty rate above 8% for a low-margin industry - Advertising fund contributions above 3% with no accountability for how funds are spent - Technology fees that increase annually without caps - Transfer fees exceeding 50% of the current franchise fee - Fees payable “as determined by the franchisor” with no ceiling **Severity:** Caution — model every fee into your [unit economics](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis) projection. ### Item 7: Estimated Initial Investment **What it covers:** Itemized cost estimates for opening a franchise. **Red flags:** - Unrealistically wide ranges (e.g., $100,000-$500,000) suggesting the franchisor hasn’t done the analysis - “Additional funds” (working capital) estimate below 3 months of operating expenses - Estimates that haven’t been updated in 2+ years despite construction and real estate inflation - Totals significantly below what existing franchisees report spending **Severity:** Caution — always validate against franchisee feedback. See our [Item 7 analysis guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment). ### Item 8: Restrictions on Sources of Products and Services **What it covers:** Required and approved suppliers, franchisor revenue from supply chain. **Red flags:** - Franchisor or affiliates are the sole required supplier for major cost categories - Vague disclosure of rebate revenue (“the franchisor may derive revenue…”) - No process for franchisees to propose alternative suppliers - Supply costs that franchisees report are 15-25% above open market rates **Severity:** Caution — material impact on profitability over the full franchise term. ### Item 9: Franchisee’s Obligations **What it covers:** Summary table of all franchisee obligations cross-referenced to the franchise agreement. **Red flags:** - Obligations that seem disproportionately one-sided (all obligations on franchisee, no performance commitments from franchisor) - Requirements to participate in every new program the franchisor introduces - Mandatory renovation or remodeling obligations without cost caps **Severity:** Worth investigating — use this as a checklist for franchise agreement review. ### Item 10: Financing **What it covers:** Financing arrangements offered or arranged by the franchisor. **Red flags:** - Franchisor-offered financing at above-market interest rates - Financing arrangements that give the franchisor security interests in your business assets - Cross-default provisions linking franchise agreement default to loan default **Severity:** Caution — compare with independent [SBA financing options](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide). ### Item 11: Franchisor’s Obligations **What it covers:** What the franchisor promises to provide (training, support, advertising). **Red flags:** - Vague support commitments (“the franchisor may provide…”) - Training program under 40 hours for a complex operation - No dedicated field support or unrealistic franchisee-to-support-staff ratios (200+:1) - Advertising fund with no obligation to spend in your market **Severity:** Caution — validate promises through franchisee calls. ### Item 12: Territory **What it covers:** Territorial rights, exclusivity, and restrictions. **Red flags:** - No exclusive territory (the franchisor can place another unit next door) - Territory defined by population rather than geography (allows shrinkage as population grows) - Franchisor retains rights to sell through alternative channels (online, grocery, non-traditional units) in your territory - Territory modifications allowed “at the franchisor’s sole discretion” **Severity:** Caution to deal-breaker — an unprotected territory with a saturating brand is a serious risk. ### Item 13: Trademarks **What it covers:** Status of the franchisor’s trademarks. **Red flags:** - Trademarks not registered with the USPTO (only state registrations or pending applications) - Ongoing trademark infringement litigation that could force a rebrand - Trademark licensing through a separate entity from the franchisor **Severity:** Worth investigating — unregistered marks put your brand investment at risk. ### Item 14: Patents, Copyrights, and Proprietary Information **Red flags:** - Key operational technology protected only by trade secret (no patents) — easier for competitors to replicate - Restrictions preventing you from using knowledge gained during franchising in any future business **Severity:** Low for most buyers — matters more in tech-driven franchise concepts. ### Item 15: Obligation to Participate in the Actual Operation **Red flags:** - Requires owner-operator involvement when you planned semi-absentee ownership - Post-termination non-compete covering an unreasonably large geographic area or time period (more than 2 years or 25+ miles) **Severity:** Caution — must align with your ownership model. ### Item 16: Restrictions on What the Franchisee May Sell **Red flags:** - Prohibition on selling any products or services not approved by the franchisor, even if complementary and non-competitive - Restrictions that prevent you from adapting to local market demand **Severity:** Worth investigating — matters more in retail and food concepts. ### Item 17: Renewal, Termination, Transfer, and Dispute Resolution **Red flags:** - Renewal requires signing the “then-current” franchise agreement (which could have worse terms) - Renewal fee exceeding 50% of the current franchise fee - Termination allowed for minor violations without cure periods - Transfer approval “at the franchisor’s sole discretion” with no stated criteria - Mandatory arbitration in a distant venue (franchisor’s home state) - Class action waiver combined with high individual arbitration costs **Severity:** Caution — these terms define your exit options. Review with a [franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for). ### Item 18: Public Figures **Red flags:** - Celebrity endorser with no actual business involvement or investment in the franchise - Public figure compensation not clearly disclosed **Severity:** Low — but don’t let a celebrity name substitute for business fundamentals. ### Item 19: Financial Performance Representations **What it covers:** Optional earnings data — revenue, expenses, profit figures. **Red flags:** - Revenue figures presented without expense data (makes every franchise look profitable) - Averages without medians (top performers skew the average upward) - Data based only on company-owned locations or top-quartile franchisees - Footnotes excluding closed units, new units, or underperforming markets - Declining revenue trends year-over-year - No Item 19 included (not automatically a red flag, but requires heavier franchisee validation) **Severity:** Caution to deal-breaker. See our [Item 19 red flags guide](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data). ### Item 20: Outlets and Franchisee Information **What it covers:** Unit counts, openings, closings, transfers, franchisee contact information. **Red flags:** - Net unit loss over the past 1-3 years (more closures than openings) - Annual turnover rate above 15% (closures + transfers + terminations as percentage of total units) - Large number of “ceased operations — other reasons” without explanation - Significant number of franchisees unreachable at listed contact information - Rapidly accelerating growth with a young system (growing too fast to support) **Severity:** Deal-breaker for net unit loss; caution for elevated turnover. Our [Item 20 analysis guide](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) covers this in depth. ### Item 21: Financial Statements **What it covers:** Audited financial statements of the franchisor for the past three fiscal years. **Red flags:** - Negative net worth (franchisor owes more than it owns) - Declining revenue or increasing losses over the three-year period - “Going concern” qualification from the auditor - Heavy reliance on franchise fee revenue rather than royalty revenue (suggests existing units aren’t generating enough royalties to sustain the franchisor) - Unaudited or reviewed (rather than audited) financial statements for a system with 50+ units **Severity:** Deal-breaker for negative net worth or going-concern qualification. See our [Item 21 financial analysis guide](https://vetmyfranchise.com/c/claude/blog/franchise-audited-financial-statements-item-21). ### Item 22: Contracts **Red flags:** - Franchise agreement significantly different from what was described during the sales process - Addenda or amendments that modify key terms disclosed elsewhere in the FDD **Severity:** Worth investigating — have your attorney compare the contract to FDD disclosures. ### Item 23: Receipts **Red flags:** - Missing or unsigned receipts (the franchisor must provide two copies; you sign and return one) - Receipt date suggesting you received the FDD less than 14 days before signing (FTC Rule violation) **Severity:** Compliance issue — document the date you actually received the FDD. ## Three Warning Signs That Never Appear in the FDD Everything above is a flag you find _inside_ the document. The most serious signals sit outside it, in how the franchise is being sold to you. Outright franchise fraud is rare given FTC regulation and state registration, but aggressive and misleading sales practice is not, and these three patterns are where it shows up. **1\. Verbal income claims not backed by Item 19.** A sales rep tells you franchisees “typically clear six figures by year two,” and then [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) either does not exist or shows something far lower. Under the FTC Franchise Rule, financial performance claims may only be made through Item 19. Verbal earnings claims made outside the disclosure document are a violation of federal law, not merely enthusiastic selling. Ask the rep to point to the exact page where that number appears. If they cannot, document the claim with the date, the name, and the wording, and report it at [ReportFraud.ftc.gov](https://reportfraud.ftc.gov/). **2\. No FDD, or a “business opportunity” relabel.** Any business meeting the FTC’s definition of a franchise must deliver an FDD before taking your money. Some operations sidestep this by calling the arrangement a licensing agreement, distributorship, or business opportunity. If you are paying an initial fee, receiving a brand license, and operating under a prescribed system with ongoing obligations, it is almost certainly a franchise regardless of the label. No FDD means walk away. **3\. Not registered in a registration state.** Fourteen states require franchise registration before a franchisor may sell within their borders: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are in one of those states and the brand is not registered, it is selling illegally. Verify through your state’s franchise regulator, usually housed in the Secretary of State’s or Attorney General’s office, and confirm the FDD you received is the state-specific version rather than the generic federal one. Related pressure signals worth treating as disqualifying: any push to sign or pay before the FTC’s 14-day disclosure window has elapsed, and any attempt to steer you away from former franchisees on the Item 20 departure list. Both are cheap for an honest franchisor to avoid, which is exactly why they are informative. ## How to Use This Guide Don’t try to memorize every flag. Instead: 1. **Read the full FDD once** to understand the system 2. **Return to this guide** and check each item systematically 3. **Score each red flag** as deal-breaker, caution, or worth investigating 4. **Build a list of questions** from every caution and investigation flag 5. **Take that list to franchisee [validation calls](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide)** — existing owners will confirm or dispel your concerns 6. **Share deal-breaker flags with your franchise attorney** for legal perspective — see [what a professional FDD review costs and covers](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-fdd-review-cost) before you budget for it No franchise system has zero flags. Healthy systems might have 3-5 caution-level items that have reasonable explanations. Systems with deal-breaker flags — or clusters of 8-10 caution flags — deserve extreme skepticism or a hard pass. Combine this FDD review with independent background research on the franchisor’s leadership, litigation history through PACER and state court databases, Better Business Bureau complaints, and the brand’s SBA loan default record. Verify rather than accept. Use this guide as your FDD review checklist. [Search franchise opportunities](https://vetmyfranchise.com/c/claude/franchises) and run every brand through these 23 filters before committing your capital. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) franchise red flagsFDD analysisdue diligencefranchise warning signsFDD items About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which FDD items have the most critical red flags? Items 2, 3, 7, 8, 19, 20, and 21 contain the highest-impact information. Item 3 (litigation) and Item 20 (unit turnover) are the most frequently overlooked deal-breakers. A system losing 15%+ of units annually or facing pattern litigation from franchisees signals fundamental problems that good marketing cannot fix. ### How many red flags should I tolerate before walking away? There is no magic number. A single deal-breaker red flag — like active fraud litigation, negative franchisor net worth, or 30%+ unit closure rates — is enough to walk away. Multiple caution-level flags (3-5) should trigger deeper investigation through franchisee validation, attorney review, and financial analysis before proceeding. ### Should I hire someone to review the FDD for red flags? Yes. A franchise attorney should review the legal provisions (agreement terms, restrictions, termination clauses). A franchise consultant or analyst can evaluate the business viability indicators in Items 7, 8, 19, 20, and 21. Budget $2,000-$5,000 for professional FDD review — it is the highest-ROI expense in your due diligence process. ### Do red flags differ between new and established franchise systems? Yes. New systems (under 5 years, fewer than 50 units) naturally have limited data in Items 19 and 20, which is not inherently a red flag. But new systems should show clean litigation history, adequate franchisor capitalization, and experienced leadership. Established systems with deteriorating metrics (rising closures, declining revenue, increasing litigation) present different but equally serious concerns. ### Can red flags be explained away by the franchisor? Sometimes legitimately, sometimes not. A spike in litigation might stem from one disgruntled franchisee, or it might reflect systemic issues. Revenue declines might be temporary market conditions or a fundamental business model problem. Always verify franchisor explanations through independent franchisee validation — never take the franchisor's word alone. --- title: "Planet Fitness Franchise Cost 2026: $1.28M-$5.39M, Owner Pay" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-03-17 dateModified: 2026-08-04 keywords: Planet Fitness, franchise cost, gym franchise, brand analysis, franchise investment canonical: https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide about: Planet Fitness category: blog wordCount: 3635 readingTime: 18 min crawledAt: 2026-08-20 11:03:56 lastVerified: 2026-08-20 11:03:56 site: https://vetmyfranchise.com/c/claude/ --- # Planet Fitness Franchise Cost 2026: $1.28M-$5.39M, Owner Pay ## Summary Planet Fitness franchise cost is $1,282,500-$5,386,000 per the 2026 FDD Item 7. Item 19 club revenue by third, real annual operating costs, owner earnings. ## Key facts - Item 7 of the 2026 FDD prices a single location and explicitly excludes the cost of purchasing or leasing real estate beyond the initial deposit. - _Source: 2026 FDD Item 6. - Item 19 of the 2026 FDD reports 2025 EFT revenue for **2,291 franchised clubs** that were open and operating the entire 12 months ended December 31, 2025, out of 2,432 franchised clubs in the United States including Puerto Rico. - Item 7 covers what it costs to _open_. - The 2026 FDD does not disclose franchisee profit. Quick answer A Planet Fitness franchise costs $1,282,500 to $5,386,000 per the 2026 FDD Item 7, or $1,282,500 to $3,769,000 if you finance the equipment instead of buying it outright. The initial franchise fee is $40,000 and the royalty is 7% of EFT membership dues. Item 19 reports median annual EFT revenue of $1,863,300 for the middle third of 2,291 franchised clubs in fiscal 2025. A [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) franchise costs **$1,282,500 to $5,386,000** to open one location, per Item 7 of the 2026 [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) (issuance date May 22, 2026) parsed in VetMyFranchise’s database of 2,000+ FDDs. That headline range is the number every cost guide repeats. It is also the least useful number in the document. Two disclosures matter more. First, the cover page splits the total by how you pay for equipment: **$1,282,500 to $3,769,000 if you finance it, $2,385,000 to $5,386,000 if you purchase it outright.** Second, Item 19 does not report one system average. It reports franchised clubs in three performance thirds, and the gap between the bottom and upper third is larger than most people’s entire equity check. This guide works through both, plus the club-level operating cost statement that answers what it actually costs to _run_ a Planet Fitness once it is open. ## Total Investment: The Full Item 7 Table Item 7 of the 2026 FDD prices a single location and explicitly excludes the cost of purchasing or leasing real estate beyond the initial deposit. | Expenditure | Low | High | | --- | --- | --- | | Initial franchise fee | $0 | $40,000 | | Site selection costs | $0 | $10,000 | | Construction development plan review fee | $0 | $5,000 | | Design resubmission fee | $0 | $5,000 | | Leasehold improvements | $1,000,000 | $2,167,000 | | Fitness equipment | $33,300 | $995,000 | | Non-fitness equipment | $89,200 | $1,315,000 | | Pre-sale and grand opening marketing | $40,000 | $120,000 | | Exterior signs | $12,000 | $40,000 | | Computer system, POS, and other supplies | $1,000 | $7,000 | | Insurance (first-year premium) | $25,000 | $45,000 | | Real estate lease deposits | $0 | $95,000 | | Other deposits | $0 | $23,000 | | Professional fees | $2,000 | $25,000 | | Out-of-pocket initial training expenses | $2,000 | $10,000 | | Licenses and bonds | $10,000 | $25,000 | | Additional funds, three months | $68,000 | $459,000 | | Total | $1,282,500 | $5,386,000 | _Source: Planet Fitness Franchising LLC 2026 FDD, Item 7. Excludes the cost of purchasing or leasing real estate._ **Leasehold improvements are the story.** At $1,000,000 to $2,167,000 they are the largest line by a wide margin, and Item 7 Note 3 says you will typically lease a building of approximately **15,000 to 25,000 square feet**. Note 3 also warns that costs may significantly exceed the range in dense urban areas or if you build your own building. That puts Planet Fitness at the top end of what it [costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise), where entry ranges from five figures for a home-based service brand to several million for large-format retail. ### The Finance vs Purchase Split Most Guides Miss Fitness equipment must be purchased from franchisor affiliate PF Equipment before opening. Item 5 and Item 7 Note 4 give both paths: | Equipment | Finance (down payment) | Purchase outright | | --- | --- | --- | | Fitness equipment | $33,300 to $298,500 | $333,000 to $995,000 | | Non-fitness equipment | $89,200 to $394,500 | $892,000 to $1,315,000 | _Source: 2026 FDD Item 5 and Item 7 Note 4. Down payments are typically 10% to 30% of the amount financed._ Financing moves roughly $1.1M of the high-end build off the opening check and onto a payment schedule. That is why the same FDD quotes a $1,282,500 floor and a $5,386,000 ceiling: they are not the same club at different sizes, they are largely the same club under different capital structures. Any pro forma that uses the low end of Item 7 while assuming no equipment debt service is double-counting the benefit. ### Financial Requirements The 2026 FDD **does not disclose a minimum net worth or liquid capital requirement**. Item 17 references the franchisor’s “capital and liquidity requirements” for transferees without publishing a number. If a broker or a franchise portal quotes you a specific liquid capital threshold, that figure did not come from the disclosure document, and you should ask them to source it in writing. What the FDD does document is the working capital assumption: **additional funds of $68,000 to $459,000 for the first three months**, covering payroll, debt service, ongoing pre-sale marketing, and day-to-day expenses. Item 7 Note 10 adds that you will incur additional expenses after that initial period and may need capital for longer. [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) is not a first-time franchisee brand. A seven-figure build with a disclosed three-month capital window rewards operators who have done this before, and the [multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) incentives below reinforce that. ## Ongoing Fees: What Item 6 Actually Says | Fee | Amount | Notes | | --- | --- | --- | | Royalty | 7% of gross monthly and annual membership fees via EFT Dues Draft | Not 7% of total revenue | | National Advertising Fund | 2% of monthly membership fees and certain annual fees, capped at 3% of EFT Dues Draft | During 2026 only: 2% of EFT Dues Draft plus 1% of Monthly EFT | | Local Advertising Funds | Greater of $60,000 or 7% of cumulative Monthly EFT per year | During 2026 only: greater of $50,000 or 6% | | Join Fee | 20% of the regular monthly membership fee, or 5% of a prepaid membership | Charged once per new membership, paid to the franchisor | | Re-equip costs | Currently $333,000 to $995,000 | As the franchisor specifies | | Remodel costs | Currently $250,000 to $1,200,000 | May be required as frequently as every 12 years | | Transfer fee | $10,000 plus expenses capped at $10,000 per club | Waived for certain intra-owner transfers | | Interest on late payments | 10% annualized, or the highest lawful rate if lower | | | Special marketing programs | Up to 7% of Monthly EFT for a single month | | _Source: 2026 FDD Item 6._ Three things here are worth more than the headline 7%. **The royalty base is narrower than “gross revenue.”** Royalty is calculated on EFT Dues Draft, which Item 19 defines as recurring monthly and annual membership fees billed to members. Paid-in-full memberships, retail sales, and other revenue sit outside it. Guides that describe this as “7% of gross revenue” are overstating the royalty and understating your take on ancillary sales. For the full schedule pulled straight from the disclosure document, see the [Planet Fitness fee breakdown](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc/fees). **Local advertising has a hard dollar floor.** The greater of $60,000 or 7% of cumulative Monthly EFT means a slow club does not get to spend less. At the disclosed bottom-third revenue level the percentage governs, but the $60,000 floor binds any club that opens weak. Our [Anytime Fitness vs Planet Fitness franchise](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) comparison puts both fee structures side by side. **The Join Fee is a per-transaction charge to the franchisor.** Twenty percent of the first month’s dues on every new member is not a line most cost guides carry, and in a business that churns members it recurs indefinitely. ## What Franchised Clubs Actually Earn Item 19 of the 2026 FDD reports 2025 EFT revenue for **2,291 franchised clubs** that were open and operating the entire 12 months ended December 31, 2025, out of 2,432 franchised clubs in the United States including Puerto Rico. Clubs are sorted into thirds by annual EFT revenue. | 2025 EFT revenue, franchised clubs only | Bottom third | Middle third | Upper third | | --- | --- | --- | --- | | Clubs | 764 | 764 | 763 | | Average annual EFT revenue | $1,260,539 | $1,873,231 | $2,705,811 | | Median annual EFT revenue | $1,311,575 | $1,863,300 | $2,595,549 | | High | $1,596,261 | $2,170,135 | $5,271,381 | | Low | $429,581 | $1,597,497 | $2,171,673 | | Share that met or beat their third’s average | 57% | 48% | 39% | _Source: 2026 FDD Item 19. EFT revenue excludes paid-in-full memberships, retail sales, other revenue, returns, and taxes._ Read the last row carefully. Within the upper third, only **39% of clubs met or exceeded their own group’s average**, which means a handful of very strong clubs pull that $2,705,811 average above where most upper-third clubs actually sit. The median of $2,595,549 is the more honest center. The same skew shows in the high value: one club in the sample drew $5,271,381, roughly double the upper-third median. The bottom-third low of **$429,581** is the number to sit with. That is a real club, open the full year, carrying a build that started at $1,282,500. This is exactly the reconciliation that [Item 19 analysis](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) exists to force, and it is the one an averaged headline number erases. ## Annual Operating Costs: The Statement the Franchisor Does Disclose Item 7 covers what it costs to _open_. For what it costs to _run_, the 2026 FDD includes a Revenue and Operations Statement for **262 corporate-owned clubs** for fiscal 2025, split into thirds by net revenue (88 bottom, 87 middle, 87 upper). Item 19 states plainly why franchisee expense data is absent: the franchisor does not receive complete expense information from franchisees. | Annual, per club (average) | Bottom third | Middle third | Upper third | | --- | --- | --- | --- | | Membership sales, EFT | $1,345,489 | $1,996,352 | $2,684,521 | | Other membership sales | ($22,589) | ($15,010) | ($25,831) | | Net revenue | $1,322,899 | $1,981,342 | $2,658,690 | | Payroll related | $309,345 | $346,644 | $381,069 | | Local marketing | $83,446 | $122,983 | $168,418 | | National advertising fund | $26,306 | $37,966 | $50,998 | | Royalties | $95,680 | $140,450 | $189,608 | | Utilities | $68,432 | $76,602 | $91,936 | | Supplies and maintenance | $63,157 | $79,884 | $97,154 | | Miscellaneous | $91,914 | $104,665 | $133,023 | | Operating costs excluding rent | $738,299 | $909,213 | $1,112,232 | | EBITDAR | $584,600 | $1,072,129 | $1,546,458 | | Rent expense | $303,761 | $363,277 | $441,654 | | Total operating costs | $1,042,060 | $1,272,490 | $1,553,886 | | EBITDA | $280,839 | $708,853 | $1,104,804 | | EBITDA % of net revenue | 21% | 36% | 42% | | Average square feet | 19,760 | 19,619 | 21,472 | _Source: 2026 FDD Item 19, 2025 Revenue and Operations Statement, corporate-owned clubs. Franchised-club expense data is not disclosed._ Four observations a generic cost estimate will not give you. **Marketing outspends royalty.** Item 19 reports a combined marketing expense line of $160,967 for the middle third against $140,450 in royalties. Buyers who budget “7% plus 2%” and stop there are missing the larger of the two obligations, because the local advertising requirement is a floor-and-percentage rule rather than a flat 2%. **Payroll barely scales.** From bottom third to upper third, net revenue rises from $1,322,899 to $2,658,690 while payroll rises only from $309,345 to $381,069. That is the operating leverage in this model, and it is the reason the EBITDA margin climbs from 21% to 42% across the thirds rather than staying flat. **“Other membership sales” is negative in every third.** Item 19 attributes that to returned checks, uncollected revenue, and refunds, and discloses that monthly declines and returns at corporate clubs ranged from **2.3% to 38.1% of gross membership EFT in 2025**. Signed members and collected dues are different numbers, and the spread between them is wide enough to move a club between thirds. **These are corporate clubs, not franchised clubs.** They may carry different lease terms, different insurance pricing (Item 19 Note 8 says insurance reflects bulk-buy pricing across multiple clubs), and a cost of capital you will not have. ## What Owners Actually Keep The 2026 FDD does not disclose franchisee profit. EBITDA from the corporate statement is the closest disclosed proxy, and Item 19 Note 10 is explicit about what it leaves out: **income taxes, depreciation, amortization, debt service, any expense related to the capital structure of the business, and any reserve for future capital expenditures.** It also excludes the initial franchise fee and other initial investment costs, because these clubs had been open more than a year. Note 3 adds one more exclusion that matters over a full term: costs to replace equipment and remodel the premises are not expensed in the statement at all. They are accounted for as depreciating assets. So the disclosed re-equip range of $333,000 to $995,000 and remodel range of $250,000 to $1,200,000 sit entirely outside every EBITDA figure above. Stack the disclosures against each other and the owner-economics question answers itself: - An upper-third corporate club threw off **$1,104,804** of average EBITDA before debt service. - A middle-third club threw off **$708,853**. - A bottom-third club threw off **$280,839**, against a build that started at $1,282,500 and a franchise term of **12 years from the date you begin operations** (Item 17), inside which a $250,000 to $1,200,000 remodel may fall. That last line is the deal. You can [model your own numbers](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) against these ranges, adjusting revenue, financing structure, and build-out assumptions, but the honest version of the exercise starts from bottom-third performance and asks whether the loan still services. > **Considering Planet Fitness?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ## The Membership Model and Why It Produces These Margins Planet Fitness sells recurring dues rather than transactions. Item 19 defines EFT revenue as revenue on recurring monthly and annual membership fees billed to members, which is also the base the 7% royalty is calculated on. The 2026 FDD confirms that a **Classic membership and a Black Card membership must be offered by a club at all times**, and that the Black Card may require a 12-month commitment. Black Card benefits disclosed in Item 19 include tanning, half-priced beverages, massage chair and hydromassage use, access to any other Planet Fitness club, free guest privileges at the member’s home club, digital fitness content, and affinity program discounts. The FDD does not disclose membership prices or member counts per club. Widely cited figures of roughly $10 per month for Classic and roughly $24.99 for Black Card come from consumer-facing sources, not the disclosure document, and should be treated accordingly. What the disclosed cost structure shows is why the model works at all: a middle-third corporate club generated $1,981,342 of net revenue from a roughly 19,619 square foot box staffed at $346,644 of annual payroll. Item 19 puts that at $100.99 of net revenue per square foot, against a payroll line that a full-service gym with trainers and class programming could not match. Restaurant franchises, where food and labor routinely consume the majority of revenue, do not produce 36% EBITDA at the unit level. ## System Size and Growth Item 20 of the 2026 FDD reports the system-wide outlet summary through December 31, 2025: | Outlet type | End of 2023 | End of 2024 | End of 2025 | | --- | --- | --- | --- | | Franchised | 2,201 | 2,298 | 2,432 | | Company-owned | 254 | 270 | 277 | | Total | 2,455 | 2,568 | 2,709 | _Source: 2026 FDD Item 20, Table No. 1._ In 2025, franchisees opened **141 clubs** and 7 franchised outlets were terminated. There were no non-renewals, no outlets reacquired by the franchisor, and no clubs that ceased operations for other reasons. Item 20 Table No. 5 reports **86 franchise agreements signed but not yet opened** as of December 31, 2025, with 53 projected new franchised outlets in the next fiscal year based on signed leases. That is a net gain of 134 franchised clubs in 2025 with almost no attrition, a materially different risk profile from a brand where terminations and non-renewals run in the dozens. ## Multi-Unit Development and the Incentives That Push You There The 2026 FDD offers a single-unit Franchise Agreement and Item 7 prices one location. But two Item 5 and Item 6 disclosures make development agreements considerably cheaper per club: 1. **The $40,000 initial franchise fee is currently waived** for franchise agreements issued under an Area Development Agreement. The franchisor may terminate that policy at any time. 2. **The Royalty Incentive Period** suspends royalties on a club developed under an Area Development Agreement until the earlier of the required opening date or 180 days after the club opens. Contributions to the national ad fund and all other fees still begin at opening. The cost of those incentives is an Area Development Fee of $10,000 per location committed, and a schedule you are obligated to complete. That obligation is the real risk of the structure: you commit to the full schedule before you know which third your first club lands in. The [reality of multi-unit ownership](https://vetmyfranchise.com/c/claude/blog/planet-fitness-multi-unit-ownership-reality) is that the incentives are priced for operators who already know their answer to that question. Existing multi-unit operators expanding a [franchise portfolio](https://vetmyfranchise.com/c/claude/franchises) are the natural buyer here. First-time buyers pay the full fee, start royalties on day one, and carry the same $1,282,500 floor. ## Build-Out and Real Estate Item 7 Note 3 says Planet Fitness businesses are typically located in strip centers, malls, and freestanding locations, and that you will typically lease approximately **15,000 to 25,000 square feet**. The corporate clubs in the Item 19 operations statement averaged between 19,619 and 21,472 square feet, which is a useful reality check on the low end of that range. The FDD does not publish a build-out timeline, but it does define the marketing window around opening. Per Item 7 Note 5, the pre-sale and grand opening marketing period begins **no less than 60 days before** you intend to commence regular operations and may run **as long as 180 days after** opening. You must spend $20,000 to $30,000 per 30-day period, capped at $120,000 absent a material delay. Rent is not in Item 7 beyond the $0 to $95,000 lease deposit. The disclosed corporate rent expense gives you a benchmark instead: **$303,761 to $441,654 per year** on average across the thirds, which on a roughly 20,000 square foot box is a meaningful anchor for lease negotiation. ## Is a Planet Fitness Franchise Right for You? The disclosed numbers point at one buyer profile. Operating leverage is real and shows up as a 21% to 42% EBITDA spread across performance thirds, but the leverage only pays if your site lands above the bottom third. A bottom-third club produced $280,839 of average EBITDA before debt service on a build that started at $1,282,500, and the franchise term of 12 years leaves room for a $250,000 to $1,200,000 remodel inside it. If you have the capital depth to fund a development schedule and the site-selection discipline to avoid bottom-third real estate, the recurring-dues model produces margins that transaction-based franchises do not. If either of those is missing, the same disclosures show exactly how the downside looks. If the seven-figure entry cost is the sticking point, weigh Planet Fitness against the [fitness franchises you can open for under $200K](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k), which trade this scale and margin structure for a dramatically lower cost of entry, or run a broader [fitness franchise cost comparison](https://vetmyfranchise.com/c/claude/blog/fitness-franchise-cost-comparison) before you commit. All figures above come from the Planet Fitness Franchising LLC Franchise Disclosure Document with an issuance date of May 22, 2026, reporting results for the fiscal year ended December 31, 2025. Verify current terms directly with the franchisor, and read the full document, which the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires you receive at least 14 calendar days before you sign or pay. Our [Planet Fitness FDD analysis](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) runs the Item 7 against Item 19 comparison straight from the source document. ## Brands mentioned in this post - [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Planet Fitness numbers with you. We'll email you the **Planet Fitness FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Planet Fitness data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) Planet Fitnessfranchise costgym franchisebrand analysisfranchise investment About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Planet Fitness franchise cost? The total initial investment is $1,282,500 to $5,386,000 per the 2026 FDD Item 7, excluding the cost of purchasing or leasing real estate. The single biggest line is leasehold improvements at $1,000,000 to $2,167,000. The FDD cover page splits the total by how you pay for equipment: $1,282,500 to $3,769,000 if you finance it, and $2,385,000 to $5,386,000 if you purchase it outright. ### How much is a Planet Fitness franchise, all in? One club is $1,282,500 to $5,386,000 per the 2026 FDD Item 7. That figure covers a single location and excludes real estate purchase or lease costs beyond the deposit. If you sign an Area Development Agreement you also pay an Area Development Fee of $10,000 per location committed, and $30,000 per location if you are replacing a territory covered by an earlier development agreement that was terminated before completion. ### What is the total investment to open a Planet Fitness, line by line? Per the 2026 FDD Item 7: franchise fee $0 to $40,000, site selection costs $0 to $10,000, construction plan review $0 to $5,000, design resubmission $0 to $5,000, leasehold improvements $1,000,000 to $2,167,000, fitness equipment $33,300 to $995,000, non-fitness equipment $89,200 to $1,315,000, pre-sale and grand opening marketing $40,000 to $120,000, exterior signs $12,000 to $40,000, POS and computer systems $1,000 to $7,000, insurance $25,000 to $45,000, lease deposits $0 to $95,000, other deposits $0 to $23,000, professional fees $2,000 to $25,000, out-of-pocket training expenses $2,000 to $10,000, licenses and bonds $10,000 to $25,000, and three months of additional funds at $68,000 to $459,000. ### How much do Planet Fitness franchise owners make? The 2026 FDD does not disclose franchisee profit. It discloses franchised club revenue and corporate-owned club profitability separately. For fiscal 2025, franchised clubs in the middle third averaged $1,873,231 in annual EFT revenue. The closest disclosed earnings figure is the corporate-owned operations statement: average EBITDA of $280,839 in the bottom third, $708,853 in the middle third and $1,104,804 in the upper third. Those are company clubs, not franchised clubs, and Item 19 Note 10 states EBITDA excludes income taxes, depreciation, amortization, debt service, and any reserve for future capital expenditures. Subtract your own loan payments and equipment reserve from those numbers before treating them as owner income. ### What are the annual operating costs of a Planet Fitness franchise? Per the 2026 FDD Item 19 operations statement for 262 corporate-owned clubs in fiscal 2025, a middle-third club averaged $1,272,490 in total annual operating costs including rent. The lines were payroll $346,644, local marketing $122,983, national ad fund $37,966, royalties $140,450, utilities $76,602, supplies and maintenance $79,884, miscellaneous $104,665 and rent $363,277. Bottom-third clubs averaged $1,042,060 and upper-third clubs $1,553,886. Costs to replace equipment and remodel are not in these totals; Item 19 Note 3 accounts for them as depreciating assets instead. ### What is the royalty on a Planet Fitness franchise? The royalty is 7% of total gross monthly and annual membership fees payable to you via EFT Dues Draft, per the 2026 FDD Item 6. That base matters: EFT Dues Draft is recurring membership dues only, so paid-in-full memberships, retail sales, and other revenue sit outside the royalty calculation. The national advertising fund is 2% of monthly membership fees and certain annual fees, capped at 3% of EFT Dues Draft, and during 2026 only it runs at 2% of EFT Dues Draft plus 1% of Monthly EFT. ### How much revenue does a Planet Fitness location generate? Per the 2026 FDD Item 19, across 2,291 franchised clubs open the entire 12 months ended December 31, 2025, average annual EFT revenue was $1,260,539 in the bottom third, $1,873,231 in the middle third and $2,705,811 in the upper third. Medians were $1,311,575, $1,863,300 and $2,595,549. The lowest club in the sample drew $429,581 and the highest $5,271,381. EFT revenue counts recurring membership dues only and excludes retail sales, paid-in-full memberships, returns and taxes. ### How many members does a typical Planet Fitness have? The 2026 FDD does not disclose membership counts per club. It discloses revenue. What it does disclose about billing is worth more: at corporate-owned clubs in 2025, monthly declines and returns ranged from 2.3% to 38.1% of gross membership EFT, and the resulting Other Membership Sales line was negative in all three performance thirds. Signed members and collected dues are not the same number, and any membership figure a broker quotes you should be tested against that spread. ### Can you open just one Planet Fitness location? The 2026 FDD offers a single-unit Franchise Agreement, and Item 7 prices one location. But Item 5 shows where the incentives point: the $40,000 initial franchise fee is currently waived for franchise agreements issued under an Area Development Agreement, and under a development agreement Item 6 grants a Royalty Incentive Period that suspends royalties until the earlier of the required opening date or 180 days after the club opens. A single-unit buyer pays the full fee and starts paying royalties immediately. ### What ongoing costs does Planet Fitness require beyond royalties? Per the 2026 FDD Item 6: a national ad fund fee of 2% of monthly membership fees capped at 3% of EFT Dues Draft, local advertising of the greater of $60,000 or 7% of cumulative Monthly EFT per year, a Join Fee of 20% of the regular monthly membership fee or 5% of a prepaid membership on every new membership, re-equip costs currently $333,000 to $995,000, remodel costs currently $250,000 to $1,200,000 which may be required as frequently as every 12 years, 10% annualized interest on late payments, and a $10,000 transfer fee. During 2026 only, the local advertising floor drops to the greater of $50,000 or 6% of cumulative Monthly EFT. ### Is a Planet Fitness franchise worth it? The disclosed numbers reward scale and punish a weak site. A middle-third corporate club produced $708,853 of average EBITDA on $1,981,342 of net revenue, a 36% margin. A bottom-third club produced $280,839 on $1,322,899, a 21% margin, and that is before debt service on a build that started at $1,282,500. The franchise term is 12 years from the date you begin operations, and a remodel of $250,000 to $1,200,000 can land inside it. If your capital plan only works at middle-third performance, you do not have a capital plan. --- title: "SBA Franchise Loans 2026: Worked Example + Rate Table" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide category: blog wordCount: 2731 readingTime: 14 min crawledAt: 2026-08-20 11:03:57 lastVerified: 2026-08-20 11:03:57 site: https://vetmyfranchise.com/c/claude/ --- # SBA Franchise Loans 2026: Worked Example + Rate Table ## Summary Complete 2026 guide to SBA franchise loans. Compare 7(a) vs 504 programs, see what changed in SOP 50 10 v8, and explore alternative financing options. ## Key facts - The SBA does not lend money. - The WSJ prime rate is 6. - Generic SBA articles stop at “10% down. - Our database holds an Item 7 high-end figure for 2,131 systems. - Most franchise buyers use 7(a) because it covers everything in one loan. Quick answer SBA 7(a) is the default franchise loan: up to $5 million, a 10% to 20% equity injection, 10-year terms on non-real-estate costs, and rates near prime plus 2.25% to 3.0%. On a $543,000 project with 10% down, the loan runs $488,700 and roughly $6,400 a month at 9.75%. ## Why 7(a) Is the Default The SBA does not lend money. It guarantees 75% to 85% of a loan made by an approved lender, which is what allows banks to offer 10-year amortization and 10% down on a business with no operating history. For franchise buyers that structure is decisive, because a franchise startup has no collateral worth much and no revenue to underwrite. A 7(a) can fund the initial franchise fee, equipment, leasehold improvements, inventory, working capital, and real estate in one facility, which is why most buyers use one loan instead of stacking three. The alternative is mostly not the brand. Only 181 of the 1,068 systems in our database where we have a clear reading (17%) offer any form of direct or arranged franchisor financing, data as of July 2026. The other 83% of the time you are negotiating with a bank. ## The Rate Environment, July 2026 The WSJ prime rate is 6.75% as of early July 2026. SBA caps the spread a lender may add, and for variable-rate loans above $250,000 the cap is prime plus 3.0%. That puts most franchise 7(a) loans in the **9.5% to 11.75%** range in 2026, with larger and stronger deals pricing toward the bottom. Roughly 80% of 7(a) loans are variable-rate, so the payment moves when the Fed moves. **Every number in the examples below uses 9.75% (prime plus 3.0%) on a 10-year term. That is an assumption, not a quote.** Rates change, spreads vary by lender and loan size, and your actual pricing will come from a term sheet. Sensitivity on a $488,700 loan: at 9.5% the payment is $6,324 a month; at 10.75% it is $6,663; at 11.75% it is $6,941. Every 50 basis points is roughly $135 a month. ## A Worked Loan-Sizing Example From Real Item 7 Data Generic SBA articles stop at “10% down.” Here is the full arithmetic on an actual disclosed investment range. **The brand:** [The Joint Chiropractic](https://vetmyfranchise.com/c/claude/franchise/the-joint-corp), 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). Item 7 total initial investment of $245,250 to $543,000. 885 franchised units. Royalty of 7% of gross sales, greater of that or $700 per month, plus a 2% ad fund. Item 19 discloses a median annual revenue of $526,397 across 799 franchised clinics for calendar 2025. We size to the **high end** of Item 7, because that is what lenders do and because most franchisees land at or above the midpoint. | | 10% equity injection | 20% equity injection | | --- | --- | --- | | Total project cost (Item 7 high end) | $543,000 | $543,000 | | Your cash into the deal | $54,300 | $108,600 | | SBA 7(a) loan amount | $488,700 | $434,400 | | Monthly payment, 10 yr @ 9.75% | $6,391 | $5,681 | | Annual debt service | $76,689 | $68,168 | | Total paid over 10 years | $766,889 | $681,679 | | Total interest | $278,189 | $247,279 | | SBA guarantee fee (2% of the 75% guaranteed portion) | about $7,330 | about $6,516 | _Illustrative. Guarantee fees follow published SBA tiers that are set annually; confirm current fees and whether they are financed into the loan. Rate assumption stated above._ ### Now Run the Test the Lender Runs A payment is only meaningful against revenue. Take the disclosed Item 19 median of $526,397: - Annual debt service at 10% down: $76,689, which is **14.6% of median revenue** - Royalty plus ad fund at 9% of sales: $47,376 - Combined: $124,065, or **23.6% of median revenue** before rent, labor, cost of goods, or your own pay Then apply the coverage test. Most lenders want a debt service coverage ratio of 1.15 to 1.25, meaning cash flow available for debt must exceed the payment by 15% to 25%. At 1.25x, this deal needs $95,861 of annual cash flow available for debt service, which is **18.2% of median revenue**. Your projections have to clear that bar on the brand’s own median unit, not on a top-quartile unit. Two ways the math improves. A 20% injection drops the payment by $710 a month. And if a meaningful share of the project is real estate, that portion amortizes over 25 years instead of 10, which on the same $488,700 would cut the payment to $4,355 a month, at the cost of $817,797 in total interest instead of $278,189. Allocation between real estate, equipment, and working capital is one of the highest-leverage conversations you will have with a lender. This is also why [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) disclosure is a financing issue, not just a diligence issue. Across our database, 1,614 of the 2,237 systems with a definite reading (72%) disclose financial performance. If your brand is in the other 28%, you and your lender are underwriting a projection with no disclosed benchmark behind it. ## Investment Tiers and Typical SBA Structure Our database holds an Item 7 high-end figure for 2,131 systems. Here is where franchises actually sit, and what the financing looks like at each level. Illustrative projects, 10% equity, 10-year term at 9.75%. | Item 7 high end | Systems (of 2,131) | Illustrative project | 10% equity | 7(a) loan | Est. monthly P&I | Typical structure | | --- | --- | --- | --- | --- | --- | --- | | Under $100K | 200 (9.4%) | $75,000 | $7,500 | $67,500 | $883 | 7(a) or SBA Express; often home-based, limited collateral | | $100K – $250K | 425 (19.9%) | $175,000 | $17,500 | $157,500 | $2,060 | 7(a), working-capital heavy, 10-yr term | | $250K – $500K | 455 (21.4%) | $375,000 | $37,500 | $337,500 | $4,413 | 7(a) covering fee, equipment, leasehold, reserves | | $500K – $1M | 512 (24.0%) | $750,000 | $75,000 | $675,000 | $8,827 | 7(a); many lenders push 15% to 20% equity here | | $1M – $2M | 279 (13.1%) | $1,500,000 | $150,000 | $1,350,000 | $17,654 | 7(a) up to $5M, or split with 504 if real estate | | Over $2M | 260 (12.2%) | $3,000,000 | $300,000 | $2,700,000 | $35,308 | 504 on the real estate, 7(a) on everything else | _Data as of July 2026. Payments assume full 10-year amortization, which is conservative for real-estate-heavy deals._ The median Item 7 high end across all 2,131 systems is $493,000. At 10% down that is a $49,300 injection and a $443,700 loan at roughly $5,802 a month. Nearly half the database (49%) sits above $500,000, which is precisely the band where lenders stop treating 10% as sufficient. Working backward from your cash is the more useful exercise. Divide your documented, liquid equity by 0.10 for an absolute project ceiling and by 0.20 for a realistic one, then subtract post-closing reserves your lender will insist you keep. Our guide to [SBA equity injection requirements](https://vetmyfranchise.com/c/claude/blog/sba-equity-injection-franchise-down-payment) covers which sources count and how they must be documented. ## 7(a) vs 504 | Feature | SBA 7(a) | SBA 504 | | --- | --- | --- | | Maximum | $5 million | $5.5 million CDC portion | | Minimum equity | 10% to 20% | 10% to 15% | | Rate type | Variable (about 80% of loans) | Fixed on the CDC debenture | | Can fund working capital | Yes | No | | Can fund the franchise fee | Yes | No | | Best for | General franchise startup costs | Real-estate-heavy projects | | Realistic 2026 timeline | 75 to 100 days | 90 to 120 days | Most franchise buyers use 7(a) because it covers everything in one loan. Use 504 when you are purchasing the building and want the lowest fixed rate on that portion, often paired with a 7(a) for the rest. Our full [7(a) vs 504 comparison for franchise buyers](https://vetmyfranchise.com/c/claude/blog/sba-7a-vs-504-franchise-loan) works through the split-structure scenarios. ## Eligibility and Brand Risk Two eligibility questions decide whether a brand is financeable at all. **Does the franchise agreement pass SBA review?** The franchisee must operate as an independent business rather than a functional employee of the franchisor. Excessive control over day-to-day operations, restrictions that eliminate the right to profit from your own labor, and predatory termination provisions can all disqualify an agreement. Under SOP 50 10 v8 the certification work sits with your lender, so ask specifically how they perform it and whether they need a supplemental certification from the franchisor. **Does the brand’s loan performance make lenders nervous?** Some franchise systems carry default histories that cause individual banks to decline them regardless of your personal file. That is a brand-level risk you cannot fix with a stronger application, and it is worth checking before you fall in love with a concept. See [SBA loan default rates by franchise](https://vetmyfranchise.com/c/claude/blog/sba-loan-default-rates-by-franchise) and [why lenders reject specific franchise brands](https://vetmyfranchise.com/c/claude/blog/sba-lender-franchise-brand-rejection). ## Qualification and Documents | Requirement | Minimum | Competitive | | --- | --- | --- | | Credit score | 650+ | 720+ | | Post-closing liquidity | 3 to 6 months of operating expenses | 9 to 12 months | | Net worth | Varies by loan size | About 2x the equity injection | | Management experience | Required | 5+ years in leadership | | Industry experience | Helpful | Direct experience preferred | Credit is the most common hard stop. Our breakdown of [franchise SBA loan credit score requirements](https://vetmyfranchise.com/c/claude/blog/franchise-sba-loan-credit-score-requirements) covers what compensating factors actually move a marginal file. Have these ready before you approach a lender: personal financial statement (SBA Form 413), three years of personal tax returns, SBA Form 1919, a resume, a business plan with three-year projections built from Item 19, the FDD and franchise agreement, documented proof of your equity injection, and the lease or letter of intent for your site. ## Timeline and Closing Costs Budget 75 to 100 days from complete application to funding in 2026, up from 60 to 75 before SOP 50 10 v8. Roughly: pre-qualification in weeks one and two, submission by week four, underwriting through week eight, authorization by week ten, and closing between weeks ten and fourteen. A lender quoting 45 days either has an exceptional process or has not absorbed the current requirements. Our [week-by-week SBA franchise loan timeline](https://vetmyfranchise.com/c/claude/blog/sba-franchise-loan-timeline-week-by-week) maps what happens in each phase and where the delays concentrate. Also budget the costs that are not the loan: the guarantee fee, packaging and closing fees, appraisals, environmental reports on real estate, and legal review. The [SBA franchise loan closing cost breakdown](https://vetmyfranchise.com/c/claude/blog/sba-franchise-loan-closing-costs-breakdown) itemizes them, and [after SBA approval, 23 franchise closing tasks](https://vetmyfranchise.com/c/claude/blog/after-sba-approval-23-franchise-closing-tasks) covers the stretch between commitment letter and open doors. ## Four Questions to Ask Every Lender SOP interpretations vary, and two lenders quoting the same rate can differ by 30 days on actual close time. Ask directly: 1. **How do you certify franchise eligibility under v8, and do you need anything from the franchisor?** This single answer often determines whether you lose three weeks mid-underwriting. 2. **What post-closing working capital reserve do you require?** Many lenders moved from 3 to 6 months up to 6 to 12. 3. **How are you allocating proceeds between real estate, equipment, and working capital?** Allocation drives amortization, and amortization drives your payment more than the rate does. 4. **What is the most common reason franchise files get kicked back for more documentation?** Their answer tells you exactly what to prepare before submitting. ## Matching the Structure to the Deal Size The right financing mix shifts with the size of the project. A rough map of what buyers actually use at each level: | Total project cost | Typical structure | | --- | --- | | Under $100K | Personal savings plus a HELOC or ROBS; often no bank debt at all | | $100K – $250K | 20-30% equity plus a 7(a) | | $250K – $500K | 20-25% equity plus a 7(a), with equipment financed separately | | $500K – $1M | 20% equity plus a 7(a) or 504, with equipment leased | | Over $1M | 25%+ equity, a 504 if real estate is involved, often paired with conventional debt | _Estimates compiled from industry sources; confirm current terms directly with each lender._ Whatever the level, get pre-qualified before you sign a franchise agreement, not after. Pre-qualification confirms your borrowing capacity, the rate band you’ll actually be quoted, any collateral or guarantor conditions, and the funding timeline. Buyers who sign first and finance second lose their leverage and frequently their deposit. ### The mistake that costs the most Undercapitalization, and it is not close. Item 7 typically budgets three to six months of working capital. A large share of franchisees need 12 to 18 months to reach consistent profitability. That gap is where otherwise viable units die, not because the business model failed but because the owner ran out of runway before it matured. Borrow more than you think you need. Carrying six to twelve months of extra debt service costs a few thousand dollars in interest. Running out of cash in month nine costs the entire investment. ## Alternatives Worth Pricing Compare at least one alternative before you sign a term sheet. - **Retirement rollover (ROBS).** No debt and no monthly payment, but your retirement savings carry the business risk, and compliance runs $1,500 to $5,000 a year. See the [401(k) ROBS franchise financing guide](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide). - **HELOC.** Often cheaper than a 7(a), with your house as collateral. The [HELOC vs SBA vs ROBS comparison](https://vetmyfranchise.com/c/claude/blog/heloc-vs-sba-vs-robs-franchise-financing) runs the three side by side. - **Equipment leasing.** For equipment-heavy concepts, leasing can shrink the loan you need and close in days. See [equipment leasing vs an SBA loan](https://vetmyfranchise.com/c/claude/blog/equipment-leasing-vs-sba-loan-franchise). - **Multi-unit structures.** If you intend to build several units, the financing architecture should be designed for that from unit one. Our [multi-unit franchise SBA financing guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-financing-sba-loans-guide) covers the sequencing. And before you commit to a payment, run the downside. Our [franchise cash flow stress test at 2026 SBA rates](https://vetmyfranchise.com/c/claude/blog/franchise-cash-flow-stress-test-2026-sba-rates) models what happens to coverage when revenue lands 15% or 30% below your base case. ## Start With the Right Franchise The strongest loan application starts with a financeable brand: disclosed Item 19 data your lender can underwrite, a fee load that leaves room for debt service, and an Item 7 range your equity can actually support at 20% down. Browse the [franchise library](https://vetmyfranchise.com/c/claude/franchises) for free key facts on 2,000-plus systems, or use the [compare tool](https://vetmyfranchise.com/c/claude/compare) to line up three to five candidates on investment, fees, and disclosed revenue before you talk to a single lender. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) sba loansfranchise financinginvestment7a loans504 loansfranchise funding About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you use an SBA loan to buy a franchise? Yes, and it is the most common way franchises get financed in the United States. SBA 7(a) proceeds can cover the initial franchise fee, equipment, leasehold improvements, inventory, working capital, and real estate, which is why most buyers use a single 7(a) loan rather than stacking facilities. Two conditions matter. The franchise agreement must satisfy SBA eligibility standards, meaning the franchisee operates as an independent business rather than an effective employee of the franchisor. And you must contribute an equity injection, typically 10% to 20% of total project cost, from documented sources. You can also use a 7(a) to buy an existing franchise resale, which often underwrites more easily because there is real operating history to lend against. ### How much SBA loan can I get for a franchise? The 7(a) program caps at $5 million, but the practical limit is whichever comes first: 80% to 90% of your total project cost, or the amount your projected cash flow can service. Lenders generally want a debt service coverage ratio of at least 1.15 to 1.25, meaning cash flow available for debt payments must exceed the payment by that margin. In practice, a buyer with $50,000 in documented equity is shopping projects near $500,000, not $1 million. Work backward from your equity: divide it by 0.10 for an absolute ceiling and by 0.20 for a comfortable one, then confirm the resulting payment is covered by the brand's Item 19 revenue at a realistic margin. ### How much of a down payment do I need for an SBA franchise loan? The SBA generally expects a minimum 10% equity injection on a startup franchise, and many lenders require 15% to 20% for first-time owners, unproven concepts, or larger projects. The injection must come from documented sources such as savings, a retirement rollover, a gift with a letter, or verified home equity. Seller notes on full standby can sometimes count toward part of it on a resale. ### How long does it take to get an SBA loan for a franchise? Budget 75 to 100 days from a complete application to funding for a 7(a) loan in 2026, and 90 to 120 days for a 504 because of the added CDC approval step. Incomplete document packages are the single largest source of delay. Assemble everything before you submit rather than responding to requests piecemeal. ### What credit score do I need for an SBA franchise loan? Most SBA lenders look for a personal score of 680 or higher. Some will consider 650 with strong compensating factors such as direct industry experience, high net worth, or a larger equity injection. Scores above 720 generally get faster processing and better pricing. ### Does my franchise need to be on the SBA Franchise Directory? Under SOP 50 10 v8 the eligibility certification responsibility shifted to the originating lender, so the Directory no longer functions as a simple pass or fail gate. Practically, a brand with a clean recent eligibility history still moves faster. Ask your lender directly how they certify franchise eligibility and whether they need any supplemental certification from the franchisor, because that answer drives weeks of your timeline. ### What changed in SBA SOP 50 10 Version 8 that affects franchise buyers in 2026? SOP 50 10 v8 moved franchise eligibility certification from the SBA to the originating lender, tightened affiliation definitions, and increased the documentation lenders must collect on post-closing working capital reserves and personal guarantees. For buyers this generally means longer lender-level due diligence and more questions about liquidity after closing. Ask any lender exactly how their v8 interpretation differs from their pre-2025 process; the answer reveals how prepared they are. --- title: "Semi-Absentee Franchise vs Owner-Operator" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-03-17 dateModified: 2026-08-04 keywords: semi-absentee franchise, owner-operator franchise, franchise ownership model, passive franchise income, franchise management canonical: https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise about: semi-absentee franchise category: blog wordCount: 2635 readingTime: 13 min crawledAt: 2026-08-20 11:05:56 lastVerified: 2026-08-20 11:05:56 site: https://vetmyfranchise.com/c/claude/ --- # Semi-Absentee Franchise vs Owner-Operator ## Summary Semi-absentee vs owner-operator franchise ownership: compare time commitment, investment, income, and which industries work for each model. Realistic guide. ## Key facts - Not all franchise ownership looks the same. - For the purposes of this guide, we’ll focus on the semi-absentee vs owner-operator comparison, since these are the two models most franchisees choose between. - _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them. - Not every franchise model supports semi-absentee ownership. - The success or failure of semi-absentee ownership comes down to one person: your general manager. Quick answer Semi-absentee ownership takes 10-20 hours a week versus 40-60 for owner-operator, but costs $75,000-$150,000 in extra capital for a manager salary of $45,000-$75,000 and longer runway. Management consumes 20-35% of profit: a unit netting $100,000 as owner-operator returns $65,000-$80,000 semi-absentee. Year-one income runs $40,000-$100,000 versus $0-$40,000. ## The Ownership Spectrum: From Hands-On to Hands-Off Not all franchise ownership looks the same. At one end of the spectrum is the owner-operator model — you’re in the business every day, managing employees, serving customers, and driving operations. At the other end is fully absentee ownership, where you invest capital and hire a management team to run everything. In between sits the increasingly popular semi-absentee model: you’re involved in the business 10–20 hours per week, focusing on high-level management, financial oversight, and strategic decisions while a hired manager handles daily operations. Each model requires different capital, produces different income, and fits different lifestyles. Knowing the real requirements of each model — not the marketing pitch — will save you from a costly mismatch. ## Defining the Models ### Owner-Operator - **Time commitment:** 40–60 hours per week, especially in years 1–3 - **Your role:** You are the general manager, the lead salesperson, and often the top-performing employee - **Management team:** You manage employees directly; no middle management layer - **Capital requirement:** Lower, because you’re not paying a manager’s salary - **Best for:** Career changers who want to be fully immersed in their business, first-time franchise owners, and people who want maximum control over their income ### Semi-Absentee - **Time commitment:** 10–20 hours per week after the initial setup phase - **Your role:** Oversee financial performance, coach your manager, handle strategic decisions, and monitor key metrics - **Management team:** A full-time general manager runs daily operations; you may also need an assistant manager - **Capital requirement:** Higher, because you’re funding management salaries from day one - **Best for:** Professionals who want to keep their current career while building a business, investors seeking managed assets, and [multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) operators adding to their portfolio ### Fully Absentee (Investor Model) - **Time commitment:** 2–5 hours per week - **Your role:** Purely financial oversight and strategic direction - **Management team:** Complete management hierarchy in place - **Capital requirement:** Highest, and typically available only for experienced multi-unit operators or institutional investors - **Most franchise brands do not allow fully absentee ownership.** Those that do usually require prior franchise ownership experience and significant net worth. For the purposes of this guide, we’ll focus on the semi-absentee vs owner-operator comparison, since these are the two models most franchisees choose between. ## The Real Numbers: Investment and Income Comparison | Factor | Owner-Operator | Semi-Absentee | | --- | --- | --- | | Total investment | $100,000–$500,000 | $150,000–$750,000+ | | Additional capital for management | N/A | $50,000–$100,000 (year 1 manager salary buffer) | | Owner income, year 1 | $40,000–$100,000 | $0–$40,000 (often break-even or small loss) | | Owner income, year 2-3 | $60,000–$150,000 | $30,000–$80,000 | | Owner income, year 3-5 | $80,000–$200,000 | $60,000–$150,000 | | Owner time investment | 40–60 hours/week | 10–20 hours/week | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ The critical difference: semi-absentee owners trade income for time. A significant portion of the business’s profit goes to management salaries that an owner-operator would pocket. In year one, many semi-absentee owners break even or even subsidize the business while the manager builds revenue. This is the uncomfortable truth that semi-absentee franchise marketers rarely emphasize: you’re not buying passive income from day one. You’re buying a business that requires management investment before it produces returns, and those returns will be lower per unit than if you operated it yourself. ## Which Industries Work for Semi-Absentee Ownership? Not every franchise model supports semi-absentee ownership. The business needs to be systemized enough that a competent manager can run daily operations without the owner present. ### Industries that work well for semi-absentee: **Fitness and wellness studios** Boutique fitness (cycling, barre, yoga, specialized training) and wellness concepts (IV therapy, cryotherapy, med spas) are among the most common semi-absentee franchises. The business operates on class schedules or appointments, revenue is membership-based and predictable, and the front-desk and instructor staff are relatively easy to manage. Investment range: $150,000–$500,000. Manager salary: $40,000–$60,000. **Hair salons and beauty services** Salon suites, blowout bars, and specialized beauty services often work semi-absentee because stylists and technicians are skilled professionals who operate independently. The manager handles scheduling, inventory, and customer service. Investment range: $150,000–$400,000. Manager salary: $35,000–$55,000. **Home services with dispatch models** Restoration, cleaning, and maintenance franchises where a dispatcher/office manager coordinates technicians in the field can function semi-absentee. The owner monitors financial performance and handles key customer relationships, while the manager runs the daily dispatch and scheduling. Investment range: $100,000–$300,000. Manager salary: $45,000–$65,000. **Children’s activities and enrichment** Swim schools, youth sports, tutoring centers, and enrichment programs operate on predictable schedules with trained instructors. Once systems are in place, a manager can run the location while the owner focuses on marketing and financial oversight. Investment range: $100,000–$400,000. Manager salary: $35,000–$55,000. ### Industries that rarely work for semi-absentee: - **Quick-service restaurants.** The complexity of food operations, multiple shift coverage, food safety requirements, and high employee turnover make QSR very difficult to run semi-absentee — at least not until you have an extremely seasoned management team and multiple years of operational stability. - **Full-service restaurants.** Even more challenging than QSR due to longer hours, bar management, higher ticket customer expectations, and complex staffing. - **Retail franchises with high theft risk.** Businesses handling significant cash or valuable inventory need owner-level oversight. - **Sales-intensive service businesses.** Franchises where the owner’s sales ability is the primary revenue driver don’t translate well to semi-absentee because managers rarely sell as effectively as owners. ## The Manager: Your Most Critical Hire The success or failure of semi-absentee ownership comes down to one person: your general manager. This hire is so important that you should think of the manager search as the most consequential decision after choosing the franchise itself. ### What to look for: - **Industry experience.** A manager with relevant industry background ramps up faster and brings credibility with staff and customers. - **Management track record.** Prior experience managing a team of 5+ people, ideally in a service or retail environment. - **Self-motivation.** Semi-absentee means the manager often works without direct supervision. You need someone who performs at the same level whether you’re watching or not. - **Financial literacy.** Your manager should understand P&L statements, labor cost ratios, and basic business metrics — not just operational tasks. - **Alignment with your goals.** A manager who sees this as a stepping stone to something else will leave when you need them most. Look for someone who wants stability and sees growth potential (even eventual equity participation) in the role. ### Compensation structure: - **Base salary:** $40,000–$75,000 depending on industry and market - **Performance bonus:** 5–15% of net profit or revenue targets (this is critical for retention and motivation) - **Benefits:** Health insurance, PTO, and other benefits significantly improve retention - **Total compensation budget:** Plan for $55,000–$90,000 all-in for a quality manager ### The manager risk: If your manager quits, gets fired, or underperforms, you become the operator until you find a replacement. Semi-absentee owners should always have a backup plan — whether that’s an assistant manager ready to step up, a temporary management service, or the ability to step in personally for 2–4 weeks. Plan for this as a scheduled event rather than a surprise. Average tenure for a franchise general manager runs roughly 18 to 30 months, which means most owners will run a manager search at least twice during a 10-year term. Build the succession plan before you need it, and structure compensation so retention is rewarded: a base salary plus a bonus of 5% to 15% of net profit above an agreed baseline gives the manager real upside without loading your fixed costs. ## Realistic Expectations for Semi-Absentee Ownership The headline 10-20 hours is a steady-state number, and buyers get burned by treating it as a day-one number. The realistic curve looks like this: | Phase | When | Owner hours per week | | --- | --- | --- | | Pre-opening | 8-16 weeks before launch | 30-40+ | | Launch and ramp | Months 1-6 | 25-35 | | Stabilization | Months 6-12 | 20-25 | | Steady state | Month 12 onward | 10-20 | Pre-opening is the phase most often underestimated. Site selection, build-out oversight, hiring and training your manager and initial staff, and the franchisor’s mandatory training (frequently two to four weeks of classroom and on-the-job time) largely cannot be delegated, because the person you would delegate to has not been hired yet. ### The first 90 days You will not be semi-absentee during startup. Expect to be fully involved — 40–60 hours per week — during the first 60–90 days as you launch the business, hire and train your team, establish operations, and ensure the manager is capable of running things independently. Some franchisors require owner presence during the launch phase regardless of your operating model. ### Months 3–12 Gradually transition to semi-absentee as your manager proves capable. Your 10–20 hours per week should focus on: - Weekly financial review (revenue, expenses, cash flow) - Weekly manager check-in (challenges, staffing, customer issues) - Marketing and business development - Strategic planning and goal setting - Periodic unannounced visits to observe operations During this phase, the business may not be profitable after management costs. Budget for the possibility that you’ll need to cover $20,000–$50,000 in operating shortfalls during year one. ### Year 2+ If execution is solid, the business should reach profitability after all expenses including management. Your 10–20 hours per week becomes genuinely strategic rather than firefighting. This is when the semi-absentee model starts delivering on its promise. At this point, many semi-absentee owners consider [adding a second unit](https://vetmyfranchise.com/c/claude/blog/single-unit-vs-multi-unit-franchise) — leveraging the same management infrastructure to expand income without proportionally increasing their time commitment. ## Capital Differences: What Semi-Absentee Really Costs Beyond the standard franchise investment, semi-absentee ownership requires additional capital for: | Additional Cost | Amount | | --- | --- | | Manager salary (year 1, may exceed revenue initially) | $45,000–$75,000 | | Assistant manager (recommended) | $30,000–$45,000 | | Extended working capital (slower path to profitability) | $25,000–$50,000 | | Owner’s lost income (if leaving a job) | N/A for semi-absentee keeping their career | | Total additional capital needed | $75,000–$150,000 | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ A franchise that costs $200,000 as an owner-operator model effectively costs $275,000–$350,000 as a semi-absentee model when you account for management costs and extended runway to profitability. This is why financial advisors and [franchise consultants](https://vetmyfranchise.com/c/claude/blog/franchise-brokers-pros-cons) emphasize that semi-absentee ownership requires significantly more capital than the franchise fee and [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) investment alone suggest. ## Brands That Encourage Semi-Absentee Ownership Some franchise brands actively market to semi-absentee buyers and have designed their systems to support the model. When evaluating these brands, look for: - **Explicit semi-absentee language in the FDD or marketing materials** - **Existing semi-absentee franchisees you can call** (ask the franchise development team to connect you) - **Defined manager training programs** (the franchisor trains your manager, not just you) - **Performance dashboards and reporting tools** that let you monitor the business remotely - **Operational systems that don’t rely on the owner’s presence** for customer service or production Be cautious of franchise salespeople who claim “any franchise can be run semi-absentee.” While it’s technically possible to hire management for almost any business, many franchise models don’t produce enough profit to fund a management layer and still return meaningful income to the owner. ## The Profit Impact: What You’re Trading The fundamental trade-off in semi-absentee ownership is straightforward: **Owner-operator profit = Business revenue - expenses - royalties - your time (40-60 hrs/week)** **Semi-absentee profit = Business revenue - expenses - royalties - management costs - your time (10-20 hrs/week)** Management costs typically consume 20–35% of the profit that an owner-operator would keep. On a business generating $100,000 in annual profit as an owner-operator model, a semi-absentee owner might net $65,000–$80,000 after management costs. The question is: is $20,000–$35,000 per year a reasonable price for 30–40 extra hours per week of your time? For someone earning $150,000+ in a corporate career they want to keep, the math works. For someone who left a $60,000 salary to become a franchise owner, the reduced profit may be unacceptable. ## Risk Differences ### Owner-operator risks: - **Burnout.** 40–60 hour weeks for years can be physically and emotionally exhausting - **Owner dependency.** If you get sick or need time off, the business suffers - **Limited scalability.** Your time is the bottleneck for growth - **Career risk.** You’ve left your job — there’s no safety net ### Semi-absentee risks: - **Manager dependency.** Your business is only as good as your manager - **Capital risk.** More money invested for potentially lower per-unit returns - **Dual responsibility stress.** Juggling a career and a business creates its own form of burnout - **Slower profitability.** Longer runway means more months of cash outflow before returns - **Less operational knowledge.** If your manager leaves, you may not know the business well enough to step in effectively Neither model is inherently less risky — they just carry different types of risk. The right choice depends on your financial situation, career goals, risk tolerance, and available time. ## Making the Decision Ask yourself these questions honestly: 1. **Am I willing and able to work 40-60 hours per week in this business?** If no, semi-absentee is your only option. 2. **Can I afford an additional $75,000-$150,000 beyond the franchise investment?** If no, owner-operator may be your only viable path. 3. **Do I have income from another source during the startup phase?** Semi-absentee works best when you’re keeping a career or have a spouse’s income to cover personal expenses. 4. **Am I comfortable delegating control?** If you need to be involved in every decision, semi-absentee will frustrate you. 5. **What’s my five-year goal?** If it’s building a [multi-unit portfolio](https://vetmyfranchise.com/c/claude/blog/single-unit-vs-multi-unit-franchise), semi-absentee skills and systems are essential. If it’s replacing your current income with one business, owner-operator typically produces more income faster. Review the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) for any franchise you’re considering and specifically ask the franchisor and existing franchisees about the viability of your preferred ownership model. The best data comes from franchisees already operating under the model you’re considering — [browse franchise opportunities](https://vetmyfranchise.com/c/claude/franchises) to start your research. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) semi-absentee franchiseowner-operator franchisefranchise ownership modelpassive franchise incomefranchise management About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is a semi-absentee franchise? A semi-absentee franchise is one where the owner invests 10-20 hours per week in strategic oversight, financial management, and high-level decisions while a hired general manager handles daily operations. It is not passive income — the owner remains actively involved, just at a reduced time commitment compared to the 40-60 hours of owner-operator models. ### How much more does semi-absentee ownership cost compared to owner-operator? Semi-absentee ownership typically requires $75,000 to $150,000 in additional capital beyond the standard franchise investment to cover manager salary ($45,000-$75,000/year), assistant manager costs, and extended working capital for a slower path to profitability. A franchise costing $200,000 as an owner-operator effectively costs $275,000-$350,000 as semi-absentee. ### Which franchise industries work best for semi-absentee ownership? Fitness and wellness studios, hair salons and beauty services, home services with dispatch models, and children's activities and enrichment programs are among the best fits. These businesses operate on predictable schedules, have systemized operations, and generate enough profit to fund a management layer. Quick-service and full-service restaurants are generally poor fits for semi-absentee ownership. ### How much less profit do semi-absentee owners make compared to owner-operators? Management costs typically consume 20-35% of the profit an owner-operator would keep. A business generating $100,000 in annual profit as an owner-operator model might net the semi-absentee owner $65,000-$80,000 after management costs. The trade-off is 30-40 fewer hours per week of personal time commitment. ### Can I start as an owner-operator and transition to semi-absentee later? Yes, and many franchise advisors recommend this approach. Starting as an owner-operator lets you learn the business deeply, build operational expertise, and generate higher initial income. After 1-2 years, you can hire and train a manager, then gradually transition to semi-absentee. This approach reduces risk because you understand the business well enough to evaluate your manager's performance and step in if needed. --- title: "Kiddie Academy vs The Learning Experience Franchise 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: kiddie academy vs the learning experience, kiddie academy franchise cost, the learning experience franchise cost, daycare franchise comparison, preschool franchise fee, childcare franchise canonical: https://vetmyfranchise.com/c/claude/blog/kiddie-academy-vs-the-learning-experience-franchise about: kiddie academy vs the learning experience category: blog wordCount: 1743 readingTime: 9 min crawledAt: 2026-08-20 11:06:17 lastVerified: 2026-08-20 11:06:17 site: https://vetmyfranchise.com/c/claude/ --- # Kiddie Academy vs The Learning Experience Franchise 2026 ## Summary Kiddie Academy vs The Learning Experience: 2026 FDD franchise fees, Item 7 investment, Item 19 revenue, and expense disclosure for both childcare systems. ## Key facts - Kiddie Academy’s 2026 FDD sets the initial fee at $150,000. - This is the wider gap, and almost nobody weighs it. - Both ceilings look like extraction errors. - Kiddie Academy requires a certified full-time Director on premises, and separately requires you, a principal, or the personal guarantor to devote full time and best efforts to managing the academy. - Pick Kiddie Academy if you want the strongest disclosure in the category and intend to run the academy yourself. Quick answer Kiddie Academy charges a $150,000 initial fee and The Learning Experience charges $60,000. The gap closes at Item 7, where TLE adds a $75,000 site coordination fee or a $250,000 to $312,500 site development charge. Both systems disclose median center revenue near $2.1 million. ## The $90,000 fee gap closes before you finish Item 7 Kiddie Academy’s 2026 FDD sets the initial fee at $150,000. The Learning Experience sets its franchise fee at $60,000. Every comparison article stops there, and that is the least useful number in either document. Read both Item 7 tables and most of the gap disappears. TLE’s $60,000 buys the franchise. Building the center is a second transaction with the same franchisor. Develop and construct the site yourself and you sign a Site Coordination Addendum and pay TLE a nonrefundable $75,000 site coordination fee. Hand the job to TLE and you sign a Site Development Service Charge Addendum instead, at $250,000 to $312,500 for a facility of roughly 12,500 square feet. Money to the franchisor before you open: $135,000 on the self-build route, or $310,000 to $372,500 on the turnkey route. Kiddie Academy’s $150,000 is one line, payable in four installments tied to signing, site acceptance, permit issuance, and loan funding. Item 7 prints it as a range of $70,000 to $150,000 because [Item 5](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure) discloses reduced-fee programs that can bring it down. Against TLE’s turnkey path, Kiddie Academy at full price is less than half the franchisor-side cost. So the $90,000 gap is real only if you compare one line to one line. Neither brand is the cheap one. They just charge for site development in different places. | Metric (2026 FDD) | Kiddie Academy | The Learning Experience | | --- | --- | --- | | Initial fee to franchisor | $150,000 (Item 7 shows $70,000 to $150,000) | $60,000 | | Site fee to franchisor | None | $75,000, or $250,000 to $312,500 turnkey | | Item 7, leased or turnkey center | $590,000 to $1,010,000 | $805,799 to $1,563,499 | | Item 7, you buy and build | $4,935,000 to $8,530,000 | $2,264,799 to $5,658,799 | | Royalty | 7% of gross revenues | 7% of gross revenue | | Brand fund | 2% | 1%, franchisor may raise to 2.5% | | Franchised units | 363 | 436 | | Company-owned units | None disclosed | 31 | | Item 19 sample | 293 franchisee-owned academies open 24+ months | 266 franchised centers open 48+ months | | Item 19 median revenue | $2,075,740 | $2,168,511 | | Franchisee expense data | Labor, occupancy, gross profit | None disclosed | TLE’s $2,168,511 looks like a $92,771 win. It is not comparing the same thing. Kiddie Academy defines its mature group as academies open 24 months or more, and reports 293 of them for calendar 2025. Average gross revenue $2,193,815, median $2,075,740, average age about 119 months. The 22 younger academies get their own table at a $1,465,325 median. The Learning Experience splits its franchised centers at 48 months. Mature centers, open more than four years, numbered 266 in 2025 at a $2,186,393 average and a $2,168,511 median. Intermediate centers, open 24 to 47 months, numbered 59 at a $1,941,423 average. Weight those two cohorts together and TLE’s franchised centers open 24 months or more average roughly $2,141,900 across 325 locations. Kiddie Academy’s comparable figure is $2,193,815 across 293. Run them on the same clock and the ranking flips by about 2.4%, which is noise. TLE’s headline advantage comes from a four-year filter that Kiddie Academy does not apply. This is the failure mode our post on [Item 19 averages, medians, and survivorship bias](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) exists to catch, and it shows up in almost every childcare comparison published. One more definitional note on TLE’s Statement 1: the tables mix franchised and company-owned centers in the narrative, then break them out. The 266-center figure is franchised only. Its corporate centers ran higher, $2,574,296 median across 17 locations, which is worth knowing before a franchise development rep quotes you a blended number. ## Kiddie Academy tells you what a center spends. TLE tells you only about its own. This is the wider gap, and almost nobody weighs it. Kiddie Academy’s Item 19 carries four expense lines for all 293 mature academies. At the median: labor $983,102, occupancy $363,623, miscellaneous $257,451, gross profit $479,211. It then splits the group into quartiles by gross profit. The top 73 academies report $991,054 against $2,932,736 of revenue; the bottom 73 report $105,058 against $1,343,525. The weakest quarter of ramping academies lands at negative $437,520. Read those two ends together and you have the actual risk shape of a childcare center. Same brand, same manuals, and a spread from roughly $105,000 to roughly $991,000 in gross profit. Note also that Kiddie Academy’s gross profit deducts labor, occupancy, and a miscellaneous line that already includes royalties and brand fund, but not supplies, food, or insurance premiums. It is not net income and the FDD says so. The Learning Experience publishes expense data too, in Statement 2, for 17 mature company-owned centers. Footnote 2 explains the omission for franchisees plainly: TLE cannot poll cost data through its point of sale system and franchisee reports are not handled consistently. The franchisor then says it has no reason to believe franchised-center expenses materially differ, while noting that company centers may enjoy economies of scale franchisees do not. That is a candid footnote. It is also an admission that a TLE buyer gets a top-line number and nothing underneath it. If you want a cost model for a TLE center, you build it from validation calls. Kiddie Academy hands you one. Working both documents side by side is exactly what our [comparison tool](https://vetmyfranchise.com/c/claude/compare) is built for, and the [best daycare and preschool franchises](https://vetmyfranchise.com/c/claude/blog/best-daycare-preschool-franchises) roundup puts these two against Celebree, Lightbridge, and Primrose on the same disclosure standard. ## The Item 7 high end is a real estate decision, not a brand decision Both ceilings look like extraction errors. Both are real, and the line items add to them exactly. Kiddie Academy prints two tables. A leased academy totals $590,000 to $1,010,000. Buying land and building a roughly 10,000 square foot academy totals $4,935,000 to $8,530,000, with real estate acquisition and construction alone at $4,220,000 to $6,625,000. Note 4 gives the underlying rates: vacant land at $12.63 to $35 per square foot, new construction at $330 to $480, an existing building purchase at $335 to $675. TLE prints four. Turnkey development runs $805,799 to $1,563,499. Building your own site runs $2,264,799 to $5,658,799 and excludes the cost of land. Acquiring an existing center runs $937,300 to $3,393,000. A fourth-center deal reaches $22,813,196 at the top. So a $590,000 quote and an $8,530,000 quote describe the same brand and different balance sheets. Whether you lease a shell or own the dirt drives more of your outcome than the franchise fee, which is the argument for reading our [lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) before you tour a site. ## Item 15 decides how much of your week this takes Kiddie Academy requires a certified full-time Director on premises, and separately requires you, a principal, or the personal guarantor to devote full time and best efforts to managing the academy. Multi-unit owners may divide that time across their academies. It reads as an owner-operator document. The Learning Experience requires a Center Director at 40 hours per week and recommends that you devote substantial time. Recommends, not requires. For a buyer building toward three centers with an area manager, that difference in wording is worth more than the fee gap. Unit trajectory leans the same direction. TLE’s Item 19 counts 366 US centers at the end of 2023, 417 in 2024, and 465 in 2025. Kiddie Academy went from 344 franchised academies to 363 over the same last year. ## Which one fits which buyer Pick Kiddie Academy if you want the strongest disclosure in the category and intend to run the academy yourself. You get quartile gross profit data, a full expense stack, and a franchisee-only sample of 293. You also get a document that expects you present. Pick The Learning Experience if you want the franchisor to deliver a finished building and you are structuring toward multiple centers with hired directors. You pay for that in the site development charge, and you accept that no franchised-center cost data exists in the filing. The uncomfortable version: both systems disclose about $2.1 million of revenue per mature center, both charge a 7% royalty, and only one shows you what is left. If you are pulling both filings, our [$99 three-pack](https://vetmyfranchise.com/c/claude/pricing) covers these two plus a third childcare brand with the Item 19 samples labeled the way they are above. For category context, start with the [child education franchise guide](https://vetmyfranchise.com/c/claude/blog/child-education-franchise-guide) or the [Primrose Schools cost breakdown](https://vetmyfranchise.com/c/claude/blog/primrose-schools-franchise-cost), which sits in the same capital tier and discloses on yet another sample definition. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) kiddie academy vs the learning experiencekiddie academy franchise costthe learning experience franchise costdaycare franchise comparisonpreschool franchise feechildcare franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which is cheaper, Kiddie Academy or The Learning Experience? On a leased or turnkey center, Kiddie Academy. Its Item 7 range for a leased facility runs $590,000 to $1,010,000 against TLE's $805,799 to $1,563,499 for a center TLE develops. The franchise fee favors TLE at $60,000 versus $150,000, but TLE's site fees add $75,000 to $312,500 back on top. ### Which earns more per center? They are close enough that the sample definition decides it. TLE discloses a $2,168,511 median on 266 franchised centers open more than 48 months. Kiddie Academy discloses $2,075,740 on 293 academies open 24 months or more, a younger cohort. Weight TLE's two published cohorts to the same 24-month cutoff and its average lands near $2,141,900 against Kiddie Academy's $2,193,815. ### How much does a Kiddie Academy franchise cost? The 2026 FDD publishes two Item 7 tables. A leased academy runs $590,000 to $1,010,000. Buying land and building a roughly 10,000 square foot academy runs $4,935,000 to $8,530,000, with real estate and construction alone at $4,220,000 to $6,625,000. The initial fee is $150,000, shown in Item 7 as $70,000 to $150,000 because reduction programs exist. ### Why is Kiddie Academy's franchise fee $150,000? Item 5 says it covers franchisee training, Academy Director training, site selection, and background checks, and it is payable in four installments tied to signing, site acceptance, permit issuance, and loan funding. The comparison that matters is total money paid to the franchisor before opening, and on that basis TLE's $60,000 fee plus its site charges reaches $135,000 to $372,500. ### How many locations does each have? Kiddie Academy's 2026 FDD reports 363 franchised academies as of December 31, 2025, up from 344 a year earlier. The Learning Experience reports 436 franchised centers plus 31 company-owned. TLE's Item 19 counts 465 US centers at the end of 2025 against 417 in 2024 and 366 in 2023. ### Can either be run semi-absentee? TLE's document is friendlier to it. Item 15 requires a Center Director working at least 40 hours per week and only recommends that the owner devote substantial time. Kiddie Academy's Item 15 requires you or a principal guarantor to devote full time and best efforts to managing the academy, though multi-unit owners may split that time across their academies. --- title: "Franchise Validation Process: How to Talk to Franchisees" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide category: blog wordCount: 3161 readingTime: 16 min crawledAt: 2026-08-20 11:07:19 lastVerified: 2026-08-20 11:07:19 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Validation Process: How to Talk to Franchisees ## Summary Learn the franchise validation process: how to contact existing franchisees, what questions to ask, red flags to watch for, and how to organize your findings. ## Key facts - Franchise validation is the process of contacting existing and former franchisees to learn about their real-world experience operating the franchise. - Consider this: a franchisor is legally permitted to present selective data in [Item 19 of the FDD](https://vetmyfranchise. - You should aim to speak with a minimum of **15 to 20 current franchisees** and **5 to 10 former franchisees** to get a statistically meaningful picture. - The key to effective validation is asking the same core questions to every franchisee so you can compare answers and identify patterns. - Validation is as much about how franchisees say things as what they say. Quick answer Validation means calling 15-20 current franchisees and 5-10 former ones from the Item 20 list, or 30% of the network in systems under 50 units. Start with former franchisees and close every call with 'knowing what you know now, would you invest again?' If your validation median lands 15-20% below the Item 19 average, rebuild the model. ## What Is Franchise Validation? Franchise validation is the process of contacting existing and former franchisees to learn about their real-world experience operating the franchise. It is widely considered the single most important step in franchise due diligence — yet many prospective buyers skip it or do it poorly. The franchisor will give you a polished sales pitch. The [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) will give you legally required disclosures. But only current franchisees can tell you what daily life actually looks like inside the system. Validation bridges the gap between what you are told and what is true. **Bottom line:** No amount of document review can replace direct conversations with the people who have already invested their money and years of their life into the franchise you are considering. ## Why Validation Matters More Than You Think Consider this: a franchisor is legally permitted to present selective data in [Item 19 of the FDD](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). They might show average revenue for the top quartile of units, or they might exclude underperforming locations from their calculations entirely. The only way to pressure-test those numbers is to call actual operators. Validation helps you answer critical questions that the FDD cannot: - **Is the franchisor honest and supportive?** You can read their obligations in [Item 11](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations), but do they actually follow through? - **Are the financial projections realistic?** Item 19 data (if provided) may be technically accurate but misleading without context. - **What does a typical day look like?** No disclosure document captures the emotional and physical demands of the business. - **Would they do it again?** This single question tells you more than 300 pages of legal disclosures. Item 20 of the FDD contains a list of every current franchisee along with their contact information. It also lists franchisees who left the system in the past fiscal year. Both lists are goldmines for validation. ### Current Franchisees The current franchisee list gives you names, addresses, and phone numbers for every operating unit. This is your primary validation source. The FTC requires franchisors to provide this list — if a franchisor tries to limit your access or steer you toward a handpicked group of “validation franchisees,” treat that as a red flag. ### Former Franchisees The former franchisee list (those who left, were terminated, or did not renew) is equally valuable. These people have nothing to lose by being honest, and their perspective on why they exited the system can be revelatory. Franchisors are required to provide contact information for franchisees who left during the most recent fiscal year. **Pro tip:** Start with former franchisees. They tend to be more candid, and their negative experiences help you calibrate what you hear from current operators. ## Building Your Call List and Sample Size You should aim to speak with a minimum of **15 to 20 current franchisees** and **5 to 10 former franchisees** to get a statistically meaningful picture. If the system has fewer than 50 units, try to reach at least 30% of the network. When selecting who to call, diversify your sample: - **Geographic diversity** — Call franchisees in different regions to control for local market conditions. - **Tenure diversity** — Talk to newer franchisees (1-2 years) and veterans (5+ years) for different perspectives. - **Performance diversity** — Do not only call the top performers the franchisor recommends. Pick random names from the Item 20 list. ### Organizing Your Outreach | Step | Action | Timeline | | --- | --- | --- | | 1 | Download and organize the Item 20 list into a spreadsheet | Day 1 | | 2 | Categorize franchisees by region, tenure, and unit count | Day 1-2 | | 3 | Begin outreach to former franchisees first | Day 2-4 | | 4 | Call current franchisees (random selection, not franchisor-recommended) | Day 3-10 | | 5 | Follow up with targeted calls based on emerging themes | Day 7-14 | | 6 | Compile findings into a validation summary document | Day 14-17 | ## What to Ask: Validation Topics and Sample Questions The key to effective validation is asking the same core questions to every franchisee so you can compare answers and identify patterns. Here’s a detailed framework: | Topic Area | Sample Questions | | --- | --- | | Financial Reality | What was your total investment to open? How long to break even? What is your annual revenue and profit margin? Were the franchisor’s financial estimates accurate? | | Franchisor Support | How would you rate the initial training? Is ongoing support responsive and helpful? Do you feel the franchisor cares about your success? | | Marketing & Advertising | Is the national ad fund effective? Do you see a return on the advertising fees you pay? What local marketing works best? | | Operations | What does a typical day look like? What is the biggest operational challenge? How many hours per week do you work? | | Territory & Competition | Have you experienced encroachment from other units? Is your territory adequate for growth? | | Culture & Communication | How is the relationship between franchisees and corporate? Is there a franchisee advisory council? Do you feel heard? | | The Big Question | Knowing what you know now, would you do it again? Would you recommend this franchise to a close friend or family member? | ### Call Script Structure When you make your calls, follow this general structure: 1. **Introduction** — Identify yourself as a prospective franchisee doing your due diligence. Most franchisees remember being in your shoes and are willing to help. 2. **Warm-up questions** — Ask about their background and how long they have been in the system. Let them get comfortable. 3. **Financial questions** — Ease into the money topics. Not everyone will share exact numbers, but most will confirm whether the franchisor’s representations are realistic. 4. **Operational questions** — This is where you learn about daily life, staffing challenges, and the realities of running the business. 5. **Relationship questions** — Probe the franchisee-franchisor relationship. Listen for emotion and frustration. 6. **The recommendation question** — Always end with “Would you do it again?” and “Would you recommend this to a family member?” ## What to Listen For: Reading Between the Lines Validation is as much about how franchisees say things as what they say. Pay attention to: - **Hesitation or deflection** — If a franchisee pauses before answering a financial question or redirects the conversation, that silence speaks volumes. - **Consistent themes** — If three unrelated franchisees independently mention the same problem (e.g., poor technology, slow support response times), that is a systemic issue. - **Enthusiasm level** — Happy franchisees are genuinely enthusiastic. They volunteer information and want to help you succeed. Unhappy franchisees are guarded and speak in generalities. - **Specificity** — Trustworthy answers include specific numbers, timelines, and examples. Vague answers like “it’s fine” or “I’m doing okay” often mask dissatisfaction. - **The spouse test** — Ask if their spouse or partner is happy with the investment. This question often unlocks honest answers about lifestyle impact and financial stress. ## Red Flags in Franchise Validation Watch for these warning signs during your validation calls: - **Franchisees refuse to talk** — While some people are simply busy, a pattern of refusal can indicate fear of franchisor retaliation or a system-wide morale problem. - **The franchisor steers your calls** — If the franchisor insists you only speak to a curated list of “validation franchisees,” be suspicious. You have the legal right to contact anyone on the Item 20 list. - **Financial numbers don’t match Item 19** — If franchisees consistently report earnings well below what the FDD suggests, the Item 19 data may be cherry-picked or outdated. - **High turnover in your target market** — If multiple units in your region have changed hands or closed, investigate why before proceeding. - **Litigation themes** — If several franchisees mention disputes with corporate or threats of termination, the franchise culture may be adversarial. - **“I wouldn’t do it again”** — When multiple franchisees tell you they would not re-invest or would not recommend the franchise to family, take that feedback seriously regardless of what the financial data shows. ## What Good and Bad Answers Actually Sound Like Patterns are easier to spot when you know in advance what each end of the range sounds like. Use this as a scoring reference while you take notes. | Topic | Green flag answer | Red flag answer | | --- | --- | --- | | Revenue vs. expectations | ”Close to or above what I expected" | "Significantly below projections” | | Time to breakeven | ”6-12 months, as expected" | "Still not profitable after 18+ months” | | Owner take-home | Shares a range willingly, sounds satisfied | Evasive, vague, or openly frustrated | | Surprise costs | ”A few minor things" | "Build-out came in 40% over estimate” | | Would invest again | Enthusiastic yes | Hesitation, qualifiers, or an outright no | | Training quality | ”Thorough and practical" | "Barely adequate,” “learned by trial and error” | | Franchisor responsiveness | Gives specific positive examples | ”I can never get anyone on the phone” | | Support over time | ”Consistent” or “has improved" | "Dropped off the moment I opened” | | Fee value | ”Fair for what I get" | "I’m just paying a tax” | | Work hours | Matches what you were told | Far more demanding than advertised | | Biggest challenge | Manageable operational issues | Fundamental business-model problems | | Territory | ”No problems” | Active encroachment complaints | | Franchisee culture | Collaborative, functioning advisory council | Adversarial, no real communication channel | | What they’d do differently | Tactical advice on location or timing | ”I wouldn’t do it at all” | ### Thresholds that should stop you Vague warnings are easy to rationalize away, so set the numbers before you start calling. - **More than 2 or 3 out of 10 say they would not invest again.** Walk away. These people have money in the ground and every incentive to talk their own investment up. - **6 out of 10 report revenue below expectations.** That is not bad luck in a few markets, it is a problem with the earnings representation or the sales process. - **10 out of 15 decline to speak or sound scripted.** The suppression itself is the finding. Happy owners generally talk. - **Disconnected numbers on the Item 20 list.** If a meaningful share of listed phone numbers are dead or the businesses have already closed, the system has churn that the most recent filing does not yet reflect. ### Call mechanics that raise your response rate - Call off-peak. Avoid lunch and dinner for restaurants; try mid-morning or mid-afternoon for service businesses. - Open plainly: you are considering the brand, you found them in the FDD, and you would like 15 minutes. - Keep it to 15 to 20 minutes unless they want to keep going, and say so up front. - Do not lead with money. Start with experience and work toward financials once there is rapport. - Write your notes immediately after each call. The nuances are gone an hour later. ## Organizing and Analyzing Your Findings After completing your validation calls, organize your findings systematically: ### Create a Validation Scorecard Rate each franchise on a 1-5 scale across key dimensions: - Financial performance vs. expectations - Quality of initial training - Ongoing franchisor support - Marketing fund effectiveness - Territory protection - Overall franchisee satisfaction - “Would do it again” percentage ### Look for Patterns, Not Outliers Every franchise system has one or two disgruntled franchisees and one or two superstars. Do not let outliers drive your decision. Focus on what the **majority** of franchisees report. If 15 out of 20 franchisees say the same thing, that is your signal. ### Compare Against FDD Claims Go back to the FDD and compare what franchisees told you against the franchisor’s representations. Specifically: - Does actual total investment match [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) estimates? - Does actual revenue match Item 19 data (if provided)? - Does the franchisor deliver on the support obligations outlined in Item 11? - Are territorial protections in Item 12 respected in practice? ## 12 Questions That Reveal What Item 19 Hides The standard validation framework above gets you breadth. This section gets you depth on the single area where buyers lose the most money: misreading [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). Disclosed averages routinely mask survivorship bias, cohort effects, and quartile spread. The only way to pressure-test the headline number is to make franchisees walk you through their actuals — line by line — and compare those actuals to what the FDD disclosed for their cohort year. Ask these 12 questions of every operator who will share. Patterns emerge by call number 8 or 10. 1. **“What was your AUV in year 1, year 2, year 3 — actuals?”** Forces specific numbers, not vibes. If they hedge, ask for ranges. 2. **“How does your AUV compare to the Item 19 average disclosed in your year’s FDD?”** This is the single most important comparison. A 25%+ gap below disclosed average is a flashing warning. 3. **“What’s the spread between top-quartile and bottom-quartile operators you know personally?”** Item 19 medians hide the tail. A 3x spread between top and bottom quartile means the average is nearly meaningless for an unproven operator. 4. **“Have your gross margins compressed since you opened? By how many points?”** Reveals whether the disclosed unit economics are degrading system-wide. 5. **“How long did it take you to reach the Item 19 average — months from opening?”** Many systems disclose mature-store averages without separating ramp years. Knowing the real ramp curve changes your cash-flow model. 6. **“What % of your year-1 revenue went to royalty + ad fund + lease combined?”** A combined burden over 18-20% of revenue in year one usually means the unit cannot service debt without owner-operator labor. 7. **“What operating cost line item surprised you most relative to the [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) estimates?”** Item 7 ranges are notoriously optimistic. Surfacing the surprise line items helps you reset your own projections. 8. **“When did you first hit positive monthly cash flow? Net positive cumulative?”** These are two very different milestones. Net positive cumulative often arrives 18-30 months later than monthly breakeven. 9. **“What’s your real labor cost as % of revenue — and how does that compare to the franchisor’s training projections?”** Franchisor labor models almost always understate real wages, scheduling overhead, and turnover replacement costs. 10. **“What operators in your region or year-cohort have closed or sold — and why?”** Item 20 only shows transfers and terminations within the most recent fiscal year. Talking to peers surfaces the longer pattern. 11. **“If you opened today, would your math still work — yes/no?”** Cuts through nostalgia. A unit that worked in 2019 economics may be unviable in 2026 build costs and labor rates. 12. **“What did the franchisor NOT tell you that you wish they had?”** The most honest answers come at the end of a call, after rapport is built. This question regularly surfaces issues no Item 19 footnote will ever disclose. Compile responses in a spreadsheet with one row per franchisee and columns matching the questions above. The spread between disclosed Item 19 and the median of your validation calls is the single most important number you will produce during due diligence. If it is more than 15-20% below the FDD average, your investment model needs to be rebuilt from your validation data — not from the franchisor’s disclosure. ## Using Technology to Speed Up Validation Platforms like [VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises) can help you organize your due diligence by providing structured FDD analysis alongside your validation findings. When you combine AI-powered document analysis with human validation, you get the most complete picture possible. You can also use the [franchise comparison tool](https://vetmyfranchise.com/c/claude/compare) to evaluate multiple franchise opportunities side by side, incorporating both FDD data and your validation insights. ## Final Thoughts Franchise validation is not optional — it is the single most important step in your due diligence process. The FDD gives you the legal framework; validation gives you the truth. Commit to making at least 20 calls, ask consistent questions, listen carefully for patterns, and let the collective experience of existing franchisees guide your decision. The best franchise investments are made by buyers who do the hard work of validation before signing on the dotted line. Do not shortcut this step — your financial future depends on it. One caveat as you make those calls: selection bias and gag clauses can distort what current franchisees tell you. Our guide to [why validation calls can mislead](https://vetmyfranchise.com/c/claude/blog/franchise-gag-clauses-validation-calls) explains the distortions and how to correct for them. Ready to start your franchise research? [Browse franchise FDD reports on VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises) to begin your due diligence with data, then validate what you find with real franchisee conversations. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) franchise validationdue diligencefranchisee interviewsItem 20franchise research About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How many franchisees should I talk to during validation? Aim for at least 15-20 current franchisees and 5-10 former franchisees. If the system has fewer than 50 units, try to reach at least 30% of the network to get a statistically meaningful sample. ### Can the franchisor prevent me from contacting franchisees on the Item 20 list? No. The FTC requires franchisors to provide the Item 20 list specifically so prospective buyers can contact existing and former franchisees. If a franchisor tries to restrict your access, treat that as a serious red flag. ### What is the most important question to ask during franchise validation? The single most revealing question is "Knowing what you know now, would you invest in this franchise again?" This forces an honest gut-level response that captures overall satisfaction, financial results, and lifestyle impact in one answer. ### Should I contact former franchisees or current ones first? Start with former franchisees. They have already left the system and have nothing to lose by being candid. Their perspective on why they exited helps you calibrate and contextualize what current franchisees tell you. ### What if franchisees refuse to speak with me during validation? An occasional refusal is normal — people are busy. But if you encounter a pattern of franchisees unwilling to talk, it may indicate fear of franchisor retaliation or system-wide morale issues, both of which are significant red flags. ### How do I verify the Item 19 numbers during validation calls? Ask franchisees for their actual year-1, year-2, and year-3 AUV figures and compare those to the Item 19 average disclosed in their cohort year's FDD. Probe the spread between top-quartile and bottom-quartile operators they personally know, how long it took them to reach the disclosed average, and whether their margins have compressed since opening. If 15 of 20 franchisees report numbers materially below the Item 19 average, the disclosed figure likely reflects survivorship bias or top-performer cherry-picking. --- title: "Scooter's Coffee Franchise Cost 2026: Investment + Buyer Reality" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-19 dateModified: 2026-08-13 keywords: scooters-coffee, scooters-coffee-franchise-cost, drive-thru-coffee-franchise, coffee-franchise, item-19, franchise-investment, emerging-franchise canonical: https://vetmyfranchise.com/c/claude/blog/scooters-coffee-franchise-cost about: scooters-coffee category: blog wordCount: 2478 readingTime: 12 min crawledAt: 2026-08-20 11:04:02 lastVerified: 2026-08-20 11:04:02 site: https://vetmyfranchise.com/c/claude/ --- # Scooter's Coffee Franchise Cost 2026: Investment + Buyer Reality ## Summary Scooter's Coffee franchise cost 2026: $1.16M-$1.35M kiosk investment, $40K fee, 6% royalty. Item 19 discloses a $966,739 median across 761 participating kiosks. ## Key facts - Here’s the structural cost picture pulled directly from the 2026 [Scooter’s Coffee](https://vetmyfranchise. - Scooter’s discloses more than most drive-thru coffee brands, and the exclusions are where the reading happens. - Published medians do not remove the diligence work. - Scooter’s chose a drive-thru-only physical format. - The brand is a clean buy for real estate operators who already control or can source pad-site corners in growth markets and can do the site selection work themselves. Quick answer A Scooter's Coffee kiosk costs $1,163,650 to $1,345,750 per the 2026 FDD, including a $40,000 franchise fee and a separate $20,000 opening support fee. Item 19 discloses median gross sales of $966,739 across 761 participating franchised kiosks in 2025. Royalty is 6% plus a 2% ad fund. ## The Two Numbers That Run This Franchise [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) is the fastest-growing drive-thru coffee chain you can actually buy. 906 total units. 85 new franchised openings in 2025. And the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) discloses both halves of the equation, which is more than most brands in this category do. The revenue number is $966,739. That is the median gross sales across 761 participating franchised kiosk stores in 2025, with an average of $999,869 and a spread running from $337,233 to $2,458,874. The cost number is $1,163,650 to $1,345,750 for a kiosk store, not including land. Put those side by side and the deal announces itself. You are spending roughly $1.25M to buy about $967,000 of annual gross sales, a revenue-to-investment ratio below 1x before you have paid anyone. Compare that to a home services franchise turning 3x or better on the same capital and you understand why site selection carries so much weight here: the model has no slack for a mediocre corner. The second number is the royalty stack: 6% royalty plus a 2% ad fund on net sales, weekly, for the life of the agreement. On a coffee unit with a 60-65% gross margin and 25-30% labor, that 8% consumes a meaningful share of what is left after store-level operating expenses. You can build a real business inside that math. Plenty of Scooter’s franchisees are. But you need to walk into it with the math actually built — not the franchisor’s marketing math, and not a generic “drive-thru coffee is hot” thesis. ## What the 2026 FDD Actually Says Here’s the structural cost picture pulled directly from the 2026 [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) FDD: | Item | 2026 FDD Number | | --- | --- | | Kiosk store investment | $1,163,650 to $1,345,750 (excludes land purchase) | | Site and building improvements | $725,200 to $772,000 | | Franchise fee | $40,000 | | Initial opening support fee | $20,000, also due at signing | | Royalty | 6% of net sales | | Ad fund | 2% of net sales | | Local marketing | Required, additional spend | | Total units (franchised + affiliate) | 906 (881 + 25) | | Kiosk / end cap / other split | 768 / 62 / 51 franchised | | 2025 openings | 85 franchised | | 2025 closures | 24 franchised | | Item 19 median gross sales | $966,739 across 761 participating kiosks | Two things in that table get missed. The investment figure excludes the purchase of land, so a buyer who wants to own the pad rather than lease it is adding several hundred thousand dollars on top. And the $40,000 franchise fee is not the only signing-day payment: a separate $20,000 initial opening support fee is due at the same moment, putting $60,000 with the franchisor before site work begins. Site and building improvements at $725,200 to $772,000 are roughly 60% of the total. That is the line to interrogate with your contractor, because it is where a difficult site quietly becomes an expensive one. For what’s actually inside the fee structure and where buyers most often misunderstand it, the [FDD Item 5 deep-dive](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure) walks through the full disclosure category by category. ## What Item 19 actually covers, and what it leaves out Scooter’s discloses more than most drive-thru coffee brands, and the exclusions are where the reading happens. The disclosure covers franchised kiosk and end-cap drive-thru stores. It leaves out non-traditional stores and coffeehouse stores, and the FDD gives the reason plainly: the franchisor is not actively marketing those formats. It also excludes every affiliate-owned store, which is the right call for a buyer, since you want to see franchisee results rather than corporate ones. Within the kiosk table, “participating” means open and operating for the entire 12-month measurement period. In 2025 that was 761 of the 768 franchised kiosks open at year end. That is 99% coverage, which is unusually complete. Stores that closed permanently during a period are excluded, and the FDD names those counts year by year: 0, 2, 2, 14, and 22 across 2021 through 2025. The five-year table is the part worth your time: | Measurement period | Participating kiosks | Average gross sales | Median gross sales | | --- | --- | --- | --- | | 2025 | 761 | $999,869 | $966,739 | | 2024 | 605 | $914,719 | $880,794 | | 2023 | 424 | $877,495 | $869,610 | | 2022 | 275 | $876,519 | $855,908 | Median gross sales climbed 12.9% from 2022 to 2025 while the store count nearly tripled. Systems that grow fast usually dilute their averages, because new units drag the mean down. Scooter’s did not. That is a genuine signal, and it is stronger evidence than any single year’s median. The number the table does not give you is profit. Gross sales at $966,739 tells you nothing about what an owner keeps after product, labor, rent, royalty, and debt service on a $1.2M build. For how disclosed revenue figures can still mislead, see [the survivorship bias problem](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias), and [Item 19 explained](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) covers the legal mechanics of what a franchisor may and may not tell you outside the document. [Get the full Scooter’s Coffee FDD analysis, $49 single report](https://vetmyfranchise.com/c/claude/pricing) ## Using the disclosure properly Published medians do not remove the diligence work. They redirect it. **Underwrite against the distribution, not the midpoint.** The 2025 range runs $337,233 to $2,458,874. A store at the 25th percentile is a fundamentally different business from one at the 75th, on nearly identical capital. Ask your franchise development contact where stores in trade areas comparable to yours have landed. **Run validation calls on margin, not revenue.** You already have revenue. Item 20 lists contact information for current and recently departed operators. Call 8 to 12 of them and ask what falls to the owner after everything, and what the first 18 months looked like before the store stabilized. **Check the cohort math in Item 20.** Transfer and termination activity is a structural signal independent of any sales figure. The FDD’s own permanent-closure counts rose from 2 in 2023 to 14 in 2024 to 22 in 2025 as the base grew. Watch whether that rate is growing faster than the store count. For the methodology, see [the closure rate calculation](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics). **Compare on like terms.** Scooter’s discloses gross sales. Several competitors disclose net sales, which run lower on the same store. Our [coffee franchise comparison](https://vetmyfranchise.com/c/claude/blog/best-coffee-franchises) puts the category’s medians side by side with each sample definition labeled, which is the only way that comparison means anything. ## The Drive-Thru-Only Real Estate Problem Scooter’s chose a drive-thru-only physical format. That choice has a structural cost. The advantage: no dining room. No tables, no bathrooms for customers (employee bathroom only), no general-public seating to clean and police. Lower labor, lower occupancy, simpler operations. A drive-thru-only unit can be staffed by 3-5 people per shift instead of the 6-9 a Starbucks-style café would need. The cost: the real estate has to be exactly right. Drive-thru-only fails on three failure modes a sit-down coffee shop would survive: - **Wrong corner.** A drive-thru depends on a specific traffic flow direction and lane access. The wrong side of the street, the wrong intersection geometry, or a competitor on a better corner kills the unit. Foot-traffic substitution that helps a sit-down café won’t save a drive-thru. - **Wrong morning rush direction.** Drive-thru coffee is 60-70% morning revenue. If your unit faces the wrong direction of the morning commute, you lose half your peak. Easy mistake to make at site-selection if you’re not paying attention. - **Wrong drive-thru lane count.** Most drive-thru coffee units are designed for a single lane, but a high-volume location needs a double-lane or a dedicated mobile-order lane. Building the wrong format means leaving 15-25% of throughput on the table. For more on how lease and real estate decisions structure franchise unit economics, [the real estate lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) covers what to negotiate before signing. A 6% royalty on net sales sounds modest until you build out the multi-year math. Take a Scooter’s unit doing $900K in annual sales (a reasonable middle-of-range estimate based on competitor data). The royalty math: - 6% of $900K = **$54,000/year in royalty** - 3% mid-point ad fund = **$27,000/year in ad fund** - Combined: **$81,000/year** in franchisor payments before any local marketing Over a 10-year initial term — Scooter’s standard franchise agreement term — that’s $810,000 in franchisor payments on a single unit at the $900K AUV assumption. Compare that to the $40,000 initial franchise fee, and the real cost of the franchise relationship isn’t the fee at signing — it’s the royalty stream over 10 years. The math gets worse on lower-volume units (royalty stays at 6%, so a $600K-AUV unit still pays the same percentage but has thinner cushion) and slightly better on higher-volume units (where percentages amortize across more revenue). ## Where Scooter’s Wins, Where It Doesn’t The brand is a clean buy for real estate operators who already control or can source pad-site corners in growth markets and can do the site selection work themselves. It also fits multi-unit operators with experience scaling QSR or drive-thru concepts and the capital to commit to a 3-5 unit area development agreement, and strong-credit buyers who can carry SBA debt on a $1M+ project with a 20-30% lender haircut on projected revenue. Operators with patience for a 2-3 year path to stabilized cash flow per unit, especially in unsaturated markets, tend to do well. Where Scooter’s struggles is the opposite profile. First-time single-unit buyers who read the $966,739 median as a forecast rather than a midpoint will underwrite the wrong store, because half the system sits below it and the bottom of the range is $337,233. Owner-operators expecting to work the counter rather than manage a manager-led model find the operating cadence mismatched. Buyers without real estate networks will be at the franchisor’s mercy on site selection in competitive metros. And tight-capital buyers who cannot carry 6 to 9 months of working capital on top of a $1.16M build will be exposed to the first ramp shortfall. [Compare Scooter’s against two other coffee franchises with our 3-pack — $99 →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## How Scooter’s Stacks Against Dutch Bros (Important Note) A buyer comparison that comes up almost every day in our analysis: Scooter’s vs. Dutch Bros. The honest answer is that you can’t actually buy Dutch Bros — it’s a corporate-only operation. Dutch Bros went public in 2021 and has stayed corporate-operated through 2026. There is no Dutch Bros franchise FDD because there is no Dutch Bros franchise. That makes Scooter’s the closest franchisable analog to the Dutch Bros playbook. Same drive-thru-only positioning. Same flavor-forward menu emphasis. Same target customer in the daily-habit coffee category. Different ownership model. For franchise buyers wanting to participate in the drive-thru coffee category, the choice isn’t Scooter’s vs. Dutch Bros — it’s Scooter’s vs. 7Brew, Dunkin’ (with full menu), the smaller regional drive-thru chains, or building independently. The [Dunkin’ vs Scooter’s comparison](https://vetmyfranchise.com/c/claude/blog/dunkin-vs-scooters-coffee-franchise) covers the head-to-head with Dunkin’ specifically. ## What to Do Before You Sign If Scooter’s is on your shortlist, here’s the diligence work to do before you commit: 1. **Pull the full 2026 FDD** and read Items 1, 5, 6, 7, 12, 17, 20 carefully. Item 7 has the full investment line items. Item 17 has agreement terms. Item 20 has the franchisee network data. 2. **Run validation calls** with 8-12 Item 20 contacts. Aim for 4-6 at 18-month-plus tenure (stabilized), 2-3 in year one (ramping), and 1-2 who left the system (departed). Ask about AUV ranges, not yes/no. 3. **Underwrite the real estate first.** Before you build the financial pro forma, identify three real candidate corners in your target market. Then build the pro forma around those specific sites, not generic “drive-thru in metro X” assumptions. 4. **Get SBA pre-qualification.** Multiple lenders, not just the franchisor’s recommended one. The pre-qualification process surfaces lender views on the brand without committing you to anything. 5. **Read the franchise agreement with an attorney.** Especially the development schedule, default remedies, transfer restrictions, and non-compete provisions. The agreement is mostly standardized but the [silent period after LOI](https://vetmyfranchise.com/c/claude/blog/franchise-silent-period-after-loi) is the negotiation window. For the full 30-day FDD review workflow we recommend before any franchise signing, [the 30-day FDD plan](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan) is the structured approach. The Scooter’s opportunity is real. The brand has grown 9% in unit count year over year while most QSR is flat, and its median gross sales rose 12.9% from 2022 to 2025 while the store base nearly tripled, which is the harder trick. The structural costs are equally real: a $1.16M entry against a sub-1x revenue ratio, acute real estate sensitivity, and an 8% royalty stack that never goes away. The disclosure gives you enough to run this math properly. Run it before you sign, not after. That’s the answer to “should I buy Scooter’s.” The work to get there is the harder question. For a category-level overview and side-by-side comparisons, see [Coffee Shop Franchise Industry: Cost and Profitability Analysis 2026](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry). ## Brands mentioned in this post - [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Scooter's Coffee numbers with you. We'll email you the **Scooter's Coffee FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Scooter's Coffee data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) scooters-coffeescooters-coffee-franchise-costdrive-thru-coffee-franchisecoffee-franchiseitem-19franchise-investmentemerging-franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Scooter's Coffee franchise cost in 2026? The 2026 FDD puts a kiosk store at $1,163,650 to $1,345,750, not including the purchase of land. Site and building improvements are the largest line at $725,200 to $772,000. On top of the $40,000 franchise fee there is a separate $20,000 initial opening support fee, both due at signing, so $60,000 goes to the franchisor before you break ground. The remaining capital deploys across the 6 to 9 months from agreement to grand opening. ### Does Scooter's Coffee disclose Item 19 earnings data? Yes. The 2026 FDD discloses median gross sales of $966,739 and average gross sales of $999,869 across 761 participating franchised kiosk stores for 2025, with a low of $337,233 and a high of $2,458,874. It also prints a five-year table, so you can watch the median climb from $776,635 in 2021. Read the exclusions: the disclosure covers franchised kiosk and end-cap drive-thrus only, leaving out non-traditional stores, coffeehouse stores, and every affiliate-owned location. ### How fast is Scooter's Coffee growing? Fast — 85 new franchised units opened in 2025 against only 24 closures, a 3.5-to-1 opening-to-closure ratio that signals an aggressive franchise development pipeline. The system has 906 total units across the U.S. as of the 2026 FDD, weighted heavily toward the Midwest and South. The trajectory has matched or outpaced the broader drive-thru coffee category, which is the fastest-growing segment in QSR coffee through 2026. ### What's the Scooter's royalty and ad fund? Royalty is 6% of net sales, paid weekly. The national advertising fund contribution is 2% to 4% of net sales — the actual number depends on system-wide decisions disclosed in the FDD and may shift within that range over time. Combined, royalty plus ad fund is 8% to 10% of every dollar of revenue, paid for the life of the franchise agreement. Local marketing spend is additional and required at the franchisee's expense. ### Is Scooter's Coffee a good franchise to buy? It depends on your real estate access and your capital position. Scooter's discloses a deeper Item 19 than most drive-thru coffee brands, with 761 participating kiosks and five years of medians, so you can underwrite this deal on published data rather than guesswork. The harder questions are capital and site. A $1.16M to $1.35M kiosk against a $966,739 median is a revenue-to-investment ratio below 1x, which means the deal lives or dies on margin and on landing in the upper half of that $337,233 to $2,458,874 range. For experienced operators with real estate networks, the model works. For first-time buyers without site-scouting capability, the corner is the risk. --- title: "How to Sell a Franchise: Transfer Process, Maximizing Value" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-24 dateModified: 2026-08-04 keywords: selling a franchise, franchise transfer process, franchise exit strategy, franchise resale, franchise transfer fee canonical: https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer about: selling a franchise category: blog wordCount: 2158 readingTime: 11 min crawledAt: 2026-08-20 11:03:57 lastVerified: 2026-08-20 11:03:57 site: https://vetmyfranchise.com/c/claude/ --- # How to Sell a Franchise: Transfer Process, Maximizing Value ## Summary How to sell your franchise unit. Covers preparing financials, finding buyers, the franchisor transfer approval process, deal structures, tax implications. ## Key facts - The best time to sell a franchise is when you don’t have to. - Start preparation 12-18 months before listing. - Many franchisors maintain resale programs that match sellers with pre-qualified buyers. - This is where franchise resales diverge from regular business sales. - Cash buyers close fastest and with fewest contingencies. Quick answer Start preparing 12-18 months before listing. The franchisor must approve your buyer and holds a right of first refusal, and transfer fees run $5,000-$15,000, plus required remodels of $25,000-$100,000 in some systems. Brokers charge 8-12%. Expect 90-180 days from listing to closing; goodwill is taxed at 0-20% capital gains rates. ## When Is the Right Time to Sell? The best time to sell a franchise is when you don’t have to. Distressed sellers accept discounted prices because buyers smell desperation. Sellers with growing revenue, a stable team, and a long remaining lease set the terms. Beyond personal readiness, three market signals suggest good timing: **Your brand is hot.** When a franchise system is growing aggressively and generating media buzz, buyer demand for resale units increases. Monitor [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 20 for net unit growth and the brand’s public profile. **Interest rates favor buyers.** Lower SBA rates expand the buyer pool by reducing monthly debt service costs. More qualified buyers means more competitive offers. **Your location has peaked operationally.** You’ve maximized revenue for your market, your team runs smoothly, and growth would require a second location or significant capital reinvestment. Selling at the operational peak captures maximum value. Conversely, avoid selling during a revenue downturn (fix it first), immediately after negative brand news, or when your lease has less than 3 years remaining without a renewal plan. ## Preparing Your Franchise for Sale Start preparation 12-18 months before listing. The work you do now directly translates to a higher sale price. ### Financial Preparation **Separate personal and business expenses completely.** Any personal expenses running through the business must be identified and added back as SDE adjustments, but too many add-backs make buyers skeptical. Eliminate them entirely for the 12-18 months before sale. **Get CPA-prepared financial statements.** Compiled or reviewed statements carry more weight than internal bookkeeping. This costs $2,000-$5,000 annually but removes a significant due diligence friction point. **Resolve any tax issues.** Unpaid sales tax, payroll tax problems, or unfiled returns kill deals. Clean these up completely before listing. **Document your SDE clearly.** Prepare a detailed SDE calculation that walks buyers through every add-back with supporting documentation. The easier you make the buyer’s analysis, the faster and cleaner the offer. ### Operational Preparation **Reduce owner dependency.** A business that requires you personally to function is worth less than one that runs with a strong general manager. If you’re working 60 hours a week on the line, hire and train a manager who can operate independently before listing. **Address deferred maintenance.** Replace worn carpet. Fix the leaking faucet. Repaint the walls. Worn carpet and a leaking faucet cost $500 to fix, but buyers mentally deduct 2-3x the actual repair cost for every visible issue. **Stabilize your team.** High employee turnover during the sale process raises red flags. Consider stay bonuses for key staff, offer competitive wages preemptively, and ensure your team knows their jobs are secure regardless of ownership change. **Update equipment proactively.** Major equipment replacements needed within 2 years of sale should either be completed pre-sale (and factored into your asking price) or disclosed upfront with price adjustments. Surprises during due diligence destroy trust. ### Lease Preparation Review your remaining lease term. If it’s under 5 years, approach the landlord about a renewal or extension before listing. A 10-year remaining lease dramatically expands your buyer pool by making the business SBA-financeable. Also check your lease’s assignment clause. Some leases require landlord approval for assignment, which adds another approval step beyond the franchisor. Handle this proactively. ## Finding the Right Buyer ### The Franchisor’s Internal Program Many franchisors maintain resale programs that match sellers with pre-qualified buyers. You get access to buyers already approved for the brand and a faster paperwork track, but the franchisor may steer those buyers toward locations they’d rather sell. You also lose control over how your unit is marketed. ### Business Brokers Franchise-specialized brokers charge 8-12% commission but bring buyer networks, marketing resources, and transaction experience. They handle advertising, buyer screening, and negotiation. The cost is significant — $24,000-$36,000 on a $300,000 sale — but brokers typically achieve higher sale prices than unrepresented sellers, which can offset their fee. Look for brokers with franchise resale experience specifically. General business brokers may not understand the franchisor approval process, transfer fee implications, or how to use [Item 19 data](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) in marketing materials. ### Direct Marketing You can sell without a broker by advertising on BizBuySell, Franchise Resales, and social media. Contact the franchisor to notify them and ask about qualified leads. Post in franchise buyer groups on LinkedIn and Facebook. Direct sales save the broker commission but require more personal time and negotiating skill. ## The Franchisor’s Transfer Process This is where franchise resales diverge from regular business sales. Nothing closes without the franchisor’s sign-off. ### Item 13 Requirements Your FDD’s [Item 13](https://vetmyfranchise.com/c/claude/blog/fdd-item-13-trademarks) spells out every requirement for transfer. Common requirements include: - **Transfer fee:** $5,000-$15,000, payable by the seller or buyer (negotiate this) - **Buyer qualifications:** The buyer must meet current franchisee financial and experience standards - **Training completion:** The buyer must complete the brand’s full training program, which can take 2-8 weeks - **Store renovation:** Some franchisors require a remodel to current brand standards before they’ll approve a transfer — this can cost $25,000-$100,000+ depending on the brand - **Right of first refusal:** The franchisor can match any bona fide buyer offer and purchase the unit themselves - **Outstanding obligations:** All royalties, advertising fees, and other franchisor obligations must be current ### How the right of first refusal actually runs The ROFR is the requirement most sellers underestimate, because it operates after you have already done the hard work. The sequence: 1. You negotiate price and terms with your buyer. 2. You present the signed deal to the franchisor. 3. The franchisor has a defined window, commonly 30 to 60 days, to match the offer and buy the unit itself. 4. If it declines, your sale proceeds. Franchisors rarely exercise the right. The cost is the delay and the uncertainty, and sophisticated buyers know it: some will not commit time to due diligence while the franchisor can still take the deal. Check your agreement for the exact window and whether the clock starts on submission or on the franchisor deeming the application complete, because those are very different deadlines. ### Two transfer costs to model before you list **The transfer fee may be percentage-based, not flat.** Many agreements set it at 25% to 50% of the _then-current_ initial franchise fee rather than a fixed dollar figure, which means the cost rises as the brand raises its fee over your ownership period. On a brand charging $45,000 for a new franchise, that is $11,250 to $22,500. Read the exact wording; a few systems charge the full current fee. **Your post-term non-compete survives the sale.** Selling does not release you. Expect a restriction on operating or investing in a competing business within roughly 10 to 25 miles of any unit in the system, typically for two to three years after the transfer closes. Plan your next move around that constraint before you sign a purchase agreement, not after. ### Timeline Franchisor approval typically takes a month or so after the buyer’s complete application is submitted. This runs concurrently with the buyer’s financing process. Add SBA loan processing (30-45 days) and lease assignment (another two to four weeks), and total time from accepted offer to closing runs 90-120 days. Complex deals with renovation requirements can stretch to 180 days. ### What Kills Deals at This Stage - The franchisor rejects the buyer for insufficient financial qualifications - The franchisor exercises right of first refusal - Required renovations exceed what the buyer budgeted - Lease assignment denied by the landlord - Buyer’s SBA loan falls through Have a backup buyer identified whenever possible. Roughly 20-30% of franchise resale deals fall through during the franchisor approval stage. ## Deal Structures That Work ### All-Cash Deals Cash buyers close fastest and with fewest contingencies. Offer a 5-10% discount for all-cash, same-month closing if speed is valuable to you. Cash deals eliminate SBA processing delays and lender appraisal requirements. ### SBA-Financed Deals The majority of franchise resales involve [SBA 7(a)](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) loans. The buyer typically puts 10-20% down, with the SBA-backed loan covering the remainder over 10 years. As the seller, you’ll need to provide detailed financials to the lender and may need to participate in a lender interview. SBA deals take longer but access the largest buyer pool. ### Seller Financing Offering to carry 20-30% of the purchase price as a seller note (typically 5-7% interest, 3-5 year term) pulls in more prospects and often raises total proceeds. Seller financing signals confidence in the business and reduces the new owner’s upfront capital requirement. Structure the note with a personal guarantee from them and a subordination agreement with any SBA lender. ### Asset Sale vs. Entity Sale Most franchise resales are structured as asset purchases rather than entity sales. In an asset sale, the buyer purchases specific assets (equipment, inventory, goodwill, customer lists) rather than buying your LLC or corporation. Asset sales protect the buyer from inheriting unknown liabilities and allow both parties to negotiate favorable tax allocation. ## Tax Implications The purchase price is allocated across asset categories, each with different tax treatment: - **Goodwill and going-concern value:** Long-term capital gains rates (0%, 15%, or 20% depending on your taxable income) - **Equipment and fixtures:** Subject to depreciation recapture, taxed as ordinary income up to your original cost basis, with any excess taxed as capital gains - **Inventory:** Ordinary income - **Covenant not to compete:** Ordinary income to the seller - **Real property (if owned):** Section 1231 treatment — gains taxed at capital gains rates, losses deductible as ordinary losses The allocation is negotiable between buyer and seller, and your interests conflict directly. You want more allocated to goodwill (capital gains). The buyer wants more allocated to equipment and covenants (faster depreciation deductions). Work with a CPA experienced in business sales to negotiate an allocation that optimizes your after-tax proceeds. If you’ve owned the franchise for more than one year, goodwill qualifies for long-term capital gains treatment. Consider timing the sale to maximize this benefit — selling 13 months into a lease renewal year costs you nothing but ensures long-term treatment on the largest portion of proceeds. ## Realistic Timeline: Listing to Closing | Phase | Timeline | | --- | --- | | Pre-sale preparation | 12-18 months before listing | | Professional valuation | 2-4 weeks | | Marketing and buyer search | 30-90 days | | Negotiation and letter of intent | 1-2 weeks | | Buyer due diligence | 30-45 days | | Franchisor approval application | 2-6 weeks | | SBA loan processing (if applicable) | 30-45 days | | Lease assignment | 2-4 weeks | | Closing | 1-2 weeks | | Total: listing to closing | 90-180 days | Many of these phases overlap. Franchisor approval, SBA processing, and lease assignment typically run in parallel once the purchase agreement is signed. The limiting factor is usually whichever process takes longest. Plan for the full 180-day window. Deals that close in 90 days represent the best-case scenario with a cash buyer, cooperative franchisor, and simple lease assignment. Most franchise resales land somewhere in the 120-150 day range. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### What Does a Franchise Owner Actually Do All Day? [Learn more →](https://vetmyfranchise.com/c/claude/blog/day-in-life-franchise-owner-daily-operations) #### The 90-Day Post-Opening Franchise Audit: Reconciling Your Numbers Against Item 19 [Learn more →](https://vetmyfranchise.com/c/claude/blog/franchise-90-day-post-opening-reality-check) #### Hiring and Managing Employees as a Franchise Owner: The Complete Guide [Learn more →](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide) selling a franchisefranchise transfer processfranchise exit strategyfranchise resalefranchise transfer fee About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How do I start the process of selling my franchise? Begin 12-18 months before your target sale date. Clean up your financials, address any deferred maintenance, stabilize your team, and review your franchise agreement's transfer provisions (Item 13 in the FDD). Then decide whether to sell directly, work with a business broker, or approach the franchisor about their internal resale program. Get a professional valuation to set a realistic asking price. ### How much does it cost to sell a franchise? Expect to pay the franchisor's transfer fee ($5,000-$15,000), business broker commission (8-12% of sale price if you use one), attorney fees ($3,000-$7,000 for a franchise attorney), professional valuation ($3,000-$7,000), and accounting costs to prepare clean financial statements. On a $300,000 sale with a broker, total selling costs run roughly $40,000-$60,000. ### Can I sell my franchise to anyone I want? No. The franchisor must approve the buyer. They'll evaluate the buyer's financial qualifications, business experience, and credit history against their current franchisee criteria. Most franchise agreements also include a right of first refusal, giving the franchisor the option to buy the unit themselves at the same price and terms a third-party buyer has offered. ### Do I have to pay taxes on the sale of my franchise? Yes. The sale proceeds are allocated across different asset categories, each taxed differently. Goodwill and going-concern value receive long-term capital gains treatment (0-20% depending on your income). Equipment may trigger depreciation recapture taxed as ordinary income. Inventory is typically taxed as ordinary income. Work with a CPA experienced in business sales to structure the allocation favorably. ### What if my franchise agreement is about to expire? An expiring agreement significantly reduces resale value because the buyer inherits limited remaining term. If you plan to sell, negotiate a renewal or extension before listing. Some franchisors offer a reduced-term renewal specifically for resale situations. If the agreement expires before the sale closes, you may lose the right to transfer entirely. --- title: "Take 5 vs Valvoline Franchise 2026: Cost and Revenue" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-13 dateModified: 2026-08-13 keywords: take 5 vs valvoline franchise, oil change franchise cost, Take 5 Oil Change, Valvoline Instant Oil Change, quick lube franchise, item 19, automotive franchise canonical: https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise about: take 5 vs valvoline franchise category: blog wordCount: 1798 readingTime: 9 min crawledAt: 2026-08-20 11:05:57 lastVerified: 2026-08-20 11:05:57 site: https://vetmyfranchise.com/c/claude/ --- # Take 5 vs Valvoline Franchise 2026: Cost and Revenue ## Summary Take 5 vs Valvoline franchise: $1.33M and $1.89M Item 19 medians both come from corporate stores. Real costs, royalty math, and the franchisee numbers. ## Key facts - Valvoline Instant Oil Change discloses a $1,894,490 median. - The exclusions define the sample. - Section A is what gets quoted, including by most franchise directories and by our own database. - Valvoline’s license fee circulates as $5,000 across franchise directories. - Take 5 takes 7% of gross sales and a 5% marketing fund contribution. Quick answer Valvoline's 2025 FDD discloses a $1,894,490 median across 785 centers and Take 5's discloses $1,327,808 across 298, but both samples are corporate stores. Only Valvoline also publishes franchisee results: a $1,704,870 median net sales across 891 franchised centers, reported in Section B of Item 19. ## The headline numbers, and whose stores they describe Valvoline Instant Oil Change discloses a $1,894,490 median. Take 5 Oil Change discloses $1,327,808. Set those beside each other and Valvoline looks like it earns 43% more per center. Neither figure came from a franchisee. Valvoline’s is the median gross sales of 785 comparable company-operated centers in fiscal 2025. Take 5’s covers 298 affiliate-owned centers across its 2024 fiscal year. Both systems are heavily corporate: Valvoline runs 976 company centers against 1,071 franchised, and Take 5 runs 710 against 432. A buyer placing those two figures side by side is comparing two sets of corporate stores, neither of which pays a royalty, and one of which sits on leases the franchisor itself flags as below market. | Dimension | Take 5 Oil Change | Valvoline Instant Oil Change | | --- | --- | --- | | FDD year | 2025 | 2025 | | Franchised units | 432 | 1,071 | | Company-operated units | 710 | 976 | | Initial fee, first center | $45,000 | $30,000 | | Royalty | 7% of gross sales | 2%, then 3%, then 4% to 6% of AGR | | Marketing | 5% of gross sales | Up to 2% system fund plus 3% local minimum | | Item 7, conversion or leased | $287,145 to $1,013,587 | $192,375 to $639,550 | | Item 7, ground-up or purchased | $912,248 to $2,053,642 | $1,773,750 to $3,483,550 | | Item 19 headline sample | 298 affiliate-owned centers | 785 company-operated centers | | Franchisee revenue disclosed | No | Yes, 891 centers in Section B | | Agreement term | 15 years | 15 years | ## Take 5 discloses 298 centers, and not one belongs to a franchisee The exclusions define the sample. Take 5 pulled out 341 acquired centers, 69 ground-up locations open less than a full year, two reacquired from franchisees, and four that closed. What remains is 298 affiliate-owned sites open at least twelve months. To its credit, Take 5 does not present that as a franchisee outcome. Item 19 carries a Franchisee Adjusted Income Statement that loads royalty, marketing fund contributions, point-of-sale fees, higher cost of goods, and insurance onto the affiliate results. The median center clears $340,178 in four-wall EBITDA on $1,327,808 of gross sales, a 25.6% margin. The distribution is more useful than the midpoint. The bottom half of the sample medians at $949,290 and the top half at $1,703,407. The weakest site did $190,365; the strongest did $3,474,051. That 18x range inside one brand is why a single figure tells you almost nothing about the location you are being offered, and our post on [average versus median in Item 19](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) covers how the spread gets flattened. One footnote does more damage than the rest of the item. Median occupancy in the adjusted statement is $97,119, and Take 5 writes that those averages “may not reflect current market rates given how long our affiliate has had some of these leases in place.” A franchisor flagging its own rent line as understated has handed you the variable that decides whether $340,178 of EBITDA survives your lease. ## Valvoline’s franchisee numbers exist. They are in Section B. Section A is what gets quoted, including by most franchise directories and by our own database. Section B, further down the same item, reports fiscal 2025 net sales across 891 comparable franchisee-operated centers: a $1,704,870 median, a $1,844,172 average, and a range from $397,215 to $5,728,187. Read like against like and the framing inverts. Valvoline’s company stores posted a $1,592,280 median net sales that same year. Its franchisees posted $1,704,870, out-earning corporate by about 7%, which runs against the pattern buyers are usually told to expect. Two cautions before anchoring on it. Section B reports net sales, taken after coupons, discounts, fleet pricing, and refunds, and Valvoline’s own table shows net sales landing roughly 16% below gross. Take 5’s $1,327,808 is gross, so the two are not directly comparable and the true gap is wider than the headlines suggest. Section B also carries no cost data at all: a revenue line and nothing underneath it, which is the mirror image of Take 5’s problem. One brand gives you a full income statement for the wrong stores, the other gives you a single line for the right ones. The [Valvoline Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/valvoline-item-19-deep-dive) works through Section A in detail. > **Comparing quick-lube brands seriously?** Put both FDDs side by side on fees, unit counts, and disclosed economics in our [franchise comparison tool](https://vetmyfranchise.com/c/claude/compare) before you take either discovery day. ## The $5,000 franchise fee is real, and it is not the one you will pay Valvoline’s license fee circulates as $5,000 across franchise directories. Item 5 of the 2025 FDD is more specific. Your first center costs $30,000, half at signing and half when the first royalty payment comes due. A second ground-up build is $20,000. A second center converted from a qualifying existing quick lube is $5,000, as is any third, and $5,000 per site is also the rate under a development agreement. That $5,000 is a multi-unit developer’s price. Valvoline has set its second and third stores at a sixth of the first, a deliberate signal about the buyer it wants: operators who will convert existing lube shops and sign development schedules. Take 5 posts a flat $45,000, though its Item 5 discloses franchisees actually paid between $0 and $35,000 during fiscal 2024, which tells you the number moves. ## Royalty structure is the largest economic gap between them Take 5 takes 7% of gross sales and a 5% marketing fund contribution. Twelve points off the top before rent. On the median center’s $1,327,808 that came to $92,947 in royalty and $66,390 to the fund. Valvoline steps its royalty in: 2% of adjusted gross revenue for the first twelve months, 3% for the second twelve, then either 6% or a graduated 4% to 6% depending on combined revenue across your locations. Item 19 discloses that 95% of franchise centers paid 4% in the prior year. Add a general system fund capped at $7,344 per site for fiscal 2026 and a 3% local advertising minimum, and a mature Valvoline operator pays about seven points all in. Five points of gross sales on a $1.3M store is roughly $66,000 a year. Across a 15-year term that gap dwarfs the difference in franchise fees, and it is the number to model first. ## Neither Item 7 span is actually a range Both franchisors publish two Item 7 tables, one per build path. Directories take the lowest number from one table and the highest from the other, then print the result as a single span. No buyer faces that span, because the two endpoints belong to different projects. Take 5’s $287,145 low end is a conversion of an existing quick lube. Its $2,053,642 high end is a ground-up build. Both totals explicitly exclude real estate. Valvoline’s $192,375 assumes you lease land and signage for three months; the $3,483,550 assumes you buy the land and build, with land and improvements alone running $1,550,000 to $2,750,000. Read table against table instead. Converting an existing shop puts Take 5 at $287,145 to $1,013,587 and Valvoline at $192,375 to $639,550. Building new, Take 5 runs $912,248 to $2,053,642 before any land cost while Valvoline runs $1,773,750 to $3,483,550 including it. Your build path moves the capital requirement more than your choice of brand does. Spliced ranges are one of the [Item 7 and Item 19 traps](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data) worth checking on any brand, and the wider [auto repair franchise shortlist](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) shows how common the pattern is. ## What to ask each franchisor before you sign From Take 5, ask for the 69 ground-up locations excluded from Item 19 for being open under a year. Their ramp curve is what a new franchisee actually needs, and it is the one thing deliberately absent. Then ask what occupancy the franchisor would model on a lease signed this year rather than one an affiliate signed years ago. From Valvoline, ask for Section B broken out by cohort and market, and what the 172 centers excluded from the fiscal 2025 franchisee sample were doing. Ask which royalty tier your projected volume lands in, since the spread between 4% and 6% on $1.7M is $34,000 a year, every year. Both franchisors owe you written substantiation on request, and Valvoline says so in Item 19. Our guide to [verifying Item 19 claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) has the language to use. Valvoline is the better-disclosed of the two by a wide margin, publishing franchisee revenue across 891 centers where Take 5 publishes none. Whether that produces a better store in your market is a question no FDD can answer. It does decide which one you can underwrite before signing, and on a 15-year agreement that is worth more than the 43% headline gap you started with. Our [full FDD analysis](https://vetmyfranchise.com/c/claude/pricing) runs both brands item by item. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) take 5 vs valvoline franchiseoil change franchise costTake 5 Oil ChangeValvoline Instant Oil Changequick lube franchiseitem 19automotive franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Take 5 franchise cost? Take 5's 2025 FDD publishes two Item 7 tables, both excluding real estate. Converting an existing quick lube runs $287,145 to $1,013,587; a ground-up center runs $912,248 to $2,053,642. The franchise fee is $45,000, though Item 5 discloses franchisees paid $0 to $35,000 in fiscal 2024. ### How much does a Valvoline franchise cost? Valvoline also publishes two tables. Leasing land and signage totals $192,375 to $639,550. Buying the real property totals $1,773,750 to $3,483,550, with land and improvements alone at $1,550,000 to $2,750,000. The license fee for your first center is $30,000. ### Which oil change franchise makes more? On comparable disclosure, Valvoline. Its franchisee-operated centers posted a $1,704,870 median net sales in fiscal 2025 across 891 locations. Take 5 publishes nothing for franchisees; its $1,327,808 median is affiliate-owned gross sales. One figure is net and the other gross, so the real gap is wider than it looks. ### Why is Valvoline's franchise fee listed as $5,000? Directories pick up the wrong line from Item 5. The license fee is $30,000 for your first center, half at signing and half when the first royalty payment is due. A second ground-up center costs $20,000. The $5,000 rate covers a converted second center, any third center, and development-agreement sites. ### Do these Item 19 numbers apply to franchisees? Not directly. Take 5's sample is 298 affiliate-owned centers, and the franchisor notes its occupancy may sit below market because of how long those leases have run. Valvoline's headline sample is 785 company-operated centers that pay no royalty and whose expense lines exclude operating leases. Section B is the only franchisee-sourced revenue either brand discloses. --- title: "Franchise Disclosure Document (FDD): All 23 Items Explained" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document category: blog wordCount: 3253 readingTime: 16 min crawledAt: 2026-08-20 11:06:39 lastVerified: 2026-08-20 11:06:39 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Disclosure Document (FDD): All 23 Items Explained ## Summary Learn what a Franchise Disclosure Document (FDD) is, what all 23 items cover, and what red flags to watch for before investing in a franchise. ## Key facts - Two documents get confused constantly, and the difference decides what you are actually on the hook for. - Every prospective franchisee in the United States must receive a complete FDD before the sale, and the timing is not the franchisor’s choice. - The Federal Trade Commission sets the rules. - Every FDD walks through the same 23 Items in the same order. - You do not have to read 300 pages front to back. Quick answer A Franchise Disclosure Document (FDD) is the disclosure a franchisor must give every prospective buyer at least 14 calendar days before signing or paying. The FTC Franchise Rule fixes its format at 23 numbered Items covering fees, obligations, litigation, unit counts, earnings data, and the contracts you will sign. A Franchise Disclosure Document (FDD) is the pre-sale disclosure a franchisor must give a prospective franchisee at least 14 calendar days before that buyer signs any agreement or pays any money. It contains 23 standardized sections, called Items, mandated by the Federal Trade Commission under the Franchise Rule ([16 CFR Part 436](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)). Those Items cover the franchisor’s background, every fee, your obligations, litigation history, unit counts, any earnings claims, and copies of the contracts you will be asked to sign. Because the format is fixed, every franchisor’s FDD answers the same 23 questions in the same order. That is what makes two brands genuinely comparable: you can read Item 6 in one document against Item 6 in another and hold both to the same standard. It is also why the document is long. Most FDDs run 200 to 400 pages, with the 23 Items spanning 80 to 150 and the remainder being audited financial statements and contracts. ## The FDD is not the franchise agreement Two documents get confused constantly, and the difference decides what you are actually on the hook for. The **FDD** is disclosure. It informs you, and receiving it commits you to nothing. The **franchise agreement** is the binding contract that makes you a franchisee, and it sits inside the FDD as an exhibit (see Item 22). Items 5 through 17 are plain-language summaries of terms that live in that agreement, so when a summary and the exhibit disagree, the exhibit governs. Read both. **The operating principle:** if it is not in the FDD or in a signed amendment to the agreement, it does not exist. Verbal commitments from a franchise development rep are not enforceable, however confident the promise sounded on the call. For a single-unit buyer the agreement is close to non-negotiable; multi-unit deals sometimes move on territory size or development pace. A franchise attorney is not required by law, but the language is dense enough that experienced review usually pays for itself. ## Who must receive an FDD, and when Every prospective franchisee in the United States must receive a complete FDD before the sale, and the timing is not the franchisor’s choice. The document has to be in your hands at least 14 calendar days before you sign a binding agreement or pay any money to the franchisor or its affiliates. The clock runs on calendar days from the date of delivery, which is what the dated receipt in Item 23 exists to document. You are free to take longer than 14 days, and you should. The window exists so you can read all 23 Items, verify claims, and get legal and financial advice without pressure. A rep who cannot produce the FDD when you ask, or who pushes for a same-week signature, has already told you something about how the relationship will run. For how the clock is counted and the ways it commonly gets miscounted, see [the 14-day FDD rule explained](https://vetmyfranchise.com/c/claude/blog/the-14-day-fdd-rule-explained). One more timing rule matters. A material change to the FDD or the franchise agreement generally restarts the waiting period. If a revised version lands in your inbox late in the process, ask in writing whether it triggers a fresh 14 days, and get the answer in email. Our guide to [a material FDD change before signing](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) covers what counts as material. ## Who regulates the FDD The Federal Trade Commission sets the rules. The Franchise Rule (16 CFR Part 436) fixes the 23-Item format, the 14-day delivery requirement, and the standard a franchisor must meet before making any earnings claim. There is no federal filing and no federal review: nobody at the FTC reads or approves an FDD before it is used, so no FDD is ever “FTC approved.” State law adds a second layer. Fourteen states require franchise registration before a franchisor may offer or sell there: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Several more require a business-opportunity or notice filing. In a registration state an examiner does read the filing, state-specific addenda get attached that modify the base agreement, and the filed document is often searchable through the state regulator. That is why two buyers of the same brand can hold slightly different paperwork. Read the addendum for the state where your unit will actually operate, not just the base FDD. ## All 23 FDD items, explained Every FDD walks through the same 23 Items in the same order. The table below covers what each Item tells a buyer and the single thing most worth checking in it. Where we have published a deep dive, the Item name links to it. | Item | Name | What it tells a buyer | Watch for | | --- | --- | --- | --- | | 1 | The Franchisor and Its Predecessors and Affiliates | Who owns the brand, how long it has franchised, and which affiliates you will deal with | A holding company formed recently, or a brand that has changed hands more than once | | 2 | Business Experience | The track record of the officers and managers who run the franchise system | Leadership with no operating experience in the concept, or heavy turnover in the last two years | | 3 | Litigation | Pending and past material lawsuits involving the franchisor and its executives | Repeat suits filed by franchisees over earnings claims or territory, not a single isolated dispute | | 4 | Bankruptcy | Any bankruptcy involving the franchisor, its affiliates, or its key people | A prior filing by the same management team running the brand today | | 5 | Initial Fees | Everything you pay the franchisor before opening, starting with the franchise fee | Which portions are non-refundable, and what is due before you even have a signed lease | | 6 | Other Fees | Every recurring and occasional fee for the life of the agreement | The sum of royalty, ad fund, technology, and local marketing minimums, not each line on its own | | 7 | Estimated Initial Investment | The full range of costs to open, usually including the first three months of operation | A wide low-to-high spread with no explanation of what drives it | | 8 | Restrictions on Sources of Products and Services | What you must buy, from whom, and whether the franchisor profits on the supply chain | Required purchases from franchisor-affiliated suppliers, plus rebates the franchisor keeps | | 9 | Franchisee’s Obligations | A table mapping each of your obligations to the agreement clause that creates it | Obligations you cannot delegate, and anything backed by a personal guarantee | | 10 | Financing | Whether the franchisor or an affiliate finances any part of the deal, and on what terms | Cross-default language letting a missed loan payment terminate the franchise itself | | 11 | Franchisor’s Assistance, Advertising, Computer Systems, and Training | What the franchisor is contractually required to do for you, before and after opening | Support described as available rather than required, and ad-fund spending it need not account for | | 12 | Territory | Whether you get a protected area, and what the franchisor may still do inside it | Reserved rights for delivery, e-commerce, and alternative channels in your own territory | | 13 | Trademarks | The marks you may use and how well they are legally protected | Unregistered or pending marks, or a pending opposition that could force a rebrand | | 14 | Patents, Copyrights, and Proprietary Information | Any patents or copyrighted material licensed to you, and confidentiality duties | Whether your license to use the system ends the moment the agreement does | | 15 | Obligation to Participate in the Actual Operation of the Franchise Business | Whether you must work in the business yourself or may install a manager | ”Semi-absentee” in the sales pitch and full-time on-site participation in the FDD | | 16 | Restrictions on What the Franchisee May Sell | The limits on your product and service menu, and who sets them | The franchisor’s unilateral right to add required products at your cost | | 17 | Renewal, Termination, Transfer, and Dispute Resolution | How the deal ends, renews, or gets sold, and where disputes are heard | No true renewal right, a broad post-term non-compete, or arbitration in the franchisor’s home state | | 18 | Public Figures | Any celebrity endorsement and what the franchisor pays for it | A famous name used in marketing while carrying no operating or investment role | | 19 | Financial Performance Representations | Any earnings figures the franchisor chooses to disclose, and the basis behind them | Averages with no median, small or hand-picked samples, gross sales offered in place of profit | | 20 | Outlets and Franchisee Information | Three years of openings, closures, transfers, and terminations, plus franchisee contact lists | Closures and transfers churning behind a flat headline unit count | | 21 | Financial Statements | Three years of the franchisor’s audited financial statements | Operating losses, thin equity, or going-concern language in the auditor’s opinion | | 22 | Contracts | Copies of every agreement you will be asked to sign, including the franchise agreement | Exhibit language that differs from how Items 5 through 17 summarized it | | 23 | Receipts | The dated receipt that proves delivery and starts your 14-day clock | A receipt dated earlier than the day you actually received the document | Items 14, 16, and 18 are usually the shortest sections in the document, sometimes a single paragraph each. That is normal. ### Where to focus first A few Items carry more weight than the rest, and they are where experienced buyers start. - **Item 19 (earnings).** [Item 19 covers financial performance representations](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise), the only place a franchisor may state revenue or profit figures. Disclosure is optional, so a blank Item 19 is not illegal. It is a question. When numbers are present, confirm the sample size and [ask for the written basis behind them](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims). - **Item 20 (outlet health).** [Item 20 covers outlet and franchisee information](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide). Read the closures and transfers, not just the openings, and [calculate the real closure rate](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation) year over year. A shrinking or high-churn system is a warning sign. - **Item 7 (the real cost).** [Item 7 covers the estimated initial investment](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment). Compare its high end against [what it actually costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise), and model your own figure with our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator). Some franchisors set the low end of the range optimistically. - **Item 3 (litigation).** [Item 3 covers litigation history](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research). A single suit is normal for a large system. Patterns of franchisees suing over earnings claims or territory disputes are the real concern. Also read **Item 12** for whether your [territory is actually exclusive](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained), and **Item 6** for the [ongoing fees](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) you will pay for the life of the agreement. ## How to actually read an FDD You do not have to read 300 pages front to back. This order surfaces the most important facts fastest: 1. **Start with Item 19.** Does the franchisor disclose earnings, and what do the numbers actually say? 2. **Read Item 20.** Is the system growing or shrinking, and how many units closed? 3. **Review Item 7.** What is the total investment, and can you fund it with a reasonable reserve? 4. **Check Item 3.** Any litigation patterns that should worry you? 5. **Study Items 5 and 6.** Understand every fee you will pay, up front and forever. Only after those five should you move to territory (Item 12), your own obligations (Item 9), and the renewal and termination terms (Item 17) that decide how the deal ends. Then read Item 22 to confirm the exhibits match the summaries. ## The money items in detail: 5, 6, 7, and 21 The at-a-glance table tells you what each Item covers. Four of them decide whether the business math works, and they reward a closer read. **Item 5 (Initial Fees).** The upfront cash you pay the franchisor before opening: the franchise fee itself (commonly $20,000 to $50,000), plus training, technology setup, and any required opening inventory. Note which fees are non-refundable and under what conditions any portion comes back. **Item 6 (Other Fees).** The ongoing burden that compounds for the life of the agreement. Add every recurring line together, because the total is what actually reduces your margin. | Fee Type | Typical Range | What to Watch | | --- | --- | --- | | Royalty | 4-8% of gross sales | Fixed or percentage-based? | | Advertising/marketing fund | 1-3% of gross sales | How are the funds spent, and who controls them? | | Technology fees | $200-$2,000/month | Are they rising, and what do you get? | | Transfer fee | $5,000-$25,000 | Paid when you sell the franchise | | Renewal fee | $5,000-$25,000 | Paid when you renew the agreement | _FDD figures from 2025-2026 filings; other figures are industry estimates. Verify current terms in the brand’s FDD._ **Item 7 (Estimated Initial Investment).** A range covering costs through the initial period, usually the first three months. Read the gap between the low and high estimates: a wide spread signals variability by market and build-out, and in a high-cost metro you should budget toward the top of the range or above it. Note also that some real costs never appear here, which is the subject of our guide to [hidden franchise costs not in the FDD](https://vetmyfranchise.com/c/claude/blog/hidden-franchise-costs-not-in-fdd). **Item 21 (Financial Statements).** Three years of audited financials for the franchisor itself. Look for growing revenue, genuine profitability, and manageable debt, and watch for large deferred franchise-fee balances, which can signal a system leaning on new-unit sales rather than royalties. A franchisor in weak financial shape may not be able to fund the support you are paying for. ## Red flags to watch for Some warnings sit in the document itself, others in how the franchisor behaves during the sale. **In the FDD:** extensive Item 3 litigation, especially franchisee suits over earnings or territory; high closures or churn in Item 20; a missing or very thin Item 19; wide, unexplained Item 7 ranges; franchisor losses or declining revenue in Item 21; and heavy required purchases from franchisor-affiliated suppliers in Item 8. We walk through the specific tell in each section in [franchise red flags across all 23 FDD items](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items). **In the process:** pressure to sign before the 14-day period ends, verbal earnings promises with no Item 19 to back them, resistance to handing over the FDD until you “qualify,” discouraging you from calling current franchisees, or suggesting you don’t need a franchise attorney. ## How to get a franchise’s FDD Three routes, in the order most buyers use them: 1. **Ask the franchisor.** The FDD is free, and the franchisor sends it directly once you formally express interest, usually after an initial call or a candidate application. You can also request it in writing at any point in the sales process. A franchisor that withholds the document until you “qualify” is stalling on a disclosure it is legally obligated to make before any sale. 2. **Check the state regulator.** In the 14 registration states, franchisors file their FDD with a state agency, and many of those filings are searchable or available by request. This is the route to a document the sales team has not personally handed you, and it is useful for comparing this year’s filing to last year’s. 3. **Start with summarized data.** You do not need a 300-page PDF to disqualify a brand. [Our franchise library](https://vetmyfranchise.com/c/claude/franchises) publishes key facts pulled from filed FDDs, including Item 7 investment ranges, royalty and ad fund rates, unit counts, and whether the brand discloses an Item 19, alongside a free AI summary for each of 2,000+ brands. ## After you have the FDD: analysis, cost, and timeline Once the document is in your hands, three questions follow, and each has its own guide: - **What does a professional review actually include?** Reading tells you what the franchisor disclosed. Analysis tells you whether those disclosures are good, average, or a warning against comparable brands. See [what an FDD analysis covers](https://vetmyfranchise.com/c/claude/blog/what-is-an-fdd-analysis). - **What will it cost?** Attorney fees, service tiers, and the DIY option are not interchangeable, and the order you buy them in changes the total. See [how much an FDD review costs](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost). - **How long should it take?** The 14-day rule is a floor, not a schedule. Buyers who pass real due diligence usually take longer. See our [30-day FDD review plan](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan), or the tighter [7-day action plan](https://vetmyfranchise.com/c/claude/blog/received-fdd-7-day-action-plan) if you just received the document. Alongside those, build your question list with the [50-question due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) and use Item 20’s contact list to run [validation calls with current and former franchisees](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide). The FDD gives you the claims. Franchisees tell you whether they hold up. ## How VetMyFranchise helps Our database is built from filed FDDs. For every brand we extract the Item 5 and 6 fees, the Item 7 investment range, Item 19 earnings data where it exists, and Item 20 unit counts, then normalize them so brands compare side by side rather than one PDF at a time. For a specific brand, our AI-powered analysis reads the full FDD and produces a multi-section report covering financial risks, legal obligations, network health, and a buyer-side verdict. [See a real sample report](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [browse the franchise library](https://vetmyfranchise.com/c/claude/franchises) for free key facts across 2,000+ franchises. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### FDD Item 1 Explained: Franchisor Background and the Red Flags Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background) #### FDD Item 11 Decoded: What Support the Franchisor Legally Owes You [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) #### FDD Item 12: What Your "Protected Territory" Actually Protects [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) fdddue diligencefranchise basicsfranchise disclosure documentlegal About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is a franchise disclosure document? A franchise disclosure document is the pre-sale disclosure a franchisor must give every prospective franchisee under the FTC Franchise Rule, 16 CFR Part 436. It contains 23 standardized sections, called Items, covering the franchisor's background, all fees, your obligations, litigation history, unit counts, and the contracts you will be asked to sign. ### What is an FDD? FDD stands for Franchise Disclosure Document. It is the 23-Item disclosure a franchisor is legally required to deliver at least 14 calendar days before you sign a binding agreement or pay any money. The format is set by federal regulation, so every franchisor's FDD answers the same questions in the same order. ### Is an FDD legally binding? No. The FDD is a disclosure document; it informs you and commits you to nothing. The binding document is the franchise agreement, which appears as an exhibit inside the FDD under Item 22. You sign that agreement separately, and its terms control the relationship. Signing the Item 23 receipt only acknowledges that you received the FDD. ### How do I get a franchise disclosure document? Ask the franchisor. Once you formally express interest, usually after an initial call or application, the franchisor sends the FDD directly, and you can request it in writing at any point. In the 14 registration states, the filed copy may also be available through the state regulator. VetMyFranchise publishes summarized FDD data for 2,000+ brands. ### How many items are in an FDD? Every FDD contains 23 Items in the same order, set by the FTC Franchise Rule. Items 1 through 4 cover the franchisor and its history, Items 5 through 7 cover the money, Items 8 through 18 cover operations and obligations, and Items 19 through 23 cover performance, outlets, financials, contracts, and receipts. ### What is the 14-day FDD rule? The 14-day rule requires the franchisor to give you the FDD at least 14 calendar days before you sign any binding agreement or pay any money to the franchisor. The waiting period exists so you have time to read the document, ask questions, and get professional advice before committing. ### Is an FDD legally required? Yes. Under the FTC Franchise Rule, a franchisor selling franchises in the United States must provide a compliant FDD to every prospective buyer. Some states, including New York and California, add their own registration or filing requirements. A franchisor that fails to deliver the FDD on time is violating federal law. ### Which FDD items matter most? Buyers should scrutinize four Items most closely. Item 19 shows any earnings claims, Item 20 reveals unit openings and closures, Item 7 sets out the total investment, and Item 3 lists litigation. Read these before the marketing materials, because they show how the system actually performs rather than how it is sold. ### What is Item 19 in an FDD? Item 19 is the Financial Performance Representation, the only place a franchisor may disclose earnings figures such as average revenue or costs. It is optional, so many FDDs leave it blank. When present, it must have a reasonable basis and let you request the supporting data. Treat a missing Item 19 as a question to ask. ### Do I need a franchise attorney to review the FDD? It is strongly recommended. A qualified franchise attorney, not a general business lawyer, can flag unusual provisions, explain the franchise agreement in plain language, identify negotiable terms, and compare the FDD to industry norms. A focused flat-fee review typically runs $1,500 to $3,000, a small cost against a six-figure franchise investment. --- title: "Wingstop Item 19 Deep Dive 2026: AUV Distribution Explained" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-01 dateModified: 2026-07-25 keywords: wingstop, item 19, chicken franchise, fdd analysis, franchise revenue canonical: https://vetmyfranchise.com/c/claude/blog/wingstop-item-19-deep-dive about: wingstop category: blog wordCount: 1450 readingTime: 7 min crawledAt: 2026-08-20 11:06:39 lastVerified: 2026-08-20 11:06:39 site: https://vetmyfranchise.com/c/claude/ --- # Wingstop Item 19 Deep Dive 2026: AUV Distribution Explained ## Summary Wingstop Item 19: $1.89M median AUV across 2,116 units in the 2025 fiscal period. What the median means for new operators, ramp expectations, and how it compares to category peers. ## Key facts - The headline number from [Wingstop](https://vetmyfranchise. - Sample size in Item 19 is the single best signal of how seriously to take the number. - The structure of Wingstop’s most recent Item 19 disclosure: - A category snapshot using comparable Item 19 medians: - If you’re evaluating Wingstop: Quick answer Wingstop's Item 19 reports a $1,890,866 median annual unit volume across 2,116 franchised restaurants for the 52-week fiscal period ending December 27, 2025, per the 2026 FDD. Total investment runs $310,400 to $1,013,500 at a 6% royalty, giving a category-leading 2.9x AUV-to-investment ratio at the midpoint. Year-one builds run 60-75% of the median, or $1.1M-$1.4M. ## What [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s Most Recent Item 19 Actually Reports The headline number from [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s most recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 19 disclosure is a $1,890,866 median annual unit volume across 2,116 franchised restaurants in the 52-week fiscal period ending December 27, 2025 (the average is higher, at $2,138,111). That sample size is unusually large for franchise disclosure. Most Item 19 figures buyers encounter cover 50-200 units; [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s covers more than 2,100. At that scale, the median is genuinely representative of the operating system, not a top-tier subset. For a buyer evaluating a new build, the relevant question isn’t whether the $2M median is accurate. It is. The question is what the distribution behind that median looks like, what year-one revenue looks like for new units, and what kind of operator the system rewards. Item 19 reports the headline figure. The interpretation requires more work. ## Why the Sample Size Matters Sample size in Item 19 is the single best signal of how seriously to take the number. A franchisor reporting a $1.5M average on 12 units is reporting what the top 12 operators earned — closures and underperformers have been removed, and the population is too small to be representative. A franchisor reporting on 1,700+ units is reporting what the system actually earns, with the natural averaging effect of large numbers. Across the 2,000+ FDDs in our database, only a handful of brands disclose Item 19 with samples above 1,000 units. The list is dominated by mature category leaders: Dunkin’, [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc), [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc), [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc), [Sport Clips](https://vetmyfranchise.com/c/claude/franchise/sport-clips-inc). The size of the sample isn’t a coincidence — these are the systems with enough scale to make a representative disclosure, and the operational confidence to do so. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s sample also covers “franchised units” with no tenure subset specified. Many brands restrict their Item 19 to “units open at least 12 months” or “units open at least 24 months” — filters that strip out the ramp-stage population and inflate the disclosed median. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s disclosure includes the full franchised population, which is methodologically more conservative and produces a more defensible figure. ## The Headline Numbers The structure of Wingstop’s most recent Item 19 disclosure: | Metric | Value | | --- | --- | | Sample size | 2,116 franchised restaurants | | Reporting period | 52-week fiscal period ending Dec 27, 2025 | | Median annual unit volume | $1,890,866 | | Average annual unit volume | $2,138,111 | | US franchised units | 2,154 (plus 57 company-owned) | | Total investment (Item 7) | $310,400 - $1,013,500 | | Royalty rate | 6% of gross sales | Three things worth pulling out of that table. First, the average runs about $247,000 above the median, which tells you the distribution has a high-performing tail pulling the mean up; the median is the safer underwriting anchor. Second, the reporting period is a full 52-week fiscal year, not a calendar year, which is standard for QSR FDDs. Third, the AUV-to-investment ratio is exceptional: a $1.89M median against a $310K-$1M investment range produces an AUV-to-mid-investment ratio near 2.9:1, which is the strongest in publicly franchised chicken. The $2.0M median represents what a Wingstop store earns when it’s fully ramped. New units don’t earn that in year one. The system median includes operators who have been running their unit for 5, 8, 10+ years and benefit from: - Established customer base and word-of-mouth in the trade area - Operational tuning — labor scheduling, kitchen flow, throughput optimization - Brand awareness ramp that happens organically over the first 24-36 months - Multi-unit support structure when operators add their second and third stores A new Wingstop in a new market typically reaches 50-70% of the system median in year one and ramps toward the median over 24-36 months. A new Wingstop in a strong existing Wingstop market (where customers already know the brand) can ramp faster — sometimes hitting 80%+ of the median in year one — but those markets typically have constrained territory availability. The defensible underwriting move is to model year-one revenue at $1.2M-$1.5M (60-75% of the median), year-two at $1.5M-$1.8M, and year-three at the median or above. If the pro forma the franchisor sends you starts at the $2M median in year one, you’re being shown a chart that ignores the ramp curve — see our [pro forma decoder](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchisor-pro-forma-inflation-tricks) for the broader pattern. ## How Wingstop Compares to Other Chicken Franchises A category snapshot using comparable Item 19 medians: | Brand | Item 19 sample | Median AUV | Total investment | AUV/Investment | | --- | --- | --- | --- | --- | | Wingstop | 2,116 | $1.89M | $310K-$1.01M | 2.9x | | Popeyes | 2,248 | $1.79M | $505K-$3.92M | 0.8x | | Bojangles | 487 | $2.13M | $2.85M-$3.95M | 0.6x | | KFC | n/a in disclosed | ~$1.5M | $1.4M-$3.3M | 0.6x | | Buffalo Wild Wings | 527 | $3.4M | $2.6M-$4.4M | 1.0x | Wingstop leads the category on AUV-to-investment ratio by a wide margin. Popeyes and [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) produce higher AUVs in absolute terms but at substantially higher investment, which compresses the ratio. That pattern holds across the full-service side of wings too: our comparison of [ten sports bar and wing-bar brands](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) shows Twin Peaks grossing a $5,485,143 median against a $2,959,000 investment floor, a ratio near 1.0 rather than Wingstop’s 2.9. KFC requires meaningfully more capital and produces lower AUV; Bojangles is competitive on AUV but at higher investment. This ratio is the single number that makes Wingstop attractive to multi-unit operators and dominant in development pipelines. It’s also why single-unit territory is structurally hard to obtain — the franchise system actively recruits multi-unit candidates with capacity to develop 3-10 stores, and area development agreements typically take priority over single-unit applicants in attractive markets. ## What This Means for Buyers If you’re evaluating Wingstop: - **The headline median is real and well-substantiated.** A $1.89M median on 2,116 units is one of the most defensible Item 19 figures in QSR. You can build a financial model around it with confidence — but model the ramp, not the steady state. - **Year-one revenue won’t be the median.** Underwrite to 60-75% of the median for year one and ramp to the median over 24-36 months. If your specific market is dense with existing Wingstops, the ramp can be faster. If you’re opening in a new market, the ramp is the dominant variable in your year-one cash position. - **Single-unit applications face structural friction.** The brand’s development priorities favor multi-unit operators. If you’re a single-unit buyer in an attractive market, expect long timelines and meaningful competition for territory. - **Working capital is the year-one bottleneck.** A Wingstop with $1.3M of year-one revenue is meaningfully different than one with $2.0M — operating cash flow can be thin in the ramp period. See our [working capital math](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) for the year-one buffer calculation. For broader category context, see our [best chicken franchises 2026](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises) roundup. For the detailed cost picture, our [Wingstop franchise cost](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost) post covers Item 7 in depth. The brand’s `/financials` sub-page on Wingstop carries the live Item 19 data and is updated when the FDD is. ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) wingstopitem 19chicken franchisefdd analysisfranchise revenue About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Wingstop's Item 19 AUV? Wingstop's most recent Item 19 reports a $1.89M median annual unit volume (technically $1,890,866, with a $2,138,111 average) across 2,116 franchised restaurants in the 52-week fiscal period ending December 27, 2025. This is one of the largest disclosed Item 19 samples in the QSR category. ### Is Wingstop's Item 19 reliable? The 2,116-unit sample is large enough to be statistically meaningful — closures and outliers don't materially shift the median at that scale. The metric reflects the qualifying franchised units in the period, not a top-tier subset. Compared to Item 19 disclosures with sub-100 unit samples, Wingstop's is unusually well-substantiated. ### Can a new Wingstop hit the $2M median in year one? Almost never. Year-one new-build revenue at Wingstop typically runs materially below the system median while the unit ramps. The system median includes mature units that have been operating for 3-10+ years and benefit from established brand awareness, customer base, and operational tuning. Underwrite to a more conservative year-one figure and ramp to the median over 24-36 months. ### How does Wingstop's Item 19 compare to other chicken franchises? Wingstop's $2.0M median places it at the top of the publicly franchised chicken category by AUV-to-investment ratio. Popeyes' median is comparable in absolute terms but at a higher investment ($383K-$3.5M). KFC and Bojangles run lower medians. Raising Cane's would likely lead the category but doesn't franchise. ### Why is Wingstop's unit economics ratio so strong? Three structural reasons: compact 1,400-2,200 sq ft footprint keeps buildout under $1M, simplified cooking infrastructure (no fryer-heavy kitchen) keeps labor and equipment cost low, and the focused wing-and-tender menu produces strong throughput. The combination of high AUV and modest total investment is what makes the ratio category-leading. --- title: "How to Read a Franchise Agreement: 12 Key Clauses to Know" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-03-24 dateModified: 2026-08-04 keywords: franchise agreement, franchise legal, franchise clauses, franchise contracts, franchise due diligence canonical: https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses about: franchise agreement category: blog wordCount: 2462 readingTime: 12 min crawledAt: 2026-08-20 11:07:31 lastVerified: 2026-08-20 11:07:31 site: https://vetmyfranchise.com/c/claude/ --- # How to Read a Franchise Agreement: 12 Key Clauses to Know ## Summary Learn how to read a franchise agreement with this breakdown of 12 key clauses covering territory, renewal, termination, non-compete, and more. ## Key facts - Most prospective franchisees spend weeks studying the [Franchise Disclosure Document](https://vetmyfranchise. - The term length defines how many years you have the right to operate the franchise. - No single clause exists in isolation. - Before you sit down with the agreement, create a simple tracking document: - Walk into any franchise sales office and the standard line is that the agreement is identical for everyone and cannot be changed. Quick answer A franchise agreement runs 10 to 20 years and turns on 12 clauses. The costly ones: 'then-current' renewal terms that let the franchisor raise your royalty from 6% to 8%, post-term non-competes of 1-2 years within 10-25 miles, transfer fees of $5,000 to $25,000, a personal guarantee that pierces your LLC, and a 1-2% ad fund. ## Why the Franchise Agreement Matters More Than the FDD Most prospective franchisees spend weeks studying the [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) but rush through the actual franchise agreement. That’s a mistake. The FDD tells you what _has_ happened. The franchise agreement dictates what _will_ happen — to your money, your time, and your options for the next decade or more. The franchise agreement is a legally binding contract, and unlike a home purchase or employment contract, it’s heavily weighted toward the franchisor. That doesn’t mean you’re powerless, but it does mean you need to understand exactly what you’re agreeing to. Below are the 12 clauses that have the most direct impact on your investment, your daily operations, and your eventual exit. If you’re still early in the process, read this alongside the [franchise due diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist), which sets the numbers you should already have before the contract lands on your desk. ## The 12 Clauses Every Franchise Buyer Must Understand ### 1\. Term Length The term length defines how many years you have the right to operate the franchise. Most agreements set an initial term of 10 to 20 years. A shorter term (5-7 years) limits your ability to recoup a large upfront investment, while a longer term locks you into the system’s current fee structure and rules for an extended period. **What to watch for:** Make sure the term is long enough to generate a meaningful return on your total investment. If you’re putting in $500,000 and the term is only 7 years, the math gets tight. ### 2\. Renewal Rights Renewal clauses determine whether you can continue operating after the initial term expires — and under what conditions. Some agreements guarantee renewal if you’re in good standing. Others give the franchisor full discretion. **What to push back on:** Watch for language requiring you to sign a “then-current” agreement at renewal. This means the franchisor can change royalty rates, territory boundaries, or operational requirements, and you either accept or walk away from the business you built. For a deeper look at renewal and [termination clauses](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination), see our dedicated guide. ### 3\. Territory Rights Your territory clause defines the geographic area where you have the right to operate and, ideally, exclusivity. Territories can be defined by zip codes, population counts, mile radius, or some combination. **What to watch for:** | Territory Type | Protection Level | Risk | | --- | --- | --- | | Exclusive territory | High — no other units allowed | Lower, but verify exceptions | | Protected territory | Medium — limits on nearby units | Franchisor may place units just outside | | Non-exclusive | None | Another franchisee could open nearby | Some agreements reserve the franchisor’s right to sell through alternative channels (online, grocery, kiosks) within your territory. That exception can quietly erode your revenue. Read our full breakdown of [franchise territory protection](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) for more detail. ### 4\. Transfer and Assignment This clause governs your ability to sell the franchise to someone else. Nearly every agreement requires the franchisor to approve the buyer, but the restrictions vary widely. **Key items to check:** - Right of first refusal (franchisor can match any offer you receive) - Transfer fees (typically $5,000 to $25,000) - Whether the buyer must attend training at their own expense - Whether your non-compete activates upon transfer A restrictive transfer clause can significantly reduce your business’s resale value. Buyers don’t want to jump through excessive hoops. ### 5\. Non-Compete Provisions Non-compete clauses restrict you from operating a similar business during and after the franchise relationship. During the term, this is standard and generally reasonable. The post-term restriction is where problems arise. **Typical ranges:** - **Duration:** 1-2 years after termination or expiration - **Geographic scope:** 10-25 mile radius from your former location (and sometimes from _any_ unit in the system) A system-wide geographic restriction can effectively lock you out of an entire industry in your metro area. This is one of the most negotiable clauses — push for a narrower radius and shorter duration. ### 6\. Termination Provisions Termination clauses spell out the conditions under which the franchisor can end your agreement. These typically fall into two categories: curable defaults (you get a chance to fix the problem) and incurable defaults (immediate termination). **Common curable defaults:** Failing an inspection, falling behind on royalties, unauthorized marketing. **Common incurable defaults:** Conviction of a felony, bankruptcy filing, abandonment of the business, disclosure of trade secrets. Pay close attention to what the franchisor considers “abandonment.” Some agreements define it as being closed for as few as 3-5 consecutive days without approval, which could become an issue during a family emergency or natural disaster. ### 7\. Dispute Resolution This clause determines how disagreements between you and the franchisor get resolved. Most franchise agreements mandate arbitration or mediation before (or instead of) litigation, and nearly all specify that disputes must be resolved in the franchisor’s home jurisdiction. **What this means practically:** If you’re in Texas and the franchisor is headquartered in Minnesota, you’re traveling to Minnesota for any legal proceedings. That’s an additional cost that discourages franchisees from pursuing legitimate claims. ### 8\. Personal Guarantee If you form an LLC or corporation to operate the franchise — which you should — the franchisor will almost certainly require you and your spouse to sign a personal guarantee. This pierces the liability protection your entity provides. **What to negotiate:** - Remove your spouse from the guarantee - Cap the guarantee at a specific dollar amount - Limit the guarantee to specific obligations (rent, royalties) rather than all obligations - Include a sunset provision that releases the guarantee after a set number of years A [franchise attorney experienced in these negotiations](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) can often secure at least one of these concessions. ### 9\. Minimum Performance Standards Some franchisors include clauses requiring you to hit minimum revenue or sales targets. Miss them, and the franchisor can reduce your territory, deny renewal, or terminate the agreement. **What to watch for:** Are the minimums based on system averages, specific dollar amounts, or year-over-year growth percentages? System averages can be skewed by top performers. Growth percentages become increasingly difficult to maintain as your business matures. Make sure the targets are realistic based on the financial data in [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). ### 10\. Advertising and Marketing Fund Contributions You’ll typically pay into both a local advertising requirement and a national/regional advertising fund. The national fund is usually 1-2% of gross revenue on top of your royalty. **Key questions:** - Does the franchisor provide an audited accounting of how the ad fund is spent? - What percentage goes to digital vs. traditional media? - Can the ad fund be used for franchisor recruitment advertising? (Some can, and that means your money markets the franchise to future competitors rather than driving customers to your location.) ### 11\. Indemnification The indemnification clause requires you to hold the franchisor harmless for claims arising from your operation of the franchise. In plain language: if someone sues over something that happened at your location, you’re covering the franchisor’s legal costs too. **What to push back on:** Broad indemnification language that covers claims arising from the _franchisor’s_ actions — like a defective product they required you to use or marketing materials they provided. You should only indemnify for issues within your control. ### 12\. Successor Terms This often-overlooked clause defines what terms will apply if you renew or if the agreement is assigned. Some agreements lock in current royalty rates for the successor term. Others allow the franchisor to apply whatever rates are standard at the time of renewal. **Why it matters:** If you sign today at a 6% royalty and the franchisor raises rates to 8% for new franchisees, a successor-terms clause without rate protection means you’ll pay 8% upon renewal — a significant hit to your margins on a business you’ve already built. ## How These Clauses Work Together No single clause exists in isolation. Your territory rights interact with your minimum performance standards. Your renewal terms connect to your successor terms. Your transfer clause affects your exit strategy. For example, consider this scenario: You have a 10-year term with a non-exclusive territory and minimum performance standards. A new franchisee opens two miles away. Your revenue dips below the minimums. The franchisor now has grounds to terminate — not because you did anything wrong, but because the agreement allowed a confluence of clauses to work against you. This is why reading the agreement as a _system_ of interconnected provisions matters more than evaluating any single clause. ## Building Your Review Checklist Before you sit down with the agreement, create a simple tracking document: 1. **List all 12 clauses** with the relevant section numbers from your agreement 2. **Rate each one** as favorable, neutral, or unfavorable to you 3. **Identify your top 3-4 negotiation priorities** — you won’t win every battle, so focus where it matters most 4. **Cross-reference with the FDD** — the agreement should be consistent with what’s disclosed Pair that tracking document with the negotiation sequence below, and you’ll walk into the signing with genuine leverage rather than blind faith. ## What Is Actually Negotiable, and How to Ask Walk into any franchise sales office and the standard line is that the agreement is identical for everyone and cannot be changed. That is partly true and partly a negotiating posture. The FTC requires the FDD to describe the terms offered to franchisees, and material variations have to be disclosed, which gives franchisors a real structural reason to standardize. Standardized is not the same as immutable. ### The terms that genuinely do not move | Term | Why it stays fixed | | --- | --- | | Royalty rate | Must be uniform; a change requires an FDD amendment | | Advertising fund contribution | Applied identically across the system | | Brand standards and operating procedures | Core to system consistency | | Required suppliers and vendors | Negotiated at the system level | | Training requirements | Standardized curriculum | | Reporting and audit obligations | System-wide compliance | ### Where buyers actually win concessions Territory size and boundaries, development schedules on multi-unit deals, renewal terms (specifically the right to renew on your original terms rather than the then-current agreement), transfer and assignment mechanics, personal guarantee caps, cure periods, and dispute-resolution venue. Your leverage is highest when you are entering a market the franchisor wants and cannot easily fill, or when you are committing to more than one unit. ### The five-step sequence that works 1. **Read the entire agreement yourself first.** Mark every provision you do not understand. This turns your attorney’s hours into strategy instead of explanation. 2. **Hire a franchise attorney, not a general business attorney.** They will typically flag 10 to 20 provisions worth amending on a 10-year agreement. 3. **Sort those provisions into three tiers.** Must-have terms that materially change your risk or economics, where you negotiate firmly and walk if refused. Important terms where you push but accept a reasonable alternative. Nice-to-have terms you raise without pressing. 4. **Submit changes as a formal rider or addendum through your attorney.** A written amendment request lands very differently than a verbal ask during a sales call. 5. **Expect a split decision.** The franchisor will accept some, counter some, and decline the rest. Winning the provisions that matter is the goal, not winning every point. ### The clause that can cost you the most Watch for unlimited liquidated damages. Some agreements let the franchisor claim the full remaining royalties for the balance of the term if they terminate you early. On a 10-year agreement with a $500,000 unit at a 6% royalty, that exposure runs past $300,000 on top of losing the business. Alongside it, check for unilateral system-change authority (the ability to rewrite the manual, supplier list, technology platform, or fee structure without your consent), post-term radius restrictions with a vague definition of a “similar” business, and automatic bank debit authorization without a dispute process. ### When to walk Some agreements cannot be fixed by negotiation. Walk away if the franchisor refuses to move on any clearly problematic provision, if personal guarantee exposure is unlimited and uncapped, if termination rights are one-sided, if territory protection is absent, if the then-current renewal clause could rewrite your economics at year 10, or if disputes must be arbitrated in a distant venue with no mediation step. ## Final Thought A franchise agreement is not a formality. It’s the single document that defines your rights, your obligations, and your options for the next 10 to 20 years. Every dollar you invest, every hour you work, and every decision you make as a franchisee flows through this contract. Read it slowly. Question everything. And bring someone to the table who has read hundreds of them before. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### California Franchise Relationship Law: What Buyers Actually Need to Know in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/california-franchise-relationship-law-buyers-guide) #### FDD Item 13 Explained: Are You Buying a Real Brand or a Lookalike? [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-13-trademarks) #### FDD Item 17 Explained: The Renewal and Termination Trap Most Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination) franchise agreementfranchise legalfranchise clausesfranchise contractsfranchise due diligence About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you negotiate a franchise agreement? Yes, many clauses are negotiable, especially for experienced operators or multi-unit buyers. Franchisors often have more flexibility on territory size, personal guarantee scope, non-compete radius, and renewal terms than they initially let on. Having a [franchise attorney](/c/claude/blog/franchise-attorney-what-to-look-for) represent you significantly increases your leverage. ### How long is a typical franchise agreement? Most franchise agreements run between 10 and 20 years, with 10 years being the most common initial term. Renewal periods are usually 5 to 10 years. The length matters because it affects your ability to recoup your investment and determines how long you're bound to the system's rules. ### What happens if I break my franchise agreement? Breaking a franchise agreement typically triggers termination provisions, which can include losing your right to operate, forfeiting your investment, and activating non-compete clauses. You may also owe liquidated damages. The specific consequences depend entirely on which clause you violated and how your agreement is structured. ### Should I hire an attorney to review my franchise agreement? Absolutely. A franchise-specialized attorney will catch problematic language that general business lawyers often miss. The cost of legal review — typically $2,000 to $5,000 — is a fraction of what a bad clause could cost you over a 10-year term. This is one area where cutting corners almost always backfires. ### What is a personal guarantee in a franchise agreement? A personal guarantee means you are personally liable for all obligations under the franchise agreement, even if you operate through an LLC or corporation. If the business fails, the franchisor can pursue your personal assets including your home, savings, and other investments. Some franchisors will negotiate limiting the guarantee to specific obligations or capping the amount. --- title: "Mosquito Control Franchise Cost 2026: 7 Brands Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-07-25 keywords: mosquito franchise, mosquito joe, mosquito shield, mosquito squad, pest control franchise canonical: https://vetmyfranchise.com/c/claude/blog/mosquito-control-franchise-buyers-guide about: mosquito franchise category: blog wordCount: 2901 readingTime: 15 min crawledAt: 2026-08-20 11:08:33 lastVerified: 2026-08-20 11:08:33 site: https://vetmyfranchise.com/c/claude/ --- # Mosquito Control Franchise Cost 2026: 7 Brands Compared ## Summary Mosquito control franchise cost 2026: Mosquito Joe, Shield, Squad, Hunters, Sheriff compared on verified Item 7 investment, fees, royalty, and Item 19 medians. ## Key facts - Every figure below comes from the brand’s most recent [FDD](https://vetmyfranchise. - Mosquito control is one of the most concentrated franchise categories in home services. - Mosquito-only brands are not the only route into this revenue. - The category’s tight investment range and similar operating models simplify the decision. - Across all seven brands the model is substantially the same: an owner-operator or owner-with-small-team structure, vehicle-based technicians, seasonal contracts running April through October in northern markets and year-round in the south, and 80-90% renewal rates on those contracts. Quick answer Mosquito control franchise cost runs $79,450 to $220,375 across seven brands with parsed FDDs. Mosquito Squad discloses the strongest Item 19, a $330,985 median across 217 units with p25 $166,234 and p75 $679,499. Mosquito Joe leads on scale with 407 franchised units at $150,155-$191,575 per the 2026 FDD. ## Mosquito Control Franchises at a Glance Every figure below comes from the brand’s most recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) as parsed into our database. Royalty is stated as royalty plus ad fund where both are disclosed. | Brand | Total investment (Item 7) | Franchise fee | Royalty | Item 19 revenue | Franchised units | FDD year | | --- | --- | --- | --- | --- | --- | --- | | Mosquito Joe | $150,155 – $191,575 | $42,500 | 10% to $500K, then 7% + 2% | FPR disclosed, no median parsed | 407 | 2026 | | Mosquito Shield | $120,525 – $162,420 | $54,500 | 8% + 2% | $235,812 median (n=66) | 384 | 2026 | | Mosquito Squad | $162,380 – $220,375 | $35,000 | 8-10% + $150-$450/mo | $330,985 median (n=217) | 232 | 2026 | | Mosquito Hunters | $117,570 – $139,743 | $50,000 | 10% + 2% | FPR disclosed (n=62) | 145 | 2026 | | MosquitoNix | $121,400 – $157,400 | $49,000 | 7-10% + 2-3% | 7 company-affiliated units | 8 | 2025 | | Mosquito Sheriff | $79,450 – $81,500 | $40,000 | 10% or minimum | No median disclosed | 5 | 2025 | | Mosquito Shield Corp (legacy entity) | $120,525 – $157,950 | $54,500 | 8% + 2% | $134,918 median (n=81) | 435 | 2025 | Three things the table makes visible. The capital floor is lower than the category’s own marketing suggests: [Mosquito Sheriff](https://vetmyfranchise.com/c/claude/franchise/mosquito-sheriff-franchising-inc) opens at $79,450, roughly $38,000 below the next cheapest brand. Franchise fees top out at $54,500, not the six figures sometimes quoted. And the two Mosquito Shield entities disclose medians $100,894 apart, which is the single most important discrepancy in the category to resolve during discovery. ## The Category Landscape Mosquito control is one of the most concentrated franchise categories in home services. The growth thesis: residential customers in mosquito-prone geographies pay $50-$150/month for seasonal treatment, producing recurring revenue with high renewal rates. Longer seasons and expanding mosquito range have sustained category demand. The result is seven franchise brands with parsed FDDs competing for the same operator pool at similar investment levels, plus broader pest-control systems selling mosquito service as one line in a wider menu. The mosquito-specific brands run roughly 1,180 franchised territories across current filings, counting Mosquito Shield’s current LLC entity rather than the legacy corporation to avoid double-counting. Brand choice matters more than buyers realize, because disclosed Item 19 medians vary by a factor of 2.5 across the category. ## Mosquito Joe: The Portfolio Brand **Units:** 407 franchised **Investment:** $150,155-$191,575 **Franchise fee:** $42,500 **Royalty:** 10% of gross sales up to $500,000, then 7% above / Ad fund: 2% **Parent:** Neighborly Brands (KKR-owned) **FDD year:** 2026 [Mosquito Joe](https://vetmyfranchise.com/c/claude/franchise/mosquito-joe-spv-llc) is the largest mosquito franchise by unit count, with 407 franchised units per the 2026 FDD, and operates as one of 30+ brands inside the Neighborly Brands portfolio. Operators inside the Neighborly system can capture cross-brand leverage with [Mr. Rooter](https://vetmyfranchise.com/c/claude/franchise/mr-rooter-spv-llc), [Mr. Electric](https://vetmyfranchise.com/c/claude/franchise/mr-electric-spv-llc), [Window Genie](https://vetmyfranchise.com/c/claude/franchise/window-genie-spv-llc), and [Mr. Handyman](https://vetmyfranchise.com/c/claude/franchise/mr-handyman-spv-llc), sharing back-office, call-center, and national-account infrastructure across brands. The royalty structure deserves a correction to how it’s usually described. Mosquito Joe charges 10% of gross sales up to $500,000, then 7% on everything above that threshold, per the 2026 FDD. The effective rate therefore falls as a territory scales, which is the opposite of most tiered structures and materially better than a flat 10% brand once a unit clears $500,000. A territory doing $700,000 pays roughly 9.1% blended versus 10% flat, worth about $6,000 a year. The gap in the disclosure is Item 19 itself. The 2026 FDD carries a financial performance representation covering fiscal year 2025, but our parse did not extract a usable median, so buyers cannot benchmark Mosquito Joe against Mosquito Squad’s $330,985 without pulling the document directly. Request the Item 19 table early in discovery. **Strengths:** Largest unit count, established multi-unit operator base, Neighborly cross-brand infrastructure, declining royalty above $500,000, strong franchisor capital backing. **Weaknesses:** PE-portfolio dynamics may dilute brand-specific franchisor focus, 10% entry royalty is the category’s joint-highest, and no clean disclosed median for underwriting. **Best fit:** Multi-brand operators inside the Neighborly portfolio, and operators who expect to build past $500,000 in territory revenue where the royalty step-down pays off. ## Mosquito Shield: The Independent Strong Operator **Units:** 384 franchised (LLC, 2026) / 435 (legacy Corporation, 2025) **Investment:** $120,525-$162,420 **Franchise fee:** $54,500 **Royalty:** 8% / Ad fund: 2% of gross sales **Parent:** Independent ownership **Item 19 (LLC 2026):** $235,812 median, n=66 [Mosquito Shield](https://vetmyfranchise.com/c/claude/franchise/mosquito-shield-franchise-llc) operates as an independent franchise system with no platform-portfolio parent, founded in 2012. The 2026 FDD discloses $120,525 to $162,420 total investment, a $54,500 franchise fee (the highest in the category), 8% royalty, and a 2% ad fund. The entity question is the one thing to resolve before signing. Two Mosquito Shield franchisors appear in recent filings: [Mosquito Shield Franchise Corporation](https://vetmyfranchise.com/c/claude/franchise/mosquito-shield-franchise-corporation) filed a 2025 FDD showing 435 franchised units and a $134,918 Item 19 median across 81 units, with p25 at $94,275 and p75 at $210,494. Mosquito Shield Franchise LLC filed a 2026 FDD showing 384 units and a $235,812 median across 66 units. Those two medians differ by $100,894, and the sample definitions explain most of it. The LLC’s 2026 sample covers only outlets that had completed more than two full seasons of operation, while the Corporation’s 2025 sample covers outlets past one season. Screening for a second season removes the ramp-year units that drag a mosquito system’s median down, so the higher figure describes a more mature cohort rather than a better business. Underwrite against the $134,918 figure if you are modeling your own first two years, and against $235,812 for a stabilized territory. Ask directly which entity signs your agreement and which Item 19 governs it. **Strengths:** Concentrated independent franchisor focus, 14-year operating history, the lowest practical capital floor among the larger brands, and quartile detail disclosed on the Corporation filing. **Weaknesses:** Highest franchise fee in the category, no cross-brand portfolio benefits, and a dual-entity disclosure structure that requires extra diligence. **Best fit:** Operators preferring direct franchisor relationships who are willing to work through the entity question and can underwrite against the season-adjusted Item 19 cohorts. ## Mosquito Squad: The Item 19 Leader **Units:** 232 franchised, 15 company-owned **Investment:** $162,380-$220,375 **Franchise fee:** $35,000 (lowest in the category) **Royalty:** 8-10% of gross revenue / Ad fund: $150-$450 per month **Parent:** Independent ownership **Item 19 (2026):** $330,985 median, n=217, p25 $166,234, p75 $679,499 [Mosquito Squad](https://vetmyfranchise.com/c/claude/franchise/mosquito-squad-franchising-spe-llc) discloses the strongest Item 19 in the category: a $330,985 median across 217 franchised territories that operated the entire fiscal year 2025, with p25 at $166,234 and p75 at $679,499. That sample covers 94% of the 232-unit system, which is unusually complete. Most franchisors disclose a filtered subset. The distribution is the more useful part. A $513,265 spread between p25 and p75 on a $330,985 median means the top quartile earns roughly four times the bottom quartile, so territory quality and operator execution dominate outcomes here. Underwrite to p25, not the median, if this is your first service business. Our guide to [building a pro forma from Item 19](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) walks through that math. Two structural advantages get overlooked. The $35,000 franchise fee is the lowest of any mosquito brand, $19,500 below Mosquito Shield. And the ad fund is a flat $150-$450 per month rather than a percentage, so at $400,000 in revenue a $450 monthly contribution works out to about 1.35% versus the 2% most competitors charge, saving roughly $2,600 a year and improving further as the territory grows. **Strengths:** Strongest and most complete disclosed Item 19, lowest franchise fee, flat-dollar ad fund that shrinks as a percentage with scale, 15 company-owned units giving the franchisor operating skin in the game. **Weaknesses:** Highest capital floor in the category at $162,380, wide performance distribution signals high execution dependence, and the 8-10% royalty band needs pinning down in the agreement. **Best fit:** Capitalized buyers who require disclosed Item 19 to anchor underwriting and can absorb a $40,000-plus capital premium over Mosquito Shield for that transparency. ## Mosquito Hunters: The Low-Capital Mid-Size System **Units:** 145 franchised, 6 company-owned **Investment:** $117,570-$139,743 **Franchise fee:** $50,000 **Royalty:** 10% / Ad fund: 2% of net revenues, minimum $5,000 and maximum $7,000 per year **Parent:** Independent ownership **Item 19 (2026):** Disclosed across 62 franchisees operating a full 2025 season [Mosquito Hunters](https://vetmyfranchise.com/c/claude/franchise/mosquito-hunters-llc) is the third-largest mosquito system at 145 franchised units per the 2026 FDD, with the tightest investment band in the category at $117,570 to $139,743. That $22,173 spread means fewer surprises between your low and high case than the $58,000 spread at Mosquito Squad. One figure widely misreported for this brand needs correcting: the initial franchise fee is $50,000 per the 2026 FDD, not the six-figure number that circulates in category roundups. That puts it mid-pack, $4,500 under Mosquito Shield and $15,000 over Mosquito Squad. The fee to watch instead is the ad fund. It is 2% of net revenues with a $5,000 annual minimum and a $7,000 cap for a single territory or two contiguous territories. The floor bites hardest in year one: a territory doing $120,000 pays $5,000, an effective 4.2% rather than 2%. The cap works in your favor later, since a $500,000 territory pays $7,000, or 1.4%. Combined with the flat 10% royalty, first-year fee load runs above 14% of revenue before it settles toward 11.4% at scale. **Strengths:** Tightest investment range in the category, mid-pack franchise fee, 145-unit base large enough for meaningful validation calls, ad-fund cap that rewards growth. **Weaknesses:** Flat 10% royalty with no step-down (unlike Mosquito Joe), the $5,000 ad-fund minimum front-loads cost into the ramp year, and no parsed Item 19 median despite a 62-unit sample. **Best fit:** Capital-constrained operators who want a mid-size system and can carry an elevated fee load through the first season or two. ## MosquitoNix and Mosquito Sheriff: The Small Systems [MosquitoNix](https://vetmyfranchise.com/c/claude/franchise/mosquitonix-franchise-llc) discloses $121,400 to $157,400 total investment, a $49,000 franchise fee, 7-10% royalty, and a 2-3% ad fund in its 2025 FDD, across 8 franchised and 7 company-affiliated units. Its Item 19 covers 7 company-affiliated businesses rather than franchisees, which makes it unusable for forecasting a franchised territory. A 2026 MosquitoNix filing was still in processing in our pipeline as of this update and shows materially different unit counts and fee terms, so confirm current figures directly with the franchisor rather than relying on any published summary. [Mosquito Sheriff](https://vetmyfranchise.com/c/claude/franchise/mosquito-sheriff-franchising-inc) is the category’s genuine low-capital entry at $79,450 to $81,500 total investment per its 2025 FDD, roughly $38,000 below Mosquito Hunters. The franchise fee is $40,000, royalty is 10% of gross revenues or a stated minimum, and the system had 5 franchised units and 1 company-owned unit at filing. There is no disclosed median. The narrow $2,050 investment band is the appeal for a buyer who needs cost certainty, and the 5-unit validation pool is the obvious risk: you cannot build a defensible forecast from five operators, and a minimum-royalty clause means you owe the franchisor whether or not the season delivers. **Best fit for either:** Growth-stage investors accepting early-system risk for territory availability and lower entry cost, who are underwriting from their own market research rather than the franchisor’s disclosure. ## The Broader Pest-Control Alternative Mosquito-only brands are not the only route into this revenue. [Pestmaster](https://vetmyfranchise.com/c/claude/franchise/pestmaster-franchise-network-llc) is a full-service pest control franchise with 75 franchised units whose 2026 FDD discloses $92,850 to $208,600 total investment, a $42,500 franchise fee, 7% royalty, and a 2% ad fund. Its Item 19 reports a $148,210 median across 33 franchised units that reported gross sales for all twelve months ended December 31, 2025. That median sits below every mosquito-specific brand’s, which looks unfavorable until you account for seasonality. A mosquito franchise earns most of its revenue in a five to seven month window in northern markets, so the operator carries fixed costs through a dead winter. A general pest-control system bills year-round, with mosquito service as a seasonal upsell on an existing customer base. For operators in northern territories, that smoother revenue curve can be worth more than a higher seasonal median. Our [best pest control franchises](https://vetmyfranchise.com/c/claude/blog/best-pest-control-franchises) guide covers the wider category. ## The Buyer Decision The category’s tight investment range and similar operating models simplify the decision. The deciding variables: **Item 19 disclosure requirement.** Buyers who need a disclosed median to anchor underwriting should default to Mosquito Squad. The disclosure differential is substantial and no competitor matches its 217-unit sample. **Parent ownership and multi-brand strategy.** Operators planning to run several Neighborly brands favor Mosquito Joe for shared infrastructure. Everyone else is choosing among independents, where the differences are fee structure rather than platform. **Capital floor.** Mosquito Sheriff opens at $79,450 but with only 5 units to validate against. Among systems large enough for real diligence, Mosquito Hunters ($117,570) and Mosquito Shield ($120,525) are the cheapest entries. Operators with $220,000 available can pursue Mosquito Squad or Mosquito Joe. **Total fee load, not headline royalty.** Compare the full stack. Mosquito Squad’s 8-10% royalty plus a flat $150-$450 monthly ad fund is cheaper at $400,000 in revenue than Mosquito Hunters’ 10% plus a $5,000-minimum ad fund. Mosquito Joe’s 10% drops to 7% above $500,000, making it the cheapest brand at scale despite the highest entry rate. **Geographic territory availability.** Mosquito Joe (407 units) and Mosquito Shield (384) have footprints that may close attractive territories. Mosquito Squad, Mosquito Hunters, MosquitoNix, and Mosquito Sheriff typically have more open availability. Specific territory availability varies by market. ## The Operating Model Reality Across all seven brands the model is substantially the same: an owner-operator or owner-with-small-team structure, vehicle-based technicians, seasonal contracts running April through October in northern markets and year-round in the south, and 80-90% renewal rates on those contracts. Outcomes turn on four things: local mosquito demand (heavily geographic, strongest in the southeastern US, Gulf Coast, and mid-Atlantic), customer acquisition execution, route density and vehicle utilization, and retention through service quality. Mosquito Squad’s own Item 19 quantifies how much these matter: p25 at $166,234 against p75 at $679,499 in the same system, under the same brand, with the same playbook. Brand selection establishes the floor and ceiling; operator execution determines where within that four-fold range the unit lands. ## The Honest Read The category is structurally strong: recurring revenue, demographic tailwinds, and an established operator base across multiple brands. Brand differences cluster within reasonable ranges on investment and operating model, and diverge sharply on Item 19 quality and total fee load. For most buyers, the practical decision sequence: 1. **Confirm geographic demand.** Mosquito control demand is heavily geographic. Validate market-specific demand before brand selection. 2. **Confirm territory availability.** Multiple brands may not have territory available in attractive markets. 3. **Choose between platform-portfolio (Mosquito Joe) and independent franchisors (others) based on multi-brand operating strategy.** 4. **Among independent franchisors, prefer Mosquito Squad for disclosed Item 19 anchoring or Mosquito Shield/Hunters for capital floor.** 5. **Pull the Item 19 sample definition, not just the median.** The Mosquito Shield entities differ by $100,894 almost entirely because one screens for two completed seasons and the other for one. Sample definitions move these numbers more than brand quality does. For broader context, the [home-services franchise guide](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide) covers adjacent categories, and [best home services franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) covers the lower-capital end where Mosquito Sheriff competes. ## Brands mentioned in this post - [Mosquito Hunters](https://vetmyfranchise.com/c/claude/franchise/mosquito-hunters-llc) - [Mosquito Shield](https://vetmyfranchise.com/c/claude/franchise/mosquito-shield-franchise-corporation) - [Mosquito Sheriff](https://vetmyfranchise.com/c/claude/franchise/mosquito-sheriff-franchising-inc) - [Pestmaster](https://vetmyfranchise.com/c/claude/franchise/pestmaster-franchise-network-llc) - [Mosquito Squad](https://vetmyfranchise.com/c/claude/franchise/mosquito-squad-franchising-spe-llc) - [Mosquito Joe](https://vetmyfranchise.com/c/claude/franchise/mosquito-joe-spv-llc) - [Mr. Electric](https://vetmyfranchise.com/c/claude/franchise/mr-electric-spv-llc) - [Mr. Handyman](https://vetmyfranchise.com/c/claude/franchise/mr-handyman-spv-llc) - [MosquitoNix](https://vetmyfranchise.com/c/claude/franchise/mosquitonix-franchise-llc) - [Mr. Rooter](https://vetmyfranchise.com/c/claude/franchise/mr-rooter-spv-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) mosquito franchisemosquito joemosquito shieldmosquito squadpest control franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a mosquito control franchise cost? Mosquito control franchise cost runs $79,450 to $220,375 in total investment. By brand: Mosquito Sheriff $79,450-$81,500 (2025 FDD), Mosquito Hunters $117,570-$139,743 (2026), Mosquito Shield $120,525-$162,420 (2026), MosquitoNix $121,400-$157,400 (2025), Mosquito Joe $150,155-$191,575 (2026), Mosquito Squad $162,380-$220,375 (2026). Initial franchise fees run $35,000 to $54,500. ### What are the best mosquito control franchises? On disclosed data, Mosquito Squad ranks first for underwriting quality with a $330,985 Item 19 median across 217 units. Mosquito Joe ranks first on scale at 407 franchised units plus Neighborly portfolio support, and its royalty drops from 10% to 7% above $500,000 in sales. Mosquito Shield offers the best combination of a $120,525 capital floor and a disclosed $235,812 median. ### Which mosquito control franchise has the most units? Mosquito Joe leads with 407 franchised units per its 2026 FDD. Mosquito Shield Franchise LLC discloses 384 units (2026 FDD), while the legacy Mosquito Shield Franchise Corporation entity discloses 435 units (2025 FDD). Mosquito Squad has 232 units, Mosquito Hunters 145, MosquitoNix 8, and Mosquito Sheriff 5. The category totals roughly 1,180 franchised units across current filings. ### Which mosquito franchise has the strongest Item 19? Mosquito Squad's 2026 FDD discloses a $330,985 median across 217 franchised territories operating the entire fiscal year, with $166,234 at p25 and $679,499 at p75. Mosquito Shield LLC's 2026 FDD discloses a $235,812 median across 66 units. Mosquito Shield Corporation's 2025 FDD discloses $134,918 across 81 units. Mosquito Hunters discloses a 62-unit sample without a parsed median. ### Who owns each mosquito control franchise? Mosquito Joe is owned by Neighborly Brands (KKR-owned home-services franchise portfolio). Mosquito Shield operates under independent ownership separate from major franchise platforms. Mosquito Squad operates under independent ownership. Mosquito Hunters operates under independent ownership. The parent ownership differences affect operator-support models, multi-brand operating leverage, and strategic priorities. ### Are mosquito control franchises recession-resistant? Generally yes for residential customer bases. Mosquito control is positioned to customers as a quality-of-life service rather than purely discretionary recreation. Residential customers maintain seasonal service contracts even during economic downturns at reasonable rates. Commercial customer bases (events, hospitality, outdoor restaurants) are more discretionary and recession-sensitive. The category as a whole has demonstrated revenue stability through economic cycles, though individual operator performance varies substantially. --- title: "Wingstop Franchise Cost 2026: Investment & Profit Guide" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Research publisher: VetMyFranchise datePublished: 2026-04-30 dateModified: 2026-07-25 keywords: wingstop franchise, franchise cost, qsr franchise, chicken franchise, multi-unit franchise canonical: https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost about: wingstop franchise category: blog wordCount: 1645 readingTime: 8 min crawledAt: 2026-08-20 11:04:13 lastVerified: 2026-08-20 11:04:13 site: https://vetmyfranchise.com/c/claude/ --- # Wingstop Franchise Cost 2026: Investment & Profit Guide ## Summary Wingstop franchise cost 2026: investment $310K-$1.01M, fee $25,000, royalty 6%, brand fund 5.5%. Why Wingstop only awards multi-unit ADA agreements. ## Key facts - The headline franchise fee at [Wingstop](https://vetmyfranchise. - Wingstop’s restaurant design has been deliberately optimized for off-premise revenue. - Combined ongoing fees of 11. - Wingstop’s Item 19 is one of the cleaner disclosures in QSR. - The unit economics are what justify the multi-unit model: Quick answer A Wingstop costs $310,400 to $1,013,500 per restaurant with a $25,000 franchise fee, and ongoing fees total 11.5% of gross sales (6% royalty plus a 5.5% brand fund). Item 19 reports a $1,890,866 median and $2,138,111 average across 2,116 franchised restaurants, with 20-25% store-level EBITDA. New awards require 3-5+ unit ADAs. ## Total Investment Range and Why [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Is Multi-Unit Only The [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) franchise cost sits in a different part of the QSR spectrum than most franchise concepts. The brand’s restaurants are smaller than traditional QSR (typically 1,400-2,200 square feet), the equipment package is leaner, and the business model is built around off-premise revenue — pickup and delivery rather than dine-in. Item 7 of the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) puts total investment at $310,400 to $1,013,500 depending on real estate format. The breakdown for a typical inline strip location: | Component | Typical Range | | --- | --- | | Initial Franchise Fee | $25,000 | | Real Estate / Lease Deposits | $5,000 – $30,000 | | Build-Out / Leasehold Improvements | $130,000 – $560,000 | | Equipment | $75,000 – $195,000 | | Signage and Decor | $20,000 – $48,000 | | Initial Inventory | $8,000 – $15,000 | | Working Capital | $22,000 – $80,000 | | Other (insurance, training, professional fees) | $25,000 – $60,000 | That range is a fraction of what a full-service wing concept costs to build. If you want the dine-in and alcohol revenue Wingstop deliberately skips, [full-service sports bar franchises](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) start around $373,650 for a compact format and run past $7.6M for a flagship Twin Peaks. Real estate is the single biggest cost driver. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s off-premise model favors high-traffic, drive-through-accessible sites with strong delivery-radius demographics. Build-out cost compresses meaningfully when converting a second-generation restaurant space; it expands when building out a vanilla shell from a strip-center landlord. ## Franchise Fee, Development Fee, and Area Commitments The headline franchise fee at [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) is unusually low for a brand of this scale: $25,000 per restaurant, the lowest among established chicken brands. That low number masks a more demanding overall commitment. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) awards new development through Area Development Agreements (ADAs) that typically require operators to commit to opening 3-5+ restaurants in a defined territory over a defined timeline (commonly 5 years for mid-sized commitments). The development agreement carries its own fee structure, often a per-territory development fee paid up front plus the per-restaurant franchise fees due as each restaurant opens. The reason for this structure is straightforward. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s growth playbook depends on multi-unit operators who can scale. Single-unit operators with no path to a second restaurant don’t fit the brand’s strategic profile, regardless of their financial qualifications. If you’re looking at a single-unit [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) opportunity, the realistic path is resale of an existing restaurant rather than a new award. ## Build-Out: Off-Premise-First Footprint (Smaller, Cheaper) Wingstop’s restaurant design has been deliberately optimized for off-premise revenue. The current prototype includes: - A compact production kitchen optimized for fryer throughput - A drink/cashier counter sized for pickup orders rather than dine-in service - Limited dine-in seating (often 25-40 seats vs. 75-120 at a traditional QSR) - A multi-channel online and delivery integration stack (POS, kitchen display, packaging stations) This footprint costs less to build and operate than a full-format QSR. Equipment is also lower-cost than concepts that require complex cooking infrastructure — a Wingstop kitchen is fundamentally a fryer-driven operation with limited prep complexity. The trade-off is that Wingstop’s success depends almost entirely on off-premise execution. Restaurants that struggle with pickup logistics, delivery integration, or order accuracy underperform regardless of menu quality. ## Royalties, Marketing, and Tech Stack Fees | Fee | Rate | Notes | | --- | --- | --- | | Continuing Royalty | 6.0% of gross sales | Standard QSR rate | | Advertising / Brand Fund | 5.5% of gross sales | National and local advertising | | Technology Fee | Variable | POS, online ordering, delivery integration | Combined ongoing fees of 11.5% of gross sales are the heaviest load among established chicken brands, but are supported by Wingstop’s revenue per dollar invested. A unit at the $1,890,866 median produces about $217,000 in royalty and brand fund obligations annually — a meaningful absolute dollar number but a sustainable percentage given the underlying unit economics. ## Item 19: The Unit Volumes That Drive Wingstop’s Reputation Wingstop’s Item 19 is one of the cleaner disclosures in QSR. The 2026 FDD reports, for the 52-week fiscal period from December 29, 2024 through December 27, 2025, across all 2,116 reporting franchised restaurants: - A median of **$1,890,866** and an average of **$2,138,111** - A system of 2,154 franchised restaurants plus 57 company-owned - Off-premise revenue (delivery + pickup) running 75-85% of total sales for mature restaurants These are gross sales numbers — net store-level operating profit at well-run Wingstop restaurants typically runs 20-25% of revenue, before franchisee debt service and corporate overhead. That 20-25% range is among the highest in QSR. The gap between the $2,138,111 average and the $1,890,866 median is the number to sit with: the average is pulled up by the strongest restaurants in the system, so the median is the honest anchor for underwriting a new unit. ## Why Wingstop Has the Highest 4-Wall EBITDA in QSR The unit economics are what justify the multi-unit model: | Metric | Mature Wingstop Restaurant | | --- | --- | | Annual revenue | $1,890,866 (median) – $2,138,111 (average) | | Royalty + brand fund (11.5%) | ($217,000 – $246,000) | | Cost of goods sold (~30-32%) | ($567,000 – $684,000) | | Labor (~22-26%) | ($416,000 – $556,000) | | Lease (~6-8%) | ($113,000 – $171,000) | | Other operating (~5-7%) | ($95,000 – $150,000) | | Store-level EBITDA | $378,000 – $535,000 | | EBITDA margin | 20% – 25% | A multi-unit operator running 5 mature restaurants is producing $1.9M-$2.7M of aggregate store-level EBITDA before financing costs. After debt service on a typical SBA acquisition structure and after corporate overhead, the operator’s net cash flow scales meaningfully with unit count — which is exactly why Wingstop wants multi-unit operators. ## Approval Bar: Who Actually Gets Approved The Wingstop franchise cost is only the entry ticket — qualification matters more. Published financial qualifications for new ADAs are roughly: - Net worth: $1.2M+ (varies by ADA size) - Liquidity: $600K+ available cash - Prior multi-unit franchise or restaurant experience: strongly preferred - Operational depth: organizational capacity to manage 3-5+ units simultaneously These thresholds reflect the multi-unit reality. Opening a single Wingstop restaurant takes $310K-$1.01M in capital. Opening five over four years requires multiples of that, even with reduced incremental fees on additional units. Operators who succeed in the system tend to come from prior franchise multi-unit operations, food service operations, or partnerships that bring the operational depth Wingstop expects. ## Comparing the Wingstop Path to Other QSR Options Compared to other QSR multi-unit opportunities: - **Wingstop:** $310K-$1.01M per unit, 5+ unit ADAs, 20-25% store-level EBITDA, off-premise model - **Subway:** $230K-$600K per unit, single-unit awards available, 8-12% store-level EBITDA, mature system - **Jersey Mike’s:** $200K-$1M per unit, owner-operator required, 12-18% store-level EBITDA, growing system - **Dunkin’:** $500K-$1.7M per unit, multi-unit ADAs, 10-15% store-level EBITDA, mature system Wingstop’s combination of a $1,890,866 median on a $310,400 investment floor, high store-level margins, and a disciplined off-premise model makes it one of the more compelling multi-unit-only opportunities in QSR — for operators who fit the multi-unit profile. For operators who don’t fit that profile, the brand is effectively closed to new development. The realistic path is either resale acquisition of an existing restaurant or building qualification through other multi-unit operations before approaching the brand. The FDD analysis matters because the ADA terms — particularly territory definition, development schedule, and default consequences — are where multi-unit operators have the most exposure. Reading those clauses carefully is what separates a successful 5-unit build from a 5-unit financial trap. For a current verdict on whether Wingstop’s economics still pencil out for a new multi-unit operator, see [Is Wingstop a good franchise to own in 2026?](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-pros-and-cons). If you’re choosing between Wingstop and a single-unit alternative, compare with [Five Guys vs Wingstop](https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise), and see the standalone [Five Guys franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost) for that brand’s Item 7 and Item 19 numbers. For cross-industry context on all of these figures, start with [how much it costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise). ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Wingstop numbers with you. We'll email you the **Wingstop FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Wingstop data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) wingstop franchisefranchise costqsr franchisechicken franchisemulti-unit franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to open a Wingstop? Total initial investment is $310,400 to $1,013,500 per the 2026 FDD, depending on the real estate format, market, and whether you're building from scratch or converting a second-generation space. The most common new-build investment for an inline strip location runs $500,000-$800,000. The initial franchise fee is $25,000 per restaurant. ### How much profit does a Wingstop franchise make? Wingstop has historically reported some of the highest store-level operating margins in QSR. Mature units commonly generate 4-wall EBITDA in the 20-25% of gross sales range, depending on labor cost, real estate cost, and operating efficiency. A unit at the $1,890,866 Item 19 median running 22% store-level EBITDA produces roughly $416,000 of operating cash flow before franchisee debt service and corporate overhead. ### Can you buy a single Wingstop? Wingstop has explicitly moved away from single-unit franchise awards for new development. The standard new-development path is an Area Development Agreement that commits the operator to opening multiple restaurants in a defined territory. Single-unit acquisitions can happen via resale of existing restaurants but new awards effectively require multi-unit commitments. ### What's the royalty rate at Wingstop? The continuing royalty is 6% of gross sales. The marketing/brand fund is an additional 5.5% of gross sales. Combined ongoing franchisor fees are 11.5% of gross sales, the heaviest load among established chicken brands. The fee structure is supported by Wingstop's revenue per dollar invested — at the $1,890,866 median the absolute dollar burden is roughly $217,000 a year, but the percentage is sustainable given the underlying unit economics. ### Why is Wingstop only sold to multi-unit operators? Wingstop's franchisee model is built around operators who can scale. The brand's off-premise-first restaurants are operationally simpler than full-service concepts, which makes them well-suited to multi-unit structures with shared management overhead. Wingstop has explicitly communicated to the franchise community that single-unit operator-only deals do not fit the brand's growth strategy. Multi-unit commitments also reduce churn risk in the system, which protects the AUV story. --- title: "Valvoline Item 19 2026: $1.7M Franchisee Median Decoded" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-08-13 keywords: valvoline, valvoline instant oil change, item 19, automotive franchise, quick lube, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/valvoline-item-19-deep-dive about: valvoline category: blog wordCount: 1463 readingTime: 7 min crawledAt: 2026-08-20 11:06:48 lastVerified: 2026-08-20 11:06:48 site: https://vetmyfranchise.com/c/claude/ --- # Valvoline Item 19 2026: $1.7M Franchisee Median Decoded ## Summary Valvoline Instant Oil Change Item 19: franchisee-operated centers post a $1,704,870 median net sales across 891 units, above the 785 company-operated centers at $1,599,409. ## Key facts - Almost every summary of Valvoline’s earnings disclosure quotes a single company-operated number. - Section A earns its length. - The commonly quoted $192,375 to $3,483,550 span is not one range. - The column that matters is the third one. - The franchisee range is the part buyers skip. Quick answer Valvoline's Item 19 has two sections. Section B discloses 891 comparable franchisee-operated centers with median net sales of $1,704,870 in fiscal 2025. Section A's 785 company-operated centers post $1,599,409. Franchisees out-earn company stores by 6.6%. The license fee is $30,000 for your first center. ## Item 19 has two sections, and the second one is the one you need Almost every summary of Valvoline’s earnings disclosure quotes a single company-operated number. The [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) actually runs two labeled sections, and the franchisee section is further down the page. Here is fiscal 2025, both sections, on the same measure: | Fiscal 2025, net sales per center | Company-operated (Section A) | Franchisee-operated (Section B) | | --- | --- | --- | | Comparable centers | 785 | 891 | | Median | $1,599,409 | $1,704,870 | | Average | $1,677,087 | $1,844,172 | | Low | not disclosed at all-centers level | $397,215 | | High | $3,659,964 | $5,728,187 | **Franchisee-operated centers post a median 6.6% above the company-operated network**, on a larger sample, in the same fiscal year. That runs against the usual pattern, and it is disclosed in plain text rather than inferred. Two mechanics explain why the folk wisdom points the other way. Valvoline is majority company-operated, so the company section comes first, carries three fiscal years of quartile splits, and includes a full profit-and-loss down to contribution after royalty. It reads like the authoritative table because it is the more detailed one. Second, the company section prints both gross sales and net sales, and the gross figure runs roughly 15% higher. A summary that lifts company gross sales and compares it to franchisee net sales manufactures a gap that is not there. The [Valvoline Instant Oil Change](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) system carried 1,071 franchised centers against 976 company-operated ones at the time of this filing, so neither network is a rounding error. ## What the company section is still good for Section A earns its length. It is the only place Valvoline shows unit-level cost structure, and franchisees pay the same product and labor bills. For fiscal 2025 the company network splits into quartiles by net sales: $2,290,679 median in the top quarter, $1,599,409 across the middle half, $1,084,301 in the bottom quarter. That spread, roughly 2.1x from bottom-quartile median to top-quartile median, is the honest picture of trade-area variance in quick lube. The fiscal 2024 profit-and-loss goes further. On average net sales of $1,653,141, product ran $433,864 and labor $460,929, leaving gross profit of $758,348. After center expenses of $152,290 and advertising of $71,668, average contribution landed at $534,390 before royalty. Royalty at 4% of net sales took $66,126. Note that 4%. Item 6 discloses a royalty of 2% of adjusted gross revenue in year one and 3% in year two, then 6% or a graduated 4% to 6% after that, and the Item 19 notes state that 95% of franchised centers paid 4% last year. Underwriting a flat 6% from day one overstates the royalty line materially. Contribution is not profit. It sits above rent, debt service, insurance, and owner compensation, which is exactly why the purchased-site and leased-site distinction in Item 7 changes the deal so much. ## The Investment Side Is Where the Real Variability Lives The commonly quoted $192,375 to $3,483,550 span is not one range. Item 7 files two separate tables, and the quoted span takes the floor of one and the ceiling of the other. **Leased site: $192,375 to $639,550.** You lease an existing building or pad and fit it out. This is the table most franchisees actually buy against. **Purchased site: $1,773,750 to $3,483,550.** Land and improvements alone account for $1,550,000 to $2,750,000 of that. You are buying commercial real estate with a quick lube on it. The gap between those tables is not a difference in the business. It is a decision about whether you are also a property owner. A leased center at $400,000 all-in against a $1,704,870 median produces a revenue-to-investment ratio above 4x. The same center on purchased land at $2.6M produces roughly 0.65x, while building an asset that keeps its value after the license term ends. Multi-unit developers commonly mix the two, using leased sites to build cash flow and purchasing land selectively where the trade area justifies holding it. ## How Valvoline Compares to Automotive Franchise Peers | Brand | Item 19 sample | What the sample describes | Disclosed median | | --- | --- | --- | --- | | Valvoline, franchisee side | 891 | Comparable franchisee-operated centers, net sales | $1,704,870 | | Valvoline, company side | 785 | Comparable company-operated centers, net sales | $1,599,409 | | Take 5 Oil Change | 298 | Affiliate-owned centers, gross sales | $1,327,808 | | Jiffy Lube | 2,049 | Franchised stores open all 12 months | see FDD | | Christian Brothers | 302 | Franchisee-owned stores open the full year | see FDD | The column that matters is the third one. Take 5’s headline number describes affiliate-owned centers, so a buyer comparing Valvoline’s franchisee median to Take 5’s affiliate median is comparing two different populations. We work through that specific pairing in [Take 5 vs Valvoline](https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise), and the broader category in [best auto repair franchises](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises). Within quick lube, Valvoline discloses the deepest franchisee dataset in the category. That is worth something independent of the number itself, because a 891-center franchisee sample is hard to argue with in front of a lender. ## Reading the distribution rather than the midpoint The franchisee range is the part buyers skip. Fiscal 2025 franchisee-operated centers ran from $397,215 to $5,728,187 in net sales. A 14x spread inside one brand, one format, one fiscal year. The company-operated quartiles give that spread some shape: bottom-quarter median $1,084,301, middle-half median $1,599,409, top-quarter median $2,290,679. If your site lands in the bottom quarter, you are running a business roughly half the size of the one in the top quarter, on a similar cost base. Trade area, traffic count, and bay throughput drive that placement. Oil changes per day is the metric to interrogate: the company network averaged 51.1 per day system-wide in fiscal 2025, against 72.0 in the top quartile and 32.8 in the bottom. Ask any franchisee you call in validation what their daily car count is, and where it was in year one. ## What this means for buyers - **Read Section B, not just Section A.** The franchisee number is $1,704,870 across 891 centers. It is disclosed, not estimated, and it is higher than the company figure that circulates in summaries. - **Compare net sales to net sales.** The company section prints gross and net. Mixing them inflates the company side by roughly 15% and invents a franchisee penalty that the data does not show. - **The entry fee is $30,000, not $5,000.** The $5,000 rate applies to a second conversion center, any third center, or a resale. Budget the real number. - **Model royalty at 4%, not 6%.** Item 6 tops out at 6%, but the Item 19 notes disclose that 95% of franchised centers paid 4% last year, after a 2% first year and 3% second year. - **Pick your Item 7 table before you model anything.** Leased is $192,375 to $639,550. Purchased is $1,773,750 to $3,483,550. Those are different businesses with different balance sheets, and quoting the spliced span across both tells you nothing. For broader category context, see our [automotive franchise breakdown](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) and [Item 19 average vs. median](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias). For brand-specific cost detail, the live [Valvoline franchise page](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc). ## Brands mentioned in this post - [Valvoline Instant Oil Change](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) valvolinevalvoline instant oil changeitem 19automotive franchisequick lubefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Valvoline's Item 19 median revenue for franchisees? Median net sales of $1,704,870 across 891 comparable franchisee-operated centers in fiscal 2025, disclosed in Section B of Item 19. The average is $1,844,172 and the range runs from $397,215 to $5,728,187. This is the number a prospective franchisee should underwrite against, not the company-operated figure that circulates in third-party summaries. ### Does Valvoline disclose company-operated or franchised performance? Both. Section A of Item 19 covers company-operated centers with three fiscal years of quartile data and full profit-and-loss detail. Section B covers franchisee-operated centers. The company side gets quoted more often because it comes first and carries the deeper cost breakdown, but the franchisee section is the one that describes the business you would be buying. ### Do Valvoline franchisees earn less than the company stores? No. On the same measure and the same fiscal year, franchisee-operated centers post a higher median: $1,704,870 across 891 units against $1,599,409 across 785 company-operated units, a 6.6% gap in the franchisees' favor. That runs against the usual pattern in mature service systems, where company units often lead. Compare net sales to net sales when you check this yourself, because the company section also prints gross sales, and mixing the two overstates the company side by roughly 15%. ### What's the AUV-to-investment ratio for a franchised Valvoline? It depends heavily on site type. A small conversion site (e.g., existing automotive bay buyout) can run $200K-$400K of investment against $1M-$1.4M of revenue — a 3-5× ratio. A new full-build greenfield site can run $2.5M-$3.5M of investment against $1.5M-$2M of revenue — a 0.5-0.8× ratio. Most franchisee deals sit in the middle range with ratios of 1.5-2.5× at maturity. Site type is the single biggest economic variable. ### What's the typical Valvoline Item 7 investment? Item 7 files two tables rather than one range. A leased site runs $192,375 to $639,550. A purchased site runs $1,773,750 to $3,483,550, with land and improvements alone accounting for $1,550,000 to $2,750,000 of that. Directories that quote a single $192,375 to $3,483,550 span are splicing the low end of one table onto the high end of the other, which describes no actual buyer. ### How much is the Valvoline franchise fee? $30,000 for your first center, whether you build ground-up or convert an existing quick lube. A second center costs $20,000 if ground-up or $5,000 if it is a qualifying conversion, and any third center is $5,000. Under a development agreement the per-center fee runs $2,500 to $5,000, and buying a center from an existing franchisee costs $5,000 for the first and $2,500 for each additional one. The $5,000 figure that circulates online is the multi-unit and conversion rate, not the entry price. --- title: "VetFran & Diversity Franchise Financing: Discounts & Capital" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-08-04 keywords: veteran franchise financing, minority franchise grants, vetfran discount, woman owned franchise funding, diversity franchise incentives, sba veteran loan franchise canonical: https://vetmyfranchise.com/c/claude/blog/vetfran-diversity-financing-veteran-minority-women-buyers about: veteran franchise financing category: blog wordCount: 1929 readingTime: 10 min crawledAt: 2026-08-20 11:08:57 lastVerified: 2026-08-20 11:08:57 site: https://vetmyfranchise.com/c/claude/ --- # VetFran & Diversity Franchise Financing: Discounts & Capital ## Summary How VetFran discounts, minority franchise grants, women-owned business financing, and SBA programs work for franchise buyers — and how to actually claim them. ## Key facts - VetFran is run by the International Franchise Association and connects veterans with franchisors that voluntarily offer incentives. - Search “minority franchise grants” and you’ll find a lot of pages implying there’s a pile of free money waiting. - The pattern repeats for women buyers. - Here’s the part that outdated articles get wrong. - Incentives only help if you sequence them right and lock them in. Quick answer VetFran cuts 10-25% off the initial franchise fee, occasionally 50%. Since the fee is only 5-12% of total investment, a 20% discount on a $40,000 fee is $8,000, about 2.3% of a $350,000 deal. Minority and women programs mostly unlock CDFI and SBA access, not grants. SBA scrapped the upfront guarantee fee on 7(a) loans of $1 million or less. A lot of franchise marketing aimed at veterans, minority, and women buyers blurs two very different things: a discount on the franchise fee and access to capital. They are not the same, and confusing them is how people end up disappointed at closing. The fee discount is a modest line-item break. The capital is almost always a loan you have to repay, dressed up in friendlier language. This post separates the two and tells you what each is actually worth. We’re staying on the money here: programs, discounts, and how to claim them. ## What a VetFran discount really pays VetFran is run by the International Franchise Association and connects veterans with franchisors that voluntarily offer incentives. Hundreds of brands participate, and the headline you’ll see is “up to 50% off.” That number is real for a small handful of brands. The typical discount is closer to 10-25% off the **initial franchise fee** — and only the fee. That distinction is where buyers get burned. The franchise fee is usually one of the smaller lines in Item 7. On a concept with a $40,000 fee and a $350,000 total investment, the fee is roughly 11% of the deal. A 20% VetFran discount on that fee is $8,000 — useful, but about 2.3% of what you’ll actually spend to open. It does nothing for your build-out, equipment, signage, or the working capital you’ll burn before break-even. | What you’re discounting | Typical share of total investment | 20% discount on a $40K fee | | --- | --- | --- | | Initial franchise fee | 5-12% | $8,000 | | Build-out & equipment | 40-65% | $0 | | Working capital / opening costs | 15-30% | $0 | | Total Item 7 investment | 100% | ~2.3% of total | None of that makes the discount worthless. Free money is free money. But model it against the real number, not the fee in isolation. A 20% fee break feels big and lands small. If you’re still weighing which brands actually offer meaningful incentives in a category you’d want to own, our [franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) narrows the field to systems worth applying a discount to in the first place — start there, not with the discount. Eligibility usually covers veterans, active-duty service members, reservists, National Guard, and frequently spouses — but each franchisor sets its own rules. Some brands extend the same terms to first responders. Ask specifically, and ask early. VetFran itself runs a tiered structure, which is useful mainly as a shortlisting filter: the top tier is brands offering 20% or more off the initial fee, then 15-19%, then 10-14%, then sub-10% financial incentives, and finally a large group offering only non-financial support such as mentoring or training. The tier tells you what to expect before you spend a call on it. The discount is applied by the individual franchisor, not by the IFA, so the sequence is: find participating brands through the VetFran directory, identify yourself as a veteran to the development team early, request the specific discount in writing during negotiation, and confirm it appears in the franchise agreement before you sign. One correction worth making explicitly, because it trips up a lot of veteran buyers: **VA home loans cannot be used to buy a franchise.** The VA loan program is restricted to residential real estate, specifically primary residences. It does not fund a business purchase, commercial lease, or franchise fee. Veterans who own a home can tap equity through a HELOC to cover part of an investment, but that puts the house behind the business, which is a materially different risk than a VA mortgage. ## Minority capital and the grant myth Search “minority franchise grants” and you’ll find a lot of pages implying there’s a pile of free money waiting. There mostly isn’t. Genuine grants for buying a franchise are rare, small, and competitive, and many of the sites promoting them are lead-generation funnels. What does exist is _low-cost debt and access_, which is genuinely valuable: - **CDFIs (Community Development Financial Institutions).** Mission-driven lenders that serve underbanked borrowers, often with more flexible underwriting than a big bank. Rates are competitive and many are SBA-approved. - **SBA Community Advantage and Microloans.** Microloans run up to $50,000 through nonprofit intermediaries — too small for most full franchises but useful for a low-capex model or to top off an equity injection. - **Brand and city diversity programs.** Some larger franchisors run a fund or fee reduction for first-time minority franchisees; some cities offer small-business loans or matching funds. These come and go, so verify current terms directly. - **Minority Business Development Agency (MBDA) centers.** They don’t usually hand out cash, but they help with loan packaging, certification, and lender introductions — which is often what gets a borderline file approved. The honest framing: minority-focused programs mostly improve your _odds and terms_ on a loan, not your need to repay one. The biggest lever for most buyers is still a clean SBA 7(a) file, and how much cash you can put down. If you’re shaky on the down payment, read how the [SBA equity injection works](https://vetmyfranchise.com/c/claude/blog/sba-equity-injection-franchise-down-payment) before you assume a program will cover the gap — it almost never does. ## Women-owned business financing: access, not handouts The pattern repeats for women buyers. The marquee programs — SBA Women’s Business Centers, the federal WOSB (Women-Owned Small Business) certification, WBENC certification — are primarily about _qualification, counseling, and contracting access_. WOSB and WBENC matter most if your franchise will chase government or corporate contracts; for a typical retail or service unit, they unlock networks and credibility more than capital. For the actual purchase, women buyers are generally financing the same way everyone else does: an SBA 7(a) loan, a conventional loan, a [ROBS rollover](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide) from retirement funds, or some combination. The value-add of women-focused programs is on the front end — a Women’s Business Center can help you build the projections and loan package that get a lender to yes, and some lenders maintain dedicated women-owned business desks with relationship pricing. If you’re weighing whether you even clear the bar to borrow, the [net worth and liquidity requirements](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) franchisors and lenders look for are the same regardless of program. Certifications don’t lower those thresholds; they help you present a stronger case against them. ## The SBA piece that quietly changed the math Here’s the part that outdated articles get wrong. For years, the SBA Veterans Advantage program waived the upfront guarantee fee for veterans. That program is no longer the edge it once was, because the SBA eliminated the upfront guarantee fee on **all** 7(a) loans of $1 million or less. The benefit that used to be veteran-only now applies to virtually every franchise buyer. So the practical takeaway for veterans is: don’t go hunting for a special veteran SBA fee waiver — you already have the fee elimination by virtue of borrowing under $1M. Where the SBA still differentiates is in _counseling and resources_: the Office of Veterans Business Development, Boots to Business, and Veterans Business Outreach Centers help with the loan package and business plan, which is where many applications actually live or die. For everyone, the bigger variables in 2026 are the rate and the lender, not the program label. SBA 7(a) rates have been running in roughly the 10.5-15.5% range depending on loan size and the prime rate, which materially affects whether a unit cash-flows. Picking the right lender matters more than any badge — compare them in our breakdown of the [best franchise SBA lenders](https://vetmyfranchise.com/c/claude/blog/best-franchise-sba-lenders-compared), because two banks can quote very different rates and structures on the identical deal. ## How to actually stack and claim these Incentives only help if you sequence them right and lock them in. The order that works: 1. **Brand promotion first.** Ask the development team what fee promotions are running _right now_ — quarter-end and new-market pushes often beat the standing identity discount. 2. **Identity-based discount second.** Apply VetFran, a minority program, or a women-owned program where eligible. Confirm whether it stacks with the current promotion or is treated as either/or — many brands quietly cap you at one. 3. **Best loan third.** Shop SBA-backed lenders and CDFIs in parallel. The spread between lenders on rate and equity injection usually dwarfs any fee discount. Then the rule that protects you: **get every discount in writing in the franchise agreement before you sign.** A verbal “we’ll take care of the veteran discount” is worth nothing once the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) is countersigned. The fee, the discount, and the final amount due should appear in the agreement or a signed addendum. Two cautions. First, never let a discount choose the brand. A 15% fee break on a system with a weak Item 19 and a high closure rate in Item 20 is a discount on a bad decision. Second, watch for “diversity” programs that are really just sales incentives with extra steps — if the only benefit is a fee break you could have negotiated anyway, the program added nothing. If you want the full numbers run against a specific brand — fee, real Item 7 range, the discount applied, and what it does to your break-even and debt service — the $49 Tier 2 report on our [pricing page](https://vetmyfranchise.com/c/claude/pricing) rebuilds that math per brand, so you can see whether the incentive actually moves the deal or just the headline. For the brands themselves, with the specific discount each one discloses in Item 5 rather than a directory listing, see [best franchises for veterans](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-veterans). Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Using Your 401(k) to Buy a Franchise: ROBS Explained — Benefits, Risks, and Realities [Learn more →](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide) #### After SBA Approval: 23 Closing Tasks Most Franchise Buyers Skip [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-sba-approval-23-franchise-closing-tasks) #### Best Franchise SBA Lenders Compared: Live Oak, Huntington, Celtic, and Beyond [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-franchise-sba-lenders-compared) veteran franchise financingminority franchise grantsvetfran discountwoman owned franchise fundingdiversity franchise incentivessba veteran loan franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the VetFran discount? VetFran is the International Franchise Association's program that connects veterans with franchisors offering incentives, most commonly a reduction in the initial franchise fee. Discounts typically range from 10% to 25%, with some brands going to 50% or waiving the fee entirely. It applies to the franchise fee only — not the build-out, equipment, or working capital — so on a $40,000 fee a 20% discount is $8,000, not 20% of your whole investment. ### Are there franchise grants for minorities? Genuine no-strings grants for buying a franchise are rare and small. Most "minority franchise funding" is actually low-cost debt through CDFIs, SBA Community Advantage lenders, and Microloan intermediaries, plus occasional city or brand diversity programs. Treat any site promising easy minority franchise grants with suspicion — the real money is structured as loans you have to repay. ### Is there special financing for women franchise buyers? Yes, but it is mostly access and certification, not free capital. SBA Women's Business Centers, the WOSB federal contracting certification, and lenders like CDFIs and some banks with women-owned business programs can improve your odds and terms. The franchise itself is usually still financed with a standard SBA 7(a) loan; the women-focused programs help you qualify and find a lender. ### Do veterans get SBA fee breaks for franchises? The old SBA Veterans Advantage fee waiver is effectively moot because the SBA eliminated the upfront guarantee fee on all 7(a) loans of $1 million or less. That benefit now flows to every borrower, veteran or not. Veterans still benefit from VetFran franchise-fee discounts and from SBA counseling resources like the Office of Veterans Business Development. ### Can I combine a VetFran discount with other incentives? Usually yes. A brand's seasonal fee promotion, an identity-based discount such as VetFran, and an SBA-backed loan generally stack because they touch different parts of the deal. Confirm with the franchise development team whether a current promotion can be combined with a VetFran discount, because some brands treat them as either/or, and get the final number written into the franchise agreement. --- title: "Top Sports Bar Franchises 2026: Cost and Revenue Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-18 dateModified: 2026-08-04 keywords: sports bar franchises, sports bar franchise, sports bar and grill franchise, sports bar franchise cost, sports bar franchise opportunities, buffalo wild wings, walk-on's, wings etc, twin peaks, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison about: sports bar franchises category: blog wordCount: 3522 readingTime: 18 min crawledAt: 2026-08-20 11:08:09 lastVerified: 2026-08-20 11:08:09 site: https://vetmyfranchise.com/c/claude/ --- # Top Sports Bar Franchises 2026: Cost and Revenue Compared ## Summary Top sports bar franchise opportunities compared: verified FDD cost, fees, and Item 19 revenue for 10 sports bar and grill franchises, $373,650 to $7.63M. ## Key facts - Ten sports bar and grill franchises have Franchise Disclosure Documents parsed in our database. - Here is the full cost ladder across every sports bar and grill franchise parsed in VetMyFranchise’s database of 2,368 Franchise Disclosure Documents, ordered by entry cost. - Where a cell says “not parsed,” the figure did not survive extraction from that brand’s filing. - A full-service sports bar is one of the most expensive restaurant formats you can franchise. - Buffalo Wild Wings has been franchising since 1990 and operates under Inspire Brands alongside [Arby’s](https://vetmyfranchise. Quick answer Ten sports bar and grill franchises have FDDs on file, and they cost $373,650 to $7.63 million to open. Wings Etc is the cheapest entry, Buffalo Wild Wings runs $2.46M to $4.9M, and Twin Peaks costs the most at $2.96M to $7.63M while posting the highest median revenue at $5,485,143. ## The Sports Bar Franchises Worth Comparing in 2026 Ten sports bar and grill franchises have Franchise Disclosure Documents parsed in our database. Four of them anchor the category, and they sit at four different price points. Wings Etc is the cheapest way into the sports bar business at a $373,650 minimum, [Twin Peaks](https://vetmyfranchise.com/c/claude/franchise/twin-restaurant-franchise-llc) grosses the most at a $5,485,143 median, [Walk-On’s](https://vetmyfranchise.com/c/claude/franchise/walk-ons-enterprises-franchising-llc) is close behind at $4,403,505, and [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) brings the biggest brand with 549 franchised units. All four run the same core model: wings and beer served in front of wall-to-wall TVs, with revenue peaking around game schedules. The deciding question is how much building you want to operate and how much capital you can put behind it. - **Buffalo Wild Wings**: the national full-service sports bar, 549 franchised and 629 company-owned units per the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) - **Walk-On’s**: the Louisiana-themed challenger (styled a “Sports Bistreaux”), 73 franchised units and the second-highest median revenue - **Twin Peaks**: the highest-volume and highest-cost brand in the category, 74 locations per its 2024 FDD - **Wings Etc**: the budget entry, 56 franchised units across two formats, starting under $400K Four more parsed brands sit below these on cost and above them on accessibility, covered further down. For the broader fast-food and fast-casual cost picture, our [QSR startup cost comparison](https://vetmyfranchise.com/c/claude/blog/qsr-franchise-startup-costs-compared) covers the segment tables; this post stays on full-service bars. ## Sports Bar Franchise Cost: All Ten Brands Ranked by Entry Price Here is the full cost ladder across every sports bar and grill franchise parsed in VetMyFranchise’s database of 2,368 Franchise Disclosure Documents, ordered by entry cost. | Brand | FDD year | Total investment | Franchise fee | Royalty | Ad fund | | --- | --- | --- | --- | --- | --- | | Wings Etc | 2026 | $373,650–$2,890,100 | $39,500 | 5% of Gross Sales | 1.0%–2.0% | | East Coast Wings | 2023 | $408,368–$1,232,845 | Not parsed | 5% of Gross Sales or $4,850/mo minimum | 2.0%–3.0% | | The Brass Tap | 2026 | $535,350–$1,738,675 | $25,000 | 5% | 2.0% | | Native Grill and Wings | 2023 | $1,017,000–$2,905,000 | $50,000 | 6% of Gross Sales | 1.0% | | Anchor Bar | 2026 | $1,202,000–$3,024,000 | $60,000 | 5% of gross revenues | Up to 3.0% | | Hooters | 2022 | $1,258,300–$4,100,000 | $75,000 | Not parsed | Not parsed | | Buffalo Wings & Rings | 2024 | $1,503,100–$2,015,500 | $40,000 | Up to 5% of Net Sales | Up to 4% (currently 2%) | | Walk-On’s | 2026 | $1,688,800–$6,577,500 | $60,000 | Not parsed | Not parsed | | Buffalo Wild Wings | 2026 | $2,463,945–$4,900,320 | $25,000 | 5% of Gross Sales | 4% (2% non-traditional) | | Twin Peaks | 2024 | $2,959,000–$7,634,000 | $50,000 | 5% of Gross Sales | Up to 4% (currently 2.5%) | Two patterns are worth naming. First, the 5% royalty is effectively a category standard, so it is not a differentiator. The ad fund is: 4% at Buffalo Wild Wings against 1.0% to 2.0% at Wings Etc is a 200 to 300 basis point swing on multi-million-dollar revenue, which is real money and real national marketing you either receive or replace. Second, franchise fee has almost no relationship to total investment here. Buffalo Wild Wings charges $25,000 on a $2.46M build; Hooters charges $75,000 on a $1.26M floor. Fee is noise in a category where build-out is 95%-plus of day-one capital. ## The Side-by-Side Snapshot | Metric | Buffalo Wild Wings | Walk-On’s | Twin Peaks | Wings Etc | | --- | --- | --- | --- | --- | | FDD year | 2026 | 2026 | 2024 | 2026 | | Concept | Full-service sports bar | Louisiana-themed sports grill | Sports lodge | Grill & Pub + 2Go format | | Franchised units | 549 | 73 | 74 total locations | 56 | | Company-owned units | 629 | None disclosed | Included above | 26 | | Total investment | $2,463,945–$4,900,320 | $1,688,800–$6,577,500 | $2,959,000–$7,634,000 | $373,650–$2,890,100 | | Franchise fee | $25,000 | $60,000 | $50,000 | $39,500 | | Royalty | 5% of Gross Sales | Not parsed | 5% of Gross Sales | 5% of Gross Sales | | Ad fund | 4% (2% non-traditional) | Not parsed | Up to 4% (currently 2.5%) | 1.0%–2.0% | | Item 19 median revenue | $3,433,937 (532 units) | $4,403,505 (70 units, CY2025) | $5,485,143 | $1,407,493 (53 units, FY2025) | | Item 19 P25 / P75 | $2,371,905 / $4,875,869 | Not parsed | Not parsed | $1,001,685 / $2,193,596 | | Opened / closed (latest year) | 11 / 15 | 7 / 5 | 9 / 7 | 3 / 1 | | Item 3 litigation | Not parsed | None disclosed | Not parsed | None disclosed | | Franchising since | 1990 | 2014 | Not parsed | 2004 | Where a cell says “not parsed,” the figure did not survive extraction from that brand’s filing. Treat those as items to confirm in the document, not as zeroes. ## Why Sports Bars Cost More Than Wing Counters A full-service sports bar is one of the most expensive restaurant formats you can franchise. The build-out includes a commercial kitchen, a full bar with liquor licensing, seating for 200-plus guests, patio space in many markets, and several dozen wall-mounted screens. Footprints run 6,000 square feet and up. Compare that to a takeout wing concept in 1,700 square feet: [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) discloses $310,400 to $1,013,500 in its 2026 FDD, roughly an eighth of a Buffalo Wild Wings floor, a trade-off we break down in our [Wingstop vs Buffalo Wild Wings comparison](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-buffalo-wild-wings-franchise). Wings Etc’s unusually wide range ($373,650 to $2,890,100) reflects format choice, since its FDD covers both the full Grill & Pub restaurant and the smaller Wings Etc 2Go unit. The low end buys the compact format, not a full sports bar. The same caveat applies to Walk-On’s $1,688,800 floor and Twin Peaks’ $2,959,000 floor: those numbers assume favorable real estate, not the ground-up build most new units require. ## Buffalo Wild Wings: The Biggest Brand, a Cooling System Buffalo Wild Wings has been franchising since 1990 and operates under Inspire Brands alongside [Arby’s](https://vetmyfranchise.com/c/claude/franchise/arbys-franchisor-llc), Sonic, and Dunkin’. Per the 2026 FDD: - Total investment of $2,463,945–$4,900,320, with a $25,000 franchise fee, 5% royalty, and 4% ad fund - 549 franchised units against 629 company-owned, so corporate operates more restaurants than its franchisees do - 11 franchised openings against 15 closures in the most recent year - Item 19 median revenue of $3,433,937 across 532 franchised units, with a 25th percentile of $2,371,905 and a 75th of $4,875,869 That last line deserves attention. A top-quartile location grosses more than twice a bottom-quartile one, so trade-area selection carries most of the deal. Our [Buffalo Wild Wings Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/buffalo-wild-wings-item-19-deep-dive) unpacks the full distribution, and if you’re weighing the purchase itself, start with [should you buy a Buffalo Wild Wings franchise](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-buffalo-wild-wings-franchise). The net-negative unit count is the question to put to current franchisees: ask which markets closed and why. ## Walk-On’s: The Revenue Leader Among 2026 Filings Walk-On’s Sports Bistreaux pairs the sports bar format with a scratch-kitchen Louisiana menu (seafood, po’boys, Southern specialties), which differentiates it from every wings-first competitor. Per the 2026 FDD: - Total investment of $1,688,800–$6,577,500, with a $60,000 franchise fee - 73 franchised locations, with 7 openings against 5 closures in the most recent year - Item 19 median revenue of $4,403,505 across 70 franchised units for calendar 2025 - Zero litigation disclosed in Item 3 - Item 6 royalty and brand-fund rates did not survive our parse, and the filing does not grant an exclusive territory Those last two points are the diligence items. A franchise that can place a second location near yours, on fee terms you have to read for yourself, is a different risk profile than one that grants protected territory at a disclosed rate. Get both in writing before you model anything. The other catch is the top of the range. A flagship Walk-On’s build can cost $6.58M, more than a high-end Buffalo Wild Wings, and a 73-unit system gives you far less brand pull in new markets than an 1,178-unit one. The [Walk-On’s franchise profile](https://vetmyfranchise.com/c/claude/franchise/walk-ons-enterprises-franchising-llc) has the current parsed Item 7 and Item 19 figures. ## Twin Peaks: Highest Volume, Highest Cost Twin Peaks is now parsed in our dataset from its 2024 FDD, and the numbers reframe where it sits. Per that filing: - Total investment of $2,959,000–$7,634,000, the widest and highest range in the category - A $50,000 franchise fee, a 5% royalty, and an ad fund of up to 4% of gross sales, currently assessed at 2.5% - 74 locations, with nine openings against seven closures in the disclosure year - Item 19 median revenue of $5,485,143, the highest of any brand here Twin Peaks out-grosses everything else in this post, and it also costs the most to build. On revenue per invested dollar at the midpoints, it runs about 1.04 ($5,485,143 median against a $5,296,500 investment midpoint), against roughly 0.93 for Buffalo Wild Wings and 1.07 for Walk-On’s. In other words the extra capital does buy proportional revenue, which is not always true at the top of a category. Two cautions. The FDD is a 2024 filing, one to two years older than the Buffalo Wild Wings, Walk-On’s, and Wings Etc data above, so the figures are not strictly comparable across the same period. And the sports-lodge format targets a narrower demographic than a neutral sports bar, which matters for site selection in conservative trade areas. ## Wings Etc: The Budget Entry Wings Etc has franchised its Grill & Pub concept out of Indiana since 2004 and runs the leanest cost structure of the four. Per the 2026 FDD: - Total investment of $373,650–$2,890,100, with a $39,500 franchise fee and 5% royalty - An ad fund of just 1.0%–2.0%, the lightest marketing load in this comparison - 56 franchised and 26 company-owned units, with 3 openings and 1 closure in the most recent year - Item 19 median revenue of $1,407,493 across 53 franchised units for fiscal 2025 (P25 $1,001,685, P75 $2,193,596) - Zero litigation disclosed in Item 3 The math is straightforward: Wings Etc units gross about a quarter of what a Twin Peaks does, but the entry cost can be under a seventh of Twin Peaks’ ceiling. The low ad fund cuts both ways. You keep more margin, and you inherit less national advertising, so an 82-location Midwest brand leans on you for local marketing. The [Wings Etc franchise profile](https://vetmyfranchise.com/c/claude/franchise/wings-etc-inc) breaks down its parsed FDD data. ## The Mid-Tier Brands Most Buyers Miss If $2.5M is out of reach and Wings Etc is too regional, four parsed brands sit in between. | Brand | FDD year | Total investment | Item 19 median | Franchised units | | --- | --- | --- | --- | --- | | Hooters | 2022 | $1,258,300–$4,100,000 | $3,379,056 (102 units) | 101 | | Bar Louie | 2024 | Not parsed | $2,988,028 (11 units) | 18 | | Buffalo Wings & Rings | 2024 | $1,503,100–$2,015,500 | $2,338,670 (14 units) | 52 | | Anchor Bar | 2026 | $1,202,000–$3,024,000 | $2,287,640 (9 units) | 16 | | East Coast Wings | 2023 | $408,368–$1,232,845 | $1,801,694 (20 units) | 30 | | The Brass Tap | 2026 | $535,350–$1,738,675 | $1,296,589 (40 units) | 47 | [Hooters](https://vetmyfranchise.com/c/claude/franchise/hoa-franchising-llc-hooters) is the standout on volume: a $3,379,056 median across 102 reporting units, with a 75th percentile of $5,693,631, on a $1,258,300 floor. That is Buffalo Wild Wings-level revenue at roughly half the entry cost. The offsets are a 2022 FDD (three years stale), zero franchised openings against four closures in that disclosure year, and the same demographic-narrowing issue Twin Peaks has. Buffalo Wings & Rings has the tightest investment range in the category at $1,503,100 to $2,015,500, which is unusually predictable for full service. Anchor Bar carries the original-Buffalo-wing story but discloses on only nine units, and small Item 19 samples are easy to over-read. [The Brass Tap](https://vetmyfranchise.com/c/claude/franchise/brass-tap-franchisor-llc) is a craft-beer bar rather than a sports bar, but it is the most accessible brick-and-mortar bar concept here at a $535,350 floor, and its 40-unit Item 19 sample is one of the better-supported disclosures in the group. Note its trajectory: three openings against seven closures in the latest year. ## What Sports Bar Franchises Actually Gross Line up the medians and the ladder is clear: Twin Peaks $5.49M, Walk-On’s $4.40M, Buffalo Wild Wings $3.43M, Hooters $3.38M, Bar Louie $2.99M, Buffalo Wings & Rings $2.34M, Anchor Bar $2.29M, East Coast Wings $1.80M, Wings Etc $1.41M, The Brass Tap $1.30M. Revenue per invested dollar tells a different story. East Coast Wings’ $1,801,694 median against an $820,607 investment midpoint is a ratio above 2.0, the strongest in this set, and Hooters clears 1.26. A Wings Etc Grill & Pub grossing at median on a mid-range build can put up stronger revenue-to-investment ratios than a $5M flagship grossing $4M. Two cautions. First, these are gross revenue figures, not owner earnings; full-service restaurants routinely run single-digit net margins after food cost, labor, and occupancy, and a 5% royalty plus a 4% ad fund takes 9% off the top before you pay rent. Second, medians hide spread, and Buffalo Wild Wings’ own disclosure shows top-quartile units doing more than double bottom-quartile volume. Model your specific trade area, not the system median. > **Shortlisting one of these brands?** Start with the full FDD analysis of Buffalo Wild Wings: Item 19 earnings decoded, litigation history, fee footnotes, and a buyer verdict for your capital level, on the [Buffalo Wild Wings franchise page](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc). ## Where the Sports Bar Franchise Opportunities Actually Are Category demand and category availability are not the same thing. The openings-versus-closures column in each filing tells you where a franchisor is genuinely awarding new units rather than backfilling markets it already lost. Six of the ten brands disclose that movement: | Brand | Opened | Closed | Net | Franchised units | | --- | --- | --- | --- | --- | | Twin Peaks | 9 | 7 | +2 | 74 total locations | | Walk-On’s | 7 | 5 | +2 | 73 | | Wings Etc | 3 | 1 | +2 | 56 | | Buffalo Wild Wings | 11 | 15 | -4 | 549 | | The Brass Tap | 3 | 7 | -4 | 47 | | Hooters | 0 | 4 | -4 | 101 | The three brands adding units are the three smallest systems here, and that is the practical opportunity: Twin Peaks, Walk-On’s, and Wings Etc are still developing white space, while Buffalo Wild Wings, Hooters, and The Brass Tap closed more than they opened. A shrinking system is not automatically a bad buy, since a closure usually says more about one trade area than about the brand, but it changes what you are buying. In a contracting system the better deal is often an existing unit in a proven trade area rather than a greenfield award in an unproven one. Capital sorts the rest of the field. Under $600K, the realistic sports bar and grill franchise opportunities are the Wings Etc 2Go format at $373,650, East Coast Wings at $408,368, and The Brass Tap at $535,350. Between $1M and $2M, Native Grill and Wings, Anchor Bar, Hooters, and Buffalo Wings & Rings come into range. Above $2.4M you are looking at Buffalo Wild Wings, flagship Walk-On’s builds, and Twin Peaks. One structural item applies across the category. Walk-On’s 2026 filing does not grant an exclusive territory, and it is not the only brand here whose Item 12 deserves a close read. In a format this dependent on trade area, the right to be the only unit in your market is worth more than a point of royalty. ## Which Sports Bar Franchise Fits Which Buyer **Choose Buffalo Wild Wings if** national brand recognition and disclosure depth matter most. A 532-unit Item 19 with published quartiles gives you far more data to underwrite than any competitor, and the brand needs no local introduction. You accept a $2.46M entry, a 4% ad fund, and a system that closed more franchised units than it opened last year. **Choose Walk-On’s if** you want high franchised median revenue and a menu that isn’t interchangeable with the sports bar next door. Best for well-capitalized buyers in the South and Sun Belt where the brand resonates, who can fund a build that may reach $6.58M and who will confirm the Item 6 fee structure and territory terms in the document. **Choose Twin Peaks if** peak volume is the objective and you can fund a $2.96M to $7.63M build. It has the highest median in the category and the revenue scales with the capital, but you are underwriting against a 2024 filing and a narrower demographic. **Choose Wings Etc if** entry cost drives the decision. The $373,650 floor (2Go format) and 1.0% to 2.0% ad fund make it the most accessible path in the category, in exchange for a regional brand you’ll market largely yourself. **Look at Hooters or East Coast Wings if** revenue per invested dollar is your primary filter. Both disclose medians well above what their investment ranges suggest, and both trade on older filings you’ll need to update directly. One rule holds across all of them: a sports bar lives or dies on its trade area and its game-day capacity, so weigh each brand’s Item 19 against the specific building and corner you’d actually operate. For all of these franchises: - [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): total investment including build-out, equipment, and initial working capital - [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise): financial performance representations - [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees): ongoing royalties, ad fund contributions, and the fee footnotes - [Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination): renewal, termination, and transfer provisions > **Comparing these seriously?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack), which fits this exact shortlist. Or start with our free [side-by-side comparison tool](https://vetmyfranchise.com/c/claude/compare). ## Picking Between Them The sports bar category rewards capital and site selection more than concept choice. Buffalo Wild Wings sells scale and data depth, Walk-On’s sells differentiated revenue, Twin Peaks sells peak volume at peak cost, and Wings Etc sells accessibility. Read each FDD in full (the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) guarantees you the document at least 14 days before signing), call franchisees in markets that resemble yours, and match the Item 19 distribution against what your specific location can plausibly do on a quiet Tuesday night as well as on game day. - **[Wingstop Franchise Cost](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost)**: the small-footprint, takeout-first alternative if a full sports bar build-out is more than you want to fund. - **[Five Guys vs Wingstop Franchise](https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise)**: another head-to-head for buyers comparing counter-service concepts against the full-service economics above. ## Brands mentioned in this post - [Buffalo Wild Wings](https://vetmyfranchise.com/c/claude/franchise/buffalo-wild-wings-international-inc) - [Walk-On’s](https://vetmyfranchise.com/c/claude/franchise/walk-ons-enterprises-franchising-llc) - [Twin Peaks](https://vetmyfranchise.com/c/claude/franchise/twin-restaurant-franchise-llc) - [Wings Etc](https://vetmyfranchise.com/c/claude/franchise/wings-etc-inc) - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) - [Arby’s](https://vetmyfranchise.com/c/claude/franchise/arbys-franchisor-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) sports bar franchisessports bar franchisesports bar and grill franchisesports bar franchise costsports bar franchise opportunitiesbuffalo wild wingswalk-on'swings etctwin peaksfranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What are the best sports bar franchises to own in 2026? It depends on which filter you apply. Buffalo Wild Wings for national brand scale and the deepest disclosure, a $3,433,937 Item 19 median across 532 franchised units. Twin Peaks and Walk-On's for peak revenue, at $5,485,143 and $4,403,505. Wings Etc for the lowest entry cost at $373,650. Hooters and East Coast Wings for revenue per invested dollar. Ten sports bar and grill franchises have parsed FDDs in our database, and the ranking flips entirely depending on which of those you optimize for. ### What sports bar and grill franchise opportunities cost under $1 million? Three brands here open below $1 million: Wings Etc from $373,650 in its smaller 2Go format, East Coast Wings from $408,368, and The Brass Tap from $535,350. Those floors assume conversion of existing restaurant space, not a ground-up build. Every other sports bar franchise in the category starts above $1 million because a full-service bar needs a commercial kitchen, a liquor license, and 6,000-plus square feet. Bar Louie's Item 7 range did not survive our FDD parse. ### How much does a sports bar franchise cost? Between $373,650 and $7,634,000, per FDD data across ten parsed brands. Wings Etc starts at $373,650 for its smaller 2Go format. Buffalo Wild Wings runs $2,463,945 to $4,900,320, Walk-On's $1,688,800 to $6,577,500, and Twin Peaks $2,959,000 to $7,634,000. A full-service sports bar needs 6,000-plus square feet, a commercial kitchen, and a liquor license. ### What does a sports bar franchise gross per year? Median unit revenue runs $1.3M to $5.5M across the parsed brands. Twin Peaks reports $5,485,143, Walk-On's $4,403,505 across 70 franchised units for calendar 2025, Buffalo Wild Wings $3,433,937 across 532, and Wings Etc $1,407,493 across 53. Gross revenue is not profit; full-service restaurant margins are thin. ### What is the cheapest sports bar franchise to open? Wings Etc, at a $373,650 minimum per its 2026 FDD. That floor reflects its smaller 2Go format rather than a full Grill and Pub, which reaches $2,890,100. Its $39,500 franchise fee and 1.0% to 2.0% ad fund are also the lightest here. The trade-off is an 82-location Midwest brand you market largely yourself. ### What royalty do sports bar franchises charge? Five percent of gross sales is the category standard: Buffalo Wild Wings, Wings Etc, Twin Peaks, Anchor Bar, and The Brass Tap all charge 5%. Ad funds are where they diverge, from 1.0% to 2.0% at Wings Etc up to 4% at Buffalo Wild Wings. Native Grill and Wings is the outlier at 6%. ### How much does a Buffalo Wild Wings franchise cost? $2,463,945 to $4,900,320 per the 2026 FDD, with a $25,000 franchise fee, a 5% royalty, and a 4% ad fund (2% for non-traditional locations). The system had 549 franchised and 629 company-owned units. Item 19 shows a $3,433,937 median across 532 franchised units, with a $2,371,905 25th percentile and a $4,875,869 75th. ### How much does a Walk-On's franchise cost? $1,688,800 to $6,577,500 per the 2026 FDD, with a $60,000 franchise fee. Item 6 royalty and brand-fund rates did not survive our parse, so confirm both directly. Walk-On's has 73 franchised locations, no disclosed litigation, and an Item 19 median of $4,403,505 across 70 franchised units for calendar 2025. ### Is Twin Peaks a franchise? Yes, and its 2024 FDD is now parsed in our dataset. Twin Peaks discloses $2,959,000 to $7,634,000 total investment, a $50,000 franchise fee, a 5% royalty, and an ad fund of up to 4% currently set at 2.5%. It has 74 locations and the highest median revenue in the category at $5,485,143. --- title: "Wingstop vs Popeyes Franchise 2026: Chicken Category Comparison" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-07-25 keywords: wingstop, popeyes, franchise comparison, chicken franchise, qsr franchise, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/wingstop-vs-popeyes-franchise about: wingstop category: blog wordCount: 1037 readingTime: 5 min crawledAt: 2026-08-20 11:08:25 lastVerified: 2026-08-20 11:08:25 site: https://vetmyfranchise.com/c/claude/ --- # Wingstop vs Popeyes Franchise 2026: Chicken Category Comparison ## Summary Wingstop vs Popeyes franchise 2026: $1.89M vs $1.79M median AUV, 2.9× vs 0.8× AUV-to-investment ratio, focused wing menu vs broad chicken QSR — which fits your operator profile? ## Key facts - For detailed unit economics, see our [Wingstop Item 19 deep dive](https://vetmyfranchise. - For detailed unit economics, see our [Popeyes Item 19 deep dive](https://vetmyfranchise. - Both Wingstop and Popeyes are exceptional franchises in the chicken category — the choice depends on operator profile rather than relative deal quality. - Get the full 12-section FDD analysis — $49 Quick answer Wingstop costs $310,400 to $1,013,500 with a $25,000 franchise fee, 6% royalty, and 5.5% ad fund, posting a $1,890,866 median AUV across 2,116 reporting restaurants per the 2026 FDD, roughly 2.9x AUV-to-investment at the midpoint. Popeyes costs $504,545 to $3,923,245 for a $1,785,736 median across 2,248 units, about 0.8x. Both require multi-unit development. ## Side-by-Side Comparison | Metric | Wingstop | Popeyes | | --- | --- | --- | | US franchised units | 2,154 (2,116 in Item 19 sample) | 3,134 (2,248 in Item 19 sample) | | Median AUV | $1,890,866 | $1,785,736 | | Investment range | $310,400 - $1,013,500 | $504,545 - $3,923,245 | | Franchise fee | $25,000 | $50,000 | | Royalty | 6% | 5% | | Ad fund | 5.5% | 4.6-5% | | AUV/Investment (midpoint) | ~2.9× | ~0.8× | | Format | Focused-menu counter-service | Free-standing drive-thru | | Parent | Wingstop Inc. (NASDAQ: WING) | Restaurant Brands International | | Development model | Multi-unit ADA only | Multi-unit ADA only | ## Where Wingstop Wins **Best-in-class AUV-to-investment ratio.** Roughly 2.9× at the investment midpoint is among the highest in publicly franchised QSR. The combination of a $1,890,866 median AUV (2,116 reporting restaurants, 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document)) against a ~$662K midpoint investment produces capital efficiency few major franchises match. **Lower capital requirements.** $310,400-$1,013,500 Item 7 vs. Popeyes’ $504,545-$3,923,245. At the midpoints, multi-unit operators can build roughly three Wingstops for the capital of one Popeyes. The capital-efficiency advantage compounds across multi-unit portfolios. **Operational simplicity.** Focused menu (wings, tenders, fries, sides, soft drinks) requires less kitchen complexity, less labor specialization, and less SKU management. Smaller footprint (1,500-2,200 sq ft) reduces real-estate cost and operational scope. **Strong category momentum independent of broader chicken category.** Wingstop has built distinctive wing-category mind-share that’s somewhat insulated from broader chicken-sandwich competition. The brand has its own customer base and category position. **No drive-thru complexity.** Most Wingstop units operate without drive-thru — eliminating one of the most expensive build-out elements and one of the most complex operational layers. Neither brand sells alcohol, which is the revenue layer that separates both of them from [sports bar franchises with a liquor license](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison), where beverage mix commonly runs a quarter or more of the ticket. For detailed unit economics, see our [Wingstop Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/wingstop-item-19-deep-dive). ## Where Popeyes Wins **Broader menu and daypart appeal.** Chicken sandwich, bone-in chicken, sides, biscuits, beverages produce broader meal-occasion appeal than Wingstop’s focused menu. Family meals, weekend gatherings, and breakfast (in some markets) capture customer occasions Wingstop doesn’t. **Drive-thru is structurally advantaged.** Popeyes’ free-standing drive-thru format aligns with post-2020 QSR consumer behavior shifts toward drive-thru. The format produces stronger off-premise revenue. **RBI platform infrastructure.** Shared technology stack, supply-chain consolidation across RBI brands (BK, Tim Hortons, Firehouse, Popeyes), and marketing platform investment. The platform produces meaningful operational leverage. **Chicken-category momentum since 2019 sandwich launch.** Popeyes has been one of the strongest growth stories in QSR for 5+ years. The chicken sandwich launch effect stabilized into a higher AUV base that continues to compound. **Multi-brand RBI franchisee opportunity.** Existing RBI franchisees ([Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc), Firehouse Subs) often add Popeyes to portfolios as platform-leverage diversification. Wingstop doesn’t offer comparable multi-brand platform integration. For detailed unit economics, see our [Popeyes Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/popeyes-item-19-deep-dive). ## Where They’re Roughly Equal **Median AUV.** Both produce $1.79M-$1.89M median AUV — meaningful absolute revenue. **Multi-unit-only development.** Both require multi-unit area development. Neither offers single-unit grants to new franchisees. **Approval selectivity.** Both have selective franchise approval processes favoring multi-unit operators with QSR experience. **Territory tight in attractive metros.** Both face territory access challenges in Texas, Southern California, Florida, Atlanta, and other high-volume markets. ## Which Operator Profile Each Fits ### Wingstop fits - Multi-unit operators prioritizing capital efficiency and ratio optimization - Operators with $1M-$2M of capital seeking maximum unit count - First-multi-unit QSR operators (the lower capital floor is more accessible) - Operators seeking lighter operational burden and lower complexity ### Popeyes fits - Existing multi-unit operators with $3M+ available capital - Multi-brand RBI franchisees seeking platform diversification - Operators with full-service QSR experience seeking broader-menu exposure - Buyers in markets with strong drive-thru real-estate availability ## The Honest Bottom Line Both Wingstop and Popeyes are exceptional franchises in the chicken category — the choice depends on operator profile rather than relative deal quality. Wingstop’s ratio advantage is real and consequential. At the investment midpoints, the same ~$2M of capital can build roughly three Wingstops or one Popeyes, and the median AUV per unit is comparable. For most multi-unit operators, that math favors Wingstop. Popeyes wins on absolute system scale, broader menu appeal, and RBI platform integration. For operators with substantial capital who want larger per-unit absolute revenue with platform-scale operating leverage, Popeyes’ model matches. A multi-brand strategy makes sense for capital-rich operators — Wingstop for ratio optimization, Popeyes for absolute scale. Many of the largest QSR multi-brand franchisees operate both brands plus others. For broader context, see our [Wingstop Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/wingstop-item-19-deep-dive), [Popeyes Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/popeyes-item-19-deep-dive), and [best chicken franchise breakdown](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises). ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) wingstoppopeyesfranchise comparisonchicken franchiseqsr franchisefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Wingstop or Popeyes a better franchise in 2026? Both are strong franchises in the chicken category. Wingstop produces a better AUV-to-investment ratio (~2.9× vs ~0.8× at the midpoint) due to lower capital requirements. Popeyes produces slightly lower median AUV ($1,785,736 vs Wingstop's $1,890,866 per the 2026 FDDs) at materially higher capital ceilings. For capital-efficient ratio-focused operators, Wingstop wins. For operators with capital depth seeking broader-menu QSR exposure, Popeyes wins. ### Which has better unit economics? Wingstop on a per-dollar-invested basis (~2.9× AUV-to-investment at the midpoint vs Popeyes' ~0.8×). Popeyes on absolute AUV in some quartiles (similar median but Popeyes may have stronger P75 outcomes in dense urban markets). Wingstop's ratio is among the strongest in publicly franchised QSR; Popeyes' ratio is competitive but not category-leading. ### Which is more accessible for new franchisees? Both are multi-unit-only with selective approval. Capital requirements are lower at Wingstop ($1.2M+ net worth vs Popeyes' $2M+ net worth typical). For capital-constrained multi-unit operators, Wingstop is easier to access. Territory availability varies by market — both brands have tight territory in attractive metros. ### What's the operating model difference? Wingstop is focused-menu (wings, tenders, fries, sides) in compact 1,500-2,200 sq ft footprints — operationally simpler. Popeyes is broader-menu (chicken sandwich, bone-in chicken, sides, biscuits) in larger free-standing buildings with drive-thru — operationally more complex. Wingstop's operating model is lighter; Popeyes' produces broader daypart appeal. ### How does the parent ownership differ? Wingstop is publicly traded (NASDAQ: WING) with independent corporate structure. Popeyes is owned by Restaurant Brands International (RBI) along with Burger King, Tim Hortons, and Firehouse Subs. Wingstop has brand-specific operational focus; Popeyes benefits from RBI platform infrastructure and multi-brand supply-chain leverage. --- title: "Is Discount Tire a Franchise? Tire Shop Options (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is discount tire a franchise, tire franchise opportunities, big o tires franchise, auto repair franchise, Discount Tire, Automotive franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise about: is discount tire a franchise category: blog wordCount: 1870 readingTime: 9 min crawledAt: 2026-08-20 11:13:03 lastVerified: 2026-08-20 11:13:03 site: https://vetmyfranchise.com/c/claude/ --- # Is Discount Tire a Franchise? Tire Shop Options (2026) ## Summary Discount Tire does not franchise. All ~1,249 US stores are corporate. Big O Tires is the franchised tire route: $17,500 fee, 461 stores, real Item 19 data. ## Key facts - The chain is held by the Reinalt-Thomas Corporation, the private company Bruce Halle built from that one 1960 store. - If you want to own a tire store with a national brand on the pylon sign, [Big O Tires](https://vetmyfranchise. - This is the part worth reading twice, because Big O publishes both a revenue table and a cost table, which most franchisors do not. - Get the current Item 7 directly from the franchisor and reconcile it against the build quote your own general contractor gives you. Quick answer No. Discount Tire does not franchise. All of its roughly 1,249 US stores as of August 2026 are corporate, held by the Reinalt-Thomas Corporation, the company Bruce Halle founded in 1960. The franchised alternative in tire retail is Big O Tires, which charges a $17,500 initial franchise fee and reported 461 franchised stores as of March 31, 2025. ## The short answer, and the number behind it Zero. That is how many Discount Tire franchises have ever been sold, and it has been zero since Bruce Halle opened his first store in 1960. Discount Tire operates roughly 1,249 US stores as of August 2026, and every one of them is corporate. Texas carries 274 of them, California 151, Arizona 81. There is no franchise fee to quote, no Item 7 investment table to read, and no Franchise Disclosure Document filed anywhere, because the company does not sell franchises. Any page quoting you a “Discount Tire franchise cost” is guessing. The reason the query keeps getting typed is that Discount Tire looks like a franchise from the parking lot. Consistent signage, consistent bay layout, a repeatable box on a repeatable corner. Franchising is a capital strategy rather than a design language, and this chain chose the other one: fund growth internally, keep every store on the balance sheet, keep every employee on the payroll. ## Who actually owns Discount Tire The chain is held by the Reinalt-Thomas Corporation, the private company Bruce Halle built from that one 1960 store. Private and unfranchised means the same thing for your purposes: no regulator forces the company to publish what a store costs to build or what one earns. That matters because the rest of the category has been trading hands. Midas discloses in its 2026 FDD that its parent group runs more than 2,300 service centers across 39 states under the Mavis names. Big O’s franchisor reports consolidated revenues of $385,060,332 for the twelve months ended March 31, 2025, of which $342,729,760, or about 89%, came from selling products and services to its own franchisees. Tire retail at national scale is now a distribution business wearing a service-bay costume, and the consolidators are buying the boxes rather than licensing them. ## Big O Tires is the franchised tire brand If you want to own a tire store with a national brand on the pylon sign, [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) is the realistic path. The franchisor is Big O Tires, LLC, a Nevada company whose predecessor, Big O Tire Dealers, Inc., was formed in 1962 as a purchasing cooperative so independent dealers could buy tires at better prices. It is now a wholly-owned subsidiary of TBC Shared Services, LLC, itself under TBC Corporation and TBC Holdings, LLC. Here is what the FDD issued June 30, 2025 actually says, item by item: - Initial franchise fee of $17,500. Item 5 splits it: $10,000 when you submit the application and sign the deposit receipt, $7,500 when you sign the franchise agreement and before training starts. - Royalty set by a matrix rather than a flat rate. Item 6 sets the rate for your opening partial year at generally 5.0%, then moves you onto a Royalty Matrix that recalculates annually against your adjusted gross sales. For new stores the current matrix caps at 5.0% and floors at 3.5%. National account sales, farm-class tires, and excess service department sales stay at 2%. - Advertising of 4% local, currently reduced to 3.6%, plus 0.9% national. Your assigned Local Group collects a minimum 4% of gross sales, currently cut by 0.4 points under a marketing program that can end at any time. The national marketing fee was raised from 0.25% to 0.9%. - Opening inventory of $75,000 to $187,500, per Item 6 Note 5, and after day 180 you must carry at least 700 tire units. - A $5,000 resale fee if Big O brings the buyer when you sell. One figure on that list needs a caveat. The FDD’s cover page states a total investment of $511,500 to $1,882,500, including $385,000 to $1,596,000 payable to the franchisor or its affiliates, but the line-item Item 7 table behind that summary is not present in the source text we extracted from the filing, so we cannot show you the breakdown. Our earlier writeups, [is Big O Tires a good franchise](https://vetmyfranchise.com/c/claude/blog/is-big-o-tires-a-good-franchise) and the [Big O versus Midas comparison](https://vetmyfranchise.com/c/claude/blog/big-o-tires-vs-midas-franchise), cover the brand’s structure in more depth, and the [dossier page](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) tracks whatever the current filing discloses. ## What Big O’s Item 19 actually reports This is the part worth reading twice, because Big O publishes both a revenue table and a cost table, which most franchisors do not. | Big O Tires, calendar year 2024 | Disclosed figure | | --- | --- | | Average annual gross revenues (Part A) | $2,824,712.79 | | Part A sample | 457 of 463 US franchised stores | | Stores at or above that average | 187 (40.9%) | | Average total income (Part B) | $2,941,799 | | Part B sample | 280 stores (61.3% of US outlets) | | Cost of goods sold | 42.1% of income | | Gross profit | 57.9% | | Total labor | 26.7% | | Total operating expense | 49.1% | | Net income from operations | 8.8% | Two things fall out of that table. First, only 40.9% of stores reached the average, which is what a long right tail looks like: a handful of very large stores pull the mean above the typical operator. Second, a $2.9M average box throwing off 8.8% at the operating line implies roughly $259,000 before income taxes and before any debt service on the build. That figure is arithmetic on two disclosed averages rather than a promise, and Big O’s own footnote says the tables exclude sales, payroll, and income taxes entirely. The unit trend is its own signal. Item 20 shows franchised outlets moving 434 to 460 to 462 to 461 across three fiscal years, while company-owned outlets went 32 to 17 to 0. Big O now has no corporate stores. Transfers ran 44, then 24, then 19. Of the 461 franchised outlets at March 31, 2025, 437 are Business Format stores and 24 are legacy Product Distribution stores, and only the Business Format model is sold to new buyers. [Open the full Big O Tires FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) ## Midas works the same corner from the service side [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) sells tires too, but its shop is built around brakes, exhaust, suspension, and alignment. The economics diverge accordingly. | | Big O Tires | Midas | | --- | --- | --- | | Initial franchise fee | $17,500 | $35,000 | | Disclosed initial investment | omitted here, see above | $385,450 to $940,050 | | US franchised units | 461 (March 31, 2025) | 889 (December 31, 2025) | | Company-owned units | 0 | 0 | | Item 19 sample | 457 stores | 856 shops | | Item 19 headline | $2,824,712.79 average | $2,141,832 top quartile, $676,751 bottom quartile | | Ultimate parent | TBC Holdings, LLC | Metis HoldCo, Inc. (Mavis) | Midas discloses its investment range for a new 8-bay shop, and the fine print is where the money hides: that $385,450 to $940,050 assumes you lease the premises. Buying acceptable real estate is estimated separately at $615,000 to $1,250,000, and construction at $1,250,000 to $2,050,000. Neither sits inside the headline range. Anyone comparing tire franchises on total investment alone is comparing two different questions. The quartile spread is the more useful disclosure. A Midas franchisee in the bottom quarter averaged $676,751 in gross revenue for 2025 while the top quarter averaged $2,141,832, a gap of more than three times inside one brand and one year. Big O’s Part A spread runs the same direction. Ownership in this category also keeps moving, and our post on [Big O after the Mavis acquisition](https://vetmyfranchise.com/c/claude/blog/big-o-tires-after-mavis-acquisition-what-franchisees-should-know) walks through why parentage changes a franchisee’s supply terms. Read Item 1 of the document you are handed rather than a headline from three years ago. ## What to do before you sign anything Get the current Item 7 directly from the franchisor and reconcile it against the build quote your own general contractor gives you. For a tire store, the equipment list alone (lifts, alignment rack, tire machines, balancers) carries most of the variance, and a franchisor’s estimate assumes a cooperative landlord you may not have. Price the gross margin, not the gross revenue. Big O’s own Item 19 says 42.1% of income leaves as cost of goods sold, and the franchisor is also the supplier for most of it. A brand that earns 89% of its revenue selling to its franchisees has an interest in your purchase volume that does not perfectly match your interest in your margin. Ask existing operators what their landed tire cost looks like against the independent shop down the street. Then call the operators nobody handed you. Big O disclosed 19 transfers in its most recent fiscal year and lists both current and former franchisees in its exhibits. Former franchisees answer different questions than the three references a development rep offers. For adjacent options across the category, our [auto repair franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) compare the service-heavy brands on the same disclosure basis. Discount Tire is not the opportunity here. It is the benchmark: a 1,249-store operator that decided the returns were better on its own balance sheet than in a royalty stream. Any tire franchise you buy will be competing with that decision. [Get the full Big O Tires FDD analysis for $49](https://vetmyfranchise.com/c/claude/pricing) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is discount tire a franchisetire franchise opportunitiesbig o tires franchiseauto repair franchiseDiscount TireAutomotive franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you open a Discount Tire franchise? No. Discount Tire does not offer franchises, so there is no franchise fee, no territory to buy, and no Franchise Disclosure Document to read. Every store in the chain is company-operated. Searches for a Discount Tire franchise cost return estimates invented by lead-generation sites rather than anything disclosed by the company. If you want a tire store under a national banner, the franchised options are Big O Tires and, on the service side, Midas. ### Who owns Discount Tire? Discount Tire is held by the Reinalt-Thomas Corporation, the private company Bruce Halle founded in 1960 with a single store. The chain has stayed corporate through six decades of growth to roughly 1,249 US locations as of August 2026. Because the parent is private and does not franchise, it publishes no unit-level economics of the sort an FDD would force into the open. ### What tire franchises can you buy? Big O Tires is the main one. Its franchisor, Big O Tires, LLC, is a wholly-owned subsidiary of TBC Shared Services, LLC, under TBC Corporation and TBC Holdings, LLC, and it had 461 franchised outlets as of March 31, 2025 with no company-owned stores at all. Midas, whose ultimate parent is Metis HoldCo under the Mavis group, franchises 889 US shops and sells tires alongside brakes, exhaust, and alignment work. Both disclose an Item 19. ### Is a tire shop franchise profitable? The disclosed averages are large and the margins are thin. Big O's 2024 Item 19 puts average annual gross revenues at $2,824,712.79 across 457 franchised stores, but cost of goods sold eats 42.1% of income and total labor another 26.7%, leaving average net income from operations at 8.8% across the 280 stores that submitted expense data. Midas quartile averages run from $2,141,832 at the top to $676,751 at the bottom across 856 shops. A single national average tells you almost nothing about the store you would actually buy. --- title: "Is Ace Hardware a Franchise? It's a Co-op (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is ace hardware a franchise, retailer-owned cooperative, patronage dividend, franchise vs cooperative, Ace Handyman Services, FTC franchise rule, hardware store franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-ace-hardware-a-franchise about: is ace hardware a franchise category: blog wordCount: 1866 readingTime: 9 min crawledAt: 2026-08-20 11:13:02 lastVerified: 2026-08-20 11:13:02 site: https://vetmyfranchise.com/c/claude/ --- # Is Ace Hardware a Franchise? It's a Co-op (2026) ## Summary Is Ace Hardware a franchise? It is a retailer-owned co-op with 5,250 US locations that files an FDD, and some states deem member stores franchises. ## Key facts - In a conventional franchise the money moves in a single direction. - Under the FTC Franchise Rule a relationship is a franchise when the operator gets the right to use the brand’s trademark, the brand exerts significant control over or provides significant assistance to the operation, and the operator makes a required payment of at least $500 to the brand around the time of opening. - The cleanest comparison available is between the co-op and a conventional franchise owned by the same parent company. - Ace’s disclosure document contains no financial performance representation. - Ace Handyman Franchising, Inc. Quick answer Not in the usual sense. Ace Hardware Corporation is a retailer-owned cooperative with 5,250 cooperative locations in the United States as of December 31, 2025, and its store owners buy stock as member-shareholders rather than paying royalties to a franchisor. Ace does file a disclosure document, and some states deem member-owned Ace stores franchises. ## Royalties go one way, patronage comes back In a conventional franchise the money moves in a single direction. You pay a fee to sign, then a percentage of every dollar you ring up leaves the register for the franchisor’s account, monthly, for as long as the agreement runs. Ace Hardware Corporation is assembled the other way around. It is a retailer-owned cooperative, founded in 1924 and the largest of its kind, and its store owners are its shareholders. A member buys stock, buys inventory through the co-op, and receives patronage distributions out of the co-op’s earnings in proportion to what that store purchased. So the answer to the question has two halves that both matter. Structurally, Ace is a wholesale buying cooperative owned by the retailers it supplies. Legally, it has offered franchises since 1976, it delivers a Franchise Disclosure Document, and the relationship is treated as a franchise in a number of states. That last point is not our reading of the situation. It comes from a filed FDD sitting in our own library. ## What the filing actually says about Ace Hardware [Ace Handyman Franchising, Inc.](https://vetmyfranchise.com/c/claude/franchise/ace-handyman-franchising-inc) is a separate franchisor that Ace Hardware bought in 2019, and its 2026 disclosure document has to describe its parent. Item 1 identifies Ace Hardware Corporation as the ultimate parent, calls it a retailer-owned cooperative, and adds one line worth reading twice: “Ace Hardware branded cooperative locations owned by members are deemed franchises in some states.” The same paragraph counts the system. As of December 31, 2025 there were 5,250 Ace Hardware cooperative locations operating in the United States, made up of 4,675 carrying the Ace Hardware brand and 307 trading under other banners. An affiliate called Ace Retail Group holds 268 of them directly. One quibble for the careful reader: the parenthetical says those 268 sit inside the 4,675 figure, but the three numbers only reconcile to 5,250 if they are counted alongside it rather than within it. Either way, roughly 95% of Ace locations in the country belong to somebody other than Ace Hardware Corporation. That ratio is the whole point of a cooperative. The co-op exists to buy for the stores, not to collect from them. ## Where the franchise label attaches anyway Under the FTC Franchise Rule a relationship is a franchise when the operator gets the right to use the brand’s trademark, the brand exerts significant control over or provides significant assistance to the operation, and the operator makes a required payment of at least $500 to the brand around the time of opening. An Ace member store clears all three. It runs under the Ace name and signage, it operates inside the co-op’s merchandising and standards program, and it pays to affiliate. Buying stock in the entity you are affiliating with does not exempt you from the rule. State franchise definitions in the registration states are broader still, which is what produces the “deemed franchises in some states” language in the filing. The practical consequence for you is good: a prospective Ace store owner receives a real disclosure document with the standard 23 items, an audited financial statement for the cooperative, and a 14-day waiting period before signing. If you want the field guide to reading one, start with [what an FDD contains](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). ## Member and franchisee, line by line The cleanest comparison available is between the co-op and a conventional franchise owned by the same parent company. | | Ace Hardware co-op member | Ace Handyman Services franchisee (2026 FDD) | | --- | --- | --- | | What you acquire | stock in the cooperative plus the right to trade under the brand | a trademark license and a defined territory | | Who owns the brand entity | the member retailers, collectively | Ace Hardware Corporation | | Initial payment to the brand | stock subscription plus an affiliation fee set in Ace’s FDD | $70,000 initial franchise fee for a territory up to 70,000 households | | Ongoing payment | wholesale purchases routed through the co-op | 6% royalty, 2% National Brand Fee, $599 per month software | | Money flowing back to you | patronage distributions out of co-op earnings | none | | Earnings disclosure | no Item 19 | Item 19 covering 309 territories open all of 2025 | | What growth benefits | the member stores that own the co-op | Ace Hardware Corporation as franchisor | Read the last row slowly, because it is the real difference. A franchisor’s economics improve when the system opens more units, whether or not any individual unit prospers. A cooperative’s surplus is generated by member purchases and returned to members, so scale is supposed to lower your cost of goods rather than raise somebody else’s royalty stream. Supposed to. Nothing in the structure guarantees it, and no disclosure item forces Ace to publish what a patronage distribution has actually been worth per store. ## The missing Item 19, and what to do about it Ace’s disclosure document contains no financial performance representation. There is no median store revenue, no gross margin band, no unit-level profit table. For a system of this size that is a meaningful gap, because a buyer evaluating a hardware store is evaluating a category under sustained pressure from two national big-box competitors and needs local evidence to price the risk. Three substitutes carry weight here. Item 20’s outlet tables show openings, closures, terminations, and transfers by state, and a cooperative with a healthy membership base should show low churn. Item 21’s audited financials tell you whether the co-op itself is sound, which matters more than usual because your stock is in it. And the member roster in Item 20 is a call list. Work through it yourself rather than accepting a curated set of references. Our [franchise research checklist](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise) covers the sequence. [Compare the disclosed numbers on Ace’s franchised brand](https://vetmyfranchise.com/c/claude/franchise/ace-handyman-franchising-inc) if you want to see what a full Item 19 looks like in the same corporate family. ## The Ace franchise that does publish numbers Ace Handyman Franchising, Inc. was incorporated in Colorado in August 2000 as Handyman Matters Franchise Corporation. Ace Services Holdings LLC, a wholly owned subsidiary of Ace Hardware Corporation, acquired the business on September 5, 2019, and the name changed to Ace Handyman Franchising two weeks later. It is a conventional franchise with all the disclosure a co-op membership lacks. The 2026 FDD puts total initial investment at $132,200 to $226,000, including a $70,000 initial franchise fee for a territory of up to 70,000 households. The fee rises by $1 for each household above that, capped at a 100,000-household territory. Ongoing, you owe a 6% royalty, a 2% National Brand Fee, and $599 per month for software. The system held 383 franchised territories and 18 affiliate territories at the end of 2025, operated by 214 franchise owners. Item 19 splits single-territory operators into quartiles. These are the 2025 results for the 77 owners running one territory. | 2025 single-territory quartile | Average total revenue | Average owner discretionary income | Share of revenue | | --- | --- | --- | --- | | Top, 19 territories | $775,337 | $49,793 | 6% | | Second, 19 territories | $533,854 | $40,188 | 8% | | Third, 19 territories | $347,542 | $39,489 | 11% | | Bottom, 20 territories | $250,699 | $3,994 | 2% | The top quartile books three times the revenue of the bottom quartile and keeps a smaller share of it than the middle two do. Owner discretionary income barely separates quartiles one through three, which says the model’s costs scale roughly with its revenue and the operator’s pay is not obviously a function of volume. The bottom quartile is the sobering line: $250,699 through the door and $3,994 left over on average. Three more disclosures belong in the same reading. Twenty-six territories closed during 2025, and none of them had been open less than 12 months. Another 34 were dropped from the tables because their owners did not supply complete financials for the year. Forty more were excluded for not having been open a full 12 months. So 74 of the 383 franchised units never reach the tables at all, on top of the 26 that closed, and the missing ones are unlikely to be the strongest. ## The tradeoff, stated plainly A cooperative and a franchise ask for the same things at the counter: your capital, your standards compliance, your working week. They differ on what you get back for it. The Ace member gets wholesale pricing power and an ownership stake in the purchasing group, with no published performance data to check the promise against. The Ace Handyman franchisee gets a defined territory and a full Item 19, and pays 8% of gross revenue for the privilege. Neither is automatically the better deal. What matters is that you price the missing information rather than ignore it. VetMyFranchise reads the actual Franchise Disclosure Document, Items 5, 7, and 19 included, instead of the recruitment page, and reports what the filing supports. If the low entry cost is the appeal, the disclosed alternatives are laid out in our [low-cost franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) and the [home services list](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k). Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is ace hardware a franchiseretailer-owned cooperativepatronage dividendfranchise vs cooperativeAce Handyman ServicesFTC franchise rulehardware store franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Ace Hardware a franchise or a cooperative? It is a cooperative that also franchises, which is why the question keeps producing contradictory answers online. Ace Hardware Corporation is owned by its member retailers rather than by outside shareholders, and it has been structured that way since 1924. It has also offered franchises since 1976 and delivers a Franchise Disclosure Document to prospective store owners. A 2026 FDD filed by its subsidiary Ace Handyman Franchising describes Ace Hardware as a retailer-owned cooperative and notes that member-owned Ace Hardware branded locations are deemed franchises in some states. The relationship carries a trademark license and operating standards, so franchise law reaches it even though the ownership model is a co-op. ### Do Ace Hardware store owners pay royalties? The co-op model does not run on a percentage-of-sales royalty the way a standard franchise agreement does. A member buys stock in the cooperative and buys inventory through it, and the cooperative distributes a share of its earnings back to members as patronage based on what each store purchased. The economics are still real money leaving the store, just routed through wholesale pricing and stock subscription rather than a monthly royalty draft. Compare that with Ace Handyman Services, a conventional franchise owned by the same parent, where the 2026 FDD sets a 6% royalty plus a 2% National Brand Fee on gross revenues. ### Does Ace Hardware disclose how much its stores earn? No. Ace's disclosure document carries no Item 19 financial performance representation, which means the franchisor makes no claim about member store revenue, profit, or margin, and you have no regulated figure to test. That is legal and fairly common, but it shifts the entire burden of proof onto you. Your substitute is the audited financial statements in Item 21, the outlet and closure tables in Item 20, and conversations with current members, ideally ones you found yourself rather than ones a development representative selected. ### Can you buy an Ace Hardware franchise? Yes, Ace recruits new store owners and delivers a disclosure document to them, and existing independent hardware retailers can also convert to the Ace banner. The published third-party numbers for the affiliation fee and total investment vary widely and we do not cite figures we cannot verify against the filing itself, so treat any range you see quoted on a franchise portal as a starting question rather than an answer. Ask for the current FDD, then read Item 5, Item 7, and Item 21 before you value the opportunity. ### What is the difference between a patronage dividend and a franchise royalty? A royalty flows from the operator to the brand, and a patronage dividend flows from the co-op back to the operator. In a franchise, the franchisor is a separate business whose revenue comes from your sales, so growth in the system benefits the franchisor's owners. In a cooperative, the members are the owners, so surplus generated by the wholesale operation is returned to the stores in proportion to their purchases. The practical caution is that a patronage distribution depends on the co-op's earnings and on your own volume, and no disclosure document promises what either will be. --- title: "Is FedEx Office a Franchise? vs The UPS Store (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is fedex office a franchise, fedex office franchise, fedex ground isp, The UPS Store Inc, shipping franchise, Business Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-fedex-office-a-franchise about: is fedex office a franchise category: blog wordCount: 1563 readingTime: 8 min crawledAt: 2026-08-20 11:13:04 lastVerified: 2026-08-20 11:13:04 site: https://vetmyfranchise.com/c/claude/ --- # Is FedEx Office a Franchise? vs The UPS Store (2026) ## Summary No. FedEx Office is a corporate FedEx subsidiary with no FDD. The UPS Store is the franchised one: $39,950 fee, $222,368 to $606,081, 5,487 franchised centers. ## Key facts - FedEx Office and The UPS Store sell the same things to the same walk-in customer: printing, packing, boxes, mailbox rental, notary service. - FedEx Office is a wholly owned FedEx subsidiary. - The larger source of confusion is not the print shop. - The parallel brand did the opposite thing with its retail network. - It settles which brand you can research, not which one is worth owning. Quick answer No. FedEx Office is a wholly owned FedEx subsidiary and every location is company operated, so there is no franchise program and no FDD to read. The comparable counter you can buy is The UPS Store, where 5,487 of 5,503 US centers were franchisee owned at the end of 2025. ## Two counters, two ownership models FedEx Office and The UPS Store sell the same things to the same walk-in customer: printing, packing, boxes, mailbox rental, notary service. Behind the counter they are opposite businesses, one a corporate store staffed by employees of a Fortune 500 logistics company, the other a small business somebody bought with a $39,950 franchise fee and a bank loan. Anyone searching “is fedex office a franchise” is usually standing on the wrong side of that line. The answer is no, and it has never been anything else. ## FedEx owns every FedEx Office location FedEx Office is a wholly owned FedEx subsidiary. The stores are company operated, the people behind the counter are employees, and the results roll up into a public company’s segment reporting rather than into an owner’s tax return. That structure produces no document for a prospective buyer, because there is no prospective buyer. The chain arrived there by acquisition. FedEx bought Kinko’s in 2004 for $2.4 billion and had retired the Kinko’s name in favor of FedEx Office by 2008. Kinko’s was not franchised either, so there was never a system to inherit, convert, or unwind. A print and ship chain that has been corporate for its entire life under two different names is about as settled an answer as this category offers. What follows from that is a research problem. A franchised brand leaves a paper trail: a disclosure document filed annually, registered in the states that require it, carrying unit counts, fee schedules, litigation history, and sometimes earnings data. A corporate chain leaves none of it. Nobody publishes a table showing how many FedEx Office locations opened or closed last year, and nobody has to. ## FedEx Ground routes are a contract, not a franchise The larger source of confusion is not the print shop. It is the delivery side, where FedEx Ground service areas are run by Independent Service Providers, contractors who cover defined territories with their own trucks and their own drivers. Those routes change hands regularly. They get listed on business-for-sale marketplaces next to restaurants and car washes, with asking prices and revenue figures attached, which reads exactly like a franchise resale listing. It is not one, and the reason is mechanical. The FTC Franchise Rule treats a relationship as a franchise only when three things are true together: the operator gets a trademark license, the brand exerts significant control over or gives significant assistance to the operation, and the operator makes a required payment of at least $500 to the brand within the first six months. Delivery contracting fails the third condition, because the payment runs the other direction. FedEx pays the contractor. Everything a franchise buyer takes for granted disappears with the rule. There is no disclosure document arriving 14 days before signing. There is no Item 7 estimating what you will spend before the business supports itself, no Item 19 reporting what other operators collect, no Item 20 showing how many contractors exited last year, no audited financials for the counterparty, and no state registration file to pull. The absence is not a scandal. It is simply what a commercial services contract looks like. Diligence has to be rebuilt from the seller’s own records: tax returns, the settlement detail FedEx pays against, payroll for the drivers you would take on, and the maintenance history and remaining life of every vehicle in the deal. A route business can be a sound purchase. It gets underwritten the way you would underwrite buying a plumbing company, and a buyer who came in expecting a standardized packet should reset before making an offer. Even inside a real franchise, plenty of real money sits outside the document, which is why we keep a running list of [the costs that never appear in an FDD](https://vetmyfranchise.com/c/claude/blog/hidden-franchise-costs-not-in-fdd). With a contractor agreement, every one of those gaps is wider. ## The UPS Store is the franchise this search is looking for The parallel brand did the opposite thing with its retail network. Item 20 of the 2026 Traditional FDD, issued April 23, 2026, counts 5,487 franchised centers against 16 company-owned as of December 31, 2025, which puts 99.7% of the US system in franchisee hands. | | FedEx Office | The UPS Store | | --- | --- | --- | | Who owns the locations | FedEx, all of them | Franchisees, 5,487 of 5,503 | | Available to buy | No | Yes | | Initial franchise fee | None offered | $39,950 | | Item 7 initial investment | No FDD exists | $222,368 to $606,081 | | Ongoing fees | Not applicable | 5% royalty, 1% marketing, 2.5% national advertising | | Item 19 earnings data | None | 5,058 centers, $724,293 average adjusted gross sales | The fee row deserves a slow read. Item 6 stacks a 5% royalty, a 1% marketing fee, and a 2.5% national advertising fee on the same sales base, so 8.5% of revenue is committed before rent, payroll, or cost of goods. The advertising piece carries an annual cap, currently $27,734, so it stops climbing somewhere past $1.1 million in sales while every center below that line pays the full rate. The earnings row is large and narrow at once. Item 19 covers 5,058 franchised traditional centers, which is among the biggest samples any franchisor files, and it reports adjusted gross sales rather than profit. The document names eleven expense categories the figure leaves out, among them labor, shipping costs, cost of goods sold, rent, and the royalties above. Only 2,263 centers, 45% of them, cleared the $724,293 average, which puts the median below the mean. The three-year trend is flat: $721,245 in 2023 against $724,293 in 2025 is 0.4% of nominal movement, a decline once inflation is applied. Our full walkthrough of [what The UPS Store’s 2026 FDD discloses](https://vetmyfranchise.com/c/claude/blog/is-the-ups-store-a-franchise) covers the rest, including the remodel obligation at renewal and the territory language. Every figure above comes out of Items 6, 7, 19, and 20 of the filed document rather than a franchise portal listing, which is how the [UPS Store dossier](https://vetmyfranchise.com/c/claude/franchise/the-ups-store-inc) is built. ## What the head-to-head actually settles It settles which brand you can research, not which one is worth owning. Being franchised is a disclosure fact rather than a quality rating, and the same 2026 document that makes The UPS Store comparable also exposes its weak spots: flat system sales, a territory Item 12 states plainly is non-exclusive, and a mandatory Laser Lite remodel at every renewal priced at $97,047 to $281,271. Those weaknesses are visible, and visibility is the entire advantage. FedEx Office offers no equivalent because it offers nothing at all, while a FedEx Ground route offers a real business with no standardized way to line it up against the next one. If the appeal was the shipping counter rather than the name on the sign, the category runs wider than these two brands. Independent pack and ship and print franchisors file on the same annual schedule, and a smaller system that publishes a franchisee-only earnings figure can be easier to underwrite than a large one reporting gross sales alone. Our ranking of [B2B service franchises](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) is where that comparison starts. The one-word answer is no. The useful version of the question is which print and ship brands file a disclosure document at all, and what Items 7 and 19 say once you read them next to each other. [Start with The UPS Store’s actual numbers](https://vetmyfranchise.com/c/claude/franchise/the-ups-store-inc). Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the The UPS Store numbers with you. We'll email you the **The UPS Store FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The The UPS Store data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is fedex office a franchisefedex office franchisefedex ground ispThe UPS Store Incshipping franchiseBusiness Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a FedEx Office franchise? No. FedEx Office is a wholly owned subsidiary of FedEx and every location is company operated, so there is nothing offered for sale and no franchise disclosure document to review. The brand has no franchise sales organization, no Item 7 investment estimate, and no state registration file. Buyers looking for a print and ship storefront in this format are usually looking at The UPS Store, which had 5,487 franchised centers at the end of 2025. ### Is FedEx Ground a franchise? No. FedEx Ground delivery areas are run by Independent Service Providers, which are contractors operating under a negotiated service agreement rather than franchisees. The FTC Franchise Rule requires a payment of at least $500 to the franchisor within the first six months, and in this relationship FedEx pays the contractor instead. Routes are bought and sold, but the transaction is an ordinary small business purchase with no FDD, no Item 19, and no 14-day waiting period attached. ### Was Kinko's a franchise? No. Kinko's grew as a corporate chain rather than a franchise system, and FedEx acquired it in 2004 for $2.4 billion. The Kinko's name was retired in favor of FedEx Office by 2008. Because there was no franchise system in place before the acquisition, there was never one for FedEx to convert or close down. ### Is The UPS Store a franchise instead? Yes, and almost entirely so. Item 20 of the 2026 Traditional FDD counts 5,487 franchised centers against 16 company-owned as of December 31, 2025. Item 7 prices a new or relocation traditional center at $222,368 to $606,081 including a $39,950 initial franchise fee, and Item 6 sets a 5% royalty plus a 1% marketing fee plus a 2.5% national advertising fee. ### How much do UPS Store owners make? The FDD does not disclose it. Item 19 reports adjusted gross sales across 5,058 franchised traditional centers, with a 2025 average of $724,293, and it names eleven expense categories the figure excludes, among them labor, shipping costs, cost of goods sold, rent, and royalties. Only 45% of centers cleared that average, so the median sits below it. None of those numbers is profit. --- title: "Is Life Time a Franchise? The Corporate Tier (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is life time a franchise, Life Time Fitness, gym franchise, luxury fitness, crunch fitness franchise, club pilates franchise, item 19 canonical: https://vetmyfranchise.com/c/claude/blog/is-life-time-fitness-a-franchise about: is life time a franchise category: blog wordCount: 1654 readingTime: 8 min crawledAt: 2026-08-20 11:13:04 lastVerified: 2026-08-20 11:13:04 site: https://vetmyfranchise.com/c/claude/ --- # Is Life Time a Franchise? The Corporate Tier (2026) ## Summary No. Life Time Group Holdings owns every athletic club it operates and sells no franchises. The gym brands you can buy: Crunch, Planet Fitness, Club Pilates. ## Key facts - Sort American gyms by what a membership costs and the franchising line draws itself. - Life Time Group Holdings is a public company, listed as LTH. - Franchising is a financing decision before it is a branding one. - Crunch is the ceiling of what a private buyer can actually purchase in the big-box category. - Gold’s Gym is the closest a franchise buyer gets to a full-service club with the older gym-culture positioning. Quick answer No. Life Time does not franchise. Life Time Group Holdings, a public company trading as LTH, owns and operates every athletic club it runs, more than 160 of them as of a mid-2021 count. No FDD exists for the brand, so there is no Item 7 investment range and no Item 19 sales table to read. ## The gym market splits by price, and the franchise line follows Sort American gyms by what a membership costs and the franchising line draws itself. At the top are Life Time and Equinox, corporate at every location. Below them sit Crunch, Planet Fitness, Gold’s Gym, and Anytime Fitness, all of which sell franchises to private buyers. Life Time has been on the corporate side of that line since it started, and it is still there. The consequence is procedural rather than philosophical. Selling a franchise in the United States triggers the FTC Franchise Rule, which forces the seller to hand every prospect a Franchise Disclosure Document before taking any money. Life Time offers nothing, so no such document sits at any state registration office. There is no Item 5 fee, no Item 7 investment range, and no Item 19 sales table carrying the brand’s name. Any page quoting a Life Time franchise cost is quoting a number nobody filed. The same holds for [LA Fitness](https://vetmyfranchise.com/c/claude/blog/is-la-fitness-a-franchise), the other large chain people search this way. ## What Life Time is on paper Life Time Group Holdings is a public company, listed as LTH. It develops, owns, and staffs its athletic clubs, and the most recent count we verified put the system at more than 160 clubs as of mid-2021. No franchisee has ever appeared anywhere in that structure. Being public changes what a curious buyer can read, though less than it sounds. Consolidated filings report revenue, membership counts, and margins for the whole portfolio. They do not report what the weakest club in that portfolio took in last year, and they cannot report a sample of independently owned locations, because none exist. Item 19 does exactly that job inside a franchise system: a stated sample size, a stated measurement period, a stated definition of revenue, and usually a disclosed low performer. Consolidated results and an Item 19 answer different questions, and only one of them describes a single site at the bottom of the range. ## Why the top of the market keeps every club Franchising is a financing decision before it is a branding one. The franchisee writes the check for the build, signs the lease, and carries the operating risk. The franchisor collects an initial fee and a royalty on revenue it never had to fund. That trade is worth making when capital is the constraint on how fast a brand can grow. A public operator with equity and debt markets available does not face that constraint. Building the club itself costs more up front and keeps the entire club-level margin afterward, which is the better deal for anyone who can afford the up-front half. Franchising also gives away control, and the resort format is where control matters most. A 4,000 square foot club with identical equipment in every market replicates cleanly across hundreds of owners. A large amenity-dense club does not, because the experience is the product and every operator decision shows up in it. ## The most expensive gym franchise available is still not this Crunch is the ceiling of what a private buyer can actually purchase in the big-box category. The 2026 FDD puts a Crunch Fitness club at $2,147,500 to $5,367,000 on a site of 20,000 to 60,000 square feet, against a $35,000 initial franchise fee, a 5.0% royalty on monthly gross sales, and a 2% brand marketing fund contribution. New franchisees paid between $0 and $35,000 in initial fees during 2025, since the brand discounts into developing markets. Franchised Crunch Fitness clubs went from 415 to 481 across 2025 while company-owned units fell from 8 to 5. The Item 7 footnotes carry the more useful disclosure. “We cannot estimate your real estate costs,” the document states, which puts the largest line in a 20,000 to 60,000 square foot build outside the published range entirely. Leasehold improvements start at $950,000, equipment down payments run $850,000 to $1,500,000, and the land or the lease underneath all of it is yours to price and yours to finance. The membership math shows where the tier line actually falls. Crunch’s Item 19 describes a base membership at $9.95 per month and a Peak option at $19.95, with pricing across the network reaching $49.95 depending on location. A franchised big-box club is engineered to sell volume inside that band. The athletic resort tier is not competing in it. Same industry, different business model, and the difference explains the ownership structure better than any brand-positioning argument does. [Pull the full Crunch Franchising data sheet](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) for the fee table and the three-year unit counts, or read the [Crunch cost breakdown](https://vetmyfranchise.com/c/claude/blog/crunch-fitness-franchise-cost) for how the two club formats compare. ## Three tiers, one franchising question | Tier | Brands | Franchised | What a buyer can read | | --- | --- | --- | --- | | Athletic resort | Life Time, Equinox | No | Public filings only, nothing club-level | | Big-box | Crunch, Planet Fitness, Gold’s Gym, Anytime Fitness | Yes | Full FDD with Item 7 and Item 19 | | Boutique studio | Club Pilates and similar formats | Yes | Full FDD with Item 7 and Item 19 | Gold’s Gym is the closest a franchise buyer gets to a full-service club with the older gym-culture positioning. Its 2025 FDD, issued June 6 and amended October 30, puts total investment at $1,793,500 to $4,537,000. [Planet Fitness](https://vetmyfranchise.com/c/claude/blog/is-planet-fitness-a-franchise) occupies the value end of the same band with a very different royalty design. Every brand on those two lower rows had to publish an investment range, a fee schedule, and a three-year unit table before it could take a dollar from a buyer. ## Where a premium price point does get franchised The boutique studio is where the higher price per visit and the franchise model finally meet. Club Pilates charges a $65,000 initial franchise fee against a $403,289 to $1,029,811 investment. Its 2026 FDD counted 1,179 US studios open on December 31, 2025, every one owned by a third-party franchisee. Of the 1,005 studios that qualified for the earnings table, the median reported $978,300 in gross revenue, inside a range running from $146,300 to $2,302,000. Set that beside Anytime Fitness, whose 2026 Item 19 reports a $398,982 median across 1,683 centers for the 12 months ended February 28, 2026. The Club Pilates box is a fraction of the size and roughly a third of the build cost, and its median unit takes in more than twice the revenue. Price per member, rather than square footage, drives the top line in this industry. That is the same economic logic keeping Life Time corporate, running in the one format small enough to hand to independent owners. The floor is the other half of the lesson. A qualified Club Pilates studio at $146,300 in annual revenue, against a build starting at $403,289, is a real outcome inside a system with more than a thousand units. Knowing the shape of the bottom of the range is most of what disclosure actually buys you, and it is precisely what a corporate chain’s filings will never contain, because it has no franchisees whose results it is required to describe. ## What people asking this question usually want Most people typing this phrase are not shopping for the Life Time name. They walked through a busy club, watched the volume of members coming through the door, and wondered whether the business behind it is for sale. This one is not. The versions that are for sale carry an obligation the corporate chains never take on: a document stating a build cost with a low and a high, a fee schedule you can model, a unit count with three years of history behind it, and a sales table with a floor printed in it. Weigh that document against brand prestige before deciding the bigger name was the better business. [Compare the fitness franchises with a smaller entry cost](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) and check where the disclosed numbers land. We read Items 5, 6, 7, and 19 of the filing itself rather than the franchisor’s opportunity page. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is life time a franchiseLife Time Fitnessgym franchiseluxury fitnesscrunch fitness franchiseclub pilates franchiseitem 19 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Life Time franchise? No. Life Time sells no franchises anywhere in the United States, and it never has. Life Time Group Holdings develops, owns, and staffs each athletic club itself, which is why no Franchise Disclosure Document for the brand exists at any state registration office. Any site quoting a Life Time franchise fee or investment range invented the figure, because the company offers nothing for a prospective franchisee to buy. ### Who owns Life Time? Life Time Group Holdings, a publicly traded company listed under the ticker LTH. It operates a company-owned athletic resort model rather than a franchised one, and the last count we verified put the system at more than 160 athletic clubs as of mid-2021. Ownership sitting with public shareholders rather than a private family is one reason the franchising answer stays no: the company can fund new clubs from capital markets. ### Why doesn't Life Time franchise? Franchising solves a capital problem that a public company does not have. A franchisee funds the build, signs the lease, and carries the operating risk, and the franchisor collects a fee plus a royalty on revenue it never financed. A company with equity and debt market access can build the club itself and keep the entire club-level margin. The large amenity-heavy format also resists standardization across hundreds of independent owners in a way a small equipment-driven box does not. ### What is the closest thing to a Life Time franchise you can buy? Crunch, in the big-box category, and Gold's Gym for a full-service club. The 2026 Crunch FDD puts a Crunch Fitness club at $2,147,500 to $5,367,000 against a $35,000 initial franchise fee, a 5% royalty, and a 2% brand marketing fund. The 2025 Gold's Gym FDD, issued June 6 and amended October 30, puts total investment at $1,793,500 to $4,537,000. Neither one sells the athletic resort experience, and both exclude real estate from the disclosed investment range. ### Does Life Time publish club-level financials? No, and no public company does. Consolidated filings report revenue, membership figures, and margins for the entire portfolio, which tells you how the company is doing rather than how one club performs. An Item 19 in a franchise document does the opposite: it names a sample size, a measurement period, a definition of revenue, and usually a low performer. Crunch discloses a $2,848,462 middle-third median across 331 reporting franchised clubs. Nothing comparable exists for a corporate chain. --- title: "Is Dunkin' a Franchise? 9,963 of 9,999 Are (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is dunkin a franchise, dunkin franchise cost, donut franchise, coffee franchise, Inspire Brands, item 19, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-franchise about: is dunkin a franchise category: blog wordCount: 1835 readingTime: 9 min crawledAt: 2026-08-20 11:13:04 lastVerified: 2026-08-20 11:13:04 site: https://vetmyfranchise.com/c/claude/ --- # Is Dunkin' a Franchise? 9,963 of 9,999 Are (2026) ## Summary Yes, Dunkin' is a franchise. The 2026 FDD shows 9,963 franchised and 36 company-owned US restaurants, a $40,000 to $90,000 fee, and no territory. ## Key facts - Item 1 of the 2026 disclosure document puts it in one flat clause: the franchisor “has never operated a Dunkin’ Restaurant. - The recurring load is 10. - Nearly every article about this brand quotes a $40,000 franchise fee. - The other number that circulates without context is the investment range. - The counter says Dunkin’. Quick answer Yes. The 2026 FDD counts 9,999 Dunkin' restaurants in the United States, of which 9,963 are franchised and 36 are company-owned. The initial franchise fee runs $40,000 to $90,000 depending on the market, the royalty is 5.9% of gross sales, and the advertising fee is another 5.0%. ## The company that sells Dunkin’ franchises has never run one Item 1 of the 2026 disclosure document puts it in one flat clause: the franchisor “has never operated a Dunkin’ Restaurant.” That is not modesty. It is the shape of the business. As of December 28, 2025, the FDD counts 9,999 Dunkin’ restaurants in the United States, and 9,963 of them belong to franchisees. Thirty-six are company-owned, and Item 20 places every one of those in Ohio. So yes, Dunkin’ is a franchise, with an asterisk small enough to fit inside one state. Walk into a Dunkin’ anywhere in the country and the odds it is owned by a private operator rather than the corporation are better than 99 in 100. The trend line says the same thing. Item 20 shows company-owned outlets moving from 31 at the start of 2023 to 36 at the end of 2025, a gain of five restaurants in three years, while franchised standalone units went from 8,087 to 8,744. The corporation is not building a company fleet at any scale. Item 20 does project 10 new company-owned outlets in Ohio for the coming fiscal year, against 406 projected franchised openings, which leaves the ratio roughly where it has been. ## What the 2026 FDD charges | Term | 2026 FDD figure | | --- | --- | | Initial franchise fee, standard restaurant | $40,000 to $90,000 by market | | Continuing Franchise Fee (royalty) | 5.9% of gross sales | | Continuing Advertising Fee | 5.0% of gross sales, 2.5% at non-traditional locations | | Center Annual Subscription Fee | $340 per restaurant | | Franchise term | 20 years | | Renewal | 20 years, and none at all for non-traditional locations | | Territory | none, exclusive or otherwise | The recurring load is 10.9% of gross sales for a traditional restaurant, committed weekly and debited before rent, payroll, coffee, or debt service. That is a heavier ongoing stack than most quick-service brands charge, and it is the price of a system with roughly 10,000 US restaurants and the advertising weight that comes with them. ## The $40,000 fee is a floor, not a price Nearly every article about this brand quotes a $40,000 franchise fee. Item 5 is more specific. The fee for a standard Dunkin’ restaurant runs $40,000 to $90,000, sorted by the Nielsen designated market area your site falls into, across six Development Area Types. | Development Area Type | Examples named in Item 5 | Fee | | --- | --- | --- | | Type 1 | New York, Boston, Philadelphia, Providence, Hartford | $90,000 | | Type 2 | Chicago, Baltimore, Miami, Orlando, Tampa | $80,000 | | Type 3 | Cleveland, Pittsburgh, Jacksonville | $70,000 | | Type 4 | Atlanta, Washington DC, Phoenix, Nashville, Indianapolis | $60,000 | | Type 5 | Denver, Seattle, Portland, Salt Lake City, Boise | $50,000 | | Type 6 | all other US geographic areas | $40,000 | Read that ladder backwards and it tells you where the brand thinks its unit economics are strongest. The $40,000 number belongs to the markets Dunkin’ has the least density in. Item 5 also discloses that fees actually paid by franchisees during the 2025 fiscal year ranged from $0 to $90,000, because incentive programs can write the fee down to nothing in targeted territories. Gas station and convenience store restaurants pay a fee prorated by the length of the term. Self-service and non-traditional locations pay 50% of the applicable standard fee. A combo restaurant pays the Dunkin’ fee plus Baskin-Robbins’ separate $10,000. ## Four formats, four investment ranges The other number that circulates without context is the investment range. Item 7 does not have one range. It has four tables, and they describe different businesses. | Format | Item 7 total | | --- | --- | | Freestanding restaurant | $532,400 to $1,832,500 | | Shopping center or storefront | $443,000 to $1,333,500 | | Gas and convenience | $216,400 to $1,065,500 | | Non-traditional location | $142,000 to $862,500 | The headline span of $142,000 to $1.83 million welds the bottom of the smallest format to the top of the largest. Nobody buys that range. A freestanding build carries $180,000 to $600,000 of building costs and up to $350,000 of site development on top of the fee, and the freestanding table lists real estate costs as “Variable” rather than assigning them a number at all. A kiosk inside a hospital is a different capital decision with a different revenue ceiling. [Pull the full Dunkin’ Donuts Franchising LLC data sheet](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ## Who you actually sign with The counter says Dunkin’. The agreement says Dunkin’ Donuts Franchising LLC, a Delaware limited liability company formed on March 15, 2006 and headquartered at Three Glenlake Parkway in Atlanta. Item 1 names four parents above it. DB Master Finance LLC and DB Master Finance Parent LLC sit in the securitization structure that closed in 2015. Dunkin’ Brands, Inc. signed a management agreement under that transaction to perform the franchisor’s obligations under franchise and development agreements, and gets paid management fees for doing so. Inspire Brands, Inc. is the fourth, the multi-brand company formed in February 2018 out of the Arby’s and Buffalo Wild Wings merger, which now holds Arby’s, Buffalo Wild Wings, Jimmy John’s, Sonic, Dunkin’, and Baskin-Robbins. Two practical consequences. First, the entity you sue is not the entity most likely to be servicing you day to day, though the FDD is explicit that the franchisor stays accountable regardless of who performs the work. Second, a securitized franchisor has bondholders, and bondholders like royalty streams that grow. That is consistent with everything above: a company side that never expands and a franchised side that added 279 net restaurants in 2025 alone. Multi-brand is where the system is experimenting. Item 20 lists Dunkin’ restaurants co-located with Jimmy John’s, with Arby’s, and in two New York cases with both Baskin-Robbins and Jimmy John’s. Meanwhile the older combo format is shrinking: franchised Dunkin’ and Baskin-Robbins combo restaurants fell from 1,269 to 1,219 during 2025, a net loss of 50, in the same year standalone Dunkin’ units grew. ## No territory, at all Item 12 contains the sentence a prospective buyer should read twice. “You will not receive an exclusive territory. You also do not have any type of nonexclusive territory.” The franchisor reserves the right to operate or license others to operate Dunkin’ restaurants and competing concepts at locations of its choosing, including locations that draw from the same area as yours, plus the right to distribute the brand’s packaged products through the internet, mail, and other channels regardless of proximity to your restaurant. In a dense northeastern market that is not theoretical. Encroachment risk is the reason the density tiers in Item 5 exist and the reason a single-site buyer needs to price it. The document gives you no contractual defense against a second Dunkin’ two blocks away. ## What the disclosure does and does not tell you Dunkin’ publishes one of the largest financial performance representations in franchising. The 2026 Item 19 reports annual unit volumes for 7,010 franchised restaurants, with a median of $1,297,694 and an average of $1,372,069, and it breaks those out by quartile, by site type, and by drive-thru status. Our [breakdown of what those 7,010 units actually show](https://vetmyfranchise.com/c/claude/blog/dunkin-item-19-deep-dive) works through the quartile spread. Two labels matter more than the median. The figures are gross sales, and Note 4 states directly that they exclude cost of sales, operating expenses, and every other cost you would deduct to reach net income. And the sample is a survivor set: the FDD excludes 314 restaurants that opened during 2025, another 1,261 that were closed or reported no sales for extended periods, 111 self-serve units, and 25 part-time or seasonal locations, among other carve-outs. Those exclusions are disclosed and defensible. They also mean the median describes a stabilized restaurant, not your first year. One more disclosure worth flagging. Item 20 states that the franchisor has signed confidentiality agreements with some current and former franchisees as part of dispute settlements, and that not all of them will be able to speak openly with you. Build your validation call list knowing that. ## What to pull before you commit The status question has a clean answer and the buying question does not. If you are past the first one, our longer read on [whether Dunkin’ is a good franchise](https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-good-franchise) covers the operator profile the system is actually built for, and the [donut and bakery category ranking](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises) shows where the brand sits against the alternatives on capital. From the document itself, get four things. Item 5 for the fee tier that applies to your specific market rather than the one in the headline. Item 7 for the format you are actually building, footnotes included. Item 19 for the segment closest to your site type, not the all-restaurants median. Item 20 for the franchisee list, including the former franchisees, and call the ones who left. We read those items out of the filed FDD rather than a recruitment page, and the [Dunkin’ data sheet](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) is where our extraction of them lives. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Dunkin' numbers with you. We'll email you the **Dunkin' FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Dunkin' data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is dunkin a franchisedunkin franchise costdonut franchisecoffee franchiseInspire Brandsitem 19brand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Dunkin' a franchise or company owned? It is a franchise. The 2026 FDD reports 9,999 Dunkin' restaurants operating in the United States as of December 28, 2025, of which 9,963 are franchised and 36 are company-owned. Item 20 places every company-owned outlet in Ohio, and the company side grew by only five restaurants across the 2023 to 2025 fiscal years while franchisees added 657 standalone units. ### How much is a Dunkin' franchise fee? Between $40,000 and $90,000 for a standard restaurant, set by the Nielsen market your site sits in. Item 5 sorts markets into six Development Area Types. Type 1, which includes New York, Boston, Philadelphia, Providence, and Hartford, carries the $90,000 fee. The $40,000 figure quoted in most articles is Type 6, defined in the document as all other geographic areas in the US not named above. Non-traditional and self-service locations pay 50% of the applicable fee, prorated by term. ### Who owns Dunkin'? Item 1 names four parent companies: DB Master Finance LLC, DB Master Finance Parent LLC, Dunkin' Brands, Inc., and Inspire Brands, Inc. Inspire Brands is the multi-brand restaurant company that also holds Arby's, Buffalo Wild Wings, Jimmy John's, Sonic, and Baskin-Robbins. A 2015 securitization financing put a management agreement in place under which Dunkin' Brands performs the franchisor's obligations for a management fee, though the FDD states the franchisor remains accountable either way. ### Does Dunkin' give franchisees a territory? No. Item 12 states plainly that you will not receive an exclusive territory and that you also do not have any type of nonexclusive territory. The franchisor keeps the right to operate or license others to operate Dunkin' restaurants and other concepts wherever it chooses, including locations that draw customers from the same area as yours. That clause is the single most important sentence in the document for anyone underwriting a single site. ### Can you buy a single Dunkin' franchise? The document does not forbid it, but the structure points elsewhere. Dunkin' sells Development Agreements that commit a buyer to a schedule of openings inside a Development Area, and Item 20 lists 229 signed Dunkin' franchise agreements for outlets not yet open against 406 projected franchised openings in the next fiscal year. Item 15 does not require you to supervise on premises, though it warns that a new franchisee should expect to work a full shift every day early in the term. --- title: "Is Petco a Franchise? Ownership Explained (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is petco a franchise, pet franchise opportunities, pet supplies plus franchise, petland franchise, camp bow wow, item 19, Pet Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-petco-a-franchise about: is petco a franchise category: blog wordCount: 1869 readingTime: 9 min crawledAt: 2026-08-20 11:13:05 lastVerified: 2026-08-20 11:13:05 site: https://vetmyfranchise.com/c/claude/ --- # Is Petco a Franchise? Ownership Explained (2026) ## Summary Petco does not franchise its roughly 1,394 US stores. CVC and CPP control the company. Pet Supplies Plus franchises: $540,520 to $1,975,005 per the 2025 FDD. ## Key facts - The PetSmart answer and the Petco answer are the same word, and that word is no. - The ownership answer is odd enough to be worth stating plainly. - There is a second reason, and it sits in the arithmetic of the store rather than the cap table. - PSP Franchising, LLC has offered franchises under the Pet Supplies Plus mark since September 2010. - The other franchised pet retailer in our database is Petland, Inc. Quick answer No. Petco does not franchise. All of its roughly 1,394 US store locations are corporate, and the company trades publicly as WOOF while CVC Capital Partners and CPP Investment Board each hold about 50%. The franchised version of big-box pet retail is Pet Supplies Plus, with 502 franchised stores and a $2,496,071 median in its 2025 Item 19. ## Same question, same answer as PetSmart The PetSmart answer and the Petco answer are the same word, and that word is no. Neither big-box pet chain sells a retail franchise in the United States. Petco Health and Wellness Company ran roughly 1,394 US store locations as of August 2026, up from about 1,357 in an April 2026 count, and roughly 1,559 counting Mexico and Puerto Rico. Every US location is corporate. PetSmart and Petco do split on one point. PetSmart franchises exactly one thing, a veterinary hospital operating inside its stores, which we covered in [a separate post](https://vetmyfranchise.com/c/claude/blog/is-petsmart-a-franchise). Petco has no equivalent offering. There is no Petco franchise disclosure document filed anywhere, which means there is no fee, no Item 7 range, and no Item 19 to argue about. ## Who actually owns Petco The ownership answer is odd enough to be worth stating plainly. Petco trades on public markets under the ticker WOOF, so anyone can buy shares. Control is a different question: CVC Capital Partners and CPP Investment Board each hold about 50%, a pairing that goes back to the 2016 take-private and stayed intact through the return to the public market. That structure matters to a would-be franchisee for one reason. Sponsor-controlled retail is built to be sold whole, at a multiple applied to the whole system’s earnings. Franchising does the opposite. It converts store-level profit into a royalty stream and hands the operating margin, the hiring, and the local pricing to several hundred independent owners. A sponsor that spent years assembling a chain does not usually spend the next few years distributing it. ## Why the box itself resists franchising There is a second reason, and it sits in the arithmetic of the store rather than the cap table. A franchisor collects a royalty on gross sales, not on profit. That works when gross margin is high enough to absorb it. Big-box pet retail is mostly consumables, and dog food carries closer to grocery economics than restaurant economics. The clearest evidence comes from a franchisor that does operate in this category: Pet Supplies Plus reported an average annual gross margin of 38.0% across its reporting franchised stores, and it charges a royalty of 2.0% to 3.0%. Compare that to the 6% to 7% royalty typical of a service franchise. The retail model cannot carry a service-franchise royalty, and a franchisor that cannot charge one has a weaker reason to franchise at all. Petco’s own answer to that math was to add higher-margin services inside the store: grooming, training, and veterinary care. Those services only work as a system-wide offer if one operator sets the pricing, the protocols, and the staffing. Handing 1,394 of them to independent buyers would unpick the part that improves the margin. ## Pet Supplies Plus is the franchised version of the store you searched for PSP Franchising, LLC has offered franchises under the Pet Supplies Plus mark since September 2010. Its 2025 FDD counts 502 franchised stores and 233 company or affiliate stores at the end of 2024, 735 outlets in total, which makes it the closest thing to a buyable Petco that exists. The entry cost is $49,900, and there is a real waiver: convert an approved existing retail pet store and order all required signage at signing, and the fee goes away entirely. Total investment runs $540,520 to $1,975,005. Almost all of that spread lives in one line, leasehold improvements at $25,000 to $950,805, which is a way of saying your negotiation with the landlord decides your entry price more than the brand does. Inventory is another $170,000 to $290,000, and roughly 75% to 90% of it is bought from PSP Distribution, the franchisor’s own affiliate. The Item 19 covers 347 franchised stores that were open before January 1, 2024 and ran the full measurement period under the same owner, from January 1 to December 28, 2024. | Store age | Stores | Average annual gross sales | Median | Rent as % of sales | Labor as % of sales | | --- | --- | --- | --- | --- | --- | | 1 year | 37 | $1,693,451 | $1,688,265 | 10.4% | 19.2% | | 2 years | 34 | $2,082,112 | $2,085,636 | 8.2% | 18.7% | | 3 years | 33 | $2,366,665 | $2,321,758 | 7.4% | 16.5% | | 4 or more years | 243 | $2,937,419 | $2,806,907 | 6.4% | 13.3% | | All reporting stores | 347 | $2,666,693 | $2,496,071 | 6.9% | 14.4% | Read the two right-hand columns before the two left ones. A four-year store does not earn its way to health by getting better at buying. Gross margin actually falls as stores age, from 40.5% in year one to 36.9% at four-plus years. What changes is that rent, a fixed number of about $183,091 a year on average, stops being 10.4% of sales and becomes 6.4% of sales, and labor drops from 19.2% to 13.3% over the same span. This model gets profitable by growing into a lease it signed on day one. That puts the whole underwriting question on your sales ramp, and it explains why the first-year cohort averages $1,693,451 against $2,937,419 for the mature group. Then read the exclusions, because they all lean the same way. The 347 reporting stores exclude 19 that transferred during the year, 3 the franchisor reacquired, 8 that ceased operations, 3 that did not report fully, and 41 acquired from another system. Stores that closed or changed hands mid-year are precisely the ones a buyer wants in the sample. Individual store results ranged from $958,273 to $6,873,341, so the median is doing a lot of work. ## Petland franchises pet retail on a model Petco left behind The other franchised pet retailer in our database is Petland, Inc., and it sells something Pet Supplies Plus explicitly does not. PSP’s Item 1 describes selling small animals, birds, reptiles, and fish, but not dogs or cats. Petland’s stores sell puppies and kittens, and its newer Dream Tails format leans further into that. Petland’s 2026 FDD puts a store at $315,500 to $1,080,500 on a $50,000 franchise fee, with a royalty of 4.5% on your first and second stores dropping to 2.25% on the third and beyond. Its Item 19 reports on 65 franchised US stores open at least a year: a $2,816,216 median, a $2,879,482 average, and a range of $560,901 to $7,849,982. The 16 company-owned stores in the same document reported a $1,625,496 median, well below the franchised figure. Strong per-store revenue sits next to a shrinking footprint. US outlets went from 99 at the start of 2023 to 86 at the end of 2025, with company-owned stores falling from 27 to 17 across the same three years. When revenue per store looks healthy and the store count keeps sliding, the constraint is not customer demand. Any buyer looking at this format should check the live-animal retail rules in the specific state and municipality before signing a territory, and should ask the franchisor directly what closed the units that closed. We read Items 5, 7, and 19 out of the filed documents rather than repeating a franchise development page. [Start with the boarding and daycare rankings](https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises) if the retail numbers above look like more capital than you want to deploy. ## Services still hold the franchised money in pet care Retail is the smaller half of the franchised pet category. [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc), owned by Propelled Brands, disclosed 225 franchised camps and one company-owned camp as of December 31, 2025. A camp costs $954,606 to $1,229,536 on a $50,000 initial fee, with a royalty of 3.5% in year one and then the greater of 7% of net revenue or a minimum monthly royalty for the rest of the term. One line in that Item 7 deserves attention next to the Pet Supplies Plus ramp curve above: additional funds for the first three months of operations is $80,000. Three months of reserve on a build that can reach $1,229,536 is thin, and the PSP data is a useful warning about how long a facility-based unit takes to grow into its rent. The two brands are different businesses, but the ramp risk rhymes. Our [pet franchise industry analysis](https://vetmyfranchise.com/c/claude/blog/pet-franchise-industry-analysis) covers the rest of the category, including the mobile and grooming concepts that avoid the build-out problem entirely by not signing a lease. ## What to do with the answer The brand you searched for is not for sale, and no amount of digging will change that. What is for sale sits one aisle over. Pet Supplies Plus gives you a franchised store with a five-year operating history in its disclosure and a sales ramp you can model. Petland gives you higher median revenue on a format carrying regulatory questions the other two big-box chains chose not to carry. Camp Bow Wow gives you a services business with no retail inventory and a heavier royalty. All three published numbers. Petco published none, which is the whole answer. [Pull the Camp Bow Wow FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) and compare it against the retail figures above. We work from the filed Items 5, 7, and 19, not from a brand’s recruiting deck. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Psp Franchise Operations [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchise-operations-spv-llc) #### Psp [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) #### Woof Gang Bakery [Learn more →](https://vetmyfranchise.com/c/claude/franchise/woof-gang-bakery-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is petco a franchisepet franchise opportunitiespet supplies plus franchisepetland franchisecamp bow wowitem 19Pet Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Petco franchise? No. Petco sells no franchise of any kind, so there is no franchise disclosure document, no franchise development team, and no application to submit. Every US store is company operated. Search results quoting a Petco franchise cost are guessing at a number that has never existed, because a brand that does not franchise files nothing for anyone to quote. ### Who owns Petco? Petco Health and Wellness Company trades publicly under the ticker WOOF, and two sponsors control it: CVC Capital Partners and CPP Investment Board, each holding roughly 50%. The pairing dates back to the 2016 take-private and survived the return to public markets. A listed ticker with two sponsors holding that much of the company behaves closer to a private business with a quote attached. ### How many Petco stores are there? Roughly 1,394 US store locations as of August 2026, against about 1,357 in an April 2026 count, and about 1,559 including Mexico and Puerto Rico. All of the US locations are corporate. Store counts move as the company opens, closes, and relocates units, so treat any single figure as a snapshot rather than a fixed number. ### What pet retail franchises can you actually buy? Pet Supplies Plus and Petland are the two franchised pet retailers with disclosure documents in our database. Pet Supplies Plus runs a food and supplies store, costs $540,520 to $1,975,005 to open, and reported a $2,496,071 median across 347 franchised stores. Petland runs a live-animal store at $315,500 to $1,080,500 and reported a $2,816,216 median across 65 franchised US stores. ### How much does a Pet Supplies Plus franchise cost? The 2025 FDD estimates $540,520 to $1,975,005, including a $49,900 initial franchise fee. Inventory alone runs $170,000 to $290,000, of which roughly 75% to 90% goes to the franchisor's own distribution affiliate. The wide range comes almost entirely from leasehold improvements at $25,000 to $950,805, which depends on how much of the build your landlord absorbs. --- title: "Is KFC a Franchise? 99% Franchised, Explained (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is kfc a franchise, kfc franchise, yum brands, chicken franchise, item 19, QSR franchise, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-kfc-a-franchise about: is kfc a franchise category: blog wordCount: 1925 readingTime: 10 min crawledAt: 2026-08-20 11:13:04 lastVerified: 2026-08-20 11:13:04 site: https://vetmyfranchise.com/c/claude/ --- # Is KFC a Franchise? 99% Franchised, Explained (2026) ## Summary Yes, KFC is a franchise: 99% of the division is franchisee-run. Who the franchisor actually is, the $45,000 fee structure, and what Item 19 hides. ## Key facts - Three entities carry the KFC name in the disclosure document, and they do different jobs. - The $45,000 initial franchise fee is not a single check. - Item 7 publishes two totals rather than one. - The advertising line carries a schedule. - Most Item 19s report a median or an average. Quick answer Yes. KFC is franchised, and roughly 99% of the KFC Division's 34,747 restaurants are run by franchisees rather than the company. In the United States, the 2026 disclosure document counts 3,404 franchised outlets against 86 company-owned ones at fiscal year end 2025. The initial franchise fee is $45,000. ## Nine of every ten KFC restaurants sit outside the United States Yum! Brands reports its KFC Division at 34,747 units as of June 30, 2026, with 90% of them outside the United States and 99% of the division run by franchisees rather than the company. So the answer is yes, and KFC is one of the most heavily franchised systems in fast food. The complication for an American buyer is that almost none of that scale is domestic, and the document governing a US purchase describes a smaller system behaving very differently from the global one. That document is the 2026 [KFC US, LLC](https://vetmyfranchise.com/c/claude/franchise/kfc-us-llc) Franchise Disclosure Document. It counts 3,490 US outlets at the close of fiscal 2025 on December 29, 2025: 3,404 franchised, 86 company-owned. Every figure below comes from that filing, not a recruitment page. ## The franchisor is not the company on the sign Three entities carry the KFC name in the disclosure document, and they do different jobs. KFC US, LLC is the franchisor. It is a Delaware limited liability company formed on March 31, 2016 under the name KFC Franchisor, LLC, operating from 7100 Corporate Drive in Plano, Texas. KFC Corporation is its predecessor and intermediate parent, a Delaware corporation incorporated on February 11, 1971. It sold US franchises from March 1971 until May 2016, then handed that role over. It still manages the system day to day under a management agreement and operates all 86 company outlets, 14 of them KFC/Taco Bell multi-brand restaurants. Yum! Brands, Inc. is the ultimate parent, a North Carolina corporation incorporated on May 30, 1997. The document states plainly that Yum has never operated a KFC outlet nor offered a franchise for one. The franchise predates all three: Kentucky Fried Chicken Corporation began selling them in 1952. A separate document covers 29 non-traditional outlets in captive-audience venues, so airport and stadium counters run on a different contract than the one below. ## Getting one takes three separate agreements The $45,000 initial franchise fee is not a single check. Item 5 splits it across a Deposit Agreement and an Option Agreement, both signed before a franchise agreement exists. | Payment | Amount | What it does | | --- | --- | --- | | Deposit Fee | $20,000 | Due at the Deposit Agreement. Buys site review, refunded less any Impact Study Fee if KFC rejects the site | | Impact Study Fee | $6,000 | Charged when an existing franchisee requests a study on your proposed site. Never refundable | | Option Fee | $25,000 | Due at the Option Agreement. Buys the option to build. Only $22,500 comes back, and only if a zoning restriction kills it | Add a $3,000 per person training fee if you train inside a company outlet, plus $575 to $2,500 per person for background checks. A development agreement swaps the per-outlet fee for a development fee: $45,000 multiplied by the outlets you commit to open each development year, typically three years at three to twelve outlets a year. The disclosed range is $135,000 to $540,000, payable in installments and refundable under no circumstances. ## The investment range has two columns and gets quoted as one Item 7 publishes two totals rather than one. | Scenario | Low | High | | --- | --- | --- | | New ground-up outlet | $2,107,575 | $4,155,000 | | Remodel, reopen, or convert an existing building | $1,207,575 | $2,805,000 | Construction creates the gap. A ground-up restaurant carries $1,200,000 to $2,000,000 of building and site cost; remodeling a closed restaurant or converting another brand’s building runs $300,000 to $650,000. The rest is common to both: $300,000 to $1,200,000 for real property on a purchased site, $425,000 to $650,000 for equipment, signage, décor and technology, and $50,000 to $100,000 of working capital for three months. The $1,207,575 figure circulates widely as the price of a KFC. It is the floor of the conversion column. A new restaurant on land you acquire starts $900,000 above it, and KFC states that neither it nor its affiliates finance any part of the investment. [Pull the KFC US data sheet](https://vetmyfranchise.com/c/claude/franchise/kfc-us-llc) for the fee and investment lines read straight out of the filed document rather than summarized by a broker. ## What leaves the register every month | Recurring fee | Rate | | --- | --- | | Royalty, new outlet | 4% of gross revenue for Legacy Franchisees, 5% for everyone else | | Royalty, acquired outlet | the seller’s rate transfers, between 4% and 5.25% | | Royalty minimum | $1,440 per month, adjusted for inflation | | National Co-Op advertising | 5.8% of gross revenue during the Comeback Period | | Digital Fee | 3.1% of gross revenue from digital orders | | Technology Fee | $297.39 per outlet per month, capped at $3,000 | | One System Fund | $180 per outlet per month | The advertising line carries a schedule. The 5.8% rate applies during the Comeback Period established by the Comeback Agreement. After it ends and through December 31, 2028 the rate drops to 4.5% unless the National Co-Op approves otherwise, then reverts to 2% on January 1, 2029. Anyone underwriting the current 5.8% is underwriting the peak of a marketing push, which cuts both ways: the load falls later, and so does the spending behind it. The Digital Fee deserves a second read. Digital ordering is optional, so the 3.1% is technically elective, and roughly 90% of franchisees elect it. On a restaurant taking real volume through an app or an aggregator, that is another point of gross revenue stacked on the royalty and the co-op, before the aggregator takes its own cut. ## Item 19 does not say what a KFC earns Most Item 19s report a median or an average. KFC’s reports the accuracy of a forecasting model. KFC engaged Kalibrate to build a tool that projects net sales for a proposed location, and Item 19 grades the tool. The sample covers 2,227 single-brand outlets with a drive-thru, built or remodeled in the American Showman or Next Gen image, and open at least a year at fiscal year end 2025. Of those, 2,167 are franchisee-owned and 60 company-owned. The tool projected annual net sales of $545,000 to $3,151,000. Actual net sales ran from $387,000 to $3,379,000. The accuracy rate ranged from negative 54% to positive 93%, and 77% of projections landed within 22% of the real number. The exclusions matter as much as the sample. KFC leaves out 1,263 outlets open at year end that missed one criterion, plus the 156 franchised outlets that closed during fiscal 2025 after more than a year trading. Roughly a third of the open US system sits outside the only performance data KFC publishes, and every restaurant that failed last year sits outside it by definition. Nothing in the item addresses labor or food cost, and the document says as much. If your real question is whether the returns justify the capital, our [assessment of KFC as an investment](https://vetmyfranchise.com/c/claude/blog/is-kfc-a-good-franchise) works through the operator profile and the multi-unit development reality, and the [chicken category comparison](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises) puts this fee load beside brands that publish franchisee income statements. ## The franchised count has fallen three years running | Fiscal year | Franchised at start | Opened | Terminations | Franchised at end | | --- | --- | --- | --- | --- | | 2023 | 3,842 | 30 | 156 | 3,715 | | 2024 | 3,715 | 28 | 151 | 3,558 | | 2025 | 3,558 | 9 | 155 | 3,404 | Nine openings against 155 terminations in one year is the sharpest signal in the filing. Company-owned outlets moved the other way, from 46 at the start of 2023 to 86 at the end of 2025, largely through reacquisition: 34 outlets returned to the franchisor in Texas during 2024 and seven more in 2025. A system 97.5% franchised by count is not recruiting franchisees. It is losing them steadily while the parent absorbs a few pieces. Item 20 then projects 25 new franchised outlets for fiscal 2026 while reporting zero franchise agreements signed but not yet opened at December 29, 2025. An empty signed-but-unopened column makes that projection a plan rather than a backlog. One more disclosure belongs in any diligence file. KFC states that some current and former franchisees signed provisions restricting their ability to speak openly about the system. Build your validation list expecting people who cannot answer you. ## What the agreement asks of the buyer The term runs 20 years. Renewal costs $9,600, requires being current on every monetary obligation with no repeated breaches in the preceding 24 months, and may arrive on materially different terms than the original contract. Item 15 requires you or a fully trained unit manager to devote full time to the restaurant, and an entity owner must name a Control Person to direct its affairs. Every owner of 10% or more signs a personal guaranty, and each of their spouses signs a consent. The guaranty cap scales with the operation, from $250,000 for a single outlet to $5,000,000 for an operator running 81 or more. A guaranty schedule that runs to 81 outlets is not designed around a first restaurant. Buyers working with several hundred thousand dollars rather than several million will find [what a Wingstop costs](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost) closer to reachable, at a fraction of the build. Whichever brand you land on, read Item 5 for the fee and its refund conditions, Item 7 for the column matching your format, and Item 20 for who left last year. We read those out of the filed document, then hand you the questions to put to operators. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the KFC numbers with you. We'll email you the **KFC FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The KFC data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is kfc a franchisekfc franchiseyum brandschicken franchiseitem 19QSR franchisebrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is KFC a franchise or is it company-owned? KFC is overwhelmingly a franchise. Yum! Brands reports its KFC Division at 34,747 units globally with roughly 99% operated by franchisees. In the United States, the 2026 disclosure document counts 3,404 franchised outlets and 86 company-owned ones at the close of fiscal 2025, so about 97.5% of the domestic system is franchised. The company-owned count has grown for two straight years while the franchised count has fallen. ### Who is the KFC franchisor? KFC US, LLC, a Delaware limited liability company formed on March 31, 2016 and based in Plano, Texas. It was originally named KFC Franchisor, LLC. Its predecessor, KFC Corporation, sold US franchises from March 1971 until May 2016 and now provides management services and operates the 86 company outlets. The ultimate parent is Yum! Brands, Inc., which the document states has never operated a KFC restaurant or offered a franchise for one. ### What does the $45,000 KFC franchise fee buy? It buys site review and the option to build, in two payments across two contracts. A $20,000 Deposit Fee is due when you sign the Deposit Agreement and covers KFC's site approval process. A $25,000 Option Fee follows on the Option Agreement and grants the option to construct the restaurant. If KFC rejects the site, the deposit comes back less any $6,000 Impact Study Fee. If a zoning restriction beyond your control kills the deal, $22,500 of the option fee is refunded. ### Does KFC's Item 19 show how much a restaurant makes? No. KFC's Item 19 reports on a sales forecasting tool built by Kalibrate rather than on restaurant performance. It states that the tool projected annual net sales of $545,000 to $3,151,000 across 2,227 qualifying outlets, that actual net sales ran from $387,000 to $3,379,000, and that 77% of projections landed within 22% of the real figure. There is no median, no average, and no expense data of any kind. ### How long is a KFC franchise agreement? Twenty years, with renewal available for a $9,600 fee. Renewal also requires being current on all monetary obligations and free of repeated breaches in the preceding 24 months, and KFC states you may be asked to sign a contract with materially different terms than the original. Transferring to a new franchisee costs $9,600 for the first outlet and $4,800 for each additional outlet in the same transaction. --- title: "Is Cracker Barrel a Franchise? Ownership (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is cracker barrel a franchise, cracker barrel ownership, huddle house franchise, another broken egg franchise, breakfast franchise, company-owned restaurants, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-cracker-barrel-a-franchise about: is cracker barrel a franchise category: blog wordCount: 1523 readingTime: 8 min crawledAt: 2026-08-20 11:16:25 lastVerified: 2026-08-20 11:16:25 site: https://vetmyfranchise.com/c/claude/ --- # Is Cracker Barrel a Franchise? Ownership (2026) ## Summary No. Cracker Barrel operates all 656 of its stores and has never franchised. Huddle House and Another Broken Egg are the franchised breakfast alternatives. ## Key facts - Every Cracker Barrel pairs a full-service restaurant with a gift shop, and the two halves run on one set of books. - The country-breakfast segment is not closed. - The 2025 Huddle House FDD, amended February 12, 2026, prices a mainline traditional New Development Unit at $555,375 to $1,715,275 when the franchisee leases land and building and buys the equipment and signage. - The April 2026 Another Broken Egg FDD puts a single cafe at $792,500 to $1,804,000, with leasehold improvements of $450,000 to $1,100,000 doing most of the work in that range. - Nothing in the company’s public behavior suggests a franchise program is coming, and a chain that has stayed corporate all the way to a NASDAQ listing and 656 stores is not likely to reverse that to accommodate search volume. Quick answer No. Cracker Barrel has never franchised. Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and there is no Franchise Disclosure Document to read. The franchised alternatives in the same daypart are Huddle House at $555,375 to $1,715,275 and Another Broken Egg at $792,500 to $1,804,000. ## Cracker Barrel operates 656 stores and franchises none of them No. Cracker Barrel has never sold a franchise, and it does not sell one now. Cracker Barrel Old Country Store, Inc. trades on NASDAQ under CBRL and reported 656 company-operated stores across 43 states as of January 30, 2026, a figure that reached 657 by May 1, 2026. No Franchise Disclosure Document has ever been registered for the brand, so there is no fee schedule, no territory map, and no Item 19 sitting in a state registry waiting to be read. Most people typing this query want to own a country-store restaurant, not a stock certificate. That demand is real. It simply has to land somewhere else, and there are filed documents that show where. ## The retail floor is the part that does not hand off Every Cracker Barrel pairs a full-service restaurant with a gift shop, and the two halves run on one set of books. Franchising works by selling a repeatable operating system and charging a royalty simple enough to audit every week. Merchandising resists that arrangement. Buying, seasonal assortment, markdown timing, and shrink control get decided centrally and months ahead, and pushing those calls out to hundreds of independent owners means either giving up the merchandising or writing an agreement so prescriptive the owner is a manager with a personal guarantee attached. The company has never published a franchise-specific rationale we can quote, so treat that as inference drawn from how the business is built rather than a corporate position. What the company has done recently is subtract rather than add: Cracker Barrel sold Maple Street Biscuit Company. ## Three breakfast brands that do file an FDD The country-breakfast segment is not closed. It just runs under different signage, at investment levels that vary by roughly a factor of three depending on which document you open. | | Huddle House | Another Broken Egg | | --- | --- | --- | | FDD vintage | 2025, amended February 12, 2026 | April 20, 2026 | | Initial franchise fee | $35,000 traditional unit | $40,000 | | Estimated initial investment | $555,375 to $1,715,275 | $792,500 to $1,804,000 | | Royalty | 4.75% of net sales | 5% of gross sales | | Advertising | 3.5% fund plus 0.5% local | 1.75% currently, capped at 3% | | Franchised units | 212 | 68 | | Company units | 57 | 37 | | Item 19 franchised median | $783,206 across 205 units | $1,701,152 across 57 cafes | Two brands, two different businesses. [Huddle House](https://vetmyfranchise.com/c/claude/franchise/huddle-house-inc) is the structural twin to what Cracker Barrel searchers usually picture: a full-service restaurant serving all meals during all hours of operation, weighted toward small towns and highway sites. Another Broken Egg is a brunch cafe with an alcohol program and a check average to match. ## Huddle House shows you the whole floor, including the bottom of it The 2025 Huddle House FDD, amended February 12, 2026, prices a mainline traditional New Development Unit at $555,375 to $1,715,275 when the franchisee leases land and building and buys the equipment and signage. The Express design comes in at $394,830 to $1,251,775, and a Non-Traditional Unit inside a host facility runs $380,880 to $1,310,775. The fee tracks the format: $35,000 for a fifteen-year Standard Unit, $25,000 for Express, $15,000 for Non-Traditional, plus an $11,500 training fee due before construction starts. Item 19 is where the document earns its keep. Across 205 franchised restaurants in calendar year 2024, average net sales were $796,063 and the median was $783,206. The top restaurant did $2,083,161. The bottom did $83,633. | Calendar 2024 net sales, franchised units | Result | | --- | --- | | Average per unit | $796,063 | | Median | $783,206 | | Highest unit | $2,083,161 | | Lowest unit | $83,633 | | Units in sample | 205 | | Units above average | 94 (46%) | An $83,633 restaurant is not a rounding error in a 205-unit table, it is a real location that opened its doors every week and cleared less than a quarter of the median. Item 20 gives that number context: franchised outlets fell from 253 at the start of fiscal 2022 to 212 at the end of fiscal 2024, while company-owned units edged up from 51 to 57. A system contracting by 16% over three years is telling you something the sales table alone does not. Our [best food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) roundup covers the lighter-build end of the category, which is a different question from the one a full-service diner buyer is asking. VetMyFranchise reads Items 5, 7, and 19 out of the filed document rather than a brand’s recruiting page, which is why the [Huddle House data sheet](https://vetmyfranchise.com/c/claude/franchise/huddle-house-inc) leads with the low unit and not the high one. ## Another Broken Egg costs more and sells more The April 2026 Another Broken Egg FDD puts a single cafe at $792,500 to $1,804,000, with leasehold improvements of $450,000 to $1,100,000 doing most of the work in that range. The initial fee is $40,000, the royalty is 5% of gross sales, and the national advertising fund currently takes 1.75% with contractual room to reach 3%. A separate table covers a development agreement at $852,500 to $1,884,000, which is the number that gets misquoted as the cost of one cafe. As of December 28, 2025, the system counted 68 franchised cafes and 37 corporate ones. The fiscal 2025 sales table covers 57 franchised cafes that had operated at least twelve months, and it reports $1,749,656 average gross sales, a $1,701,152 median, and a range from $768,293 to $2,796,679. Corporate cafes in the same year averaged $1,444,969 across 35 locations, which is an unusual pattern: the franchisees outperformed the company stores by roughly $300,000 a unit. Read the segment labels before you get comfortable. The cost data in that document, 24.18% average cost of goods and 34.92% average labor, comes from the 35 corporate cafes only. The sales median comes from franchisees. Nobody is publishing a franchisee profit figure, and combining the two tables to build one is a substitution the FDD never invites. IHOP belongs in this conversation too, though its documents are harder to parse than the headline suggests. The brand franchises under more than one program, the Item 7 tables split by full-service, fast-casual, and quick-serve formats, and none of them estimate real estate at all. A franchisee comparing IHOP to Huddle House on totals is comparing a number that includes a building to one that does not. ## What to do if you wanted a Cracker Barrel Nothing in the company’s public behavior suggests a franchise program is coming, and a chain that has stayed corporate all the way to a NASDAQ listing and 656 stores is not likely to reverse that to accommodate search volume. The nearest cultural substitute is not available either: [Waffle House does not sell new franchises](https://vetmyfranchise.com/c/claude/blog/is-waffle-house-a-franchise) to the public, which leaves the segment’s real buying options in the two documents above. Start with the one that discloses the most. [Read the Another Broken Egg FDD analysis](https://vetmyfranchise.com/c/claude/franchise/another-broken-egg-of-america-franchising-llc), which breaks out Items 5, 7, and 19 line by line, including which cafes got excluded from the sales table and why. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is cracker barrel a franchisecracker barrel ownershiphuddle house franchiseanother broken egg franchisebreakfast franchisecompany-owned restaurantsFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Cracker Barrel franchise? No. Cracker Barrel has never offered franchises and has never registered a Franchise Disclosure Document. Every one of the 656 stores the company reported as of January 30, 2026 is company-operated, and the count reached 657 by May 1, 2026. Any site quoting a Cracker Barrel franchise fee or investment range is quoting a number with no filed document behind it. ### Who owns Cracker Barrel? Cracker Barrel Old Country Store, Inc. is a public company trading on NASDAQ under the ticker CBRL, so the shareholders own it and a board-appointed management team runs it. That is a different arrangement from a franchise system, where independent buyers own the units and pay royalties. Shares are the only way to hold a stake in the brand. ### What breakfast franchises can you actually buy? Huddle House, Another Broken Egg, and IHOP all file FDDs and sell franchises. Huddle House is the least expensive entry at $555,375 to $1,715,275 for a mainline traditional restaurant. Another Broken Egg runs $792,500 to $1,804,000 for a single cafe. IHOP franchises under more than one program, and the investment ranges vary widely by format and exclude real estate entirely. ### How much does a Huddle House franchise cost? The 2025 FDD, amended February 12, 2026, estimates $555,375 to $1,715,275 for a mainline traditional New Development Unit when you lease the land and building. The initial franchise fee is $35,000 for a fifteen-year Standard Unit, with a separate $11,500 training fee. The Express design runs $394,830 to $1,251,775 at a $25,000 fee, and a Non-Traditional Unit runs $380,880 to $1,310,775 at a $15,000 fee. ### How much do Another Broken Egg franchisees make? Median gross sales were $1,701,152 across 57 franchised cafes in fiscal 2025, against an average of $1,749,656 and a range running from $768,293 to $2,796,679. That is revenue, not profit. The document reports cost of goods at 24.18% and labor at 34.92% on average, but only for the 35 corporate cafes, so nothing in the filing tells you what a franchisee kept. --- title: "Is Dairy Queen a Franchise? Berkshire's Chain (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is dairy queen a franchise, dairy queen franchise cost, ice cream franchise, QSR franchise, item 19, Berkshire Hathaway, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-dairy-queen-a-franchise about: is dairy queen a franchise category: blog wordCount: 1910 readingTime: 10 min crawledAt: 2026-08-20 11:18:06 lastVerified: 2026-08-20 11:18:06 site: https://vetmyfranchise.com/c/claude/ --- # Is Dairy Queen a Franchise? Berkshire's Chain (2026) ## Summary Yes, Dairy Queen is a franchise. Berkshire Hathaway owns the franchisor. 2026 FDD: $45,000 fee, $1.51M–$2.55M investment, $1,413,799 median sales. ## Key facts - American Dairy Queen Corporation is a Delaware corporation incorporated in 1962, run out of Bloomington, Minnesota. - Two lines deserve a slower read. - Item 20 shows the directly licensed franchised count going from 1,970 at the start of 2025 to 1,983 at the end, on 38 openings against 24 terminations and one non-renewal. - This is not an owner-operator brand in the strict sense, and the distinction costs money. - The public answer to “is Dairy Queen a franchise” is one word. Quick answer Yes. American Dairy Queen Corporation franchises DQ Grill & Chill restaurants, and it reported 1,983 directly licensed franchised outlets against 2 affiliate-owned restaurants at the end of 2025. The 2026 FDD puts one restaurant at $1,510,100 to $2,550,100 excluding land, on a $45,000 franchise fee and a 4% continuing license fee. ## Berkshire Hathaway owns the franchisor, not the restaurants American Dairy Queen Corporation is a Delaware corporation incorporated in 1962, run out of Bloomington, Minnesota. Item 1 of its 2026 disclosure document states that ADQ is a wholly owned subsidiary of International Dairy Queen, Inc., which is itself a wholly owned subsidiary of Berkshire Hathaway, Inc. Berkshire has held the business since 1998. That chain matters more than it looks. Berkshire owns a trademark and a fee stream. The restaurants belong to other people. ADQ operated no company-owned DQ Grill & Chill restaurants as of the March 26, 2026 issuance date of the current FDD, and an affiliate called DQ Training Restaurants, LLC owns two of them in Minnesota, one doubling as a training facility. Set that against 1,983 directly licensed franchised outlets at the end of 2025 and the corporate presence rounds to zero. One scoping note. This is the DQ Grill & Chill FDD. Texas restaurants sell a different menu under a separate disclosure document, 524 of them at the end of 2025, and DQ Treat locations, 743 of them, run their own program. Item 1 puts the global system above 7,880 restaurants and stores, none of which the tables below describe. ## What ADQ charges to open a DQ Grill & Chill | Term | 2026 DQ Grill & Chill FDD | | --- | --- | | Initial franchise fee | $45,000, including a $10,000 nonrefundable deposit with the application | | Continuing license fee | 4% of gross sales | | Sales promotion program fee | 5% to 6% of gross sales, set by ADQ within that range | | Total initial investment | $1,510,100 to $2,550,100, land excluded | | Land if purchased | generally $250,000 to $800,000 | | Agreement term | 20 years, renewable once for the shorter of 10 years or the remaining lease | | Renewal fee | $22,500 | | Transfer fee | $6,000, rising $500 every five years from January 1, 2030 | | Exclusive territory | none granted | Two lines deserve a slower read. The recurring load is 9% to 10% of gross sales, and the variable half is not yours to model. Item 6 gives ADQ the right to set the sales promotion percentage anywhere in that range without regard to what other operators pay, on 90 days of notice. At the disclosed median, that single point of discretion is worth about $14,000 a year. The second is working capital. Item 7 budgets $51,000 to $198,000 of additional funds for three months, on a project that starts at $1.51 million before land. Fifty-one thousand dollars of reserve against a build that size is thin, and a slow ramp lands on your balance sheet. ADQ also tells you what lenders will want: a 20% equity position on leasehold improvements and possibly 25% on equipment. The build is prescriptive. The two current freestanding prototypes need lots of at least 25,830 and 32,026 square feet, and equipment with signage and point-of-sale hardware runs $550,000 to $700,000 of the total on its own. [Pull the American Dairy Queen data sheet](https://vetmyfranchise.com/c/claude/franchise/american-dairy-queen-corporation) if you want Items 5, 7, and 19 lined up in one place. We read the filed document, not the recruitment page. Schedule A of the 2026 Item 19 reports median annual gross sales of $1,413,799 for calendar 2025. The number is real and narrow. Every restaurant in it was newly constructed, freestanding, developed under ADQ’s new or additional restaurant development programs, first opened between January 1, 2015 and December 31, 2024, reporting sales for all twelve months, and franchisee owned and operated. The exclusions are the interesting part. Out go Texas restaurants, existing DQ restaurants that converted or remodeled into the Grill & Chill format, units inside fuel centers and malls and ferry terminals, and anything opened under a territory operator’s agreement. What remains is 286 restaurants out of 1,983 directly licensed franchised outlets, roughly one in seven, and the newest purpose-built seventh at that. For someone building a new restaurant that is arguably the right comparison set. For anyone reading it as what a Dairy Queen does, it is not. | Year | Average gross sales | Median | High | Low | Restaurants in sample | | --- | --- | --- | --- | --- | --- | | 2022 | $1,379,954 | $1,334,529 | $3,135,208 | $528,543 | 248 | | 2023 | $1,417,964 | $1,368,130 | $3,336,388 | $568,696 | 282 | | 2024 | $1,446,870 | $1,374,380 | $3,381,809 | $583,730 | 313 | | 2025 | $1,485,731 | $1,413,799 | $3,148,939 | $601,647 | 286 | Inside one year and one tightly defined cohort, one restaurant did $601,647 and another did $3,148,939, and 44% cleared the average. Deflate the four-year climb for menu inflation before you lean on it. Schedule B adds cost lines, and this is where to slow down. For 2025 it covers 16 restaurants. Not 286. Sixteen, down from 203 the year before, because ADQ drops any restaurant that did not submit twelve full months of profit and loss data or whose statements varied from reported sales by 3% or more. Its own footnote then says 318 Schedule A restaurants were excluded in 2025, a figure that cannot be reconciled with a qualifying sample of 286. Ask about that in person. Those 16 restaurants averaged manageable profit of 27.31% of sales. Read the definition first. Manageable profit is struck after cost of goods, labor, and restaurant controllables, and before occupancy, insurance, legal and accounting, the continuing license fee, and the sales promotion fee. At the disclosed median the franchisor’s share alone is roughly $127,000 to $141,000 a year that this figure has not yet paid, before rent and debt service. ## The 2025 growth number is mostly restaurants changing columns Item 20 shows the directly licensed franchised count going from 1,970 at the start of 2025 to 1,983 at the end, on 38 openings against 24 terminations and one non-renewal. After two years of plus two, that reads like a turn. The footnote undoes most of it. Of those 38 openings, 20 were conversions from another DQ concept, acquisitions of a territory operator’s rights in existing store agreements, or a company-owned outlet moving to a direct license. Eighteen were new buildings on new corners. Against 25 departures, the directly licensed system opened fewer restaurants than it lost. The second ledger confirms it. Subfranchised outlets under territory operator agreements fell from 567 to 543 during 2025. Arizona is the clean case: 15 subfranchised Arizona outlets went to zero in the same year the directly licensed Arizona count rose from 35 to 50 on 15 openings. Those restaurants changed paperwork rather than addresses. Add both ledgers and the reported Grill & Chill and Brazier footprint went from 2,538 outlets to 2,528. Set 38 openings beside 116 transfers of existing restaurants between franchisees, plus 33 more on the territory operator side. The resale market moves roughly four times as many Dairy Queens as construction does, and it makes the better first purchase, because a trading restaurant hands you three years of profit and loss statements instead of a projection. ## What ADQ asks of the owner This is not an owner-operator brand in the strict sense, and the distinction costs money. Item 15 requires a Controlling Owner holding 51% or more of the entity, but that person does not have to run the restaurant day to day. What you must have is one designated manager and two assistant managers who completed ADQ’s training, devote full time to on-premises management, and are barred from any involvement in another business. Three trained salaried people sit in the model before you take a dollar out. Item 12 is blunt: “You will not receive an exclusive territory.” The grant is one restaurant at one approved address, and you may face competition from other franchisees and from channels ADQ controls. A relocation policy lets a qualifying street location move within two miles without a new franchise fee, and that is the extent of the geographic protection. Multi-unit buyers use the MultiTRA program, offered to entities rather than individuals. The reservation fee is $22,500 per committed restaurant, credited back against each franchise fee as you develop, and missing a deadline on the commitment schedule lets ADQ terminate unless you open within 30 days or pay the late restaurant’s full fee to buy six more months. Staffing scales at one full-time supervisor per eight locations. ## What to pull before you sign The public answer to “is Dairy Queen a franchise” is one word. The useful answer lives in four items. Read Item 5 for the fee and the conditions that reduce or refund it, Item 7 for the format you are actually building and the footnotes defining each row, Item 19 for which slice of the system the sales figures describe, and Item 20 for who left last year and why. Then call operators from Exhibit J, including the ones who sold. Our [ranking of ice cream and frozen yogurt franchises](https://vetmyfranchise.com/c/claude/blog/best-ice-cream-frozen-yogurt-franchises) shows the same category at a fraction of the capital, and the scoop-shop model behind [Ben & Jerry’s](https://vetmyfranchise.com/c/claude/blog/is-ben-and-jerrys-a-franchise) answers the same status question off a very different balance sheet. If $1.5 million is out of range, the [food franchises that open under $250,000](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) are a more honest starting point than a Dairy Queen you would have to overleverage. [The American Dairy Queen file](https://vetmyfranchise.com/c/claude/franchise/american-dairy-queen-corporation) carries the 2026 Items 5, 7, and 19 as disclosed, with the sample definitions attached to the numbers rather than stripped off them. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Dairy Queen numbers with you. We'll email you the **Dairy Queen FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Dairy Queen data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is dairy queen a franchisedairy queen franchise costice cream franchiseQSR franchiseitem 19Berkshire Hathawaybrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Dairy Queen a franchise or a corporate chain? Dairy Queen is a franchise. American Dairy Queen Corporation, the franchisor, operated no company-owned DQ Grill & Chill restaurants as of its March 26, 2026 disclosure document, and an affiliate owns just two of them in Minnesota. Against 1,983 directly licensed franchised outlets at the end of 2025, the corporate footprint inside this concept is close to nothing. Older territory operator agreements add another layer, with 543 subfranchised outlets running under agreements ADQ does not license directly. ### How much does a Dairy Queen franchise cost? The 2026 DQ Grill & Chill FDD estimates $1,510,100 to $2,550,100 for a single new restaurant, and that total excludes land. The initial franchise fee is $45,000, of which $10,000 is a nonrefundable deposit due with the application. Item 7 puts building and construction at $800,000 to $1,400,000 and equipment including signage and point-of-sale at $550,000 to $700,000. If you buy the land, the document adds a further $250,000 to $800,000 depending on the market. ### How much does a Dairy Queen make? The 2026 Item 19 reports median annual gross sales of $1,413,799 for 2025 across 286 restaurants, with an average of $1,485,731. The range inside that same sample runs from $601,647 to $3,148,939, and only 44% of those restaurants met or exceeded the average. Gross sales are not profit. The document's manageable profit figures stop before occupancy costs, insurance, the continuing license fee, and the sales promotion fee are deducted. ### Does Berkshire Hathaway own Dairy Queen? Yes, through two layers. Item 1 of the 2026 FDD states that American Dairy Queen Corporation is a wholly owned subsidiary of International Dairy Queen, Inc., which is a wholly owned subsidiary of Berkshire Hathaway, Inc. of Omaha. Berkshire has held the business since 1998. What Berkshire owns is the trademark and the fee stream, since almost every restaurant carrying the sign belongs to an independent franchisee. ### Can you buy a Dairy Queen franchise in Texas? Yes, but under a different disclosure document. Item 1 explains that Texas DQ restaurants carry a separate food menu called Texas Country Food for historical reasons, and are offered under their own FDD with 524 locations operating at the end of 2025. Every figure in the DQ Grill & Chill document, including the Item 19 sales tables, explicitly excludes Texas restaurants. A Texas buyer needs the Texas document. --- title: "Is 24 Hour Fitness a Franchise? New Owner (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is 24 hour fitness a franchise, 24 Hour Fitness, Anytime Fitness, gym franchise, Fitness & Wellness franchise, item 19, franchise royalty structure canonical: https://vetmyfranchise.com/c/claude/blog/is-24-hour-fitness-a-franchise about: is 24 hour fitness a franchise category: blog wordCount: 1914 readingTime: 10 min crawledAt: 2026-08-20 11:16:24 lastVerified: 2026-08-20 11:16:24 site: https://vetmyfranchise.com/c/claude/ --- # Is 24 Hour Fitness a Franchise? New Owner (2026) ## Summary No. 24 Hour Fitness is corporate, bought by LongRange Capital with founder Mark Mastrov in January 2026. The franchised 24/7 gym is Anytime Fitness. ## Key facts - In January 2026 LongRange Capital acquired 24 Hour Fitness, and Mark Mastrov, who founded the chain, came back with the deal. - Two gym brands promise the same thing in their names and sit on opposite sides of the franchise line. - The range assumes a 4,000 to 7,000 square foot vanilla shell, base rent of $19. - Anytime Fitness does not charge a percentage royalty. - Averaged across all 1,683 centers, membership fees contribute $341,503, coaching $73,710, and pay-per-visit fees $31,976. Quick answer No. 24 Hour Fitness is corporate-owned and is not marketed as a franchise opportunity, so no Franchise Disclosure Document exists for it. LongRange Capital acquired the chain in January 2026 with founder Mark Mastrov returning. The franchised 24/7 gym is Anytime Fitness, at $539,329 to $905,482 per its 2026 FDD. ## 24 Hour Fitness is corporate, and its founder just bought it back In January 2026 LongRange Capital acquired 24 Hour Fitness, and Mark Mastrov, who founded the chain, came back with the deal. Nothing in that transaction created anything to buy. The clubs stay company-operated, the brand is not marketed as a franchise opportunity, and no Franchise Disclosure Document for 24 Hour Fitness exists at any state registration office. So there is no initial fee, no Item 7 build range, no royalty rate, and no Item 19 sales table. Our [LA Fitness answer](https://vetmyfranchise.com/c/claude/blog/is-la-fitness-a-franchise) covers why the big-box chains stay on their own balance sheets. This post handles the other half of the confusion, the brand people usually mean when they type this question. ## The franchise you are thinking of is Anytime Fitness Two gym brands promise the same thing in their names and sit on opposite sides of the franchise line. Anytime Fitness Franchisor LLC is a Delaware company formed on October 25, 2021, based in Woodbury, Minnesota, that began offering franchises that November. Item 1 of its 2026 FDD describes an access and security system developed through an affiliate that lets a member enter any Anytime Fitness center 24 hours a day, with reciprocal benefits between centers. The round-the-clock promise carried by the words “24 Hour” therefore belongs, contractually, to the franchised brand. It also comes with obligations a member never sees. Franchisees must staff the center a minimum number of hours per week and must offer group training, coaching, and personal training, and the franchisor reserves the right in limited cases to allow a center that is not accessible around the clock. Ownership shifted on that side too. On April 2, 2024 the franchisor became an indirect wholly owned subsidiary of Purpose Brands Holdings, LLC, which also sits above Orangetheory, The Bar Method, Basecamp Fitness, and Waxing the City. The difference from the 24 Hour Fitness sale is procedural and it matters. A change of control at a franchisor gets written into Item 1 of the document every prospective buyer receives, along with the litigation and bankruptcy history of the new parents. The January 2026 purchase published none of that. ## What an Anytime Fitness center costs to open | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $42,500 | $42,500 | | Travel and training expenses | $1,500 | $2,425 | | Leasehold improvements | $170,280 | $417,300 | | Three months rent plus security deposit | $33,500 | $58,700 | | Construction management fees | $0 | $12,500 | | Architect and design fees | $12,825 | $26,075 | | Fitness equipment | $139,873 | $157,936 | | Technology package from ProVision | $37,857 | $45,462 | | Supplies | $3,500 | $3,800 | | Interior and exterior signs | $14,250 | $36,900 | | Miscellaneous opening costs | $6,750 | $7,910 | | Pre-sale and grand opening advertising | $11,000 | $23,000 | | Insurance and bond | $2,900 | $3,450 | | Furniture and fixtures | $15,200 | $18,330 | | Additional funds, three months | $47,394 | $49,194 | | Total | $539,329 | $905,482 | The range assumes a 4,000 to 7,000 square foot vanilla shell, base rent of $19.08 per square foot plus $6.05 of CAM, and a single month of rent as security deposit. One footnote is worth more than most of the table. Franchisees received an average tenant improvement allowance of $27.23 per square foot in 2025, on a range from $0 to $75. Across a 5,500 foot build, that spread is worth roughly $412,000 between the worst and the best lease signed in a single year, which exceeds the entire gap between the low and high totals above. The headline fee is $42,500, though the schedule underneath it has six columns. Existing franchisees pay $37,500, veterans $38,250, veterans who are existing franchisees $33,750, and members of the franchisor’s Club Purple and Club Platinum programs pay $27,500 and $22,500. Fees actually collected during 2025 ranged from $22,500 to $42,500. Every discount runs to operators who already own centers, so a first-time single-unit buyer pays the top of the range. The [Anytime Fitness cost breakdown](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) works through the multi-unit math behind those columns. [Pull the full Anytime Fitness Franchisor data sheet](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) ## The flat monthly fee is the whole story Anytime Fitness does not charge a percentage royalty. Item 6 sets a Monthly Fee of $842 per center, adjusted every January for CPI, plus $900 a month to the General Advertising and Marketing Fund and a Base Technology Fee of $799, also monthly, that can rise 10% a year, compounded and cumulative. That comes to $2,541 a month, or $30,492 a year, owed whether the center sells a membership or not. A required local marketing spend of $600, $800, or $1,000 per month by market tier lifts the annual fixed load to somewhere between $37,692 and $42,492. Run that against the disclosed revenue and the design becomes clear. The $10,104 of annual royalty is 2.5% of the $398,982 median center, 0.5% of the $2,048,737 top center, and 11.2% of the $90,337 weakest one. A flat fee rewards volume and lands hardest on the clubs least able to absorb it, which is the opposite of how a percentage royalty behaves. Then there is the clause underneath. The franchisor reserves the right, on 30 days notice, to replace the fixed Monthly Fee with a percentage-based royalty of up to 8% of Gross Revenue, including retail, personal training, nutrition, and recovery revenue. Applied to the median center that moves royalty from $10,104 to $31,919. Applied to the top center it moves from $10,104 to $163,899. The right has not been exercised, and it is disclosed rather than hidden, but a ten-year model built on the flat structure should carry a second column showing the same club under 8%. ## The quartile table is where the useful detail sits | Quartile | Centers | Median revenue | Average revenue | | --- | --- | --- | --- | | Fourth | 420 | $674,846 | $746,996 | | Third | 421 | $456,382 | $461,057 | | Second | 421 | $346,167 | $346,746 | | First | 421 | $241,939 | $233,169 | | All centers | 1,683 | $398,982 | $446,814 | Averaged across all 1,683 centers, membership fees contribute $341,503, coaching $73,710, and pay-per-visit fees $31,976. Split by quartile, membership revenue between the top and bottom groups differs by a factor of 2.9, while coaching revenue differs by a factor of 6.9, from $146,601 down to $21,288. What separates a strong center from a weak one in this system has more to do with whether the owner sells training than with how many people badge in. The average center carried 660 monthly members and the median 593, with the top quartile averaging 995 and the bottom 411. Dividing average revenue by average membership gives roughly $677 per member per year, about $56 a month, though that is a ratio of two averages rather than a figure any club reports. The sample deserves a look before the numbers do. The 1,683 centers are those open the entire 12 months ended February 28, 2026 that used AF Coaching and reported coaching revenue to the franchisor. There were 2,269 franchised centers on that date, and 66 more closed permanently during the same period, one of them after less than 12 months of operation. So the table describes about three quarters of the system, filtered on a criterion that correlates with the revenue stream doing the most to separate the quartiles. Enrollment fees and vending income sit outside the figures entirely. ## The company-owned statement, and its label Section III of Item 19 does what the franchised tables cannot, which is show expenses. Eleven company-owned centers averaged $521,854 of revenue against $325,670 of operating expenses, leaving $196,183 of net operating income before manager salary, interest, taxes, depreciation, and amortization, a 37.59% margin. Take out a $46,563 manager salary and EBITDA lands at $149,620, or 28.67%. The label carries as much weight as the margin. Those 11 centers sit in Illinois and Minnesota, they average $521,854 against a franchisee median of $398,982, and the expense lines are adjusted rather than actual. Local advertising was raised to what a franchisee would owe because the company centers spent less. Insurance is a flat $3,200 quoted by the insurer. Recovery and nutrition revenue was stripped out because most franchised centers do not sell it. The result is the most detailed cost stack in the document, describing stores the franchisor owns and staffs itself. ## The trend line to bring to validation calls Item 20 counts 2,318 franchised centers at the start of 2023, 2,298 at the end of it, 2,290 at the end of 2024, and 2,271 at the end of 2025, against 11 company-owned centers. Three consecutive years of net decline in a system this large belongs on the call list rather than in a footnote. Ask franchisees who bought in the last three years whether the flat fee held and what the technology escalator has done to their monthly nut. None of those questions can be asked about 24 Hour Fitness, because there is no franchisee to call and no document to check. Mastrov’s return is a real story. It changes nothing a prospective operator can underwrite, because outsiders were never party to the numbers. [Compare the fitness brands that fit a smaller budget](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). We read Items 5, 6, 7, and 19 of the filed document rather than the franchisor’s opportunity page. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is 24 hour fitness a franchise24 Hour FitnessAnytime Fitnessgym franchiseFitness & Wellness franchiseitem 19franchise royalty structure About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a 24 Hour Fitness franchise? No. 24 Hour Fitness operates its clubs corporately and does not market a franchise opportunity, which means no Franchise Disclosure Document for the brand sits at any state registration office. There is no initial fee to quote, no Item 7 investment range, and no Item 19 sales table. Any page publishing a 24 Hour Fitness franchise cost is inventing the number. ### Who owns 24 Hour Fitness? LongRange Capital, which acquired the chain in January 2026 alongside Mark Mastrov, the founder of the company, who returned with the deal. The transaction was private, so it carried no obligation to publish unit economics, club-level revenue, or the terms of the purchase. A franchisor changing hands has to write the new ownership chain into Item 1 of its next disclosure document. A corporate chain owes that disclosure to nobody. ### Is Anytime Fitness the same as 24 Hour Fitness? No, they are separate companies with similar-sounding promises. Anytime Fitness is franchised, and Item 1 of its 2026 FDD describes an affiliate-built access system that lets a member enter any Anytime Fitness center 24 hours a day with reciprocal benefits between centers. The round-the-clock model that the 24 Hour Fitness name suggests is contractually the franchised brand's, which is why the two get confused in search. ### How much does an Anytime Fitness franchise cost? The 2026 FDD estimates $539,329 to $905,482 for a 4,000 to 7,000 square foot center on a vanilla shell lease. That includes a $42,500 initial franchise fee, $170,280 to $417,300 of leasehold improvements, $139,873 to $157,936 of fitness equipment, a $37,857 to $45,462 technology package bought from affiliate ProVision, and $47,394 to $49,194 of additional funds covering three months. Initial fees actually collected in 2025 ranged from $22,500 to $42,500 depending on veteran status, existing-franchisee status, and multi-unit commitments. ### How much revenue does an Anytime Fitness center generate? The 2026 Item 19 reports a $398,982 median and a $446,814 average across 1,683 franchised centers for the 12 months ended February 28, 2026. The quartile medians run $674,846, $456,382, $346,167, and $241,939 from top to bottom. The strongest center did $2,048,737 and the weakest did $90,337. The figures cover membership, coaching, and pay-per-visit revenue only, and exclude one-time enrollment fees and vending income. --- title: "Is PetSmart a Franchise? Pet Franchise Options (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is petsmart a franchise, pet franchise opportunities, petsmart veterinary services, camp bow wow, dog daycare franchise, item 19, Pet Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-petsmart-a-franchise about: is petsmart a franchise category: blog wordCount: 1638 readingTime: 8 min crawledAt: 2026-08-20 11:16:39 lastVerified: 2026-08-20 11:16:39 site: https://vetmyfranchise.com/c/claude/ --- # Is PetSmart a Franchise? Pet Franchise Options (2026) ## Summary PetSmart does not franchise its 1,694 stores. The only PetSmart franchise is an in-store vet hospital at $160,650 to $497,500 per the 2026 FDD. ## Key facts - None of PetSmart’s 1,694 retail stores is a franchise, and the cleanest evidence sits inside a franchise disclosure document PetSmart itself files. - BC Partners took PetSmart private for roughly $8. - PetSmart Veterinary Services, LLC was formed in Delaware in March 2022 and began offering franchises that May. - The 2026 FDD carries the brand’s first Item 19: 23 franchised hospitals reported fiscal 2025 Hospital Revenue with a median of $826,432. - The franchised money in the pet category is in services. Quick answer No. None of PetSmart's 1,694 retail stores is franchised. BC Partners took the chain private for about $8.7 billion in 2015 and remains the majority owner. Petco does not franchise either. The one franchise sold under the PetSmart name is PetSmart Veterinary Services, an in-store vet hospital costing $160,650 to $497,500. ## PetSmart’s own disclosure document says it has never franchised a store None of PetSmart’s 1,694 retail stores is a franchise, and the cleanest evidence sits inside a franchise disclosure document PetSmart itself files. PetSmart Veterinary Services, LLC, a subsidiary of PetSmart LLC, tells prospective buyers in Item 1 of its 2026 FDD that its sole business activity is franchising veterinary hospitals, and that “\[n\]either we nor our affiliates have ever offered franchises in any other line of business.” That single sentence closes the question a lot of search results dance around. The store is not for sale. The vet clinic inside it is. The same Item 1 reports the store count: PetSmart LLC operated 1,694 retail locations across the United States, Canada, and Puerto Rico as of its fiscal year end on February 1, 2026. Every one of them is corporate. ## Who owns PetSmart, and why the answer stays no BC Partners took PetSmart private for roughly $8.7 billion in 2015 and remains the majority owner. Private equity ownership and franchising rarely mix at the retail level, because the two models pull in opposite directions. A franchisor sells territory rights and collects a royalty. A sponsor-owned retailer keeps every store’s full margin and the option to sell the chain whole. Handing 1,694 store P&Ls to independent owners would fragment exactly the asset a buyer would be paying for. [Petco follows the same pattern](https://vetmyfranchise.com/c/claude/blog/is-petco-a-franchise) for the same reason. Neither big-box chain has ever operated a US retail franchise program, which is why “Petco franchise cost” and “PetSmart franchise cost” queries land on aggregator pages rather than an application. ## The one PetSmart franchise is a vet hospital inside the store PetSmart Veterinary Services, LLC was formed in Delaware in March 2022 and began offering franchises that May. The product is a full-service veterinary hospital, including urgent care, occupying a designated space inside a specific PetSmart store. As of February 1, 2026, 43 of the vet hospitals inside PetSmart stores were PVS franchises. Another 656 were Banfield locations and 18 were independent operators under their own names, so PVS was built to fill stores that Banfield had not taken. The economics look unusual next to a normal retail franchise, because the franchisor builds the space. | Term | PetSmart Veterinary Services | Camp Bow Wow | | --- | --- | --- | | Initial fee | $10,000 (uniformly charged in the last fiscal year) | $50,000 ($25,000 for veterans and first responders) | | Total investment | $160,650 to $497,500 | $954,606 to $1,229,536 | | Royalty | 2% to 3.5%, tiered by revenue | 3.5% in year one, then 7% or a monthly minimum | | Brand or ad fund | Up to 2.5%, currently 1.5% | 1% up to a 3% cap, plus 3% local | | Build-out | Franchisor builds and owns the equipment | Franchisee funds $516,735 to $663,917 of improvements | | Term | 10 years, or the remaining PetSmart store lease | 10 years | | Item 19 | Yes, 23 hospitals | Yes, 207 camps | | Franchised units | 43 | 225 | Read the build-out row twice. PVS constructs the hospital at its own expense and licenses the medical equipment to you, and that equipment stays PVS property. Your $160,650 to $497,500 buys medical supplies, insurance, licensing, and $85,000 to $180,000 of working capital rather than a building. In exchange you pay a premises license fee of $10.00 per square foot of hospital floor area each year once the 365-day ramp-up period ends, plus $750 a month in technology fees. Your term also runs no longer than PetSmart’s own lease on the store, so the landlord risk you carry is a lease you never signed and cannot renegotiate. Eligibility is narrow. You must qualify as a veterinary business and deliver care through licensed veterinarians, and you are disqualified outright if you or an affiliate already own more than 50 veterinary locations. This is a franchise built for a practicing vet or a small regional group, not for a passive investor. [See the full PetSmart Veterinary Services FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/petsmart-veterinary-services-llc) ## The unit table is the part to slow down on The 2026 FDD carries the brand’s first Item 19: 23 franchised hospitals reported fiscal 2025 Hospital Revenue with a median of $826,432. One year of revenue from a young system is a thin sample, so the outlet counts in Item 20 still carry most of the weight. Franchised hospitals went from 0 to 11 in fiscal 2022, from 11 to 38 in 2023, and from 38 to 37 in 2024. That last year included 15 openings and 15 terminations. Arizona alone opened 3 and recorded 9 terminations, ending the year with one hospital where it had seven. Florida terminated 4. Fiscal 2025 settled at 43 hospitals, a net gain of 6 against the 16 new openings the franchisor had projected. A young system that reshuffled 15 of its 38 units in one year is not automatically failing. It could be a deliberate cleanup of clinics signed too fast in 2023. What it is not is a validated model, and one year of median revenue in Item 19 cannot settle the question either. Any buyer looking at this offering should be calling terminated operators from Exhibit F before calling the ones still open. ## Camp Bow Wow shows what a full pet franchise actually costs The franchised money in the pet category is in services. [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc), owned by Propelled Brands, disclosed 225 franchised locations plus one company-owned site as of December 31, 2025 in its 2026 FDD. Total investment runs $954,606 to $1,229,536, on a $50,000 initial franchise fee and a 6,000 square foot prototype the franchisor shrank in 2025 to bring construction costs down. Growth has flattened. Net unit change was plus 13 in 2023, plus 10 in 2024, and plus 2 in 2025. Transfers ran 12, then 7, then 9 over the same three years, so roughly one camp in 25 changed hands last year. The Item 19 is where a buyer should spend their time. Camp Bow Wow reported on 207 of its 225 camps, those open at least 24 full months that filed complete reports for 2025. | 2025 gross sales, 207 reporting camps | Figure | | --- | --- | | Highest camp | $2,465,224 | | Lowest camp | $371,438 | | Top 25% by profitability, lowest sales in that group | $957,444 | | Bottom 25% by profitability, highest sales in that group | $1,293,176 | A camp doing $1,293,176 can land in the bottom quartile while a camp doing $957,444 sits in the top one. Camp Bow Wow sorts those quartiles by total franchise owner’s benefit, not revenue, so the tables are telling you that operating cost discipline outranks volume in this model. On a business carrying $516,735 to $663,917 of leasehold improvements and rent of $17.55 to $28.15 per square foot, a bad lease can bury a busy camp. For the rest of the category, our [pet franchise industry analysis](https://vetmyfranchise.com/c/claude/blog/pet-franchise-industry-analysis) covers retail and mobile concepts, the [boarding and daycare rankings](https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises) compare the facility-based brands, and [dog grooming franchises](https://vetmyfranchise.com/c/claude/blog/best-dog-grooming-franchises) cover the lower-capital end where entry is often under $200,000. Pet Supplies Plus runs the franchised side of neighborhood pet retail with more than 560 stores, and it is the closest thing to a PetSmart you can actually buy. So the brand you searched for sells no franchise, and the one offering that carries its name has no earnings disclosure and finished last year smaller than it started. The credible pet franchises sit one category over, in boarding, daycare, grooming, and training. [Compare the actual FDD numbers on Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) and the rest of the pet category. We read Items 5, 7, and 19 out of the filed document rather than repeating a franchise development page. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Psp Franchise Operations [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchise-operations-spv-llc) #### Psp [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) #### Woof Gang Bakery [Learn more →](https://vetmyfranchise.com/c/claude/franchise/woof-gang-bakery-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is petsmart a franchisepet franchise opportunitiespetsmart veterinary servicescamp bow wowdog daycare franchiseitem 19Pet Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you open a PetSmart? No. PetSmart sells no retail franchise, and there is no application process for an independent operator to open a store. The company is privately held by BC Partners and grows through corporate stores only. The single franchise offering under the PetSmart brand is PetSmart Veterinary Services, a full-service veterinary hospital operated inside an existing PetSmart store, and it is open only to buyers who can operate as a licensed veterinary business. ### Is Petco a franchise? No. Petco operates its stores corporately and does not sell franchises to individual owners. Neither of the two big-box pet chains has ever run a US retail franchise program, which is why searches for a Petco or PetSmart franchise cost return nothing official. The franchised side of the pet industry sits in services and neighborhood retail rather than big-box. ### How much does a PetSmart Veterinary Services franchise cost? The 2026 FDD estimates $160,650 to $497,500, including a $10,000 start-up fee that was uniformly charged in the most recent fiscal year. The franchisor builds the hospital at its own expense and licenses the medical equipment to you, which is why the number is far below a ground-up build. $85,000 to $180,000 of the total is working capital for the first three months. ### What pet franchises can you buy? Boarding, daycare, grooming, training, mobile services, and neighborhood pet retail. Camp Bow Wow is the largest boarding-and-daycare system in our database with 225 franchised camps. Pet Supplies Plus runs the franchised end of pet retail with more than 560 stores. Grooming and training concepts sit at a much lower entry point, often under $200,000, because they carry no boarding footprint. ### How much does a dog daycare franchise cost? Facility-based daycare and boarding runs high six figures to low seven figures. Camp Bow Wow's 2026 FDD puts a single camp at $954,606 to $1,229,536, with leasehold improvements of $516,735 to $663,917 on a 6,000 square foot prototype. Rent estimates in the same document run $17.55 to $28.15 per square foot per year. Mobile grooming and in-home training concepts cost a fraction of that because there is no build-out. --- title: "Is Enterprise a Franchise? Not in the US (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is enterprise a franchise, enterprise rent-a-car, car rental franchise, Avis franchise, Budget franchise, Enterprise Mobility, Hospitality & Travel franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-enterprise-a-franchise about: is enterprise a franchise category: blog wordCount: 1840 readingTime: 9 min crawledAt: 2026-08-20 11:18:07 lastVerified: 2026-08-20 11:18:07 site: https://vetmyfranchise.com/c/claude/ --- # Is Enterprise a Franchise? Not in the US (2026) ## Summary No, Enterprise does not franchise in the US. It runs company operations in 7 countries. Avis and Budget do franchise: $625,500 to $1,588,400 per the 2026 FDDs. ## Key facts - The United States, Canada, the United Kingdom, Ireland, Spain, France, and Germany. - Franchising is, at its root, a way to fund expansion with somebody else’s money. - Enterprise does grant franchises in international markets outside its seven corporate countries. - Both sit under Avis Budget Group, and it shows. - Look at where the money goes in the Avis Item 7 table. Quick answer No. Enterprise Mobility operates its own branches in seven countries, including the United States, and franchises only in other international markets. The Taylor family owns the company privately and it runs more than 9,500 locations worldwide. The car rental brands a US buyer can franchise are Avis, Budget, and Hertz, each with a filed 2026 disclosure document. ## Enterprise operates its own branches in seven countries The United States, Canada, the United Kingdom, Ireland, Spain, France, and Germany. Those are the markets where Enterprise Mobility runs its locations corporately, and every one of them is closed to franchise buyers. The company does franchise, but only in international markets outside that list. If your search started with a storefront in mind somewhere in Ohio or Texas, the answer stops here. Enterprise Mobility is privately held by the Taylor family, with Chrissy Taylor as only the fourth chief executive the company has ever had. It runs more than 9,500 locations worldwide on roughly $39 billion of annual revenue, and it owns National and Alamo in addition to the Enterprise brand. Three national rental brands, one private owner, no domestic franchise offering. That is unusual at this scale, and it is worth understanding why before moving on to the brands that do sell franchises. ## A private company that size has no reason to franchise Franchising is, at its root, a way to fund expansion with somebody else’s money. The franchisor hands over a brand and a system, the franchisee brings the capital and the labor, and the franchisor collects a royalty instead of a profit margin. It suits companies that want more locations than their balance sheet can fund. Enterprise never had that problem in its home markets. The Taylor family has held the company privately for decades, which means no quarterly earnings call demanding faster unit growth and no outside shareholders pushing for an asset-light structure. The company grew the slow way, through neighborhood branches funded internally, and it kept the entire revenue line rather than a percentage of it. There is a second reason specific to this business. Car rental is not really a retail operation, it is a fleet financing operation with a counter attached. The cars are the balance sheet, and the profit lives in what the company paid for a vehicle versus what it sells that vehicle for eighteen months later. Handing fleet decisions to hundreds of independent operators makes that arithmetic much harder to control. Enterprise kept it in house. ## What Enterprise franchising means overseas, and why it does not help you Enterprise does grant franchises in international markets outside its seven corporate countries. Those agreements are negotiated with established regional operators who already run vehicle fleets, not with individual buyers responding to a website form. For a US prospect the distinction is academic. No US offering means no Franchise Disclosure Document, and no FDD means none of the things a buyer normally uses to evaluate a brand: no itemized fee table in Item 6, no investment range in Item 7, no litigation history, no unit counts or closure data in Item 20, no franchisee contact list to call. You cannot underwrite what nobody has to disclose. [See what a filed disclosure document actually contains](https://vetmyfranchise.com/c/claude/franchise/avis-rent-a-car-system-llc). We read Items 5, 7, and 19 from the document itself rather than a brand’s opportunity page. ## Avis and Budget do franchise, and their documents are nearly identical Both sit under Avis Budget Group, and it shows. Their 2026 FDDs land on exactly the same numbers. | | Avis | Budget | Hertz | | --- | --- | --- | --- | | Franchisor entity | Avis Rent A Car System, LLC | Budget Rent A Car System Inc | Hertz System, Inc. | | Initial fee | $45,000 base, plus $5,000 per 5,000 population over 50,000 | $45,000 base, plus $5,000 per 5,000 population over 50,000 | $25,000 minimum, estimated up to $500,000 | | Item 7 total | $625,500 to $1,588,400 (30-car fleet) | $625,500 to $1,588,400 (30-car fleet) | Scales with a 30 to 300 car starting fleet | | Ongoing license fee | 7.5% of gross revenue | 7.5% of gross revenue | 7% to 9% of gross receipts | | Marketing fee | Currently $0 | Currently $0 | Per agreement | | Franchised outlets, end of 2025 | 189 | 173 | 390 | | Company outlets, end of 2025 | 1,823 | 1,177 | 2,556 | | Item 19 | None | None | None | Avis has offered licenses or franchises since 1946, which makes it one of the older franchise systems in any industry. Its 2026 Item 20 shows franchised outlets moving from 186 to 189 during 2025 while the company side grew from 1,714 to 1,823. Budget went the other way, from 175 franchised locations down to 173, with its corporate count slipping from 1,182 to 1,177. Hertz shows the sharpest movement of the three: 400 franchised units down to 390, against a corporate network shrinking from 3,085 to 2,556 in a single year. Read those company-owned columns carefully. In every one of these systems the franchisee is a small minority of the network, operating alongside a corporate parent that runs the airports. That is the structural reality of car rental franchising, and it is the same reason [Hertz franchises in smaller markets](https://vetmyfranchise.com/c/claude/blog/is-hertz-a-franchise) while keeping the major terminals for itself. ## The fleet is the business, and it dominates the investment Look at where the money goes in the Avis Item 7 table. Automobiles account for $450,000 to $1,290,000 of the $625,500 to $1,588,400 total, calculated at $15,000 per economy car up to $43,000 per luxury car across a 30-vehicle fleet. Everything else is comparatively small: $15,000 to $50,000 of construction and leasehold improvements, $15,000 to $28,000 of furniture and equipment, $10,000 to $25,000 of signage, $9,000 to $18,000 for three months of rent and deposits. Two lines deserve more attention than the headline range. Avis expects franchisees to finance 100% of the fleet purchase price, secured by the cars themselves, a personal guarantee, and potentially other personal assets. The document also says plainly that monthly vehicle expenses will increase after the first three months as the fleet grows. The $625,500 floor is not a stabilized cost of operating, it is the cost of standing up 30 cars and running them for a quarter. The fee math has its own wrinkle. Item 5 sets the base license purchase fee at $45,000 for a territory of 50,000 people or fewer, adding $5,000 per 5,000 residents above that. Item 7 then models the fee at $50,000, because it assumes a population of 55,000. A territory of 150,000 people carries a $145,000 fee under the same formula. The number you see quoted online is a floor for the smallest markets, not a price. Territory protection is also narrower than it sounds. Avis states outright that you receive no exclusive territory, then commits not to operate or license a second franchise of the same brand inside your assigned area. Corporate locations, sister brands within Avis Budget Group, and truck rental all fall outside that promise. ## Nobody in car rental publishes an Item 19 This is the finding that should shape how you approach the whole category. Avis, Budget, and Hertz all decline to make a financial performance representation in their 2026 documents. The Avis language is typical: the company “does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.” All three carve out the same exception. If you are buying an existing location, the franchisor may give you that outlet’s actual records. That is a real path, and in this category it may be the only one, but it tells you about one store rather than about the system. Without an Item 19, validation falls entirely on you. Call franchisees from the Item 20 list, and call the ones who left as well as the ones still operating. Read the transfer and termination tables year by year rather than as a total. Ask what a used vehicle actually sold for last year, because resale value, not rental rate, is where the margin in this business gets decided. A dealer relationship with no disclosure obligation, like the [U-Haul dealer program](https://vetmyfranchise.com/c/claude/blog/is-uhaul-a-franchise), gives you even less, so treat the absence of an Item 19 as the ceiling on what any brand in adjacent categories will tell you. ## What the searcher usually wants Most people typing this query are not researching corporate structure. They saw the branch on the corner, they know the pickup service, and they assumed a franchise agreement was the way in. It is not, and it never has been in this country. The brands that will sell you one are asking for well over half a million dollars, most of it in depreciating vehicles you have to finance, in exchange for a percentage of a network dominated by corporate locations, with no disclosed revenue data anywhere in the document. That may still be a reasonable deal in the right small market with the right hotel and body shop relationships. Just make the decision knowing that the disclosure document will not do the work for you. [Compare the Budget disclosure against Avis line by line](https://vetmyfranchise.com/c/claude/franchise/budget-rent-a-car-system-inc). Every figure we publish comes from the filed FDD, including what Item 19 does not say. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is enterprise a franchiseenterprise rent-a-carcar rental franchiseAvis franchiseBudget franchiseEnterprise MobilityHospitality & Travel franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy an Enterprise Rent-A-Car franchise? Not in the United States. Enterprise Mobility operates its branches corporately across seven countries, including the US, Canada, the United Kingdom, Ireland, Spain, France, and Germany, and offers franchises only in other international markets. There is no US franchise offering, which means no Franchise Disclosure Document, no Item 7 investment range, and no fee schedule to compare against anything. A US buyer who wants a rental counter under a national brand is looking at Avis, Budget, or Hertz instead. ### Who owns Enterprise Rent-A-Car? The Taylor family owns it privately through Enterprise Mobility, which also owns the National and Alamo brands. Chrissy Taylor is only the fourth chief executive in the company's history. The group runs more than 9,500 locations worldwide on roughly $39 billion of annual revenue. That combination, private ownership plus a balance sheet that size, is the whole explanation for why no franchise offering exists in its core markets. ### What car rental franchises can you actually buy? Avis, Budget, and Hertz all franchise in the US and all filed a 2026 FDD. Avis and Budget charge a $45,000 initial license purchase fee for a territory of 50,000 people or fewer, plus $5,000 for each additional 5,000 residents, and both estimate a total initial investment of $625,500 to $1,588,400 for a 30-car fleet. Hertz sets a $25,000 minimum fee that scales toward $500,000 as the starting fleet grows from 30 cars to 300. ### How much does an Avis franchise cost? The 2026 Avis FDD estimates $625,500 to $1,588,400 in total initial investment for a 30-car fleet covering the first three months of operation. The single largest line is the fleet itself at $450,000 to $1,290,000, based on $15,000 per economy car up to $43,000 per luxury car. The rest includes $15,000 to $50,000 of leasehold improvements, $10,000 to $25,000 of signage, $15,000 to $37,500 of vehicle insurance premiums, and $55,000 to $72,400 of additional funds for three months. The ongoing license fee is 7.5% of gross revenue. ### Do car rental franchises disclose earnings? No. Avis, Budget, and Hertz each state in Item 19 of their 2026 disclosure documents that they make no representations about a franchisee's future financial performance or the past performance of company-owned or franchised outlets. All three offer the same narrow exception: if you are buying an existing outlet, the franchisor may hand you that specific location's actual records. Systemwide revenue data for these brands does not exist in any filed document. --- title: "Is Häagen-Dazs a Franchise? Shop Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is haagen dazs a franchise, haagen dazs franchise cost, ice cream franchise, item 19, franchisor ownership, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-haagen-dazs-a-franchise about: is haagen dazs a franchise category: blog wordCount: 1955 readingTime: 10 min crawledAt: 2026-08-20 11:18:07 lastVerified: 2026-08-20 11:18:07 site: https://vetmyfranchise.com/c/claude/ --- # Is Häagen-Dazs a Franchise? Shop Model (2026) ## Summary Yes, Häagen-Dazs shops are franchised. The 2026 FDD: $30,000 fee, 4% royalty, $213,329 to $591,579 investment, and a $630,527 median across 179 shops. ## Key facts - Item 1 of the 2026 Häagen-Dazs disclosure document spends its opening pages untangling something most franchisors settle in a sentence. - The marketing structure behaves differently from most food brands, because half of it is a flat dollar amount rather than a percentage. - Leasehold improvements account for $245,000 of the $378,250 spread. - Start with what the sample leaves out. - Item 12 opens by telling you that you will not receive an exclusive territory. Quick answer Yes. The Häagen-Dazs Shoppe Company, Inc. franchises the shops, and all 215 outlets open at the end of 2025 were franchised, with zero company-owned. The 2026 FDD sets a $30,000 initial franchise fee, a 4% royalty, and a $213,329 to $591,579 investment range. Median 2025 shop sales were $630,527. ## Three companies hold the brand, and only one of them sells franchises Item 1 of the 2026 Häagen-Dazs disclosure document spends its opening pages untangling something most franchisors settle in a sentence. The franchisor is The Häagen-Dazs Shoppe Company, Inc., a New Jersey corporation run out of Eden Prairie, Minnesota, offering ice cream shop franchises since July 11, 1983. Its parent is Dreyer’s Grand Ice Cream Company, Inc. The trademark belongs to neither of them. The FDD names HDIP, Inc. as the owner, says the mark is licensed exclusively in the United States to Nestec Ltd. and Société des Produits Nestlé S.A. for frozen dessert products, and says those companies sublicense it to Dreyer’s. The Shoppe Company grants franchises, in its own words, “under the authority of the trademark owner.” The chain above the franchisor moved once, and the document dates the move precisely. Before January 31, 2020, Dreyer’s and the Shoppe Company were both indirect subsidiaries of Nestlé S.A., and Dreyer’s was named Nestlé Dreyer’s Ice Cream Company. On that date Nestlé completed the sale of its US ice cream business to Froneri US, Inc., a wholly owned subsidiary of Froneri International Limited, itself an indirect subsidiary of Froneri Lus Topco S.a.r.l. Nestlé and the private equity firm PAI Partners each hold approximately a 45% direct or indirect interest in that venture. Stack that up. General Mills holds the Häagen-Dazs brand, a fact the FDD never states because it does not have to. Froneri makes and moves the product in the US through Dreyer’s. The shops are franchised by a small New Jersey corporation sitting two levels below a Nestlé and buyout-fund venture. The entity whose name goes on your franchise agreement is the one at the bottom of that stack, and the company you must buy every tub of ice cream from is its parent. [What to do when private equity ends up above your franchisor](https://vetmyfranchise.com/c/claude/blog/private-equity-buys-your-franchisor-survival-guide) applies here. ## What the 2026 FDD charges | 2026 FDD term | Figure | | --- | --- | | Initial franchise fee, new franchisee | $30,000 | | Initial franchise fee, existing franchisee | $15,000 | | Continuing royalty | 4% of gross sales, payable weekly | | Local marketing contribution | 1% of gross sales | | General marketing contribution | $6,300 per year, rising to $6,800 on May 1, 2026 | | Franchise term | 10 years, with one 10-year successive term | | Transfer fee | $7,500 | | Total initial investment, new shop | $213,329 to $591,579 | The marketing structure behaves differently from most food brands, because half of it is a flat dollar amount rather than a percentage. At the Item 19 median of $630,527 in sales, a $6,300 annual contribution is almost exactly another 1%, so the recurring stack lands near 6%. Against the lowest shop in that same sample, $166,282 of annual sales, it is 3.8%, and the commitment before rent and payroll passes 8%. Flat fees punish weak units, and Item 19 shows this system has weak units in it. The initial fee moves on a ladder. New franchisees pay $30,000, existing franchisees opening another shop pay $15,000, and operators with at least two years running two or more outlets in another franchised foodservice system pay $20,000 under an Experienced Operator discount. Two franchises sold at that discount in 2025. Veterans get a VetFran discount that Item 5 describes as 25% off and “a savings of $7,500,” which computes to $22,500, while the Item 7 footnote lists the veteran fee as $22,250. Small gap, easy question, and the answer tells you how carefully the document was assembled. One requirement third-party summaries leave out: applicants for a first Häagen-Dazs franchise must travel to Minneapolis for an interview at their own expense. ## $213,329 to $591,579, line by line | Item 7 line, new shop | Low | High | | --- | --- | --- | | Initial franchise fee | $30,000 | $30,000 | | Travel and living during training | $3,079 | $3,079 | | Leasehold improvements | $105,000 | $350,000 | | Deposits and licenses | $7,500 | $17,500 | | Equipment, fixtures, furnishings | $50,000 | $115,000 | | Opening inventory | $6,000 | $10,000 | | Insurance | $1,500 | $2,500 | | Additional funds, three months | $10,250 | $63,500 | | Total | $213,329 | $591,579 | Leasehold improvements account for $245,000 of the $378,250 spread. Item 7 describes shops of 200 to 1,800 square feet, usually 500 to 1,000, generally in regional malls and rarely freestanding. Your position inside that range is set by the space you find and the tenant allowance you negotiate, neither of which the franchisor controls or promises. Anyone quoting the $213,329 low end as an entry price is quoting a shop that walked into a landlord-improved box. Two smaller formats sit beside it. A Satellite, an extra selling point in a mall where you already run a shop, carries a $1,000 fee and a $181,250 to $562,579 range. A Hospitality Shop, for stadiums and resorts where the franchisee already controls the venue, has no initial franchise fee, runs $14,500 to $272,500, and pays royalty per gallon at $2.89 instead of a percentage. [Pull the full Häagen-Dazs data sheet](https://vetmyfranchise.com/c/claude/franchise/the-haagen-dazs-shoppe-company-inc) ## What 179 shops actually sold | 2025 Item 19 figure | Amount | | --- | --- | | Average sales | $721,069.22 | | Median sales | $630,526.74 | | Sample size | 179 shops | | Shops at or above average | 67, or 37.4% | | Lowest sales | $166,281.85 | | Highest sales | $2,199,660.54 | Start with what the sample leaves out. Thirty-six of the 215 shops open at the end of 2025 were excluded: 15 that first opened during 2025, two seasonal shops, four cart satellites, nine run on a “management leveraged” basis inside another business, two under a Hospitality agreement, and four closed more than 75 days for remodeling. Those exclusions are defensible, and they are disclosed. One oddity to raise with the franchisor: the sales-band table in that same item adds up to 183 shops against the stated sample of 179. The bands tell you more than the median does. Thirty-four shops, 18.6% of the group, cleared $1 million. Thirty-three shops, 18.0%, landed between $400,001 and $500,000, and 27 more sat below $400,000. Same brand, same year, same product, and the bottom third of the system does roughly half the volume of the top fifth. Ask the franchisor which band your specific site profile resembles. None of it is profit, and the cost side carries an unusual constraint. Item 6 requires you to buy your entire requirement of ice cream and other frozen dessert products from Dreyer’s, the franchisor’s own parent. A cost of goods line you cannot shop is a margin you cannot manage. [Ben & Jerry’s scoop shops](https://vetmyfranchise.com/c/claude/blog/is-ben-and-jerrys-a-franchise) run a similar single-source structure under a parent with its own governance problems, and the [ice cream and frozen yogurt category](https://vetmyfranchise.com/c/claude/blog/best-ice-cream-frozen-yogurt-franchises) shows where these medians sit against the rest of the field. ## The territory language is the part to read twice Item 12 opens by telling you that you will not receive an exclusive territory. What you may receive is a protected area, sized by location. A street-front shop in a densely populated urban area gets nothing at all. The same shop outside such an area is protected for a half mile in each direction along its own street, and that protection explicitly stops at any mall bordering it. Inside a mall smaller than 1.5 million square feet, the protected area is the whole mall. Inside a larger mall or an airport, it shrinks to the discrete portion assigned to you. Then comes the sentence that matters most for a brand like this one. Häagen-Dazs product is distributed through grocery stores, convenience stores, mobile carts, restaurants, licensed dipping outlets, and institutional customers, inside your protected area as well as outside it, and the FDD states that the majority of total gallons sold moves through those channels rather than through franchised shops. You are buying a retail license inside a distribution business that does not need retail licenses. ## The system grew in 2025 after two flat years Item 20 counts 208 franchised outlets at the start of 2023, 209 at the end of it, 207 a year later, and 215 at the end of 2025. Company-owned outlets were zero in all three years. In 2025 the system opened 15 shops, recorded one termination, and lost six to other reasons. The franchisor projects 19 new outlets in the next fiscal year and lists 17 agreements signed but not yet open, weighted toward Florida and New York, the largest state footprints at 63 and 36 shops. One line in Item 20 is worth more to a buyer than any of those counts. Over the last three fiscal years, no franchisee has signed a confidentiality provision restricting what they can say about the system, and every current franchisee plus everyone who left during 2025 is listed with contact details in Exhibit H. Not every franchisor hands you an open validation list. ## What to read before you sign Work the document in this order. Item 15 first, because a 40-hour on-premises supervision requirement decides whether this fits your life before any number matters. Then Item 7 footnote 3 for what sets your leasehold cost, Item 6 for the supply obligation to Dreyer’s, Item 19 for the exclusions behind that median, and Item 20 for the franchisee list you are going to call. Twenty calls to shops across different sales bands will teach you more than the table did. We read Items 5, 7, and 19 out of the filed document rather than a recruitment page, and the [Häagen-Dazs Shoppe Company file](https://vetmyfranchise.com/c/claude/franchise/the-haagen-dazs-shoppe-company-inc) carries every figure with its sample size and segment label attached. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Häagen-Dazs numbers with you. We'll email you the **Häagen-Dazs FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Häagen-Dazs data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is haagen dazs a franchisehaagen dazs franchise costice cream franchiseitem 19franchisor ownershipFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Häagen-Dazs franchise cost? The 2026 FDD estimates $213,329 to $591,579 for a new traditional shop. That includes a $30,000 initial franchise fee, $105,000 to $350,000 of leasehold improvements, $50,000 to $115,000 of equipment and fixtures, $6,000 to $10,000 of opening inventory bought from Dreyer's, and $10,250 to $63,500 of additional funds covering the first three months. An existing franchisee opening a second shop pays a $15,000 fee, which moves the range to $195,250 to $576,579. ### Who owns Häagen-Dazs? Three companies hold different pieces of it. The franchisor is The Häagen-Dazs Shoppe Company, Inc., a New Jersey corporation based in Eden Prairie, Minnesota, whose parent is Dreyer's Grand Ice Cream Company. Nestlé sold its US ice cream business, including both of those entities, to Froneri US on January 31, 2020, and Froneri is a venture in which Nestlé and PAI Partners each hold roughly a 45% interest. The trademark itself sits somewhere else again: Item 1 names HDIP, Inc. as the owner without identifying its parent, and General Mills holds the Häagen-Dazs brand. ### How much does a Häagen-Dazs shop make? Median 2025 sales were $630,526.74 across the 179 shops in the Item 19 sample, with an average of $721,069.22 that only 67 shops reached. The lowest shop reported $166,281.85 and the highest reported $2,199,660.54. Those are sales figures with nothing deducted, so cost of goods, payroll, and occupancy all come out of them before an owner sees anything. ### Can you run a Häagen-Dazs shop as a passive investment? No. Item 15 requires a minimum of 40 hours a week of on-premises supervision by you or by an approved Designated Shop Manager who has completed Häagen-Dazs University. Owners of several shops may divide their time between them, but each individual shop still needs 40 combined hours of trained on-site supervision every week. ### Do Häagen-Dazs franchisees get an exclusive territory? No. Item 12 states directly that you will not receive an exclusive territory. A street-front shop outside a densely populated urban area gets a half-mile protected area in each direction on the same street, and a shop inside a mall smaller than 1.5 million square feet gets that mall. An urban street-front shop gets no protected area at all, and the franchisor and Dreyer's keep full discretion to sell Häagen-Dazs product through grocery stores, carts, and restaurants near you. --- title: "Is Jiffy Lube a Franchise? Cost and Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is jiffy lube a franchise, jiffy lube franchise cost, oil change franchise, quick lube business, Jiffy Lube International, item 19, Automotive franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-jiffy-lube-a-franchise about: is jiffy lube a franchise category: blog wordCount: 1917 readingTime: 10 min crawledAt: 2026-08-20 11:18:12 lastVerified: 2026-08-20 11:18:12 site: https://vetmyfranchise.com/c/claude/ --- # Is Jiffy Lube a Franchise? Cost and Model (2026) ## Summary Yes. Shell subsidiary Jiffy Lube International franchises 1,765 of 2,083 US centers. The 2026 FDD: $35,000 fee, 4% royalty, $211K to $510K to open. ## Key facts - Franchisees operated 1,765 [Jiffy Lube](https://vetmyfranchise. - Item 1 lays out the stack. - Two things about that total. - Royalty is 4% of gross sales, discounted to 3% if you stay current on every obligation and pay on time. - The system median is $973,702, the floor is $189,911 and the ceiling is $5,962,733. Quick answer Yes. Jiffy Lube International, a Shell USA subsidiary, franchises the brand, and 1,765 of the 2,083 US service centers were franchised on December 31, 2025. The 2026 FDD sets a $35,000 initial franchise fee, a 4% royalty, and a $211,000 to $510,000 initial investment that excludes land and building costs. ## Yes, and 1,765 of the 2,083 US service centers are franchised Franchisees operated 1,765 [Jiffy Lube](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) service centers in the United States on December 31, 2025, against 318 company-owned ones. Item 20 of the 2026 FDD puts the whole system at 2,083 outlets, so roughly 85% of it belongs to independent operators. The corporate share is shrinking deliberately: company-owned units went from 354 to 318 during 2025, with 34 recorded as closed and 4 sold to franchisees. Jiffy Lube International, Inc. is a Delaware corporation that has offered franchises since 1979. The ownership chain above it deserves a slow read. ## Shell owns the brand and supplies the oil Item 1 lays out the stack. Jiffy Lube International is a wholly owned subsidiary of Pennzoil-Quaker State Company, doing business as SOPUS Products. SOPUS Products is a wholly owned subsidiary of Shell USA, Inc., which sits beneath Shell Petroleum, Inc., then Shell Petroleum N.V., then Shell plc. The FDD calls the group the Shell Group. That structure has a commercial edge to it. SOPUS Products is both the franchisor’s parent and the franchisee’s supplier. Under the Pacesetter Franchise Agreement it supplies the motor oils, transmission fluids and greases, and Item 5 estimates you will buy $20,000 to $30,000 of those products before you open. The royalty is wired to the same relationship: Item 6 sets it at 4% of gross sales, rising to 5% if the Pacesetter or Fast Lubes Supply Agreement is terminated. Item 1 also discloses that SOPUS lets some of its lubricants customers run independent fast lube centers under the Shell Rapid Lube mark, paying no franchise fee and no royalty, and it says outright that some of those centers may compete with Jiffy Lube centers. Your franchisor’s parent licenses a competing format for free, and it tells you so in the document you are being asked to sign against. ## What $211,000 to $510,000 buys, and what it leaves out | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $0 | $35,000 | | First month’s rent and security deposit | $16,000 | $40,000 | | Equipment, signs and fixtures | $125,000 | $325,000 | | Initial inventory | $20,000 | $30,000 | | Opening marketing expense | $15,000 | $20,000 | | Insurance, annual premium | $10,000 | $20,000 | | Training expenses | $1,000 | $5,000 | | Additional funds, 6 months | $45,000 | $45,000 | | Item 7 total as printed | $211,000 | $510,000 | Two things about that total. Add the lines yourself and you get $232,000 to $520,000, which is the exact figure printed on the FDD’s own cover page. The Item 7 total row runs about $21,000 light at the bottom and $10,000 light at the top. Both numbers are in the same 2026 document, and only the cover page reconciles with the table sitting under it. The bigger gap is real estate. Footnote 2 says the rent line assumes a Build to Suit arrangement in which the landlord pays for the land, the building and the up-front site work. Buy instead of lease and the same footnote estimates $300,000 to over $800,000 to acquire a suitable site, plus $700,000 to $1,200,000 to build a four-bay center, and it adds that some franchisees have spent more than $1 million on a site they believed was good. The Item 7 range is the tenant number. The owner number is several times larger. Item 5 fills in the fee. A new center pays $35,000, split $10,000 at signing and $25,000 on the 15th of the month after the center opens. A Converted Center, meaning a shop that traded under another automotive mark for at least 12 months, pays $17,500. Honorably discharged US military veterans may have the fee waived on a first agreement, and operators signing a second through fifth agreement under the Significant Growth Funding or Build to Suit programs may qualify for a waiver as well. Item 5 gives the real spread: during fiscal 2025, franchisees paid between $0 and $35,000. ## The fee stack is a 4% royalty plus a 4% advertising floor Royalty is 4% of gross sales, discounted to 3% if you stay current on every obligation and pay on time. New-to-system locations run at 0% royalty for their first six months. Advertising is where the arithmetic tightens: 1.5% to the national ad fund, 2.5% to local or cooperative advertising, and a minimum annual advertising requirement of 4% of gross sales that those two contributions count toward. Call the recurring load 7% to 8% of sales before rent and payroll. Then there are the technology lines, which are easy to skim past and never stop: up to $192 per month per POS system, $73 per month for hardware support, $18 per store for the Cisco Meraki license, and a three-year POS equipment lease at $312 to $800 per month. Transfers cost $3,500 plus expenses, renewal costs $10,000, and relocating or replacing a center costs $7,500 or $12,500. [See the full Jiffy Lube data sheet](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc). We pull the figures from Items 5, 7 and 19 of the filed FDD rather than from a franchise development page. ## Item 19 covers 2,049 stores and never mentions profit | Quartile, 2025 franchised centers | Centers | Average net adjusted sales | | --- | --- | --- | | First | 513 | $539,408 | | Second | 512 | $836,477 | | Third | 512 | $1,129,889 | | Fourth | 512 | $1,831,425 | | All franchised centers | 2,049 | $1,084,034 | The system median is $973,702, the floor is $189,911 and the ceiling is $5,962,733. Only 821 centers, 40.1% of the sample, beat the system average, which is what a long right tail does to a mean. Plan against the median. Traffic is the number worth staring at. System average vehicle count fell from 9,143 in 2023 to 8,749 in 2024 to 8,463 in 2025, while average sales climbed from $1,040,070 to $1,084,034 over the same stretch. Fewer cars, more revenue per car. That is a pricing story, and pricing stories have a ceiling. New centers land well below the system. Eleven of them finished their first full calendar year in 2025 with average net adjusted sales of $753,064 and a median of $767,222, spread from $349,082 to $1,224,993. The 26 centers whose first full year was 2024 averaged $937,668 in 2025. What Item 19 never provides is a cost line. Every table is sales or vehicle counts. There is no rent, no labor, no product cost, no EBITDA. A franchisee at the $973,702 median could be comfortable or underwater, and this disclosure cannot tell you which. Our [Valvoline Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/valvoline-item-19-deep-dive) shows what a quick lube disclosure looks like when the franchisor does publish expenses. ## Jiffy Lube against Take 5 | | Jiffy Lube (2026 FDD) | Take 5 (2025 FDD) | | --- | --- | --- | | Initial franchise fee | $35,000 | $45,000 | | Investment, conversion | not stated separately | $287,145 to $1,013,587 | | Investment, new build | $211,000 to $510,000 | $912,248 to $2,053,642 | | Royalty | 4%, or 3% if paid on time | 7% | | Advertising | 1.5% national plus 2.5% local | 5% | | Franchised units | 1,765 | 432 | | Company or affiliate units | 318 | 710 | | Item 19 sample | 2,049 franchised centers | 298 affiliate-owned centers | | Item 19 headline | $1,084,034 average sales | $1,327,808 median gross sales | Both investment ranges exclude real estate, so they are comparable on that axis. [Take 5](https://vetmyfranchise.com/c/claude/franchise/take-5-franchisor-spv-llc) costs roughly twice as much to build and carries a royalty and marketing load near 12%, against 7% to 8% at Jiffy Lube. In exchange, that FDD discloses expenses down to EBITDA. The catch is the segment label: those 298 centers are affiliate-owned, not franchisee-owned. Jiffy Lube gives you a far larger and cleaner franchisee sample and then stops at the revenue line. Our [head-to-head on the two fastest-growing quick lube systems](https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise) covers how they price the same opportunity. ## Getting in is mostly a resale conversation Item 20 recorded 51 transfers of franchised centers to new owners in 2025, after 63 in 2024 and 45 in 2023. Sixty-seven franchised centers opened in 2025 and 21 were terminated. Against that, the franchisor projects 13 new franchised outlets for the next fiscal year and lists 5 signed franchise agreements whose outlets have not opened. Most of the movement in this system is existing centers changing hands. The document hints at who the buyers are. Item 6 prices an optional data service in bands of 1 to 25 stores, 26 to 99 stores, and more than 99 stores. Nobody writes a pricing tier for hundred-unit owners unless hundred-unit owners exist. Territory is narrow and specific. Item 12 gives you a three-mile ring inside which Jiffy Lube will not open or license another center without your consent, and no right of first refusal on anything outside it. Item 15 is looser than most: the center must be under your personal supervision or that of a manager who has completed the operations training course, so a trained-manager structure is contemplated rather than forbidden. For the wider category, our [auto repair franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) put Jiffy Lube next to its service-heavy competitors. [Get the full Jiffy Lube FDD analysis for $49](https://vetmyfranchise.com/c/claude/pricing) and see the Item 7, Item 19 and Item 20 detail laid out against the rest of the automotive category. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Jiffy Lube numbers with you. We'll email you the **Jiffy Lube FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Jiffy Lube data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is jiffy lube a franchisejiffy lube franchise costoil change franchisequick lube businessJiffy Lube Internationalitem 19Automotive franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Jiffy Lube franchise cost? The 2026 FDD estimates $211,000 to $510,000 for a new freestanding service center, excluding land and building. That total covers a $35,000 initial franchise fee paid in two parts, $125,000 to $325,000 of equipment, signs and fixtures, $20,000 to $30,000 of opening inventory, $16,000 to $40,000 for first month's rent and a security deposit, and $45,000 of working capital for six months. Adding the line items yourself gives $232,000 to $520,000, which is the range printed on the document's own cover page. If you buy the real estate rather than lease it, Item 7 footnote 2 estimates $300,000 to over $800,000 for the site plus $700,000 to $1,200,000 to build a four-bay center. ### Who owns Jiffy Lube? Shell, through two intermediate companies. Item 1 of the 2026 FDD states that Jiffy Lube International, Inc. is a wholly owned subsidiary of Pennzoil-Quaker State Company, which does business as SOPUS Products, and that SOPUS Products is a wholly owned subsidiary of Shell USA, Inc., which reports up through Shell Petroleum, Inc. and Shell Petroleum N.V. to Shell plc. SOPUS Products is also the supplier: franchisees buy Pennzoil, Quaker State and Shell branded lubricants from it under the Pacesetter Supply Agreement, and the royalty rises from 4% to 5% if that supply agreement is terminated. ### Jiffy Lube vs Take 5, which franchise costs more? Take 5, by a wide margin at the top of the range. Take 5's 2025 FDD puts a ground-up center at $912,248 to $2,053,642 and a conversion at $287,145 to $1,013,587, both excluding real estate, on a $45,000 fee, a 7% royalty and a 5% marketing contribution. Jiffy Lube's 2026 FDD puts a new center at $211,000 to $510,000 excluding real estate, on a $35,000 fee, a 4% royalty and a 4% advertising floor. Take 5 also discloses expenses down to EBITDA, but only for 298 affiliate-owned centers, while Jiffy Lube discloses sales for 2,049 franchised ones. ### How much do quick lube owners make? Jiffy Lube's FDD does not answer that. Item 19 reports net adjusted sales and vehicle counts and nothing else: no rent, no labor, no product cost, no profit line at any level. The 2025 figures show a $1,084,034 system average and a $973,702 median across 2,049 franchised centers, with a floor of $189,911 and a ceiling of $5,962,733. Only 40.1% of centers cleared the average, which is what a long right tail does to a mean. To convert a sales number into an owner income number you have to build the P&L yourself from validation calls. ### Can you open a single Jiffy Lube? Yes, but the system is built around multi-unit operators. Item 20 recorded 51 transfers of existing centers to new owners in 2025 and projects 13 new franchised outlets for the next fiscal year, so most activity is centers changing hands rather than fresh single-unit builds. Item 5 offers fee waivers on second through fifth agreements under the Significant Growth Funding and Build to Suit programs, and Item 6 prices an optional data service in bands topping out at more than 99 stores. Those provisions were written for buyers who already own centers. ## Content not visible to non-JS crawlers - $510,000, --- title: "Is Keller Williams a Franchise? Costs and Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is keller williams a franchise, keller williams franchise cost, real estate brokerage franchise, market center, item 19, Real Estate franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise about: is keller williams a franchise category: blog wordCount: 2120 readingTime: 11 min crawledAt: 2026-08-20 11:18:08 lastVerified: 2026-08-20 11:18:08 site: https://vetmyfranchise.com/c/claude/ --- # Is Keller Williams a Franchise? Costs and Model (2026) ## Summary Yes, Keller Williams is a franchise. The 2026 FDD: $35,000 fee, $183,647 to $336,495 investment, 6% royalty capped per agent, 735 market centers, no Item 19. ## Key facts - Item 20 of the 2026 FDD counts 735 franchised Keller Williams market centers open on December 31, 2025, alongside 16 company-affiliated ones. - Two lines deserve a second look. - Item 6 sets a monthly Production Royalty of 6% of gross commission income, drafted from your bank account on the seventh business day. - Item 19 of the 2026 Keller Williams FDD runs about 220 words and contains no numbers. - Two other items carry the weight Item 19 will not. Quick answer Yes. Keller Williams Realty, LLC franchises real estate brokerages it calls market centers, and 735 of the 751 open on December 31, 2025 were franchised. The 2026 FDD puts one market center at $183,647 to $336,495 with a $35,000 initial fee and a 6% royalty on gross commission income. There is no Item 19. ## Yes, and the franchised unit is called a market center Item 20 of the 2026 FDD counts 735 franchised Keller Williams market centers open on December 31, 2025, alongside 16 company-affiliated ones. A market center is a real estate brokerage office. Keller Williams Realty, LLC sells the right to operate one under a five-year franchise agreement, and each location requires its own agreement. That makes the answer a plain yes. The franchisor was organized in Texas on December 21, 1994, converted from a corporation to a limited liability company on February 28, 2025, and has sold market center franchises since November 22, 1995. It states in Item 1 that it holds no direct or indirect ownership interest in any market center. Most people who type this question are asking something narrower: whether joining Keller Williams as an agent means buying a franchise. It does not. Agents affiliate with a market center as independent contractors. The franchise is the brokerage, and buying one costs six figures before a single listing is taken. ## $183,647 to $336,495, line by line | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $35,000 | $35,000 | | Other initial fees (orientation, technology) | $1,447 | $2,245 | | Broker license | $1,500 | $5,000 | | Professional association or board fees | $500 | $2,000 | | Local MLS memberships | $100 | $250 | | Insurance | $5,000 | $15,000 | | Initial lease and utility deposits | $3,700 | $10,000 | | Leasehold improvements | $5,000 | $50,000 | | Office furniture, equipment, phone and computer systems | $40,000 | $110,000 | | Exterior signs | $5,000 | $10,000 | | Office supplies | $3,900 | $7,000 | | Professional fees | $5,000 | $10,000 | | Advertising | $2,500 | $5,000 | | Additional funds, 3 months | $75,000 | $75,000 | | Total | $183,647 | $336,495 | Two lines deserve a second look. The additional funds line does not flex: $75,000 covers three months at both ends of the range, even though the rest of the table swings by roughly $150,000. A market center carrying $110,000 of equipment and $50,000 of leasehold work does not burn cash at the same rate as one at the bottom of both lines, so treat the reserve as a floor rather than an estimate. The $35,000 initial fee also includes $6,000 allocated to a training and MAPS coaching subscription, and any part of that subscription unused within 18 months of signing is forfeited. Item 1 puts the amount payable to the franchisor at $36,440 to $37,245. Everything else in the table goes to a landlord, a vendor, an insurer, or a state licensing authority. If you add a Business Center under the optional addendum, the incremental investment is $29,600 to $88,150, bringing the combined range to $213,247 to $424,645. Worth noting for anyone shopping the category: Keller Williams publishes one Item 7 scenario, a new market center. Century 21 and Coldwell Banker each publish two, and their cheap end is a conversion of an existing independent brokerage. Century 21’s new start-up office runs $117,270 to $473,400 and Coldwell Banker’s runs $118,550 to $741,000. Compare start-up to start-up or the numbers stop meaning anything. Our [brokerage franchise comparison](https://vetmyfranchise.com/c/claude/blog/best-real-estate-brokerage-franchises) lays out the rest of the field. ## The 6% royalty stops at $3,000 per agent Item 6 sets a monthly Production Royalty of 6% of gross commission income, drafted from your bank account on the seventh business day. Then it caps the royalty at $3,000 per agent per year, with the franchisor reserving the right to raise that ceiling to $4,000. Run the arithmetic and the model changes shape. At 6%, an agent hits the $3,000 cap after generating $50,000 of gross commission income for the year. Every dollar that agent produces above $50,000 carries no royalty at all. The headline 6% is really a per-agent fee with a percentage-shaped ramp, and the effective rate falls as your roster gets more productive. Two fixed charges sit on top. A Core Market Center Fee of $1,185 per month covers system-wide marketing, management, and technology platforms, and an Associate Access Fee of $72 per month per agent covers agent-facing tools, tiered down to $36 for team members past the first 20. Both are frozen through 2027 and rise in 2028 to $1,250 and $75. There is no separate advertising fund percentage anywhere in Item 6, which is unusual for a franchise of this size and means the Core Market Center Fee is doing that work. A 100-agent market center where every agent caps out would send Keller Williams roughly $300,000 in royalty, $86,400 in access fees, and $14,220 in core fees, so about $400,000 a year. That is a ceiling drawn from the disclosed caps, not a forecast. A roster of part-time producers pays far less royalty and exactly the same access fees, which is the entire risk of the model in one sentence. [Pull the full Keller Williams data sheet](https://vetmyfranchise.com/c/claude/franchise/keller-williams-realty-llc). VetMyFranchise reads Items 5, 7, and 19 out of the filed document rather than the recruiting deck. ## There is no Item 19, and the category does the same thing Item 19 of the 2026 Keller Williams FDD runs about 220 words and contains no numbers. The sentence that matters: “We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-affiliated or franchised outlets.” The FTC Franchise Rule makes an Item 19 optional, so this is legal. What makes it worth flagging is that it is not a Keller Williams idiosyncrasy. We pulled the same item out of the 2026 filings for [RE/MAX](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc), Century 21, and Coldwell Banker. All three decline in nearly identical boilerplate. The largest residential brokerage franchisors in the country have collectively decided not to publish what a broker-owner earns. There is a defensible reason. Market center revenue is a function of agent count and agent productivity, and both vary more across offices than restaurant sales vary across restaurants. A median would be close to meaningless. That reasoning does not shrink the buyer’s problem, it relocates it. Our guide to [what a missing Item 19 means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) covers the general case. ## What the franchisor discloses instead Two other items carry the weight Item 19 will not. Item 12 sets sales floors with teeth. Keller Williams may terminate the franchise agreement if, starting in month 6, you fail to average more than $20,000 in monthly gross commissions across any consecutive three-month period; starting in month 13, more than $45,000; and starting in month 25, more than $125,000. Those are not projections, they are the franchisor’s own minimum viability line, and $125,000 a month works out to $1.5 million of annual gross commission income by year three. The FDD’s Special Risks box flags both “Mandatory Minimum Payments” and “Sales Performance Required,” which is where state regulators put terms they want a buyer to notice. Item 12 also confirms you get no exclusive territory, only a promise that no other bricks-and-mortar market center will open inside your Awarded Area. Item 20 shows direction. Franchised market centers went from 784 at the start of 2023 to 766, then 762, then 735 at the end of 2025. During 2025, 11 opened while 8 were terminated, 5 were not renewed, 5 were reacquired by the franchisor, and 20 ceased operations for other reasons. Table 5 lists zero franchise agreements signed but not yet opened and zero projected new market centers, franchised or company-affiliated, for the next fiscal year. Read that against the same filing period at RE/MAX, whose US franchised office count went 3,477, then 3,358, then 3,149, then 2,994. [Every RE/MAX office in the country is franchised](https://vetmyfranchise.com/c/claude/blog/is-remax-a-franchise), with zero company-owned offices for three straight years. Both networks are contracting. This is a consolidating category rather than a single struggling brand, and anyone weighing brokerage ownership against [buying the buildings instead](https://vetmyfranchise.com/c/claude/blog/franchise-vs-real-estate-investment) should price that trend in. Item 3 is the other thing to read closely. Keller Williams is a defendant in the NAR buyer-commission antitrust litigation and disclosed a $70 million nationwide class settlement covering the Moehrl, Sitzer, and Umpa claims, plus a separate $20 million settlement in the Leeder case that received preliminary approval on February 13, 2026 with a final approval hearing set for July 28, 2026. The commission structure those cases attacked is the same gross commission income your 6% royalty is calculated on. ## Reading the two filings side by side | 2026 FDD | Keller Williams | RE/MAX Integrated Regions | | --- | --- | --- | | Initial franchise fee | $35,000 | $8,750 to $35,000 by market density | | Item 7 total | $183,647 to $336,495 | $37,100 to $336,500 | | Royalty | 6% of GCI, capped $3,000 per agent per year | 1% of revenue | | Recurring fixed fees | $1,185 per month plus $72 per agent per month | $143 to $170 per agent per month | | Annual dues per agent | none disclosed | $410 | | Item 19 | none | none | | US franchised outlets, 12/31/2025 | 735 market centers | 2,994 offices | The fee architectures diverge more than the totals do. RE/MAX front-loads a per-agent monthly charge and takes only 1% of revenue on top. Keller Williams takes 6% of everything until each agent has produced $50,000, then takes nothing further from that agent. An office of high producers is cheaper to run under the Keller Williams structure than the 6% headline implies. An office of part-timers is expensive under both, and worse under RE/MAX, where the per-agent fee accrues regardless of production. Item 15 tells you what the job is. Personal participation is not required, but you must retain three named people: an Operating Principal with day-to-day authority who must be or must secure a licensed broker, a Team Leader whose primary responsibility is the agent recruiting program and who may not sell real estate, and a Market Center Administrator. The Team Leader and the Administrator are both barred from other business activity. That is a payroll commitment before your first agent signs. The initial term is five years. A successor 10-year agreement is available at the franchisor’s sole discretion, requires 210 days of advance notice, and conditions renewal on, among other things, having made profit-sharing contributions in at least 4 of every 5 consecutive months during the final 24 months of the term. Item 20 attaches the current franchisee list as Exhibit I along with a list of former franchisees. With no earnings disclosure in the document, those two lists are the only underwriting tool you have. [Get the full Keller Williams FDD analysis](https://vetmyfranchise.com/c/claude/franchise/keller-williams-realty-llc) before you take a franchise development call. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Keller Williams numbers with you. We'll email you the **Keller Williams FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Keller Williams data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Re Max [Learn more →](https://vetmyfranchise.com/c/claude/franchise/re-max-llc) #### Re/Max Integrated Regions [Learn more →](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc) #### Auto Appraisal Network [Learn more →](https://vetmyfranchise.com/c/claude/franchise/auto-appraisal-network-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is keller williams a franchisekeller williams franchise costreal estate brokerage franchisemarket centeritem 19Real Estate franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Keller Williams franchise cost? The 2026 FDD estimates $183,647 to $336,495 to open one market center. That includes a $35,000 initial franchise fee, $40,000 to $110,000 of office furniture, equipment, phone and computer systems, $5,000 to $50,000 of leasehold improvements, and a flat $75,000 of additional funds covering the first three months. Only $36,440 to $37,245 of the total is payable to Keller Williams. Adding a Business Center under the optional addendum costs another $29,600 to $88,150. ### Does Keller Williams disclose earnings? No. Item 19 of the 2026 FDD contains no figures. The operative sentence reads: "We do not make any representations about a franchisee's future financial performance or the past financial performance of company-affiliated or franchised outlets." That is legal under the FTC Franchise Rule, which makes an Item 19 optional. It is also the category standard. The 2026 filings for RE/MAX, Century 21, and Coldwell Banker all decline in nearly identical language. ### How does a Keller Williams market center make money? It takes a share of the commissions its affiliated agents generate, which is why the recruiting job matters more than the listing job. Keller Williams charges the market center a 6% Production Royalty on gross commission income, capped at $3,000 per agent per year, plus a $1,185 monthly Core Market Center Fee and a $72 monthly Associate Access Fee per agent. Item 15 requires a Team Leader whose primary responsibility is the agent recruiting program and who is barred from selling real estate. ### Keller Williams vs RE/MAX franchise, which costs less? RE/MAX has the lower floor and the lower royalty. Its 2026 FDD prices an office at $37,100 to $336,500 with an initial fee of $8,750 to $35,000 depending on market density, a 1% Broker Fee on revenue, a $143 to $170 monthly fee per agent, and $410 in annual dues per agent. Keller Williams starts at $183,647 and charges 6% until each agent has produced $50,000 of GCI. Which is cheaper depends on the roster you can recruit, and neither document tells you that. --- title: "Is H&R Block a Franchise? The $2,500 Question (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is h&r block a franchise, h&r block franchise cost, H&R Block Tax Services LLC, tax preparation franchise, franchise royalty, item 19, Financial Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-hr-block-a-franchise about: is h&r block a franchise category: blog wordCount: 1934 readingTime: 10 min crawledAt: 2026-08-20 11:14:59 lastVerified: 2026-08-20 11:14:59 site: https://vetmyfranchise.com/c/claude/ --- # Is H&R Block a Franchise? The $2,500 Question (2026) ## Summary Yes. H&R Block franchises tax offices: 1,987 franchised vs 6,701 company-owned, a $2,500 fee, a 30% to 60% royalty, and an Item 19 that discloses nothing. ## Key facts - Item 5 of the 2025 H&R Block FDD, issued September 30, 2025, sets the initial franchise fee at $2,500, payable in a lump sum when you sign the Franchise License Agreement. - Item 20 tracks both halves of the system across three fiscal years ending June 30. - Item 6 does not quote a percentage. - The 2025 FDD has an Item 19, and it contains no numbers. - Table 5 of Item 20 projects the year ahead. Quick answer Yes. H&R Block Tax Services LLC franchises tax offices, and 1,987 of its 8,688 outlets were franchised at June 30, 2025, against 6,701 company-owned. The 2025 FDD sets the initial franchise fee at $2,500 and the royalty at 30% to 60% of revenue, and Item 19 discloses nothing. ## The franchise fee is $2,500, and it is the least interesting number in the document Item 5 of the 2025 H&R Block FDD, issued September 30, 2025, sets the initial franchise fee at $2,500, payable in a lump sum when you sign the Franchise License Agreement. Across the 2,040 live records in our library that disclose a fee, the median is $42,500. Thirty-eight brands charge $2,500 or less, under 2% of the file. So the answer to “is H&R Block a franchise” is yes, and the entry ticket is priced like a rounding error. The rest of the build is modest too. [H&R Block Tax Services LLC](https://vetmyfranchise.com/c/claude/franchise/hr-block-tax-services-llc) estimates $34,080 to $158,750 for a new office in a new territory, of which $15,200 to $23,150 goes to the franchisor or its affiliates. You need 800 to 1,200 square feet and parking for five cars. Additional funds for the first three months run $430 to $12,000, the thinnest working capital line in the document, and it tells you what this business is: seasonal, light on fixed cost, staffed by people you hire in December. The cheap door is deliberate. So is the fee schedule behind it. ## 1,987 franchised offices, and the count falls every year Item 20 tracks both halves of the system across three fiscal years ending June 30. | Outlet type | Start of FY2023 | End FY2023 | End FY2024 | End FY2025 | | --- | --- | --- | --- | --- | | Franchised | 2,561 | 2,339 | 2,135 | 1,987 | | Company-owned | 6,665 | 6,582 | 6,629 | 6,701 | | Total | 9,226 | 8,921 | 8,764 | 8,688 | The franchised side lost 574 offices in three years, a 22% decline. The company side grew. Table 3 names the mechanism: the franchisor reacquired 151 franchised outlets in fiscal 2023, 169 in fiscal 2024, and 118 in fiscal 2025, a total of 438, against terminations of 20, 11, and 9. This system is not contracting because franchisees are failing out of it. It is being bought back. Table 4, covering company-owned outlets, records zero outlets reacquired from franchisees in any of those years, so the 438 reacquisitions never surface in the parallel table. Ask the franchisor to reconcile them before assuming a reacquired office simply becomes a corporate one. ## The royalty is 40%, and the four-day rule moves it Item 6 does not quote a percentage. It quotes a schedule. | Revenue type | Standard rate | Rate if paid within 4 days | | --- | --- | --- | | First $5,000 of annual revenue | 60% | 50% | | Revenue above $5,000 | 40% | 30% | | Revenue above your prior two-year average | not available | 20% | | Business services revenue | 15% | 10% | | Second Look and Peace of Mind revenue | 20% | 20% | The second column is conditional. The 30% rate applies only if payment reaches the franchisor within four days of the end of the Reporting Period and nothing else you owe is overdue. Reporting Periods run twice monthly through February and March and monthly the rest of the year, so you sit that test more than a dozen times a year, and every miss costs ten points of revenue. The 20% Incentive Royalty Rate covers revenue above your average for the two previous calendar years, again only on four-day payment, and only after two full Tax Seasons. A first-year franchisee pays 30% or 40% on everything above $5,000. There is no advertising fund fee anywhere in Item 6, and Item 11 explains why. The franchisor buys and controls all advertising at its own expense, while stating that it is not obligated to spend any amount in your Franchise Territory. What comes back is a Brand Management Budget allocation of the greater of $500 or 1% of the revenue you reported in the prior fiscal year, spendable only on expenses the franchisor approves in advance and discontinuable at its discretion. ## Item 19 says nothing, and the nearest competitor says plenty The 2025 FDD has an Item 19, and it contains no numbers. The entire section is a refusal: the franchisor “does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.” No table and no range, from a franchisor sitting on 6,701 company offices whose results it could publish tomorrow. Jackson Hewitt does the opposite. Its 2025 FDD reports gross volume of business for 2,663 franchised offices, 97.05% of those active at the close of the 2025 Tax Season. | Jackson Hewitt 2025 FDD, franchised offices | Standard | Kiosk | All | | --- | --- | --- | --- | | Offices in sample | 1,525 | 1,138 | 2,663 | | Average gross volume of business | $160,361 | $60,438 | $117,660 | | Median | $133,435 | $49,630 | $86,880 | | Share at or above the average | 39.1% | 37.5% | 36.5% | | Range | $450 to $1,396,455 | $403 to $371,055 | $403 to $1,396,455 | Put the two documents together and you can price the H&R Block royalty without knowing a single H&R Block revenue figure. Apply the disclosed schedule to Jackson Hewitt’s standard-office median of $133,435 and the royalty is $54,374 at the base rates, or $41,031 with every payment inside the four-day window, which is 41% and 31% of revenue. That is arithmetic on a competitor’s number rather than a claim about what an H&R Block office earns, because the FDD offers no figure of its own. Our guide to [what a missing Item 19 means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) covers how to underwrite when the franchisor stays silent. ## Zero new franchised offices are projected for fiscal 2026 Table 5 of Item 20 projects the year ahead. Franchise agreements signed but not yet opened: zero. Projected new franchised outlets for the fiscal year ending June 30, 2026: zero. Projected new company-owned outlets: 138. Item 1 describes three ways in: open a new retail office in a defined territory, buy a furnished company-owned office from the affiliate that runs it, or use the assisted acquisition program to buy an independent tax business. The second route carries a footnote worth its own paragraph. Item 7 note 17 discloses that no company-owned outlet or territory was sold during the preceding fiscal year, and Table 4 agrees, showing zero outlets sold to franchisees across all three years. Item 1 also reserves the right to stop offering company offices for sale. That leaves resale between franchisees, which Item 20 counts at 40 in fiscal 2023, 42 in fiscal 2024, and 26 in fiscal 2025. A transfer needs the franchisor’s approval and a $2,500 transfer fee, and the franchisor holds a 30-day right of first refusal on any offer you receive, so a seller can line up a buyer and still lose the deal. [Pull the full H&R Block FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/hr-block-tax-services-llc) ## What a 40% royalty actually buys A rate that high is not automatically a bad deal. The franchisor buys the advertising, the System and its software arrive at no charge, and initial training plus the roughly 19 hours of required annual training cost nothing. Affiliate Franchise Partner, Inc. lends against the business at prime plus 3% in most states. A conventional stack looks different: a 6% royalty beside a 2% ad fund, a technology fee, and a training charge, with the franchisee still buying media. What you carry here is the office: rent, seasonal payroll, hardware of roughly $10,800 for a six-desk setup, and $3,000 to $5,000 for upgrades. Whether 40% is expensive depends on what share of revenue those lines consume, and this FDD gives you nothing to answer that with. Our [royalty explainer](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained), the [three-brand comparison](https://vetmyfranchise.com/c/claude/blog/hr-block-vs-jackson-hewitt-vs-liberty-tax-franchise), and the [tax preparation franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-tax-preparation-franchises) are where to test it against brands that disclose. ## The exit clause is the one to read twice Item 17 runs the term to June 1 following your tenth full Tax Season, with no automatic renewal and a successor franchise offered at the franchisor’s sole discretion on then-current terms. Leaving early is expensive. If you are not in default you may terminate on 30 days’ written notice before June 1 of any year, and you then pay 25% of the business’s gross sales for the three prior years. Open less than three years, and you pay 100% of the previous year’s gross sales. Non-competition runs 45 miles during the term and 25 miles for two years after, with non-solicitation of your own clients attached. Disputes go to court in Jackson County, Missouri, and there is no arbitration clause. Territory is not exclusive, and Item 12 says the minimum granted may be a single street address. Competing with your own brand is designed in: Item 1 names the affiliates’ offices as your direct competition, and Item 12 reserves online tax preparation, tax software, and virtual services to the franchisor. One line in Item 20 belongs in your validation plan. During the last three fiscal years, some current and former franchisees signed provisions restricting their ability to speak openly about their experience with the franchisor. Expect that not everyone on the contact list can talk. Two franchisee bodies appear there: the franchisor-sponsored Franchisee Leadership Council and an independent group, the Franchise Community Association. Call both. So H&R Block franchises, the fee is trivial, and the system has given up 574 franchised outlets in three years while the franchisor plans 138 company openings and zero franchised ones. The $2,500 buys a seat. The 30% to 60% is the rent. [Read the full H&R Block FDD breakdown](https://vetmyfranchise.com/c/claude/franchise/hr-block-tax-services-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the H&R Block numbers with you. We'll email you the **H&R Block FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The H&R Block data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Ameriprise Financial Services [Learn more →](https://vetmyfranchise.com/c/claude/franchise/ameriprise-financial-services-llc) #### Jackson Hewitt [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jackson-hewitt-inc) #### H&r Block Tax Services [Learn more →](https://vetmyfranchise.com/c/claude/franchise/hr-block-tax-services-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is h&r block a franchiseh&r block franchise costH&R Block Tax Services LLCtax preparation franchisefranchise royaltyitem 19Financial Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is H&R Block a franchise? Yes, in part. H&R Block Tax Services LLC, an indirect wholly owned subsidiary of H&R Block, Inc., has offered franchise licenses since July 1, 2008, and its predecessor did so from 1993. The parent began franchising in 1957. Item 20 counts 8,688 outlets at June 30, 2025, of which 1,987 were franchised and 6,701 were owned by the company and its affiliates. Most H&R Block offices a customer walks into are corporate. ### How much does an H&R Block franchise cost? Item 7 of the 2025 FDD estimates $34,080 to $158,750 for a new office in a new territory, including a $2,500 initial franchise fee. Of that total, $15,200 to $23,150 is paid to the franchisor or its affiliates. The office needs 800 to 1,200 square feet and parking for at least five cars. Buying an existing territory or multiple offices costs more, and the FDD does not estimate how much more. ### What is the H&R Block franchise royalty? It runs from 20% to 60% depending on the revenue band and how fast you pay. The base schedule is 60% of the first $5,000 of annual revenue and 40% on everything above it. Paying within four days of the end of each Reporting Period, with nothing else overdue, drops those to 50% and 30%. Revenue above your average of the two prior calendar years qualifies for a 20% Incentive Royalty Rate, but only after you have completed two full Tax Seasons. Business services revenue carries a separate 15% rate, cut to 10% for prompt payment. ### How much do H&R Block franchise owners make? The FDD does not say. Item 19 of the 2025 document states that the franchisor makes no representations about a franchisee's future financial performance or the past performance of company-owned or franchised outlets. There is no table, no average, and no range. Anyone quoting an H&R Block franchise income figure is not quoting the disclosure document, and the franchisor has 6,701 company offices whose results it chooses not to publish. ### Can you still buy a new H&R Block franchise? Not easily. Item 20 Table 5 projects zero new franchised outlets for the fiscal year ending June 30, 2026, and lists zero franchise agreements signed but not yet opened. One franchised office opened in fiscal 2025 and none opened in the two years before. Item 7 note 17 discloses that no company-owned outlet or territory was sold during the preceding fiscal year. The 26 franchisee-to-franchisee transfers recorded in fiscal 2025 are the realistic route in. --- title: "Is Compass a Franchise? No, but It Owns Four (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is compass a franchise, compass real estate, Anywhere Real Estate, real estate brokerage franchise, Century 21, Coldwell Banker, franchisor ownership canonical: https://vetmyfranchise.com/c/claude/blog/is-compass-a-franchise about: is compass a franchise category: blog wordCount: 2052 readingTime: 10 min crawledAt: 2026-08-20 11:11:54 lastVerified: 2026-08-20 11:11:54 site: https://vetmyfranchise.com/c/claude/ --- # Is Compass a Franchise? No, but It Owns Four (2026) ## Summary No, Compass does not franchise its own brand. It owns four real estate franchisors as of January 9, 2026, and none of them discloses office earnings. ## Key facts - Two things are true at once. - The 2026 FDDs describe the transaction in plain terms. - Every figure below comes from the brand’s 2026 FDD, current as of December 31, 2025. - Read the Item 19 in each of the four documents and you get the same paragraph with a different lawyer’s name at the bottom. - Item 5 in each of the four documents says the same thing in different words: a franchise sales incentive program is running, and as of the issuance date the initial franchise fee for a main office is waived. Quick answer No. Compass does not grant franchises under the Compass brand, and its more than 33,000 affiliated agents are contractors at a company brokerage. Since January 9, 2026 Compass has owned four franchisors through the Anywhere acquisition: Century 21, Coldwell Banker, Sotheby's International Realty, and Corcoran. Those four you can buy. ## Compass does not grant franchises under the Compass brand Two things are true at once. Compass sells no franchises, and Compass now owns four of the largest real estate franchise systems in the country. The first fact has not changed since the company went public. The second has been true only since January 9, 2026. The clearest statement of the first fact is not on the Compass website. It sits in Item 1 of the 2026 Century 21 franchise disclosure document, where a Compass subsidiary describes its own parent for the benefit of prospective franchisees: “Compass, directly and through certain subsidiaries and affiliates (some of which previously offered franchises), is a residential real estate brokerage firm, operating in over 95 markets in the United States with over 400 offices and over 33,000 affiliated agents.” The next sentence closes the door: “Compass does not grant franchises under the Compass brand.” Those 33,000-plus agents sign independent contractor agreements with a brokerage Compass owns. That is a different instrument from a franchise agreement in every way a buyer should care about. No disclosure document arrives 14 days before signing, because the FTC Franchise Rule does not apply. There is no territory, no initial fee, no royalty, and no asset at the end. An agent who leaves takes a book of clients and nothing else. A brokerage franchisee who leaves sells a business. So the search that brought you here has a short answer and a longer one. The short answer is no. The longer one is that the company you cannot franchise now controls four franchisors that will happily sell you an office. ## What changed on January 9, 2026 The 2026 FDDs describe the transaction in plain terms. On January 9, 2026, Anywhere Real Estate Inc., Compass, and Velocity Merger Sub, Inc. completed the merger contemplated by an agreement dated September 22, 2025. Merger Sub merged into Anywhere, and Anywhere survived as a wholly owned subsidiary of Compass. Anywhere common stock, listed on the New York Stock Exchange since an October 2012 initial public offering and trading most recently under the symbol HOUS, stopped being listed. Compass shares continue to trade as COMP. Trace the ownership chain a franchisee now sits inside and it runs five entities deep. Coldwell Banker Real Estate LLC is a subsidiary of Anywhere Real Estate Services Group LLC, itself owned by Anywhere Real Estate Group LLC, then Anywhere Intermediate Holdings LLC, then Anywhere Real Estate Inc., a direct wholly owned subsidiary of Compass, Inc., doing business as Compass International Holdings. Anywhere Group and Anywhere still guarantee the franchisor’s obligations, and they continue to issue joint audited financial statements even though Anywhere no longer reports as a public company. The merged company carries roughly 340,000 agents. Anywhere also carried relocation services, title and escrow operations, and the franchising revenue itself into the deal, against $225 million in cost synergies Compass stated it expects to capture. ## The four franchise systems Compass now owns Every figure below comes from the brand’s 2026 FDD, current as of December 31, 2025. | | Century 21 | Coldwell Banker Commercial | Sotheby’s International Realty | Corcoran | | --- | --- | --- | --- | --- | | Initial fee, main office | $25,000 | $20,000 | $25,000 | $25,000 | | Fees actually paid in 2025 | $0 to $25,000 | $0 to $20,000 | $0 to $25,000 | $0 to $25,000 | | Royalty on gross revenue | 6% | 5.5% to $1M, then 3% | 6% | 6% declining to 4% | | Marketing fund | 0.50% | 2%, $621 to $1,728 per office monthly | 2%, $723 to $3,121 per office monthly | 1% declining to 0.50% | | Start-up office investment | $117,270 to $473,400 | $118,550 to $741,000 | $128,750 to $519,250 | $143,650 to $552,500 | | Conversion office investment | $35,770 to $286,100 | $37,050 to $553,700 | $47,250 to $331,950 | $62,150 to $365,200 | | Franchised offices | 1,685 | 134 | 672 | 108 | | Item 19 earnings data | none | none | none | none | One label deserves care. The Coldwell Banker document in our library is the Coldwell Banker Commercial offering, which is why its franchised count reads 134. The same filing discloses the residential Coldwell Banker system separately: 1,297 franchised offices and 484 company-owned offices at the end of 2025, down from 1,388 franchised three years earlier. Century 21 has shed offices on the same trajectory, from 1,870 at the start of 2023 to 1,685 at the end of 2025, with net losses of 63, 73, and 49 in the three disclosed years. Sotheby’s added six franchised offices in 2025. Corcoran is the smallest and the fastest-moving, going from 76 franchised offices in 2023 to 108, while its company-owned side shrank from 29 to 25. ## None of the four discloses what an office earns Read the Item 19 in each of the four documents and you get the same paragraph with a different lawyer’s name at the bottom. Century 21, Coldwell Banker, Sotheby’s International Realty, and Corcoran all state that they make no representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets. That is legal, common, and expensive for a buyer. Every one of these systems is decades old with hundreds or thousands of franchised offices reporting gross revenue to the franchisor every time a transaction closes. The data exists. It has been collected continuously for royalty billing. The decision not to publish it is a choice, not a limitation. The category is consistent about this, which is the only mild defense available. [Keller Williams runs the same play](https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise) across 735 franchised market centers, and RE/MAX files no Item 19 either. If you want a franchised brokerage, you are underwriting a business whose revenue you will have to reconstruct yourself from agent counts, average commission, and local transaction volume. [Compare what each brokerage franchisor actually discloses](https://vetmyfranchise.com/c/claude/blog/best-real-estate-brokerage-franchises). We read the filed FDD rather than the recruiting deck, which is how the missing pieces become visible. ## The initial fee is waived at all four right now Item 5 in each of the four documents says the same thing in different words: a franchise sales incentive program is running, and as of the issuance date the initial franchise fee for a main office is waived. The 2025 numbers confirm it happened in practice. Century 21 franchisees paid between $0 and $25,000 last year. Coldwell Banker Commercial franchisees paid between $0 and $20,000. Sotheby’s and Corcoran both range from $0. Treat a waived fee as pricing information rather than a discount. The initial fee is a rounding error against a royalty that runs for the life of the agreement. Century 21 charges 6% of gross revenue, defined in the franchise agreement as all compensation received or receivable in connection with the business, with a $500 minimum monthly royalty once the office opens. Sotheby’s charges 6% plus a brand marketing fund contribution of up to $3,121 per office per month. Coldwell Banker Commercial charges 5.5% until aggregate gross revenue passes $1,000,000 in a calendar year, then 3%, with a $7,500 quarterly minimum that puts you on probation if you miss it. Corcoran starts at 6% and declines to 4% as revenue grows. Century 21 offers a partial rebate through its incentive bonus program, capped at 2% of gross revenue, which can pull the effective royalty toward 4% for a franchisee in good standing. Read the conditions before counting on it. A default notice in any quarter can strip that quarter’s revenue from the calculation even if you cure it, and a default on December 31 forfeits the payment entirely. ## Your franchisor’s parent competes with you, and the FDD says so The most useful disclosure in these documents is not a fee. It is the paragraph describing who else operates under the same signs. At December 31, 2025, Anywhere Advisors LLC owned and operated 484 Coldwell Banker residential offices, one Coldwell Banker Commercial office, and 37 Sotheby’s International Realty offices. Its subsidiary NRT New York LLC owned 25 Corcoran offices and one Corcoran Sunshine office. A separate affiliate operates 36 company-owned @properties offices. Behind all of that sits Compass Brokerage itself, over 400 offices under the Compass, Urban Compass, Washington Fine Properties, and Latter and Blum marks. The Century 21 FDD does not soften what that means: “Anywhere Advisors and NRT NY operate mainly in metropolitan areas and compete directly with franchisees in the areas in which they operate.” They may compete for customers, for independent sales associates, for managers, and for title and mortgage relationships. The document then removes the last bit of comfort: “There are no restrictions on Anywhere Advisors and NRT NY regarding competition with franchisees.” Buy a Sotheby’s International Realty franchise and your franchisor’s sister company runs 37 offices under your own brand name. The Compass merger added a much larger competitor to that picture, one whose executive team now oversees the franchisor. The FDDs also reserve the right to develop tools and systems for the exclusive use of the company-owned brokerages, which is a quiet way of saying franchisees are not guaranteed access to whatever the parent builds next. ## What to check before you sign one of these Start with the trend line in Item 20, because it is the only performance signal these documents give you. Two of the four systems are shrinking. Ask the franchisor to explain the closures state by state, then call the offices listed in the exhibit of franchisees who left. Ask what the waived initial fee costs elsewhere in the agreement. Conversion funding, term extensions, and minimum annual royalty commitments are all negotiated into location addenda that never appear in the published fee table. A ten-year extension attached to a waived $25,000 fee is not free. Then accept that no Item 19 means the validation calls carry the entire underwriting burden. Both [Coldwell Banker](https://vetmyfranchise.com/c/claude/blog/is-coldwell-banker-a-franchise) and [Century 21](https://vetmyfranchise.com/c/claude/blog/is-century-21-a-franchise) publish franchisee lists in their exhibits. Work them, ask for gross revenue per agent rather than office totals, and ask every franchisee within 20 miles of a company-owned office how that competition has gone. [Pull the Century 21 data sheet from the 2026 filing](https://vetmyfranchise.com/c/claude/franchise/century-21-real-estate-llc). We analyze the document itself, Items 5, 7, and 20, including the parts a recruiting conversation skips. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Re Max [Learn more →](https://vetmyfranchise.com/c/claude/franchise/re-max-llc) #### Re/Max Integrated Regions [Learn more →](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc) #### Auto Appraisal Network [Learn more →](https://vetmyfranchise.com/c/claude/franchise/auto-appraisal-network-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is compass a franchisecompass real estateAnywhere Real Estatereal estate brokerage franchiseCentury 21Coldwell Bankerfranchisor ownership About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Compass franchise? No. The 2026 franchise disclosure documents filed by Compass subsidiaries state that Compass does not grant franchises under the Compass brand. Compass operates its own brokerage offices, over 400 of them in more than 95 US markets, staffed by more than 33,000 affiliated agents who sign independent contractor agreements rather than franchise agreements. There is no Compass FDD, no initial franchise fee, and no territory to buy. ### Who owns Compass real estate? Compass, Inc. is a public company trading on the New York Stock Exchange under the symbol COMP, following an initial public offering on April 1, 2021. Its principal business address is 110 Fifth Avenue in New York. On January 9, 2026 it completed its acquisition of Anywhere Real Estate Inc., which now operates as a wholly owned subsidiary under the name Compass International Holdings. ### What franchises does Compass own? Four real estate brokerage franchise systems arrived with the Anywhere acquisition: Century 21 Real Estate LLC, Coldwell Banker Real Estate LLC, Sotheby's International Realty Affiliates LLC, and Corcoran Group LLC. Each files its own FDD and each sells franchises to independent brokerage owners. Anywhere also brought relocation services through Cartus and title and escrow operations, and Compass stated $225 million in expected cost synergies from the combination. ### Is being a Compass agent the same as owning a franchise? No, and the difference is the whole question. A Compass agent affiliates with a brokerage Compass owns and operates. A franchisee of Century 21 or Corcoran owns the brokerage, signs a franchise agreement governed by the FTC Franchise Rule, receives a disclosure document 14 days before signing, pays an initial fee and an ongoing royalty, and holds a business that can be sold. An agent has a contract that ends. ### Do the Compass-owned franchises disclose earnings? None of the four does. The Item 19 in each 2026 FDD carries the same sentence: we do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. Keller Williams and RE/MAX also publish no Item 19, so the entire franchised brokerage category leaves buyers to validate revenue through franchisee calls and their own market math. --- title: "Is Domino's a Franchise? The Operator Path (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is dominos a franchise, dominos franchise cost, pizza franchise, item 19, QSR franchise, franchise requirements, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-dominos-a-franchise about: is dominos a franchise category: blog wordCount: 1857 readingTime: 9 min crawledAt: 2026-08-20 11:11:54 lastVerified: 2026-08-20 11:11:54 site: https://vetmyfranchise.com/c/claude/ --- # Is Domino's a Franchise? The Operator Path (2026) ## Summary Yes, Domino's is a franchise: about 96% of US stores are franchisee-owned. The 2026 FDD fee is $0 to $10,000, and Item 1 requires 12 months as a GM. ## Key facts - Item 1 of the 2026 Domino’s disclosure document sets the entry requirement before it sets a price. - Item 5 puts the initial franchise application processing fee at a range of $0 to $10,000, and reports that the fees actually collected during the year ending December 28, 2025 spanned that same range. - Item 7 splits into two formats, and the low number circulating online belongs to the wrong one. - Domino’s discloses average and median weekly unit sales for 2020 through 2024, then a set of EBITDA margins sorted by sales band. - The franchisor is Domino’s Pizza Franchising LLC, a Delaware limited liability company organized on March 2, 2007. Quick answer Yes. About 96% of Domino's US stores are franchised, 6,974 of 7,236 outlets as of December 28, 2025. The 2026 FDD charges an initial fee of $0 to $10,000, a 5.5% royalty, and a 4% advertising fund. The catch sits in Item 1: you need 12 months as a store general manager to qualify. ## Twelve months as a general manager, then you can apply Item 1 of the 2026 Domino’s disclosure document sets the entry requirement before it sets a price. A franchise applicant “must have been a Store general manager for at least 12 months to be eligible for a single Store franchise and must also have attended certain classes on operating a Store.” Multi-unit franchises go to candidates who have been a successful store supervisor or above for at least 12 months, at the franchisor’s sole discretion. The document then closes the obvious loophole: those requirements apply whether you are building a new store or buying one that already exists, company-owned or franchised. So the answer to “is dominos a franchise” is yes, and about 96% of the US system is franchisee-owned. What makes the brand structurally unusual is that the qualifying step is a job rather than a wire transfer. Domino’s recruits its franchisees out of its own management ranks, which is why the fee is small and why the system rarely loses stores. ## The initial fee is $0 to $10,000 Item 5 puts the initial franchise application processing fee at a range of $0 to $10,000, and reports that the fees actually collected during the year ending December 28, 2025 spanned that same range. Building a store carries a fee of up to $10,000. Refranchising a closed store carries up to $10,000. Buying an existing store carries a $1,500 transfer fee instead. Training is capped at $1,250 per session. Third-party articles quote the $10,000 as a flat price. It is a ceiling, and the franchisor states it generally does not bill the fee until you are operating the store. | 2026 FDD term | Figure | | --- | --- | | Initial fee | $0 to $10,000 | | Royalty | 5.5% of weekly royalty sales | | Advertising fund | 4% of weekly royalty sales | | Advertising cooperatives | 1% to 4% | | Transfer fee | $1,500 | | PULSE initial license fee | $4,200 | | Annual software enhancement fee | $819.25 per store | | Technology transaction fee | $0.385 per digital order | | Agreement term | 10 years, renewable for 10 | The floor is 9.5% of royalty sales. Add a cooperative at the top of its range and the commitment reaches 13.5% before food, labor, rent, or the note on the build. Royalty sales are defined as total receipts excluding sales taxes, coupon discounts, and beverage container deposits, so promotional pricing lands on your side of the calculation, not the franchisor’s. ## $231,450 to $743,500, with no delivery cars in it Item 7 splits into two formats, and the low number circulating online belongs to the wrong one. | Item 7 line, traditional store | Low | High | | --- | --- | --- | | Initial fee | $0 | $10,000 | | Leasehold improvements | $67,000 | $350,000 | | Furniture, fixtures, equipment | $105,000 | $145,000 | | Signage | $8,200 | $35,000 | | Three months rent | $6,000 | $25,000 | | Security deposit | $1,000 | $10,000 | | Opening inventory and supplies | $4,750 | $6,500 | | Opening advertising | $0 | $3,000 | | Training expenses | $1,000 | $4,000 | | Insurance | $25,000 | $75,000 | | Miscellaneous opening costs | $3,500 | $7,000 | | Additional funds, three months | $10,000 | $73,000 | | Total | $231,450 | $743,500 | A non-traditional store, meaning the carry-out counters in office buildings, malls, stadiums, toll roads, airports, and convenience stores, runs $107,450 to $709,500. That $107,450 is the figure aggregators print as the Domino’s entry price. It buys a kiosk, not a delivery store. Two lines deserve a second look. Insurance is an annual premium of $25,000 to $75,000 for a traditional store, and the footnote warns it may be significantly higher depending on state coverage rules, location, and your loss history. And footnote 3 states plainly that the franchisor does not require you to purchase or lease delivery cars, so those costs are not in the Item 7 estimate at all. A delivery business quoting an investment range that excludes the delivery fleet is a footnote worth reading twice. [Pull the full Domino’s Pizza Franchising LLC data sheet](https://vetmyfranchise.com/c/claude/franchise/dominos-pizza-franchising-llc) if you want Items 5, 7, and 19 side by side rather than a recruitment page. ## What Item 19 actually reports Domino’s discloses average and median weekly unit sales for 2020 through 2024, then a set of EBITDA margins sorted by sales band. Franchised stores averaged $26,467 a week in 2024 against a median of $25,160. Company-owned stores averaged $26,120, and their midpoint was $26,264, higher than the franchised base. That direction is worth noting, because it is the opposite of what most large systems disclose. | 2024 average weekly unit sales | Stores | EBITDA as % of royalty sales | Share hitting or beating it | | --- | --- | --- | --- | | Under $15,000 | 490 | 1.7% | 48.6% | | $15,001 to $20,000 | 1,135 | 6.7% | 50.4% | | $20,001 to $25,000 | 1,426 | 10.1% | 53.1% | | $25,001 to $30,000 | 1,350 | 12.1% | 51.6% | | $30,001 and above | 1,861 | 14.7% | 49.3% | The table is built from 6,262 franchisee profit and loss statements out of 6,699 franchised stores open at the end of 2024. The franchisor excluded 256 stores that submitted nothing or submitted incomplete statements and 181 that were not open the full year. Three things about reading it honestly. EBITDA sits before interest, taxes, depreciation, and amortization, so the debt service on a $231,450 to $743,500 build is not deducted anywhere in this table. Manager salary is inside total cash fixed costs, which means an owner who runs the store is already paid before the EBITDA line. And roughly half the stores in every band fall short of their own band’s figure, which is the least flattering and most useful sentence in the whole item. The median store at $25,160 a week annualizes to about $1.31 million of royalty sales. At the 12.1% band margin that is roughly $158,000 of EBITDA before any loan payment. Compare that against [what Marco’s Pizza discloses](https://vetmyfranchise.com/c/claude/blog/marcos-pizza-franchise-cost) and against the rest of the category in our [ranking of pizza franchises](https://vetmyfranchise.com/c/claude/blog/best-pizza-franchises), because the capital at risk differs more than the margins do. ## Who actually signs your agreement The franchisor is Domino’s Pizza Franchising LLC, a Delaware limited liability company organized on March 2, 2007. It is a direct wholly-owned subsidiary of Domino’s Pizza Master Issuer LLC and an indirect wholly-owned subsidiary of Domino’s Pizza LLC, all sitting under Domino’s Pizza, Inc., public since its July 2004 offering. The franchisor entity exists because of a securitization financing that closed in April 2007, and Domino’s Pizza LLC now provides the support services and acts as franchise sales agent under a management agreement. Your counterparty is a financing vehicle, and the servicer can be replaced if it fails to perform. Item 1 states that the franchisor remains accountable for every service promised regardless of who performs it. That is the right disclosure, and it is still a more layered structure than the single operating company most buyers assume they are signing with. ## Item 20 is the quiet argument for the model Traditional franchised outlets went from 6,751 to 6,948 during 2025. The system opened 214. It recorded 9 terminations, 2 non-renewals, 2 stores reacquired by the franchisor, and 4 that ceased operations for other reasons. That is 17 exits against a base of 6,751, about a quarter of one percent. Company-owned stores fell from 292 to 262, and the reason is in Table No. 4: 37 company stores were sold to franchisees during 2025, 36 of them in Maryland. Refranchising, not retreat. Development agreements grew from 323 to 356, and the franchisor projects 188 new franchised outlets and 7 company outlets for the year ending January 3, 2027, with 29 agreements already signed and unopened. Two more things to use. Transfers between owners totaled 490 traditional stores in 2025, down from 550 in 2024, so resale volume is real if you want an operating store instead of a build. And Item 20 confirms the franchisor has no confidentiality clauses preventing franchisees from discussing their experience, which makes the 103 former franchisees and 59 former developers listed in Exhibit B-2 worth calling. ## What to read before you commit Item 15 requires the store to be under the on-premises supervision of you or your controlling person at all times, and bars that person from financial or operational involvement in any outside business without written approval. This is a full-time job with a franchise agreement attached. Item 17 sets a 10-year term with a 10-year renewal that requires signing the then-current agreement and refurbishing or relocating on the franchisor’s call. If the general manager requirement rules you out, the other national pizza systems price and qualify differently. Our [three-way comparison of Domino’s, Papa John’s, and Marco’s](https://vetmyfranchise.com/c/claude/blog/dominos-vs-papa-johns-vs-marcos-pizza-franchise) reads all three off their filed documents rather than their recruitment sites, and the [Domino’s data sheet](https://vetmyfranchise.com/c/claude/franchise/dominos-pizza-franchising-llc) carries the Item 5, 7, and 19 figures above in one place. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Domino's numbers with you. We'll email you the **Domino's FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Domino's data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is dominos a franchisedominos franchise costpizza franchiseitem 19QSR franchisefranchise requirementsbrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Domino's franchise cost? The 2026 FDD estimates $231,450 to $743,500 for a traditional store and $107,450 to $709,500 for a non-traditional store. The initial fee is only $0 to $10,000 of that, with leasehold improvements at $67,000 to $350,000 and equipment at $105,000 to $145,000 doing most of the work. Item 7 footnote 3 states that delivery cars are not required by the franchisor and therefore are not included in the estimate, so budget vehicles separately. ### Do you have to work at Domino's before buying a franchise? Effectively yes. Item 1 of the 2026 FDD states that a franchise applicant must have been a store general manager for at least 12 months to be eligible for a single store franchise, and must also have attended certain classes on operating a store. Multi-unit franchises go to candidates who have been a successful store supervisor or above for at least 12 months, at the franchisor's sole discretion. The requirement applies whether you build a new store or buy an existing company-owned or franchised one. ### How much do Domino's franchisees make? Item 19 reports EBITDA as a percentage of royalty sales rather than dollars of profit. Stores averaging under $15,000 in weekly sales showed 1.7%, the $20,001 to $25,000 band showed 10.1%, and stores above $30,001 showed 14.7%. Franchised median weekly unit sales for 2024 were $25,160. The figures come from 6,262 franchisee profit and loss statements and sit before interest, taxes, depreciation, amortization, and any debt service on the build. ### What percentage of Domino's stores are franchised? About 96% of the US system. As of December 28, 2025 the 2026 FDD counts 7,210 traditional stores, of which 262 are company-owned and 6,948 are franchisee-owned, plus 26 non-traditional stores that are all franchised. Company-owned units are concentrated in six states and shrank by 30 during 2025 because 37 of them were sold to franchisees. ### How long is a Domino's franchise agreement? Ten years, with a 10-year renewal if you meet the conditions in Item 17. Renewal requires written notice, no material default, substantial compliance, signing the then-current form of agreement, keeping possession of the store or securing approved substitute premises, and completing refurbishment or relocating if the franchisor decides the site should move. --- title: "Is Goodyear a Franchise? Dealers vs Franchises (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is goodyear a franchise, goodyear dealer program, tire franchise opportunities, dealer vs franchise, Big O Tires franchise, Midas franchise, Automotive franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-goodyear-a-franchise about: is goodyear a franchise category: blog wordCount: 1897 readingTime: 9 min crawledAt: 2026-08-20 11:11:54 lastVerified: 2026-08-20 11:11:54 site: https://vetmyfranchise.com/c/claude/ --- # Is Goodyear a Franchise? Dealers vs Franchises (2026) ## Summary Is Goodyear a franchise? Mostly no. It runs company stores, franchised outlets, and a dealer network. Big O Tires and Midas are the franchised routes. ## Key facts - Three different contracts can put a Goodyear sign over a service bay, and only one of them is a franchise you buy. - The FTC Franchise Rule attaches to a specific transaction: a brand grants you the right to operate under its trademark, exercises significant control or provides significant assistance, and collects a required payment from you before or shortly after you open. - Read that table as a trade rather than a ranking. - Ownership structure is not settled inside franchising either, and the Item 20 tables make that visible. - If a manufacturer program is what you are being offered, get the purchase commitment in writing and price it against what you currently pay a distributor. Quick answer Mostly no. Goodyear is a tire manufacturer whose retail presence spans company-owned Goodyear Auto Service centers, franchised dealer outlets, and independent shops affiliated through the Goodyear Tire & Service Network. Most people asking are describing a dealer relationship. The franchised tire and service brands with filed disclosure documents are Big O Tires, at $17,500, and Midas, at $35,000. ## Company store, franchised outlet, or dealer Three different contracts can put a Goodyear sign over a service bay, and only one of them is a franchise you buy. Anyone asking is Goodyear a franchise is really asking which of the three they are being offered. Start with the company store. Goodyear Auto Service centers are owned and operated by The Goodyear Tire & Rubber Company, the publicly traded manufacturer that trades under the ticker GT. Whoever is behind that counter is an employee. There is nothing on offer to an outside buyer. Next comes the franchised dealer outlet, where an independent operator runs a Goodyear-branded retail location under a franchise agreement. Most people asking this question actually land in a third category: the affiliated independent dealer. That shop keeps its own name over the door, buys Goodyear product, and displays the brand under a program agreement. Modern Tire Dealer’s 2026 guide to tire dealer program groups files the Goodyear Tire & Service Network under manufacturer-backed program groups, in a section separate from the franchise groups it lists, which include Big O Tires and Midas. The trade press draws that line because the two arrangements are not the same purchase. ## What a dealer program does not have to tell you The FTC Franchise Rule attaches to a specific transaction: a brand grants you the right to operate under its trademark, exercises significant control or provides significant assistance, and collects a required payment from you before or shortly after you open. When those three conditions hold, the brand owes you a Franchise Disclosure Document at least 14 days before you sign anything or hand over money. A manufacturer selling product into an independent shop is running a different transaction. Money flows toward you in the form of inventory, cooperative advertising, and warranty backing, and flows back as purchases at negotiated prices. The signage rides along with the supply relationship. That arrangement can be excellent business, and it is why thousands of independent shops fly a manufacturer’s colors without ever reading an Item 7. What you give up is the evidence file. There is no Item 19 telling you what comparable outlets collected last year, no Item 20 showing how many locations opened, closed, or changed hands, no audited franchisor financials, and no state registration filing to pull. Goodyear does not appear in our FDD library, so we hold no filed disclosure for it and will not quote you an investment range or a store average. For a picture of what the disclosed side of the same aisle looks like, our writeup on [whether Discount Tire is a franchise](https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise) covers the other big corporate holdout in tire retail. ## Program agreement against franchise agreement | | Manufacturer dealer program | Big O Tires franchise, 2025 FDD | | --- | --- | --- | | Upfront payment to the brand | set by the program, not publicly filed | $17,500 initial franchise fee | | Total investment disclosed | not published | $511,500 to $1,882,500 | | Ongoing payment | product purchases at negotiated terms | 3.5% to 5.0% royalty by matrix, plus 3.6% local and 0.9% national advertising | | Disclosure document | none in our library | full FDD, delivered 14 days before signing | | Earnings disclosure | none | Item 19: $2,824,712.79 average gross revenues across 457 stores for 2024 | | Unit churn history | not published | Item 20: three fiscal years of openings, closures, and transfers | | Name over the door | yours, with their brand displayed | theirs | | What transfers at exit | your own business | the franchise, subject to approval, plus a $5,000 resale fee if the franchisor supplies the buyer | Read that table as a trade rather than a ranking. The dealer keeps ownership of a business and gives up disclosure. The franchisee buys disclosure and gives up ownership of the brand. ## Big O Tires is the franchised tire route [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) began life in 1962 as a purchasing cooperative so independent dealers could buy tires at better prices, which is roughly the same problem a manufacturer program solves. It sells franchises now. The disclosure document we hold, issued June 30, 2025, sets the initial franchise fee at $17,500, paid $10,000 with the application and $7,500 at signing. The recurring stack is unusual. Rather than a flat royalty, Item 6 puts you on a Royalty Matrix that recalculates annually against your adjusted gross sales, capped at 5.0% and floored at 3.5% for new stores, with the opening partial year generally set at 5.0%. Advertising runs a 4% local minimum, currently reduced to 3.6% under a program that can end at any time, plus a national marketing fee that the franchisee advisory council voted up from 0.25% to 0.9%. The cover page puts total investment at $511,500 to $1,882,500, of which $385,000 to $1,596,000 goes to the franchisor or its affiliates. That second figure is the one worth sitting with. Roughly three-quarters of what you spend to open goes back to the people selling you the franchise, because the franchisor is also your primary supplier. [Open the Big O Tires FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) Our longer assessment of the brand’s economics sits in [is Big O Tires a good franchise](https://vetmyfranchise.com/c/claude/blog/is-big-o-tires-a-good-franchise). ## Midas prices its royalty by what you sell [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) has granted franchises since 1956 through a predecessor entity, and its 2026 FDD does something most automotive filings do not: it charges a different royalty depending on the work. The standard rate is 10% of net revenue. Tires and tire-related services carry a reduced 6%. Batteries carry 2%. A narrow band of exempt sales, limited to third-party towing, third-party rental cars, and the cost of state inspection stickers, carries 0%, provided you charge the customer only your actual cost. Co-branding shops can reach 11%. Midas commits to spending not less than half the royalties it collects on marketing, which is why there is no separate advertising fund line. A 10% royalty reads brutal next to Big O’s 5% ceiling until you notice there is no ad fund stacked on top and that the tire work, which carries the thinnest margin, is billed at 6%. The entry cost splits by path. A new eight-bay shop on leased premises is estimated at $385,450 to $940,050, including $55,000 to $130,000 payable to Midas or its affiliates. Converting an operating automotive repair facility runs $143,400 to $941,050, and an owner who converts an independent shop pays $17,500 rather than $35,000 for the franchise. Neither range includes land or construction. If you already own a shop and a lease, the conversion path is the cheapest legitimate entry into a national tire and service brand that we hold a filing for. ## The two disclosed brands are moving in opposite directions Ownership structure is not settled inside franchising either, and the Item 20 tables make that visible. | Item 20 outlet counts | Big O Tires (FYE March 31) | Midas (calendar years) | | --- | --- | --- | | Franchised, earliest year shown | 434 at start of FY2023 | 971 at start of 2023 | | Franchised, latest year shown | 461 at March 31, 2025 | 889 at December 31, 2025 | | Company-owned, trend | 32, then 17, then 0 | 0, then 0, then 111 | | Net change in franchised units, latest year | down 1 | down 86 | Big O has refranchised itself out of the retail business entirely and now operates no corporate stores. Midas went the other way during 2025, adding 111 company-owned outlets while its franchised count fell by 86, with total system outlets rising from 975 to 1,000. Its ultimate parent is Metis HoldCo, under the Mavis group, which the same filing describes as running more than 2,300 service centers across 39 states and which does not currently offer Mavis franchises. Both patterns tell you the same thing about this category. The people with the best data on tire and service store economics keep deciding, brand by brand and year by year, whether the operator should be a franchisee or an employee. A manufacturer’s dealer program is the third answer to that question, and it is the one that asks the least of you and discloses the least in return. ## What to check before signing either document If a manufacturer program is what you are being offered, get the purchase commitment in writing and price it against what you currently pay a distributor. The value of the affiliation is the difference between those two numbers plus whatever the signage and warranty backing actually drive in traffic, and none of that is disclosed anywhere, so you have to build the estimate yourself from your own invoices. If a franchise is what you are being offered, read Item 20 before Item 19. Unit counts tell you what operators decided after they had the full picture, and a system where the franchisor is buying stores back deserves a different set of questions than one where it is selling them off. VetMyFranchise reads the filed disclosure document, Items 5, 7, and 19 included, and reports what the filing supports rather than what a recruitment page claims. Start with the [auto repair franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) if you want the disclosed numbers in this category lined up side by side. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is goodyear a franchisegoodyear dealer programtire franchise opportunitiesdealer vs franchiseBig O Tires franchiseMidas franchiseAutomotive franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Goodyear franchise? Not in the way most searchers mean. Goodyear Auto Service centers are owned and operated by the manufacturer, so there is nothing to purchase there. Goodyear does franchise some retail outlets and affiliates thousands of independent shops through its Tire & Service Network, but Goodyear does not appear in our FDD library, so we hold no filed disclosure document for it and can show you no disclosed investment or earnings figures. The tire and service brands we do hold current filings for are Big O Tires and Midas. ### What is the difference between a Goodyear dealer and a franchisee? A dealer keeps its own business and displays somebody else's brand; a franchisee operates somebody else's brand as its business. The practical difference is the paperwork. A franchise sale triggers the FTC Franchise Rule, which forces the franchisor to hand you a disclosure document at least 14 days before you sign or pay, covering the estimated investment in Item 7, any earnings claim in Item 19, and every opening, closure, termination, and transfer in Item 20. A manufacturer's dealer program agreement carries none of that, because it is a supply and marketing arrangement rather than a franchise sale. ### Does Goodyear own its stores? Some of them. Goodyear Auto Service centers are company-owned and company-operated by The Goodyear Tire & Rubber Company, which means the people running them are employees rather than owners. Alongside those, the company works with franchised dealer outlets and with a much larger population of independent shops that carry Goodyear product and signage while keeping their own names. That mix is normal for a tire manufacturer, and it is why one brand can look like a franchise chain from the road without being one. ### What tire franchises can you actually buy? Big O Tires and Midas are the two with current filings in our library. Big O's disclosure document, issued June 30, 2025, sets a $17,500 initial franchise fee and puts total investment at $511,500 to $1,882,500. Midas charges a $35,000 initial fee, reduced to $17,500 if you convert an independent shop you already operate, and estimates $385,450 to $940,050 for a new eight-bay shop on leased premises. Both publish an Item 19, which is the part a dealer program will never give you. ### How much does a Midas franchise cost? The 2026 FDD estimates $385,450 to $940,050 for a new eight-bay Midas shop, including $55,000 to $130,000 payable to the franchisor or its affiliates. Converting an operating automotive repair facility runs $143,400 to $941,050, and the initial franchise fee drops from $35,000 to $17,500 for that path. Neither range includes buying land or constructing a building. Royalty is 10% of net revenue on general work, 6% on tires and tire-related services, and 2% on batteries. --- title: "Is Chipotle a Franchise? 100% Company-Owned (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is chipotle a franchise, chipotle franchise cost, qdoba franchise, fast casual mexican franchise, company-owned restaurants, item 19, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-chipotle-a-franchise about: is chipotle a franchise category: blog wordCount: 1588 readingTime: 8 min crawledAt: 2026-08-20 11:15:50 lastVerified: 2026-08-20 11:15:50 site: https://vetmyfranchise.com/c/claude/ --- # Is Chipotle a Franchise? 100% Company-Owned (2026) ## Summary No. Chipotle runs 4,186 company-operated restaurants and franchises none of them. Qdoba's 2025 FDD is the franchised alternative at $548,100 to $1,294,000. ## Key facts - The three words get used interchangeably in press coverage, and the differences are exactly the ones a buyer cares about. - Lead-generation sites publish a Chipotle franchise cost anyway. - Qdoba Franchisor LLC is a Delaware entity formed in September 2023 that became the franchisor in November 2023 as part of a securitization transaction. - Chart 2 of the 12/25 FDD covers 464 franchised restaurants that were open and franchisee-operated for at least one year as of September 28, 2025. - Salsarita’s is sometimes marketed at a $371,400 low end. Quick answer No. Chipotle does not franchise in the United States. As of June 30, 2026 the company reported 4,186 company-operated restaurants and just 15 international licensed restaurants, so there is no FDD, no franchise fee, and nothing to buy. Qdoba is the franchised equivalent, at $548,100 to $1,294,000 for a traditional restaurant. ## Chipotle’s own count is 4,186, and none of them are franchised No. As of June 30, 2026, Chipotle Mexican Grill reported 4,186 company-operated restaurants and 15 international licensed restaurants. Not one of them is a franchise. There is no franchise fee, no territory map, and no Franchise Disclosure Document, because the company has never registered a domestic offering. That closes the question and opens a more useful one. Search volume for “chipotle franchise cost” is real money looking for a fast-casual Mexican restaurant to buy, and that money has somewhere to go. It just cannot go here. [Panda Express](https://vetmyfranchise.com/c/claude/blog/is-panda-express-a-franchise) runs the same way on a smaller scale, keeping 2,423 of its 2,607 restaurants company-owned and licensing only 184 inside captive venues. ## Company-operated, licensed, and franchised are three different things The three words get used interchangeably in press coverage, and the differences are exactly the ones a buyer cares about. | Arrangement | Who owns the unit | Who employs the staff | Disclosure document | Chipotle’s use | | --- | --- | --- | --- | --- | | Company-operated | Chipotle | Chipotle | None required | 4,186 restaurants | | Licensed | A corporate partner | The partner | None required | 15 international restaurants | | Franchised | An independent buyer | The buyer | FDD required by the FTC Franchise Rule | Zero | Chipotle’s international expansion runs entirely through the middle row. Alshaya Group took the Middle East in 2023, Alsea took Mexico in 2025, and a joint venture with SPC Group covers Asia. These are country-scale operating companies with existing restaurant portfolios, and the deals are negotiated one at a time rather than offered to a market of buyers. The US, Canada, and Western Europe remain company-owned. The practical consequence for anyone doing diligence: a license is a private contract. No FDD gets registered, which means no Item 5 fee schedule, no Item 7 investment table, and no Item 19 performance representation. All the material a buyer would normally read simply does not exist. ## What a search for “chipotle franchise cost” actually turns up Lead-generation sites publish a Chipotle franchise cost anyway. Those figures are reverse-engineered from the company’s disclosed build costs per restaurant in its investor materials, then dressed up with an invented franchise fee and royalty. A construction budget is not a franchise offering. The number has no disclosure document behind it, no validation list, and no franchisor to hold to it. VetMyFranchise pulls Items 5, 7, and 19 out of the filed FDD rather than a brand’s marketing page, which is why the closest real comparison starts at the [Qdoba dossier](https://vetmyfranchise.com/c/claude/franchise/qdoba-franchisor-llc). ## Qdoba runs the same order line and does sell franchises Qdoba Franchisor LLC is a Delaware entity formed in September 2023 that became the franchisor in November 2023 as part of a securitization transaction. The restaurants themselves go back to 1995, and the predecessor company began selling franchises in 1997. As of September 28, 2025, the system counted 827 restaurants: 652 franchised and 175 company-operated. | 12/25 FDD line | Traditional restaurant | Non-traditional restaurant | | --- | --- | --- | | Franchise fee | $40,000 | $20,000 | | Estimated initial investment | $548,100 to $1,294,000 | $234,500 to $898,000 | | Royalty | 5% of gross sales | 6% of gross sales | | Marketing fee | 4.5% (franchisees) | 1.75% (licensees) | | Agreement term | 10 years | 10 years | Two footnotes matter more than the headline. Both totals exclude real property and liquor licensing, so a franchisee buying or building a freestanding site carries that on top. And Item 7 note 1 mentions a $100,000 cash payment some restaurants receive at opening under an incentive program described in Item 1, which the investment table deliberately does not net out. Ask which sites qualify before you model it. One correction worth making, because the spliced version circulates widely: Qdoba’s investment range is often quoted as $234,500 to $1,294,000. No single format spans that. The low belongs to the non-traditional table and the high belongs to the traditional one, and a buyer comparing brands on a midpoint is comparing two different businesses averaged together. ## The Item 19 is unusually good, and it excludes the cheap format Chart 2 of the 12/25 FDD covers 464 franchised restaurants that were open and franchisee-operated for at least one year as of September 28, 2025. | Quartile, TTM ended 9/28/2025 | Median net sales | | --- | --- | | Top | $2,450,334 | | Second | $1,859,571 | | Third | $1,421,970 | | Bottom | $1,007,528 | | All 464 restaurants | $1,596,761 | Average net sales across the group were $1,697,254, the lowest single restaurant did $411,191, and the highest did $5,078,990. A separate chart covering 397 traditional franchised units that report financials through the franchisor’s portal shows average proforma franchisee EBITDA of $254,430, or 15.3% of net sales, against a median of $246,001 and a low of negative $214,733. Occupancy averaged 7.5% of sales, food and paper 27.6%, and salaries and benefits 26.9%. Now read the exclusion list. Chart 2 leaves out 123 non-traditional restaurants, 13 Canadian restaurants, 5 refranchised units, 38 that opened during the last fiscal year, and 7 closed for 21 or more operating days. That first exclusion is the one to sit with. The format that makes Qdoba look affordable at $234,500 is the same format with no disclosed sales figure attached to it anywhere in the document. Anyone underwriting a non-traditional unit is underwriting on the traditional restaurants’ numbers, which is a substitution the FDD never invites you to make. ## Five fast-casual Mexican brands that do file an FDD | Brand | Franchise fee | Item 7 estimated investment | Royalty | | --- | --- | --- | --- | | Qdoba, traditional | $40,000 | $548,100 to $1,294,000 | 5% of gross sales | | Salsarita’s | $30,000 | $506,400 to $856,100 | 5% to 6% of net revenues | | Taco John’s, freestanding | $40,000 | $811,400 to $2,034,250 | 5% of net sales | | Fuzzy’s Taco Shop | $40,000 | $1,049,500 to $3,040,500 | 5% of gross sales | | Del Taco | $35,000 | $1,497,200 to $3,321,000 | 5% of net sales | Salsarita’s is sometimes marketed at a $371,400 low end. That figure is the same Item 7 table after subtracting a tenant improvement allowance of up to $135,000 that the franchisee has to negotiate out of a landlord, and the FDD prints both rows so you can see which one you are being quoted. Del Taco and Fuzzy’s sit at the top of the range because their Item 7 tables assume freestanding buildings with drive-thrus rather than in-line space. Our [best Mexican food franchises](https://vetmyfranchise.com/c/claude/blog/best-mexican-food-franchises) breakdown ranks the category on unit economics rather than brand recognition, and the [Taco Bell franchise cost](https://vetmyfranchise.com/c/claude/blog/taco-bell-franchise-cost) analysis covers the QSR side of the same customer. ## What to do if you wanted a Chipotle Nothing in Chipotle’s public behavior suggests a domestic franchise program is coming. The company has spent two decades building an operating model around owning the labor, and the international licensing deals it does sign go to partners running hundreds of restaurants already, not to first-time operators. Waiting is not a strategy. The category is still buyable. It is simply buyable under a different sign, at investment levels that run from roughly $500,000 to well past $3 million depending on format and whether you are building freestanding. Start with a document that actually exists: [read the Qdoba FDD analysis](https://vetmyfranchise.com/c/claude/franchise/qdoba-franchisor-llc), which breaks out Items 5, 7, and 19 line by line. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is chipotle a franchisechipotle franchise costqdoba franchisefast casual mexican franchisecompany-owned restaurantsitem 19Food & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Chipotle franchise? No. Chipotle sells no franchises in the United States, and it has never registered a Franchise Disclosure Document for a domestic offering. As of June 30, 2026 the company reported 4,186 company-operated restaurants and 15 international licensed restaurants. The licensed restaurants sit with regional operating companies abroad, not with individual buyers, so any website quoting a Chipotle franchise fee is quoting a number that does not exist. ### Why doesn't Chipotle franchise? Chipotle has kept ownership of its restaurants since the beginning, and the operating model explains most of it. The concept runs on a single assembly line where speed of service and ingredient handling are done in the store by hourly staff, and both are things a franchisor can specify in a manual but cannot directly control. Owning the labor means owning the outcome. Chipotle has not published a franchise-specific rationale we can quote, so read that as inference from how the system is built rather than a company statement. ### What Mexican food franchises can you buy? Qdoba, Salsarita's, Taco John's, Fuzzy's Taco Shop, and Del Taco all sell franchises and file FDDs. Entry prices run from $506,400 at Salsarita's to $3,321,000 at the top of Del Taco's Item 7 range. Qdoba is the closest fast-casual analogue to Chipotle by format and by check average, and it is the only one of the five publishing an Item 19 built from a sample above 400 franchised restaurants. ### How much does a Qdoba franchise cost? The 12/25 FDD estimates $548,100 to $1,294,000 for a traditional restaurant, including a $40,000 franchise fee, and $234,500 to $898,000 for a non-traditional one with a $20,000 fee. Both totals exclude real property and liquor licensing costs. The recurring stack on a traditional unit is a 5% royalty plus a 4.5% marketing fee, and honorably discharged veterans get $10,000 off the initial fee under the VetFran program. ### How much do Qdoba franchisees make? Median net sales were $1,596,761 across 464 franchised restaurants open and franchisee-operated for at least one year through September 28, 2025. A separate table covering 397 traditional franchised restaurants that reported through Qdoba's portal shows average proforma franchisee EBITDA of $254,430, or 15.3% of sales, with a median of $246,001 and a low of negative $214,733. That negative low is the number worth sitting with. --- title: "Is Hertz a Franchise? Yes, in Smaller Markets (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is hertz a franchise, car rental franchise, Hertz System Inc, Avis franchise, item 19, franchise disclosure document, Hospitality and Travel franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-hertz-a-franchise about: is hertz a franchise category: blog wordCount: 1929 readingTime: 10 min crawledAt: 2026-08-20 11:15:50 lastVerified: 2026-08-20 11:15:50 site: https://vetmyfranchise.com/c/claude/ --- # Is Hertz a Franchise? Yes, in Smaller Markets (2026) ## Summary Is Hertz a franchise? Partly. 390 of 2,946 US outlets were franchised at the end of 2025. The 2026 FDD asks $879,300 to $16,249,000 and has no Item 19. ## Key facts - Rent a car inside a major airport terminal and the counter almost certainly belongs to the company. - Item 20 is the most revealing table in the filing. - The range is that wide because it spans a 30 car opening fleet and a 300 car one. - Item 19 of the Hertz 2026 filing is boilerplate plus one sentence: the franchisor makes no representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets. - Item 12 opens with the sentence buyers should read twice: you will not receive an exclusive territory. Quick answer Partly. Hertz franchises in the United States, but only 390 of its 2,946 US outlets were franchised at December 31, 2025, against 2,556 company-owned. The 2026 FDD asks $879,300 to $16,249,000 to open one, charges 9% of gross receipts at airports and 7% off-airport, and contains no Item 19. ## The airport counter and the hometown counter are different businesses Rent a car inside a major airport terminal and the counter almost certainly belongs to the company. Rent one in a small city, at a body shop referral desk or a highway location, and there is a real chance you are dealing with someone who signed a franchise agreement and bought the fleet parked outside. That split has numbers behind it. At December 31, 2025 the US system held 390 franchised outlets and 2,556 company-owned outlets, 2,946 in total, per the 2026 Franchise Disclosure Document. Roughly one location in eight is franchised. The fee schedule writes the same split into the contract. Item 6 sets the ongoing franchise fee at 9% of gross receipts for an airport rental location and 7% for a non-airport location. Hertz charges two percentage points more where the traffic is, which tells you which locations the franchisor considers worth its own capital. ## What Hertz System, Inc. actually sells Hertz System, Inc. is the franchisor, a Delaware corporation formed on January 19, 1925 and headquartered in Estero, Florida. It is a wholly owned subsidiary of The Hertz Corporation, which sits under Rental Car Intermediate Holdings and ultimately Hertz Global Holdings. Item 1 states plainly that the franchisor does not operate any businesses of the type being offered. Its parent and affiliates do. You are buying a trademark license and a reservation pipe from an entity whose only business is franchising, while competing against corporate locations run by its own parent. Two counts look contradictory until you read the territory language. Item 1 reports 36 licenses issued and outstanding at the end of 2025, one covering cars and trucks and 35 covering cars only. Item 20 reports 390 franchised outlets. A franchisee holds a territory and runs multiple rental locations inside it, so a few dozen operators cover several hundred storefronts. This is a system of large regional holders, not single-store owners. The parent side dwarfs it. As of December 31, 2025 the parent and its affiliates operated more than 9,276 vehicle rental businesses worldwide, and affiliate DTG Operations held 221 corporate Thrifty and 196 corporate Dollar locations in the US. ## The corporate network is shrinking, and franchisees are not buying the pieces Item 20 is the most revealing table in the filing. | Outlet type | End 2023 | End 2024 | End 2025 | | --- | --- | --- | --- | | Franchised | 384 | 400 | 390 | | Company-owned | 3,331 | 3,085 | 2,556 | | Total | 3,715 | 3,485 | 2,946 | Company-owned locations fell by 246 in 2024 and by another 529 in 2025, a 23% cut to the corporate footprint in two years. Where did they go? Nowhere. The company-owned status table records 39, 255, and 533 outlets closed across 2023, 2024, and 2025, and zero outlets sold to a franchisee in any year. Hertz closed them rather than refranchising them. The franchised side moved separately. Franchisees opened 16 outlets in 2023, 40 in 2024, and 13 in 2025. Departures are logged as ceasing operations for other reasons, 21 then 24 then 23, with zero terminations, zero non-renewals, and zero outlets reacquired across all three years. A franchisor that terminates nobody and reacquires nothing is either running a very clean system or is not policing it. Ask which. Hertz has said it is adding new franchisees in the US and Canada for a limited time. The document’s own pipeline is thin: Table 5 projects one new franchised outlet in the next fiscal year, in Montana, and lists zero franchise agreements signed but not yet opened at December 31, 2025. Recruiting talk and disclosed pipeline are two different things, and the pipeline is the one that was filed under penalty. ## $879,300 to $16,249,000, and almost all of it is cars | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $25,000 | $500,000 | | Passenger cars | $750,000 | $15,000,000 | | Courtesy vehicles, per location | $55,000 | $350,000 | | Computer system, hardware and software | $11,500 | $250,000 | | Insurance deposit | $5,000 | $45,000 | | Equipment and supplies | $5,000 | $25,000 | | Additional funds, 3 months | $20,000 | $50,000 | | Total excluding real estate | $879,300 | $16,249,000 | The range is that wide because it spans a 30 car opening fleet and a 300 car one. Item 7 prices current model cars at $25,000 to $75,000 each and requires a minimum fleet every month for the life of the agreement. The trademark is the cheap part; you are underwriting a depreciating fleet and a yard. Real estate is not in the total at all. Item 7 declines to estimate it, then lists what the site needs: roughly 175 square feet of parking per idle car, a 512 square foot wash bay, and a fuel island with a 3,000 gallon minimum tank if you fuel on site. It also notes that airports usually charge a concession fee of at least 10%, with a minimum guarantee. On an airport deal that concession sits on top of the 9% franchise fee. Working capital is the line to argue about. The filing budgets $20,000 to $50,000 for three months of staffing, rent, deposits, supplies, and fuel on a business carrying up to $15 million of vehicles. [Pull the full Hertz System data sheet](https://vetmyfranchise.com/c/claude/franchise/hertz-system-inc) ## The whole category refuses to disclose earnings Item 19 of the Hertz 2026 filing is boilerplate plus one sentence: the franchisor makes no representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets. There is no table, no sample, and no average anywhere in it. That is not a Hertz quirk. Both of the other car rental brands whose current documents we hold say exactly the same thing. | 2026 filings | Hertz | Avis | Budget | | --- | --- | --- | --- | | Initial fee | $25,000 minimum, to $500,000 | $45,000 for 50,000 population, plus $5,000 per 5,000 more | $45,000 for 50,000 population, plus $5,000 per 5,000 more | | Total investment | $879,300 to $16,249,000 | $625,500 to $1,588,400 (30 car fleet) | $625,500 to $1,588,400 (30 car fleet) | | Ongoing fee | 7% to 9% of gross receipts | 7.5% of gross revenue | 7.5% of gross revenue | | Franchised outlets, end 2025 | 390 | 189 | 173 | | Company-owned outlets, end 2025 | 2,556 | 1,823 | 1,177 | | Item 19 | none | none | none | Three brands, more than 700 franchised outlets between them, and not one disclosed revenue figure. Our guide to [what a missing Item 19 means](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means) covers how to work around one. Car rental makes you work around three at once, which leaves franchisee interviews and, on a resale, the actual records the franchisor may hand over for that location. The Hertz filing also warns that some current and former franchisees may have signed provisions restricting their ability to speak openly about the system. Validation calls here come with a caveat printed in the document. Avis and Budget read as the tighter comparison for a first-time buyer. Their totals top out near $1.6 million on a 30 car fleet, and the fee is arithmetic you can check against a census number rather than a negotiation. Avis also kept growing its own side in 2025, from 1,714 company-owned locations to 1,823, while adding three franchised outlets. ## What the agreement does not give you Item 12 opens with the sentence buyers should read twice: you will not receive an exclusive territory. The franchisor keeps the right to use and to license others to use the marks inside your territory, and reserves alternative distribution including the internet, with no obligation to pay you for reservations taken from inside your area. The territory can also be a treadmill. If Hertz decides an additional location is needed inside it, you get 60 days to state your intent and 180 days from the notice to open. Miss that and the franchisor may operate, or franchise someone else to operate, in your area. There is no right of first refusal on additional franchises in the territory or contiguous areas. Item 15 requires a manager who devotes full time to the business. Item 17 lets you walk only with 180 days notice plus an early termination fee calculated by multiplying your minimum annual franchise fee by the years left on the term. Renewal costs $5,000 to $25,000, and a transfer can carry a fee of 5% of the trailing three-year average gross sales. ## Where this leaves a buyer If the appeal was the Hertz name, look at what the name currently buys: reservation flow into markets the parent has been retreating from, at a royalty two points cheaper off-airport than on it, under an agreement that reserves the internet for the franchisor. If the appeal was the business, car rental is fleet finance wearing a franchise logo. Nobody in the category discloses earnings, the capital runs into millions, and a resale is where the only real numbers live. A [mobile or van-based franchise](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises) puts vehicles to work for a fraction of that and usually comes with an Item 19 attached. The rival that does not franchise here at all is covered in our post on [Enterprise](https://vetmyfranchise.com/c/claude/blog/is-enterprise-a-franchise). VetMyFranchise reads the filed disclosure document, Items 5, 7, and 19 included, rather than a brand’s recruitment page. For Hertz that means telling you the earnings section is empty instead of filling it in. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Hertz numbers with you. We'll email you the **Hertz FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Hertz data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is hertz a franchisecar rental franchiseHertz System IncAvis franchiseitem 19franchise disclosure documentHospitality and Travel franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Hertz a franchise? Partly. Hertz operates a hybrid system in which company-owned locations and franchised locations run under the same brand. The 2026 Franchise Disclosure Document filed by Hertz System, Inc. counts 390 franchised US outlets and 2,556 company-owned US outlets at December 31, 2025. Franchised territories skew toward smaller markets, while the large airport operations are overwhelmingly corporate. Hertz System, Inc. itself franchises but does not operate rental businesses; its parent and affiliates run the company side. ### How much does a Hertz franchise cost? The 2026 FDD estimates $879,300 to $16,249,000 to open, excluding real estate and improvements. The initial franchise fee is a minimum of $25,000 for a new franchisee and is estimated to reach $500,000, scaled to a starting fleet of 30 to 300 rental cars. Passenger cars alone account for $750,000 to $15,000,000 of the total, with courtesy vehicles adding $55,000 to $350,000 per location. Buying an existing company-owned location from the parent can carry a franchise fee of several hundred thousand dollars or more. ### How much do Hertz franchisees make? The filing does not say. Item 19 of the 2026 Hertz FDD states that the franchisor makes no representations about a franchisee's future financial performance or the past performance of company-owned or franchised outlets. Avis and Budget say the same thing in their 2026 filings. If you are buying an existing outlet, Hertz may provide that outlet's actual records, which makes a resale the only route to real numbers in this category. ### What royalty does Hertz charge? The franchise fee runs 7% to 9% of gross receipts, set at 9% for airport rental locations and 7% for non-airport locations, and it is subject to a minimum annual amount the franchisor calculates before you sign. Gross receipts are defined broadly and include damage waiver charges, insurance products, vehicle licensing fees, prepaid fuel, drop charges, and equipment rentals. Reservations made through the Hertz system add $3.84 to $6.30 per passenger car reservation on top. ### Can you still buy a Hertz franchise in 2026? Hertz has said it is adding new franchisees in the US and Canada for a limited time, and the 2026 FDD is a live offering document dated March 20, 2026. The disclosed pipeline is thin. Item 20 projects one new franchised outlet in the next fiscal year, in Montana, and lists zero franchise agreements signed but not yet opened as of December 31, 2025. --- title: "Is Olive Garden a Franchise? Darden Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is olive garden a franchise, olive garden franchise cost, darden restaurants, italian food franchise, marcos pizza franchise, item 19, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-olive-garden-a-franchise about: is olive garden a franchise category: blog wordCount: 1960 readingTime: 10 min crawledAt: 2026-08-20 11:15:51 lastVerified: 2026-08-20 11:15:51 site: https://vetmyfranchise.com/c/claude/ --- # Is Olive Garden a Franchise? Darden Model (2026) ## Summary No. Darden owns and operates all 906 US Olive Garden restaurants. Marco's Pizza is the Italian franchise you can buy, at $286,477 to $811,186. ## Key facts - People asking this usually want one of two things. - Darden’s FY2024 10-K does report franchised locations, which is where most of the confusion on this question starts. - An Olive Garden runs a scratch kitchen, a bar, table service, and a couple of hundred seats, and the check average depends on an experience that lives in how the staff behave on a Friday night. - Marco’s Franchising, LLC files the most complete Italian-category document we hold. - Chart 1 of the 2026 Item 19 covers the 997 franchised stores that operated the full 52-week period ending December 28, 2025, roughly seven of every eight in the system. Quick answer No. Darden Restaurants owns and operates Olive Garden, which counted 906 company-owned restaurants as of November 2025. Darden's FY2024 10-K listed only 11 franchised US locations, and those are airport and territory placements rather than an open program. Marco's Pizza is the Italian franchise you can actually buy, at $286,477 to $811,186. ## Two questions hide inside this one People asking this usually want one of two things. Either they are trying to work out whether the Olive Garden near them belongs to a local owner, or they want a full-service Italian restaurant of their own and are hoping this brand sells one. The answer to the first is no, that location belongs to Darden Restaurants. The answer to the second is also no, and it has been no across the entire span of the brand’s mainstream US growth. Darden Restaurants, which trades on the NYSE under DRI, owns and operates Olive Garden. The brand counted 906 company-owned restaurants as of November 2025. There is no domestic franchise offering, no Franchise Disclosure Document to read, and no development team to call. ## Darden’s count is 906, and 11 of them are not for sale Darden’s FY2024 10-K does report franchised locations, which is where most of the confusion on this question starts. The figures were 11 franchised US locations, roughly 31 in Latin America, 1 in the Middle East, and 1 in the Caribbean, operating under franchise or licensing agreements. Read the composition rather than the count. The domestic units in that group are airport and territory placements, negotiated one at a time with concessionaires and operators who already hold terminal contracts or country rights. The international units go to established restaurant groups buying regional exclusivity. Neither category is an offering a buyer can apply to. | Arrangement | Who owns the restaurant | Disclosure document | Olive Garden’s use | | --- | --- | --- | --- | | Company-operated | Darden | None required | 906 restaurants | | Franchised domestically | A concession or territory operator | None registered | 11 locations | | Franchised or licensed abroad | A regional operating company | Outside US registration | About 31 Latin America, 1 Middle East, 1 Caribbean | | Sold to an individual buyer | You | FDD required by the FTC Franchise Rule | Zero | That bottom row is the one a searcher actually cares about, and it is empty. Without a registered FDD there is no Item 5 fee schedule, no Item 7 investment table, and no Item 19 telling you what a unit sells. Every number circulating online for an Olive Garden franchise was reverse-engineered from Darden’s disclosed build costs and then dressed up with an invented fee and royalty. ## Why full-service Italian dining stays company-owned An Olive Garden runs a scratch kitchen, a bar, table service, and a couple of hundred seats, and the check average depends on an experience that lives in how the staff behave on a Friday night. That is the part a franchisor can specify in a manual and cannot supervise. Owning the labor means owning the outcome, which is the same logic that keeps most large casual-dining chains corporate. The portfolio math points the same direction. Darden operates several full-service brands and buys, sites, and staffs across all of them. Royalty income from a few dozen franchisees would barely register against operating profit on 906 restaurants it already owns. Darden has not published a franchise-policy statement anyone can quote, so treat that reasoning as inference drawn from the structure rather than a company position. The consequence for buyers is category-wide. Italian franchising in the United States lives in pizza and fast-casual formats, where the kitchen is small, the menu is short, and the operating model survives being written down and handed to someone else. ## Marco’s Pizza is the Italian brand with a filed Item 19 Marco’s Franchising, LLC files the most complete Italian-category document we hold. The business is carry-out and delivery pizza rather than a dining room, which is exactly why it franchises well. | 2026 FDD line | Marco’s Pizza | | --- | --- | | Initial franchise fee | $25,000 | | Estimated initial investment | $286,477 to $811,186 | | Royalty | 5.5% of Net Royalty Sales, adjustable to 6.0% | | Total marketing commitment | 7% of Net Royalty Sales | | Franchised stores, end of 2025 | 1,139 | | Company-owned stores | 45 | The investment table assumes a leased space of 1,200 to 1,600 square feet. Leasehold improvements run $65,000 to $400,000 depending on whether you inherit a second-generation restaurant or gut raw retail, and the real property line covers four months of rent rather than a purchase. Additional funds cover three months. The recurring stack is heavier than that single line suggests. Item 6 sets royalty at 5.5% of Net Royalty Sales with the right to move it to 6.0%. On top of that, the Brand Development Fund currently takes 1%, the National Advertising Fund takes 4%, regional funds take between 0.5% and 1.2% depending on the market, and local store marketing is calculated as a minimum of 7% minus whatever those funds already collected. The marketing obligation totals 7% either way, so roughly 12.5% of the royalty base is committed before rent or payroll. VetMyFranchise pulls Items 5, 7, and 19 out of the filed document rather than a recruitment page, which is why the [Marco’s Pizza FDD analysis](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) starts with the tables above. ## What 997 stores actually reported Chart 1 of the 2026 Item 19 covers the 997 franchised stores that operated the full 52-week period ending December 28, 2025, roughly seven of every eight in the system. Net Royalty Sales is a defined term in Item 6, not a plain gross sales figure, so it is the royalty base rather than everything that crossed the counter. | 2025 Net Royalty Sales | Median | Average | | --- | --- | --- | | Top 25%, 250 stores | $1,213,859 | $1,288,466 | | Top 50%, 499 stores | $1,052,095 | $1,109,558 | | All 997 stores | $832,403 | $878,180 | | Bottom 50%, 499 stores | $661,994 | $646,710 | | Bottom 25%, 250 stores | $550,454 | $543,668 | The full range across those stores was $289,736 to $2,052,737, a spread of more than seven to one inside a single system with one menu and one build spec. A second chart in the same item reports that 297 of the 997 stores cleared $1,000,000, which is 29.8%. Seven in ten did not. The document also records 28 store closures during 2025, none of which had been open less than twelve months. Two figures matter more than the median. The bottom-quartile median of $550,454 is what a store looks like when the trade area underperforms, and against a 12.5% royalty-plus-marketing load that is roughly $69,000 a year leaving before rent. Ask a development representative which quartile the sites they are showing you resemble, then check the answer against the [Marco’s Pizza franchise cost](https://vetmyfranchise.com/c/claude/blog/marcos-pizza-franchise-cost) breakdown. ## Buona sells franchises and has exactly one open Chicago’s Original Italian Beef Franchising LLC is the closest thing in our library to a full-service Italian restaurant sold as a franchise, and its 2026 FDD shows what that costs. | 2026 FDD line | Buona, single brand free standing | | --- | --- | | Initial franchise fee | $40,000 | | Estimated initial investment | $3,904,203 to $5,841,375 | | Land acquisition, inside that total | $500,000 to $1,200,000 | | Building construction, inside that total | $1,778,965 to $2,406,835 | | Royalty | 4% of gross sales | | Brand marketing fund | Up to 2.5% of gross sales | A dual-brand version pairing the restaurant with a Rainbow Cone Express runs $3,924,203 to $5,871,375 with $60,000 in combined initial fees. Both tables assume you buy land and put up a building, which is why the totals land near nine times the midpoint of the Marco’s table. The Item 19 reads well and describes the wrong people. It covers 21 affiliate-owned restaurants in the Chicago area, with the headline tables built from 10 single-brand free standing units with drive-throughs over the twelve months ended March 24, 2026. Median gross sales were $3,433,214 against an average of $3,435,660, with a low of $2,865,928 and a high of $4,664,814. Median income came to $541,731, or 15.8% of sales, ranging from $296,970 at 10.4% up to $912,615 at 19.6%. Now read the label. Item 20 records zero franchised outlets at the end of 2023 and 2024 and exactly one at the end of 2025, a Tennessee restaurant excluded from the performance tables because it had not run a full 52 weeks. Every figure above describes restaurants the franchisor’s affiliates own and operate in a metropolitan area where the brand has traded since 1981. The income line also sits before rent, real estate taxes, interest, and depreciation, which on a build carrying up to $2.4 million of construction is the expense that decides whether the store works. ## What to buy if you wanted an Olive Garden Nothing in Darden’s behavior suggests a domestic franchise program is coming. The company has spent decades growing restaurants it operates directly, and the handful of franchise and license agreements it signs go to airport concessionaires and country-level operators with existing scale. Waiting for the door to open is not a plan. The category is still buyable under a different sign. Carry-out and delivery pizza is where the disclosed franchisee numbers live, and Marco’s alone reports 997 stores with a full year of data behind them. Full-service Italian is thin by comparison, and Buona’s document explains why: a free standing build starts near $3.9 million and the franchisee track record is one restaurant old. Our [best Italian food franchises](https://vetmyfranchise.com/c/claude/blog/best-italian-food-franchises) comparison ranks the category on Item 7 and Item 19 rather than name recognition. If the full-service format is what you wanted, start with a document that exists. The [Buona FDD analysis](https://vetmyfranchise.com/c/claude/franchise/chicagos-original-italian-beef-franchising-llc) breaks out Items 5, 7, and 19 line by line, including the part where the performance tables describe company restaurants instead of franchised ones. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is olive garden a franchiseolive garden franchise costdarden restaurantsitalian food franchisemarcos pizza franchiseitem 19Food & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy an Olive Garden franchise? No. Darden Restaurants does not sell Olive Garden franchises to individual buyers in the United States, and no Franchise Disclosure Document has been registered for a domestic offering. The brand counted 906 company-owned restaurants as of November 2025. Darden's FY2024 10-K did report 11 franchised US locations, but those sit with concessionaires and territory operators under individually negotiated agreements. Any site quoting an Olive Garden franchise fee is quoting a figure with no document behind it. ### Who owns Olive Garden? Darden Restaurants, a public company trading on the NYSE under the ticker DRI. Darden owns the brand and operates the restaurants directly, which means it employs the staff, holds the leases, and books the sales. It also runs several other full-service restaurant brands, and the purchasing and real estate scale spread across that portfolio is part of the reason the restaurants stay in house. ### How many Olive Garden locations are franchised? Darden's FY2024 10-K listed 11 franchised US locations, roughly 31 in Latin America, 1 in the Middle East, and 1 in the Caribbean. Set against 906 company-owned restaurants as of November 2025, the franchised share is a rounding error. The domestic units are airport and territory placements, and the international units go to regional operating companies that already run restaurant portfolios in those markets. ### What Italian food franchises can you actually buy? Marco's Pizza and Buona both file current FDDs, and they sit at opposite ends of the cost range. Marco's Franchising, LLC estimates $286,477 to $811,186 for a store with a $25,000 initial fee, and its 2026 Item 19 reports a $832,403 median across 997 franchised stores. Chicago's Original Italian Beef Franchising LLC estimates $3,904,203 to $5,841,375 for a free standing Buona restaurant, because that table includes land acquisition and building construction. ### How much does a Marco's Pizza franchise cost? The 2026 FDD estimates $286,477 to $811,186, including a $25,000 initial franchise fee. Leasehold improvements carry the widest spread inside that table at $65,000 to $400,000, and the additional funds line covers three months. The recurring stack is a 5.5% royalty, adjustable to 6.0%, plus a marketing commitment that works out to 7% of Net Royalty Sales once the brand fund, the national fund, regional funds, and required local spend are added together. --- title: "Is Panda Express a Franchise? Only in Airports (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is panda express a franchise, panda express franchise cost, Citadel Panda Express, captive venue franchise, airport franchise, item 19, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-panda-express-a-franchise about: is panda express a franchise category: blog wordCount: 1935 readingTime: 10 min crawledAt: 2026-08-20 11:15:51 lastVerified: 2026-08-20 11:15:51 site: https://vetmyfranchise.com/c/claude/ --- # Is Panda Express a Franchise? Only in Airports (2026) ## Summary Mostly no. Panda Express keeps 2,423 restaurants company-owned and licenses 184 in captive venues. Item 19 shows a $4,157,008 airport average. ## Key facts - Twenty-three licensed Panda Express restaurants operated inside US airports during fiscal 2025, and they averaged $4,157,008 in gross sales. - Citadel Panda Express, Inc. - Item 1 says most restaurants operated under a license agreement will sit in captive venues such as military facilities, airports, campuses, hospitals and universities. - The fiscal 2025 table covers 167 licensed restaurants open at least 52 weeks between December 29, 2024 and December 27, 2025. - Note 3 says airport rent may be significantly higher than other venues and accounts for the high end of that lease line. Quick answer Mostly no. Panda Express keeps 2,423 of its 2,607 restaurants company-owned and licenses only 184, all inside captive venues like airports, military bases, universities and casinos. Citadel Panda Express, Inc. does file a real FDD: a $25,000 license fee, an 8% royalty, and $514,500 to $3,275,500 to open one. ## The airport average is $4,157,008, and it explains everything Twenty-three licensed Panda Express restaurants operated inside US airports during fiscal 2025, and they averaged $4,157,008 in gross sales. The median airport unit did $4,064,585 and the strongest did $10,748,193. Those figures come from Item 19 of the Citadel Panda Express, Inc. Franchise Disclosure Document dated April 17, 2026. Is Panda Express a franchise? For 184 of its restaurants, yes. For the other 2,423, no. Item 20 counts 2,607 Panda Express restaurants at the close of fiscal 2025, of which 2,423 are owned and operated by affiliate Panda Express, Inc. and 184 are licensed to outside operators. That works out to a 7% licensed share, and every one of those 184 sits in what the document calls a captive venue. So there is something to buy. Just not the thing most people searching this question have in mind. ## The franchisor is not the company that runs Panda Express Citadel Panda Express, Inc. was incorporated in California on October 25, 1990. It is a wholly owned subsidiary of Panda Express, Inc., which is itself a wholly owned subsidiary of Panda Restaurant Group, Inc. PRG owns the marks and the operating system, licenses them to Citadel, and Citadel sublicenses them to you. Item 1 says Citadel has never conducted a business of the type you would operate. It is a licensing vehicle. The restaurants belong to its parent: PEI owned and operated 2,423 Panda Express restaurants as of December 27, 2025. That puts your franchisor’s parent in the position of your largest competitor, and Item 12 does not soften it. You get no protected or reserved territory and no right of first refusal on any additional location. Panda and its affiliates can authorize a restaurant anywhere they choose. The first Panda Express opened in Glendale, California in 1983. Citadel has registered offerings in various states since 1995 and moved to the current style of license agreement in 2004, so none of this is a recent pivot. ## Captive venue is the entire offer Item 1 says most restaurants operated under a license agreement will sit in captive venues such as military facilities, airports, campuses, hospitals and universities. Then comes the sentence that decides who qualifies: licensee applicants sometimes have a management arrangement, called a Client contract, with the owner or lessor of the venue. That is the gate. The buyer this program is built for already holds the airport terminal concession or the campus dining contract. Panda is placing a brand into real estate somebody else controls, and the operator who brings the real estate is the one who gets the license. Item 7 confirms the format: a typical captive-venue Panda Express runs roughly 500 to 1,500 square feet, with a few near 3,000. This is a food court counter, not a building. [Pull the full Citadel Panda Express data sheet](https://vetmyfranchise.com/c/claude/franchise/citadel-panda-express-inc) ## Item 19 breaks six ways, and the spread is the finding The fiscal 2025 table covers 167 licensed restaurants open at least 52 weeks between December 29, 2024 and December 27, 2025. | Venue type | Units | Average gross sales | Median gross sales | Lowest unit | | --- | --- | --- | --- | --- | | Airport | 23 | $4,157,008 | $4,064,585 | $1,799,101 | | Travel plaza | 8 | $2,472,180 | $2,278,489 | $1,693,924 | | Casino | 4 | $1,999,832 | $1,881,242 | $1,218,729 | | Military | 55 | $1,651,329 | $1,550,464 | $343,737 | | University | 74 | $952,354 | $877,833 | $216,661 | | Hospital | 3 | $624,396 | $539,339 | $503,688 | | All venues | 167 | $1,715,919 | $1,328,594 | $216,661 | The 167 restaurants generated $286,558,411 combined, 38% of them beat the systemwide average, and their average age was 7.27 years. This is a mature sample, not a ramp-up story. Anyone quoting one Panda Express number is quoting the wrong one. The $1,328,594 systemwide median blends airport units past $4 million with university units under $900,000. The venue you sign sets your range before you hire anyone. Two footnotes deserve a second read. Fifty-nine of the 167 restaurants are licensed to joint ventures in which a Panda affiliate holds a minority stake, so more than a third of the sample has a Panda affiliate on the ownership side. The table also excludes 11 licensed restaurants that operated less than a full year in 2025 after having been open more than a year, which is how an FDD describes units that closed. Item 19 reports gross sales and nothing else. No cost of sales, no labor, no occupancy, no profit figure. Item 7 notes that leases in these venues frequently carry percentage rent, typically 10% above a sales threshold, and that food court common area charges run 35% to 50% of minimum rent. Those are what turn $4.1 million into whatever an airport operator actually earns, and the FDD does not print them. ## $514,500 to $3,275,500, and rent is why | Item 7 line | Low | High | | --- | --- | --- | | Initial license fee | $25,000 | $25,000 | | Lease of premises, 3 months | $10,000 | $425,000 | | Leasehold improvements | $100,000 | $1,500,000 | | Furniture, fixtures, equipment, supplies | $120,000 | $650,000 | | Insurance, annual premium | $94,500 | $157,500 | | Payroll and related taxes | $39,000 | $65,000 | | Additional funds, 3 months | $18,000 | $30,000 | | Total | $514,500 | $3,275,500 | Note 3 says airport rent may be significantly higher than other venues and accounts for the high end of that lease line. The venue producing a $4.1 million average is the one charging $425,000 for three months of space. Insurance is no rounding error at $94,500 to $157,500 a year, which follows from requirements including $10,000,000 of general liability per occurrence and $10,000,000 of cyber coverage. A pilot program also allows a freestanding licensed restaurant with a drive-thru at roughly 2,600 square feet, which raises the estimated total by up to $1,500,000. The $25,000 license fee is the published figure. Item 5 discloses that fees actually received in the US during 2025 ranged from $12,500 to $25,000, the lower amount negotiated by multi-restaurant licensees adding units under older, shorter-term agreements. ## The fee stack, and the two things absent from it Royalty is 8% of gross sales, subject to a $4,000 monthly minimum per restaurant that Panda can raise annually with CPI. On a university unit at the $877,833 median, 8% is about $70,000 a year. Initial training carries no fee. A transfer costs $10,000 per restaurant, capped at $30,000 per transaction, and a successor term another $10,000. If you fail to cure an operating default and Panda elects to run the restaurant, its management fee is 7% of gross volume plus costs. Now the absences. There is no advertising fund. Item 11 states that Citadel has no formal advertising program and no franchisee advertising council, that licensees are not currently required to contribute to any marketing fund, and that the agreement grants no right to participate in one. Licensees buy promotional materials from Panda’s marketing department at $300 to $1,000 a year and otherwise ride campaigns run for all Panda Express restaurants. That reads as a saving and behaves like a dependency. You get national brand spend you do not pay for and cannot influence, set by the company operating 2,423 competing restaurants. The other absence is territory, which stings less inside a captive venue than it would on a corner but is still nothing on paper. ## What Items 20 and 3 say about this system | Year end | Licensed | Company | | --- | --- | --- | | 2023 | 165 | 2,248 | | 2024 | 173 | 2,329 | | 2025 | 184 | 2,423 | Licensed units grew by 11 in 2025 with zero terminations, non-renewals, reacquisitions or closures. Table 4 also shows PEI sold 5 of its own restaurants to licensees in 2025 and 6 in 2024, so part of that licensed growth is conversion rather than new construction. Table 5 is blunter. As of December 27, 2025 there were 4 signed license agreements for restaurants not yet open, and Panda projected 10 new licensed restaurants against 132 new company restaurants for 2026. The corporate side plans to grow roughly thirteen times faster than the licensed side. Whatever this program is, it is not the growth engine. Item 3 is worth a last read. The FDD discloses 16 pending matters, all of them brought against PEI and PRG by employees, guests and patent holders, and not one is a licensee suing the franchisor. A base of 184 sophisticated operators producing no disclosed disputes says as much about who gets these licenses as about how they are treated. ## If you wanted a Panda Express on a corner You cannot have one, and the 2026 projections say that will not change. The nearest analogue is the non-traditional format at [Qdoba](https://vetmyfranchise.com/c/claude/franchise/qdoba-franchisor-llc), which sells the same captive-venue idea to a wider set of buyers: a $20,000 franchise fee, a 6% royalty, and $234,500 to $898,000 of estimated initial investment under the 12/25 FDD. Its Item 19 draws on 464 franchised restaurants and excludes every non-traditional unit. The wider category sits in our [best Mexican food franchises](https://vetmyfranchise.com/c/claude/blog/best-mexican-food-franchises) breakdown, and the same ownership question for the largest fast-casual chain runs through [is Chipotle a franchise](https://vetmyfranchise.com/c/claude/blog/is-chipotle-a-franchise). VetMyFranchise reads Items 5, 7 and 19 out of the filed document rather than a brand’s opportunity page. [Read the Citadel Panda Express FDD analysis](https://vetmyfranchise.com/c/claude/franchise/citadel-panda-express-inc) before you take anyone’s word for what this license costs. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Panda Express numbers with you. We'll email you the **Panda Express FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Panda Express data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is panda express a franchisepanda express franchise costCitadel Panda Expresscaptive venue franchiseairport franchiseitem 19Food & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Panda Express franchise? Only for a captive venue location, and only with Panda's written authorization for that specific site. Citadel Panda Express, Inc. licenses restaurants inside airports, military facilities, universities, hospitals, casinos and travel plazas, and Item 1 notes that applicants sometimes already hold a management arrangement with the venue owner. There is no offering for a standalone Panda Express on a street corner, and the license agreement does not obligate the franchisor to authorize any site you propose. ### How much does a Panda Express franchise cost? The April 2026 FDD estimates $514,500 to $3,275,500 for a single restaurant, including a $25,000 initial license fee. The spread is mostly rent and construction. Three months of rent ranges from $10,000 to $425,000 because airport space prices nothing like a campus food court, and leasehold improvements run $100,000 to $1,500,000. A pilot freestanding format with a drive-thru adds up to $1,500,000 on top of the table. ### How much do Panda Express franchisees make? Item 19 reports gross sales only, with a $1,328,594 median across 167 licensed captive-venue restaurants in fiscal 2025. Venue type drives almost all of the variance: airports averaged $4,157,008 while universities averaged $952,354. The document discloses no cost of sales, no operating expenses and no profit figure, so none of those numbers describe what an operator keeps. ### Why doesn't Panda Express franchise normally? Panda has not published a rationale we can quote, so read the behavior instead. Affiliate Panda Express, Inc. opened 99 company restaurants in 2025 and projects 132 more for 2026, against 10 projected licensed openings, and the licensed restaurants sit almost entirely in venues a corporate operator cannot easily contract into. Licensing looks like an access tool for closed real estate rather than a growth channel. ### Do you get a territory with a Panda Express license? No. Item 12 states that you receive no protected or reserved territory and no option or right of first refusal on any additional location. Panda and its affiliates can authorize a restaurant anywhere, including next to yours, and can sell through other channels of distribution under the same marks. Inside a captive venue that matters less than it would on a corner, because the venue contract is the real barrier to entry, but the agreement gives you nothing on paper. --- title: "Is Red Lobster a Franchise? Post-Bankruptcy Owner (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is red lobster a franchise, red lobster ownership, captain ds franchise, angry crab shack franchise, seafood franchise, company-owned restaurants, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-red-lobster-a-franchise about: is red lobster a franchise category: blog wordCount: 1706 readingTime: 9 min crawledAt: 2026-08-20 11:13:05 lastVerified: 2026-08-20 11:13:05 site: https://vetmyfranchise.com/c/claude/ --- # Is Red Lobster a Franchise? Post-Bankruptcy Owner (2026) ## Summary No. Red Lobster's US restaurants are company-operated under Fortress-backed RL Investor Holdings. Captain D's and Angry Crab Shack are the franchised options. ## Key facts - The new ownership group installed Damola Adamolekun as chief executive and committed more than $60 million to revitalizing the brand. - Seafood franchising is a thin category, and the two brands with current filed documents sit at opposite ends of the format range. - Captain D’s, LLC has operated and franchised since August 2000 and ended its 2025 fiscal year with 289 company-owned and 229 franchised restaurants across 23 states and two foreign countries. - Angry Crab Shack is the closer analogue to what a Red Lobster searcher usually pictures: a full-service seafood boil concept with a bar program, at $421,800 to $1,203,800 and a $50,000 fee for a first location. - The third seafood franchisor with a filed document is the one that argues against the category. Quick answer No. Red Lobster does not franchise in the United States. The chain exited Chapter 11 in September 2024 under RL Investor Holdings LLC, backed by Fortress Investment Group, and operates roughly 544 restaurants across the US and Canada itself. The franchised seafood options are Captain D's at $662,000 to $1,862,100 and Angry Crab Shack at $421,800 to $1,203,800. ## Red Lobster came out of Chapter 11 in September 2024 and kept its restaurants No. Red Lobster does not sell franchises in the United States. The chain filed for Chapter 11 protection in 2024, closed a large block of locations during the case, and emerged that September under new ownership: RL Investor Holdings LLC, an entity backed by Fortress Investment Group. Roughly 544 restaurants across the US and Canada came through the process, more than 500 of them still operating, and the company runs them. There is no Franchise Disclosure Document for the brand, which means no Item 5 fee schedule, no Item 7 investment table, and no Item 19 earnings data for a prospective buyer to read. Some international Red Lobster locations have historically operated under franchise or licensing arrangements outside North America. That is a different market with different agreements, and none of it puts a US restaurant on the table. ## A turnaround owner is not a franchisor The new ownership group installed Damola Adamolekun as chief executive and committed more than $60 million to revitalizing the brand. That is the posture of an operator repricing a menu, renegotiating leases, and deciding which dining rooms deserve capital. Franchising works in the opposite direction. It sells a settled operating system to independent buyers and charges a royalty simple enough to audit every week. A chain still deciding which of its restaurants survive has no settled system to sell, and each unit it does convert to a franchise trades a full P&L for a 4% or 5% royalty stream, which is a bad trade during a recovery when the goal is to capture the upside you just paid for. Red Lobster has not published a franchise-specific rationale, so read that as inference drawn from the company’s behavior rather than a stated corporate position. The pattern holds across full-service casual dining. [Olive Garden](https://vetmyfranchise.com/c/claude/blog/is-olive-garden-a-franchise) sits inside Darden and stays company-run, and [Texas Roadhouse](https://vetmyfranchise.com/c/claude/blog/is-texas-roadhouse-a-franchise) has contractual rights to buy back most of its remaining domestic franchise restaurants. Table service with a large menu concentrates the risk in labor scheduling and food cost, both of which corporate operators prefer to control directly. ## Two seafood brands that do file an FDD Seafood franchising is a thin category, and the two brands with current filed documents sit at opposite ends of the format range. | | Captain D’s | Angry Crab Shack | | --- | --- | --- | | FDD vintage | 2026 | 2026 | | Initial franchise fee | $35,000 | $50,000 first restaurant | | Estimated initial investment | $662,000 to $1,862,100 | $421,800 to $1,203,800 | | Royalty | 4.50% of gross sales | 5% of net sales | | Advertising | 1.00% fund, up to 2.00%, plus co-op | up to 2%, currently 1% | | Franchised restaurants | 229 | 19 | | Company restaurants | 289 | 5 | | Item 19 median | $1,042,475 across 210 franchised units | $2,591,766 across 23 units | Neither number includes real estate. Captain D’s excludes land acquisition and site preparation from its Item 7 outright, and Angry Crab Shack tells you to add the cost of the property if you buy rather than lease a 5,500 to 7,000 square foot space. ## Captain D’s shows you the bottom of its own distribution Captain D’s, LLC has operated and franchised since August 2000 and ended its 2025 fiscal year with 289 company-owned and 229 franchised restaurants across 23 states and two foreign countries. The investment range moves with the building: $1,453,000 to $1,862,100 for the 44-seat freestanding prototype, $1,325,000 to $1,638,800 for the 32-seat version, and $662,000 to $1,040,500 for an inline location. The recurring stack is a 4.50% royalty plus a 1.00% advertising fee that can rise to 2.00%, plus a co-op contribution of up to 1.50%. A 2.00% local marketing requirement also sits in Item 6, suspended since the pandemic and revivable at the franchisor’s discretion. Item 19 is where the document earns its keep. Across 210 franchised restaurants open the full fiscal year ended December 28, 2025, average gross sales were $1,082,533 and the median was $1,042,475. | Franchised comparable restaurants, FY2025 | Top third | Middle third | Bottom third | | --- | --- | --- | --- | | Average gross sales | $1,524,798 | $1,024,694 | $698,105 | | Median gross sales | $1,489,085 | $1,042,475 | $724,891 | | Highest in band | $2,782,545 | $1,177,111 | $845,752 | | Lowest in band | $1,179,140 | $848,474 | $172,390 | | Restaurants | 70 | 70 | 70 | A restaurant doing $172,390 in a full year is in that table alongside one doing $2,782,545, and the gap between the top and bottom thirds is more than double. Item 20 adds the trend a sales table cannot: franchised outlets went from 237 at the start of 2025 to 229 at the end, with 13 restaurants ceasing operations for reasons other than termination or non-renewal, while the company-owned count slid from 293 to 289. The fee schedule is built to counter that. A commitment of three to five restaurants drops the franchise fee to $25,000, and a 16 to 20 restaurant commitment drops it to $17,500, with a 2.25% royalty for the first year on restaurants that open within 60 days of schedule. Read the expense side carefully before you model anything. The cost percentages published in that Item 19, including food and packaging near 30% and labor from 23.49% to 34.87% by band, describe company-owned restaurants only, and company restaurants pay no royalty. [Pull the Captain D’s data sheet](https://vetmyfranchise.com/c/claude/franchise/captain-ds-llc) for the Items 5, 7, and 19 breakdown as filed, which is a different exercise from reading a recruiting page. ## Angry Crab Shack publishes every restaurant by name Angry Crab Shack is the closer analogue to what a Red Lobster searcher usually pictures: a full-service seafood boil concept with a bar program, at $421,800 to $1,203,800 and a $50,000 fee for a first location. The fee falls to $45,000 for later restaurants, $40,000 under a development agreement, and $40,000 from the first restaurant for veterans, current firefighters, and former police officers. The royalty is 5% of net sales, weekly by ACH. Its Item 19 does something most franchisors avoid: it lists all 23 restaurants individually with three years of net sales each. The 2025 median was $2,591,766 and the average was $2,841,202, with only 9 of 23 units clearing the average. The label matters more than usual here, because 5 of those 23 restaurants are company-owned and they occupy the top of the table, from $4,330,367 to $5,656,784. Franchisee results run much wider: Tempe at $3,029,994, Acworth at $965,259 in its first partial stretch, and Henderson sliding from $2,388,225 in 2023 to $1,418,737 in 2025. A three-year decline in a named unit is the kind of detail an aggregate median hides. The system is small. It ended 2025 with 19 franchised restaurants and 5 company-owned, having added one franchised unit that year. ## Long John Silver’s is the segment’s warning label The third seafood franchisor with a filed document is the one that argues against the category. Long John Silver’s franchised base fell from 417 restaurants at the start of 2022 to 297 at the end of 2023 and 257 at the end of 2024, while company-owned units held roughly flat at 228. Its FDD makes no financial performance representation at all, which means a buyer evaluating a shrinking system has no disclosed sales figure to test against franchisee phone calls. That is the honest shape of seafood franchising. One brand with a deep Item 19 and a long bottom tail, one small brand with unit-level transparency, and one contracting system that tells you nothing. ## If you wanted a Red Lobster Nothing in the company’s current behavior suggests a franchise program is coming, and a turnaround backed by an investment firm has every reason to keep the restaurants it kept. The nearest emotional substitute is not for sale either: [Cracker Barrel has never franchised](https://vetmyfranchise.com/c/claude/blog/is-cracker-barrel-a-franchise) in its history. If the real goal was a restaurant rather than that specific sign, start from the documents. Our [best food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) roundup covers the lighter-build end of the category, well below what any of the three seafood brands above will cost you to open. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is red lobster a franchisered lobster ownershipcaptain ds franchiseangry crab shack franchiseseafood franchisecompany-owned restaurantsFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Red Lobster franchise? No. Red Lobster does not offer franchises in the United States, and there is no Franchise Disclosure Document registered for a buyer to review. The restaurants are operated by the company, now owned by RL Investor Holdings LLC with backing from Fortress Investment Group. Any site quoting a Red Lobster franchise fee or investment range is quoting a figure with no filed document behind it. ### Who owns Red Lobster now? RL Investor Holdings LLC, an entity backed by Fortress Investment Group, took ownership when the chain exited Chapter 11 bankruptcy in September 2024. Damola Adamolekun runs the company as chief executive, and the new owner committed more than $60 million to revitalizing the business. Roughly 544 locations across the US and Canada survived the restructuring. ### What seafood franchises can you actually buy? Captain D's and Angry Crab Shack both file current FDDs and sell franchises. Captain D's estimates $662,000 to $1,862,100 for a restaurant depending on which of its four prototypes you build, at a $35,000 franchise fee. Angry Crab Shack estimates $421,800 to $1,203,800 at a $50,000 fee for a first location. Long John Silver's also franchises, but its system has been shrinking and it publishes no earnings data. ### How much does a Captain D's franchise cost? The 2026 FDD puts a 44-seat freestanding prototype at $1,453,000 to $1,862,100 and an inline location at $662,000 to $1,040,500, none of which includes real estate. The franchise fee is $35,000 per restaurant, half payable at the development agreement and half at the franchise agreement. Commitments of three or more restaurants cut the fee, reaching $17,500 per unit at a 16 to 20 restaurant commitment. ### How much do Captain D's franchisees make? Median gross sales were $1,042,475 across 210 franchised comparable restaurants in the fiscal year ended December 28, 2025, against a $1,082,533 average. That is revenue, not profit. The document splits franchisees into thirds: the top third averaged $1,524,798, the bottom third averaged $698,105, and the lowest single restaurant recorded $172,390. All of the expense data in that Item 19 comes from company-owned restaurants, which pay no royalty. --- title: "Is Terminix a Franchise? Rentokil's Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is terminix a franchise, terminix franchise cost, Orkin franchise, Pestmaster franchise, pest control franchise, Rentokil Initial, Home Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-terminix-a-franchise about: is terminix a franchise category: blog wordCount: 1841 readingTime: 9 min crawledAt: 2026-08-20 11:13:05 lastVerified: 2026-08-20 11:13:05 site: https://vetmyfranchise.com/c/claude/ --- # Is Terminix a Franchise? Rentokil's Model (2026) ## Summary Is Terminix a franchise? Mostly no. Rentokil bought it in 2022 and runs company branches plus 100+ legacy franchises. Orkin and Pestmaster do file. ## Key facts - Rentokil Initial, the British pest control group, completed its acquisition of Terminix on October 12, 2022. - A branch pest control operation is a book of recurring contracts attached to a truck route. - Orkin’s Item 5 describes a mechanic you will not find in a restaurant filing. - Orkin’s Item 19 makes no financial performance representation. - Somebody owns those legacy Terminix branches, and a route business with a full contract book is a real business. Quick answer Mostly no. Rentokil Initial completed its purchase of Terminix on October 12, 2022, and the brand now runs mainly as company branches alongside more than 100 legacy franchised branches. No Terminix disclosure document sits in our library. Orkin, the direct competitor, does franchise at $84,975 to $528,700, with no Item 19. ## Rentokil bought Terminix in 2022, and the answer starts there Rentokil Initial, the British pest control group, completed its acquisition of Terminix on October 12, 2022. Anyone asking _is Terminix a franchise_ in 2026 is really asking what a corporate operator does with a brand it paid to control, and the answer visible from outside is the ordinary one. Terminix runs mainly as company branches. More than 100 legacy franchised branches still operate alongside them. Our FDD library holds no Terminix disclosure document. That library is built largely from state franchise registration filings, where an actively registered offering normally turns up. We could not verify that Terminix is offering new franchises to buyers, and nothing here should be read as saying it is. What we can say is what a prospective buyer can read, and for Terminix that is nothing at all. ## The legacy franchisee pattern in a route business A branch pest control operation is a book of recurring contracts attached to a truck route. That structure shapes what an old franchise agreement is worth to each side. The franchisee holds a stream of quarterly and annual service contracts inside a defined geography. The franchisor holds the brand those customers called and the national advertising that keeps the phone ringing. Neither party can walk away cleanly, so the agreements sit there and renew. What corporate owners of these systems generally want is the route itself. A company branch keeps the entire ticket rather than a royalty slice of it, and a national account signed in one city gets serviced in forty others without negotiating with forty owners. The drift runs one direction: buy the route back where you can, keep servicing where you cannot, and stop writing new agreements you would rather own outright later. You do not have to take that on faith, because Orkin publishes the arithmetic. ## Orkin franchises, and its franchised base is shrinking [Orkin](https://vetmyfranchise.com/c/claude/franchise/orkin-systems-llc) is the closest competitor Terminix has and the clearest available read on how pest control franchising works at scale. Rollins, Inc. bought the brand in 1964 and is listed on the NYSE. The franchisor entity is Orkin Systems, LLC, a Delaware company that began selling franchises in May 1994 and operates no branches of its own. The 2025 FDD, issued March 28, 2025, counts 47 Orkin franchises operating in the United States and 68 operating outside it as of December 31, 2024. Its affiliate Orkin, LLC operated 389 company-owned branches in the US and none abroad. Item 20 is where the story sits. Franchised outlets went 144, 130, 126, 115 across 2022 through 2024, a net loss of 29 in three years. Company branches went 357, 365, 380, 389 over the same period. Total system outlets barely moved, 501 to 504. One of the columns in Orkin’s franchised-outlet table is headed “Purchased by Orkin.” A system that maintains a standing line item for reacquisition has told you which way it expects units to travel. | | Terminix | Orkin (2025 FDD, issued March 28, 2025) | | --- | --- | --- | | Offering a buyer can read | none in our library | yes | | Initial franchise fee | not published | $39,000 to $100,000 by territory population | | Total initial investment | not published | $84,975 to $528,700 | | Customer contracts on top | not published | assigned by Orkin, can exceed $250,000 | | Royalty | not published | 7% of monthly total net revenues | | Advertising | not published | 2% contribution plus 1% to 2% local | | Franchised outlets | 100+ legacy (outside estimate) | 115 at December 31, 2024 | | Company outlets | most of the system | 389 | | Earnings disclosure | none | none | ## The line most buyers miss is the customer contracts Orkin’s Item 5 describes a mechanic you will not find in a restaurant filing. If Orkin already services pest control customers inside the territory you are buying, it assigns those contracts to you and you pay for them at the same moment you pay the initial franchise fee, at percentages set in an exhibit to the franchise agreement applied to the annualized value of the contracts. Item 7 states the amount can exceed $250,000 in some cases, and it is excluded from the $84,975 to $528,700 range on the cover page. Real estate is excluded too. Franchisees to date have leased facilities of 800 to 2,500 square feet at $1,000 to $5,000 per month, and the document specifically prohibits operating out of a home or garage. Accounts receivable for the assigned customers get transferred at book value, with balances over 90 days old carved out. The recurring stack is 7% of monthly total net revenues in royalty, a 2% advertising contribution that funds Orkin’s national television and internet advertising plus its customer care center, a local advertising obligation of 1% to 2% depending on your annual net revenues, and $140 a month in software sublicensing fees. Roughly 10% of revenue is committed before a technician gets paid. [Pull the Orkin Systems data sheet](https://vetmyfranchise.com/c/claude/franchise/orkin-systems-llc) ## No Item 19, at the biggest franchised name in the category Orkin’s Item 19 makes no financial performance representation. The 2025 FDD states that the franchisor does not represent anything about a franchisee’s future results or the past results of company-owned or franchised outlets, and does not authorize its employees to do so. If you buy an existing outlet, it may hand you that outlet’s actual records. That is a legal choice, and it is also a problem you inherit. A company running 389 branches knows precisely what a route is worth per household and per commercial account. Declining to publish it pushes the entire valuation exercise into due diligence on one specific territory, working from numbers the seller assembled. Treat that as the reason to call every franchisee in the state rather than the three names a development rep offers, which is the same discipline our [franchise research guide](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise) applies to any brand without an Item 19. ## Pestmaster publishes, and the spread is the finding [Pestmaster](https://vetmyfranchise.com/c/claude/franchise/pestmaster-franchise-network-llc) is a fraction of Orkin’s size and files the disclosure Orkin does not. Its 2026 FDD, issued April 10, 2026, sits under Threshold Brands and, above that, a Riverside private equity fund. As of December 31, 2025 the system had 44 franchises operating 75 territories. Item 19 covers the 33 franchises that ran 57 territories and reported gross sales for all twelve months of 2025. | 2025 Pestmaster franchise gross sales | Figure | | --- | --- | | Average | $514,024 | | Median | $148,210 | | High | $6,985,408 | | Low | $26,724 | | Franchises at or above average | 7 of 33 (21%) | The average sits three and a half times above the median because a single franchise operating two territories booked $6,985,408 and dragged the mean with it. The quartile tables in the same Item 19 make the shape plain: the top quartile averaged $1,683,735, the third quartile averaged $114,220. Any recruiter quoting you an average in this category is quoting the top eight operators. Entry costs $42,500 for a territory of roughly 250,000 people, on a total initial investment of $92,850 to $208,600. Royalty is 7% of monthly gross sales or a minimum monthly royalty, whichever is greater, and that minimum runs $300 a month through month 35 and $600 after. A $500 monthly technology fee sits beside it. Model the floor, not the percentage. A franchise past its third year owes $13,200 a year in minimum royalty and technology fees before the percentage applies at all, which is roughly half the lowest gross sales figure in the 2025 table. Pestmaster is growing while Orkin’s franchised base contracts. Item 20 shows franchised territories at 52, 57, then 75 across 2023 to 2025, with affiliate-owned outlets falling from 6 to 3. Small and growing beats large and shrinking on exactly one axis. It also means the 33-franchise sample above is close to everything that exists. ## What the missing Terminix document costs you Somebody owns those legacy Terminix branches, and a route business with a full contract book is a real business. What no outsider can establish is what one costs to open, what one collects in a year, or how many left the system last year, because a brand that is not selling franchises triggers no disclosure obligation and no regulator asks. The two pest control names you can read fail you in opposite directions. Orkin has the scale, the customer care center, and the national advertising, and publishes no earnings figures. Pestmaster publishes earnings figures and reports a median that would not comfortably fund a second truck. Both of those are more useful than a recruitment page, because both are checkable. VetMyFranchise reads the filed document, Items 5, 6, 7, 19, and 20 included, rather than the marketing site. Start with the [pest control franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-pest-control-franchises) if the category is the decision. Use the [home services franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) list if the budget is the constraint. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is terminix a franchiseterminix franchise costOrkin franchisePestmaster franchisepest control franchiseRentokil InitialHome Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Terminix franchise? We could not verify that Terminix is currently offering new franchises, and no Terminix disclosure document exists in our library. That library is assembled largely from state franchise registration filings, where an actively registered offering normally appears. The franchised Terminix branches that exist run on agreements signed before the Rentokil transaction. Anyone quoting you a Terminix franchise fee is quoting a number that has not been published. ### Who owns Terminix? Rentokil Initial, the British pest control group, which completed its acquisition of Terminix on October 12, 2022. Since then the brand has operated primarily through company branches, with more than 100 legacy franchised branches still in the system. Ownership matters here because a corporate operator that already runs its own branches has little reason to sell new territory it would later want back. ### What pest control franchises can you actually buy? Orkin and Pestmaster are the two in our library with current filings. Orkin's 2025 FDD sets the initial fee at $39,000 to $100,000 depending on territory population and estimates total investment at $84,975 to $528,700, with no earnings disclosure. Pestmaster's 2026 FDD sets a $42,500 fee on a $92,850 to $208,600 investment for a territory of roughly 250,000 people, and it does publish Item 19 figures. ### How much does an Orkin franchise cost? The 2025 FDD estimates $84,975 to $528,700, and that range excludes two large items. Real estate is excluded, and Orkin requires a leased facility of 800 to 2,500 square feet at $1,000 to $5,000 a month, with home and garage operation prohibited. The customer contracts Orkin assigns to you inside your territory are also excluded, and Item 7 states the payment can exceed $250,000. Recurring costs are 7% royalty, a 2% advertising contribution, a 1% to 2% local advertising obligation, and $140 a month in software fees. ### How much do pest control franchises make? The only disclosed figures here come from Pestmaster, and they are widely spread. Across the 33 franchises that reported gross sales for all of 2025, the average was $514,024 and the median $148,210, with a $6,985,408 high and a $26,724 low. Just 7 of the 33 reached the average. Orkin makes no financial performance representation, so the largest franchised brand in the category contributes nothing to this answer. --- title: "Is Century 21 a Franchise? Under Compass Now (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is century 21 a franchise, century 21 franchise cost, real estate brokerage franchise, Compass, item 19, Real Estate franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-century-21-a-franchise about: is century 21 a franchise category: blog wordCount: 1920 readingTime: 10 min crawledAt: 2026-08-20 11:13:09 lastVerified: 2026-08-20 11:13:09 site: https://vetmyfranchise.com/c/claude/ --- # Is Century 21 a Franchise? Under Compass Now (2026) ## Summary Yes, Century 21 is a franchise. The 2026 FDD: $25,000 fee currently waived, $35,770 to $473,400 investment, 6% royalty, 1,685 US offices, no Item 19. ## Key facts - Century 21 brokerages have been franchised in the United States since July 1972, first through regional subfranchisors and directly by the franchisor since December 1995. - Item 7 publishes two scenarios, which is why quoted costs for this brand vary so wildly. - Item 5 sets the initial franchise fee at $25,000 for the main office and $5,000 per additional branch, then discloses that as of the issuance date the main office fee is waived under the franchise sales incentive program. - Item 6 charges a 6% royalty on gross revenue at the close of each transaction, plus a separate 1. - Item 19 contains no numbers. Quick answer Yes. Century 21 Real Estate LLC franchises independently owned brokerage offices, and 1,685 were open in the United States on December 31, 2025 against zero company-owned ones. The 2026 FDD prices a conversion at $35,770 to $286,100 and a start-up office at $117,270 to $473,400, with a $25,000 initial fee and no Item 19. ## Yes, and the franchisor owns none of the offices Century 21 brokerages have been franchised in the United States since July 1972, first through regional subfranchisors and directly by the franchisor since December 1995. Item 20 of the 2026 FDD counts 1,685 franchised offices open on December 31, 2025 and zero company-owned offices in any of the last three fiscal years. That is a plain yes, and an unusually clean one: no company-store tier competes with franchisees under the same sign. What changed is the address at the top. Item 1 of this filing, issued March 30, 2026, traces ownership through four Anywhere entities up to Compass, Inc., doing business as Compass International Holdings. Compass completed its merger with Anywhere Real Estate on January 9, 2026 under an agreement signed September 22, 2025, and Anywhere’s stock stopped trading on the New York Stock Exchange under the ticker HOUS. Two of those Anywhere entities still guarantee the franchisor’s obligations under your franchise agreement, so the guarantor did not disappear. It acquired a new owner. Most people typing this question want to know whether joining Century 21 as an agent means buying a franchise. It does not. Agents affiliate with an office as independent contractors. The franchise is the brokerage, and the buyer is a broker. ## $35,770 to $473,400, and the table depends on what you already own Item 7 publishes two scenarios, which is why quoted costs for this brand vary so wildly. | Item 7 scenario | Low | High | | --- | --- | --- | | Conversion of an existing brokerage | $35,770 | $286,100 | | Additional cost for a start-up office | $81,500 | $187,300 | | Total for a new start-up office | $117,270 | $473,400 | Both tables assume an office of 1,800 to 3,500 square feet holding up to 30 people, and the conversion side is thin by design: leasehold improvements at $0 to $105,000, computer equipment at $6,000 to $12,000, three months of additional funds at $15,000 to $40,000, and real estate excluded from the total entirely with occupancy footnoted at $0 to $50,000 a year. A start-up adds space planning, deposits, furnishings, and $35,000 to $60,000 more working capital. The franchisor’s own guidance is to hold $50,000 to $100,000 in reserve through the first three months, which against a build reaching $473,400 is a floor rather than a plan. [Keller Williams](https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise) publishes only one scenario by contrast, a new market center at $183,647 to $336,495. Century 21’s cheap end is a conversion, so putting $35,770 next to $183,647 compares two different transactions. ## The $25,000 fee is waived, and the money carries a nine-year string Item 5 sets the initial franchise fee at $25,000 for the main office and $5,000 per additional branch, then discloses that as of the issuance date the main office fee is waived under the franchise sales incentive program. It also reports what franchisees actually paid in 2025: $0 to $25,000 for a main office, and $0 to $5,000 for a branch. Both ends were real. A waived fee is not free money, and Item 10 explains the mechanism. The franchisor may offer a Conversion Promissory Note covering signage, marketing, or transition costs. It carries no finance charges absent a default, forgives a portion of principal each year if you stay in compliance and hit annual gross revenue thresholds, and matures nine years from January 1 of the first full calendar year after execution. If your franchise agreement ends before then, the entire unamortized balance comes due that day. That is the real shape of the deal. Entry is negotiable to zero and conversion capital is available, underwritten by a ten-year term with no renewal rights, liquidated damages on early termination equal to your average monthly fees times the lesser of 36 months or the months remaining, and a note that claws back if you leave. Price the exit before the entry. [Pull the full Century 21 data sheet](https://vetmyfranchise.com/c/claude/franchise/century-21-real-estate-llc). VetMyFranchise reads Items 5, 7, and 19 out of the filed document rather than the recruiting deck. ## A 6% royalty that can settle nearer 4% Item 6 charges a 6% royalty on gross revenue at the close of each transaction, plus a separate 1.5% fee on property management revenue. A minimum monthly royalty of $500 applies whenever the 6% falls short, adjustable upward each year by the greater of CPI, the ten-year Treasury yield, or the NAR average existing-home price increase, in each case plus three points. Then the Century 21 Incentive Bonus works the other direction. Qualifying franchisees receive an annual bonus that effectively reduces royalties paid, capped at 2% of gross revenue for the year. A brokerage that qualifies in full pays close to 4%, and one that does not pays 6%. The FDD does not disclose the qualification thresholds, which sit in the franchise agreement, so this is the number to pin down in writing before signing. The brand marketing fund adds 0.50% of gross revenue for franchisees who joined after March 30, 2022, with older agreements at different rates. Below that sit a $5,000 transfer fee and One21 conference registration at $675 to $775 per attendee, owed every year it is held whether you attend or not. ## No Item 19, and the parent is also the competitor Item 19 contains no numbers. The franchisor makes no representations about franchisee performance, past or future. That is legal under the FTC Franchise Rule and standard across this category, and it leaves your underwriting resting on the franchisee lists in Exhibits G and H. Those lists come with a catch. Item 20 discloses that some current and former franchisees have signed provisions restricting their ability to speak openly about the system, and advises that not all of them will be able to talk to you. A missing earnings disclosure paired with a partially gagged reference list is a specific problem, not a general one. The new ownership shows up with teeth in Item 12. You receive no exclusive territory, and the franchisor or its related parties may open or franchise offices anywhere outside a protected area around yours, under Century 21 or any affiliated mark. Item 12 also discloses that Compass runs more than 400 offices with over 33,000 agents in more than 95 markets, and nothing in the franchise agreement stops those agents from taking listings in yours. Your franchisor’s ultimate parent is also the largest company-owned brokerage you compete against. Item 6 flags one thing to track. The CIH Platform, Compass’s proprietary technology system, currently goes only to Compass brokerage offices and is expected to reach franchisees of the affiliated brands in early 2027. It is optional today, and the franchisor reserves the right to charge for it later. ## Item 20 shows three straight years of net office losses | Franchised offices | Start of year | End of year | Net change | | --- | --- | --- | --- | | 2023 | 1,870 | 1,807 | (63) | | 2024 | 1,807 | 1,734 | (73) | | 2025 | 1,734 | 1,685 | (49) | During 2025, 68 offices opened while 117 left: 11 terminations, 11 non-renewals, and 95 that ceased operations for other reasons. Table 5 projects 57 new franchised outlets in the next fiscal year against 11 signed agreements not yet open. About 7% of franchised outlets are limited purpose offices such as satellite or seasonal locations, so the headline count overstates the number of full brokerages. Read that alongside [RE/MAX](https://vetmyfranchise.com/c/claude/blog/is-remax-a-franchise), whose US franchised office count went 3,477, then 3,358, then 3,149, then 2,994 over the same period, and Keller Williams, which fell from 784 to 735 market centers. Century 21 is shedding roughly 3% of its offices a year, the shallowest decline of the three. This is a category story rather than a brand story. ## The four Compass franchise brands, side by side | 2026 FDDs, offices as of 12/31/2025 | Century 21 | Sotheby’s Int’l Realty | Corcoran | | --- | --- | --- | --- | | Initial fee, main office | $25,000 | $25,000 | $25,000 | | Fee currently waived | yes | yes | yes | | Royalty | 6% of gross revenue | 6% of gross revenue | 6% declining to 4% by revenue band | | Brand marketing fund | 0.50% of gross revenue | 2%, $723 to $3,121 per office per month | 1% declining to 0.50% | | US franchised offices | 1,685 | 672 | 108 | | Item 19 | none | none | none | [Coldwell Banker](https://vetmyfranchise.com/c/claude/blog/is-coldwell-banker-a-franchise) is the fourth and the largest, with 1,297 franchised residential offices and 134 commercial ones on December 31, 2025 per Century 21’s own Item 1. Add ERA at 434 and Better Homes and Gardens at 362 and the network Compass acquired runs past 4,500 US offices across six brands, none of which discloses what a franchisee earns. The question to press is what the parent intends to do with six overlapping franchise brands and a company-owned brokerage in the same markets. Nothing in the 2026 FDD answers it. Item 3 does record that Anywhere settled the Moehrl and Burnett commission antitrust actions for $83.5 million, with final approval on May 9, 2024 and an appeal pending in the Eighth Circuit. Commission revenue is what your 6% is calculated on. You cannot buy a franchise from [Compass itself](https://vetmyfranchise.com/c/claude/blog/is-compass-a-franchise), which runs its brokerage directly. You can buy four of the brands it owns. [Get the full Century 21 FDD analysis](https://vetmyfranchise.com/c/claude/franchise/century-21-real-estate-llc) before you take a franchise development call. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Century 21 numbers with you. We'll email you the **Century 21 FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Century 21 data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Re Max [Learn more →](https://vetmyfranchise.com/c/claude/franchise/re-max-llc) #### Re/Max Integrated Regions [Learn more →](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc) #### Auto Appraisal Network [Learn more →](https://vetmyfranchise.com/c/claude/franchise/auto-appraisal-network-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is century 21 a franchisecentury 21 franchise costreal estate brokerage franchiseCompassitem 19Real Estate franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Century 21 franchise cost? It depends on whether you already own a brokerage. The 2026 FDD estimates $35,770 to $286,100 to convert an existing single office to Century 21, and $117,270 to $473,400 to open a start-up office, which carries $81,500 to $187,300 of additional costs on top of the conversion table. The initial franchise fee is $25,000 for the main office and $5,000 for each branch office, though the franchisor discloses that the main office fee is currently waived under its sales incentive program. ### Who owns Century 21? Compass, Inc., doing business as Compass International Holdings. Item 1 of the 2026 FDD traces the chain: Century 21 Real Estate LLC sits under Anywhere Real Estate Services Group LLC, then Anywhere Real Estate Group LLC, then Anywhere Intermediate Holdings LLC, then Anywhere Real Estate Inc., which became a wholly owned subsidiary of Compass when the merger closed on January 9, 2026. Anywhere's shares stopped trading on the NYSE under HOUS at that point. Anywhere still guarantees the franchisor's obligations to franchisees. ### Does Century 21 disclose franchisee earnings? No. Item 19 of the 2026 FDD contains no figures and states that the franchisor makes no representations about a franchisee's future financial performance or the past performance of company-owned or franchised outlets. The same is true of the 2026 filings for Sotheby's International Realty and Corcoran, both of which now sit under the same parent. Item 20 also warns that some current and former franchisees have signed provisions restricting their ability to speak openly about the system. ### How many Century 21 offices are there? Item 20 counts 1,685 franchised offices in the United States on December 31, 2025, down from 1,734 a year earlier and 1,870 at the start of 2023. The franchisor owns none. During 2025, 68 offices opened while 117 left the system through 11 terminations, 11 non-renewals, and 95 closures for other reasons. Roughly 7% of franchised outlets are limited purpose offices such as satellite or seasonal locations rather than full brokerages. ### Is Century 21 or Keller Williams the cheaper franchise? Century 21 has the lower entry point for an existing broker. A conversion starts at $35,770 against a Keller Williams market center at $183,647, because Keller Williams publishes only a new-office scenario. Compare start-up to start-up and the gap narrows: Century 21 runs $117,270 to $473,400. The royalty structures then diverge. Century 21 charges 6% of gross revenue with an incentive bonus worth up to 2% back, while Keller Williams charges 6% of gross commission income capped at $3,000 per agent per year. Neither publishes an Item 19. --- title: "Is Planet Fitness a Franchise? 90% Franchised (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is planet fitness a franchise, planet fitness franchise, gym franchise, fitness franchise, item 19, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-planet-fitness-a-franchise about: is planet fitness a franchise category: blog wordCount: 1793 readingTime: 9 min crawledAt: 2026-08-20 11:18:08 lastVerified: 2026-08-20 11:18:08 site: https://vetmyfranchise.com/c/claude/ --- # Is Planet Fitness a Franchise? 90% Franchised (2026) ## Summary Yes, Planet Fitness is a franchise. About 90% of clubs are franchisee-owned. Fee, royalty, Item 7 range, and Item 19 club revenue from the FDD. ## Key facts - Planet Fitness sells one of the cheapest gym memberships in the country and builds one of the most expensive rooms to sell it from. - Item 20 counts the system three years deep. - Two lines in that table behave differently from the fast-food franchises most buyers compare against. - Item 19 reports franchised clubs in performance thirds rather than as one system average, using 2,197 clubs open for all of calendar 2024. - Item 19 contains a full operating statement, with payroll, marketing, royalties, utilities, rent, and EBITDA. Quick answer Yes. Planet Fitness franchises most of its system: 2,298 franchised clubs against 270 company-owned at December 31, 2024, per the September 2025 FDD. The initial franchise fee is $20,000, the royalty is 7% of membership dues drafted by EFT, and Item 7 puts one club at $1,525,000 to $5,221,500. ## A $15 membership inside a $1.5 million building Planet Fitness sells one of the cheapest gym memberships in the country and builds one of the most expensive rooms to sell it from. The quarterly report attached to the September 2025 FDD describes the standard Classic Card as starting at $15 per month for new members. Item 7 of that same document prices a single club at $1,525,000 to $5,221,500 before anyone pays for land. That gap is the business. Yes, Planet Fitness is a franchise, and most of the purple boxes in strip centers belong to private operators rather than to the company. Whether it is a franchise you can buy has less to do with the brand’s willingness to sell than with whether your capital plan survives collecting dues fifteen dollars at a time. Every figure below comes from the September 2025 disclosure document in our library, issued June 27, 2025 and amended September 4, 2025. Planet Fitness refiles annually, so a newer document exists, and our [Planet Fitness cost guide](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) works that later filing line by line. This post answers the structural question instead: who owns the clubs, what the franchisor charges, and what the disclosure will and will not tell a buyer. ## Who actually owns the clubs Item 20 counts the system three years deep. | At December 31 | Franchised | Company-owned | Total | | --- | --- | --- | --- | | 2022 | 2,082 | 232 | 2,314 | | 2023 | 2,201 | 254 | 2,455 | | 2024 | 2,298 | 270 | 2,568 | Franchised clubs were 89.5% of the system at the end of 2024. The interesting line is the middle column. Company-owned clubs went from 110 at the start of 2022 to 270 three years later, growth of roughly 145% while the franchised base grew about 12%. A franchisor that is also building its own operating footprint is a different counterparty from one that only sells territories, and Item 12 makes the consequence explicit. The franchisor itself is Planet Fitness Franchising LLC, a Delaware company formed in June 2018 that took over from a predecessor, Pla-Fit Franchise LLC, which had sold franchises since February 2003. Company-owned clubs are run by an affiliate, Planet Fitness Assetco LLC. The fitness equipment you are required to buy comes from another affiliate, PF Equipment. The ultimate parent, Planet Fitness, Inc., is publicly traded, which is why the disclosure document carries a quarterly report as an exhibit. That exhibit puts the global system at 2,741 clubs and about 20.6 million members as of March 31, 2025, with roughly 900 clubs under contractual commitment to open. ## What the franchisor charges | Term | September 2025 FDD | | --- | --- | | Initial franchise fee | $20,000 | | Royalty | 7% of membership dues drafted by EFT | | National advertising fund | 2% of monthly membership fees, capped at 3% of the EFT dues draft | | Local advertising | greater of $60,000 a year or 7% of cumulative monthly EFT | | Join fee | 20% of the regular monthly membership fee, or 5% of a prepaid membership | | Franchise term | 12 years from the day you open | | Exclusive territory | none | | Total investment, one club | $1,525,000 to $5,221,500 | Two lines in that table behave differently from the fast-food franchises most buyers compare against. The royalty base is narrower than gross sales: it is the EFT dues draft, so retail, paid-in-full memberships, and other revenue fall outside it. The local advertising obligation is wider, because $60,000 a year is a dollar floor rather than a percentage. A club having a bad year still owes it. The 12-year term is short by category standards, and it sits inside a remodel obligation the franchisor may impose as often as every 12 years at a current cost of $250,000 to $1,200,000. Re-equipping the floor is separately disclosed at $363,000 to $1,103,000. Both are Item 6 fees, which means they are contractual obligations rather than discretionary upgrades. [Pull the full Planet Fitness data sheet](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) if you want the fee schedule and Item 7 lines in one page rather than scattered across a 300-page PDF. ## The investment range is a financing choice, not a size choice The $3.7 million spread in Item 7 confuses almost everyone who quotes it. It is not a big-club-versus-small-club range. The cover page splits it by how you pay for the fitness equipment: $1,525,000 to $3,706,700 if you finance it, and $2,537,500 to $5,221,500 if you purchase it outright. Financing moves $326,700 to $772,100 of equipment cost off day one and onto a loan. Leasehold improvements are the dominant line either way, at $1,250,000 to $2,142,000 for a building of roughly 15,000 to 25,000 square feet. Three months of additional funds are estimated at $68,000 to $469,000, and Note 10 says that estimate is calculated from company club operations rather than from franchisee reporting. One more constraint sits in Note 11 and rarely makes it into third-party summaries: franchisees are not permitted to borrow more than 80% of the initial investment. On a $2 million build that is $400,000 of equity before working capital. ## What franchised clubs collect Item 19 reports franchised clubs in performance thirds rather than as one system average, using 2,197 clubs open for all of calendar 2024. | 2024 annual EFT revenue | Bottom third | Middle third | Upper third | | --- | --- | --- | --- | | Average | $1,205,580 | $1,803,265 | $2,613,753 | | Median | $1,255,397 | $1,794,689 | $2,493,416 | | Low | $283,269 | $1,537,067 | $2,093,692 | | High | $1,536,894 | $2,093,010 | $5,280,380 | | Clubs | 733 | 732 | 732 | Read the low and high corners before the middle. The weakest club in the sample collected $283,269 in dues for the year. The strongest collected $5,280,380. Those two clubs cost roughly the same to build, sit inside the same fee structure, and carry the same remodel clock. Site quality and market density, not brand strength, produce an 18-fold spread. The disclosure also grades itself. Of the 733 bottom-third clubs, 424 met or exceeded their own third’s average. In the upper third, only 291 of 732 did, which tells you the top band is pulled upward by a small number of very large clubs. ## The number the document refuses to give you Item 19 contains a full operating statement, with payroll, marketing, royalties, utilities, rent, and EBITDA. It covers 252 company-owned clubs. The franchisor states the reason directly: it has not included franchisee information because it does not receive complete expense information from its franchisees. For those company clubs in 2024, average EBITDA was $266,824 in the bottom third, $683,438 in the middle, and $1,089,084 in the upper, on margins of 21%, 35%, and 42% of net revenue. Rent averaged $293,570 to $420,244 depending on the third. Those figures come before debt service on a build that started at $1,525,000, and before any reserve for the equipment replacement the same document requires. One more line deserves attention from anyone modeling a membership business. At company-owned clubs in 2024, monthly declines and returns ran from 3.0% to 34.8% of gross membership EFT. Members signed and dues collected are not the same number, and the gap between them is wide enough to swing a year. ## What this means next to the rest of the category The gym industry splits cleanly. The big-box operators that never franchise, including [LA Fitness](https://vetmyfranchise.com/c/claude/blog/is-la-fitness-a-franchise), keep every club corporate and fund growth off their own balance sheet. Planet Fitness went the other direction and built a system where private operators carry the construction risk while the franchisor collects a percentage of dues plus equipment revenue through an affiliate. Both models produce clubs on the same corner. Only one of them sells you the corner. If the seven-figure build is the obstacle rather than the concept, the franchised fitness category has entries an order of magnitude cheaper, and our [ranking of fitness franchises under $200,000](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) scores each one off its filed FDD rather than its recruitment page. ## What to read before you sign anything Get the current disclosure document, then work four items in order. Item 5 for the fee and whether the area development waiver applies to you. Item 7 for your format, with the footnotes, because the finance-versus-purchase split changes the number by more than a million dollars. Item 12 for territory language, which currently grants none. Item 19 for what the franchisor will stand behind, remembering that the profit statement describes its own clubs and not yours. Then call franchisees off the Item 20 exhibit list, including operators who left the system. On a build this size, the reference calls are worth more than the tercile table. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Planet Fitness numbers with you. We'll email you the **Planet Fitness FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Planet Fitness data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is planet fitness a franchiseplanet fitness franchisegym franchisefitness franchiseitem 19brand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Planet Fitness a franchise you can buy? Yes, Planet Fitness sells franchises, and roughly 90% of its clubs are franchisee-owned. Item 20 of the September 2025 FDD counts 2,298 franchised clubs and 270 company-owned clubs at December 31, 2024. The system also had 84 franchise agreements signed for clubs that had not yet opened, and projected 78 new franchised openings in the following year. The constraint on a buyer is capital rather than availability. ### How much does a Planet Fitness franchise cost? The September 2025 FDD sets the initial franchise fee at $20,000 and Item 7 puts total investment for one club at $1,525,000 to $5,221,500, excluding real estate purchase. Leasehold improvements alone run $1,250,000 to $2,142,000 on a building of roughly 15,000 to 25,000 square feet. Note 11 adds a financing limit most guides skip: franchisees are not permitted to borrow more than 80% of the initial investment. Our cost guide works the newer 2026 filing line by line. ### How much revenue does a Planet Fitness club generate? Median annual EFT revenue for franchised clubs in 2024 was $1,255,397 in the bottom third, $1,794,689 in the middle third, and $2,493,416 in the upper third, across 2,197 clubs open the full year. EFT revenue counts recurring monthly and annual membership dues only. Paid-in-full memberships, retail sales, and other income sit outside it, as do returns and taxes. The lowest club in the sample drew $283,269 and the highest $5,280,380. ### Do Planet Fitness franchisees get a protected territory? No. Item 12 of the September 2025 FDD opens with the sentence "You will not receive an exclusive territory," and states that a franchisee may face competition from other franchisees, from company-owned clubs, and from other brands the franchisor controls. The Franchise Agreement licenses one club at one approved address. There is no right of first refusal on adjacent sites and no protected radius, so market defense is a site-selection problem rather than a contractual one. ### Can you open a single Planet Fitness club? Yes, the Franchise Agreement covers a single club at a specific location, but the fee structure pushes toward multi-unit development. Item 5 states that initial franchise fees are currently being waived for franchise agreements issued under an Area Development Agreement, where a developer instead pays $10,000 per committed location. A single-unit buyer pays the full $20,000. Item 15 also requires the owner or a designated Responsible Owner to manage the club as a primary occupation unless the franchisor approves a separate operator. --- title: "Is PODS a Franchise? Corporate vs Franchise Markets (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is pods a franchise, portable storage franchise, PODS ownership, UNITS franchise, Go Mini's franchise, item 19, container storage canonical: https://vetmyfranchise.com/c/claude/blog/is-pods-a-franchise about: is pods a franchise category: blog wordCount: 2311 readingTime: 12 min crawledAt: 2026-08-20 11:18:09 lastVerified: 2026-08-20 11:18:09 site: https://vetmyfranchise.com/c/claude/ --- # Is PODS a Franchise? Corporate vs Franchise Markets (2026) ## Summary Is PODS a franchise? Partly. PODS runs corporate and franchised markets across 150+ locations. Here is what UNITS and Go Mini's disclose that PODS does not. ## Key facts - Order a PODS container in a large metropolitan market and the truck that delivers it belongs to the company. - Our database holds no PODS Franchise Disclosure Document, and we could not verify whether PODS is granting new franchise territories in the United States today. - UNITS Moving and Portable Storage and Go Mini’s are the brands in this category with current documents in our database. - Both Item 7 tables say the same thing about where the money goes, and it is not the franchisor’s initial fee. - The UNITS Item 19 is the most useful document in the category, and it is unusually honest about the ramp. Quick answer Partly. PODS operates both company-run and franchised markets across more than 150 locations in the US, Canada, Australia, and the UK, with the largest metros run corporate. Ontario Teachers' Pension Plan has owned the brand since February 2015. We hold no PODS disclosure document, so no PODS investment figure here is verified. ## Two trucks, two businesses, one blue container Order a PODS container in a large metropolitan market and the truck that delivers it belongs to the company. Order the same container in a smaller territory and it may belong to a franchisee operating that market under a PODS agreement. Identical branding, identical reservation number, two different businesses behind the transaction. That split is the honest answer. PODS is neither a pure franchise like [The UPS Store](https://vetmyfranchise.com/c/claude/blog/is-the-ups-store-a-franchise) nor a pure corporate chain. It runs both models at once across more than 150 locations in the United States, Canada, Australia, and the United Kingdom, with the biggest markets on the corporate side. Ownership explains most of that posture. Ontario Teachers’ Pension Plan has held PODS since February 2015, when it bought the company from an ownership group led by Arcapita in a deal valued at more than $1 billion. A pension fund buying a container network is buying recurring rental cash flow on a depreciating asset base, and that thesis favors owning the highest-density markets outright rather than collecting a royalty on them. ## What we cannot tell you about buying one Our database holds no PODS Franchise Disclosure Document, and we could not verify whether PODS is granting new franchise territories in the United States today. We are not going to estimate around the gap. With no filing there is no Item 5 initial fee, no Item 7 investment table split into containers and trucks and working capital, and nothing in Items 19 or 20 about what an existing franchisee collects or how many markets closed last year. Every PODS cost figure circulating on franchise directory sites is a secondhand number with no document behind it. If you want to be in container storage, the useful move is to stop researching PODS and read the two filings that do exist. ## The two disclosures we hold UNITS Moving and Portable Storage and Go Mini’s are the brands in this category with current documents in our database. They land about $22,000 apart at the top of the range and $241,000 apart at the bottom, and they structure the deal very differently underneath. | | UNITS (2026 FDD) | Go Mini’s (2026 FDD) | | --- | --- | --- | | Total initial investment | $518,000 to $1,269,400 | $759,024 to $1,247,125 | | Initial franchise fee | $55,500 for 300,000 population, up to $222,000 at 1,200,000 | $85,000 for about 800,000 population, plus $10,000 per additional 100,000 | | Container fleet line | $168,300 to $434,400 (50 to 120 containers) | $604,800 to $787,200 (96 container minimum) | | Delivery equipment | $225,000 to $300,000 including forklift | $5,250 to $160,000 per transport vehicle | | Royalty | 4% for six months, 6% for six months, then 8% | 8% of gross sales, $400 monthly minimum | | Ad and brand fund | 2% plus $3,000 to $4,500 monthly local spend | 2% | | Outlets | 67 franchised, 2 affiliate (Dec 31, 2025) | 104 franchised, 1 company (Dec 31, 2025) | | Item 19 | yes, revenue and operating contribution | none in the 2026 filing | | Agreement term | 10 years | 10 years | Read the fee row carefully. It is the line most likely to be misquoted. UNITS charges $55,500 for a 300,000-person protected territory and adds $18,500 for each additional 100,000 people, topping out at exactly $222,000 for the 1,200,000-person territory the franchisor calls its typical maximum. A Micro Territory of fewer than 300,000 people pays the same $55,500. That $18,500 increment gets scraped and republished as though it were the franchise fee. It is not. Go Mini’s charges $85,000 for roughly 800,000 people and adds $10,000 per additional 100,000. US military veterans with credentials pay $68,000, and an existing dealer from a competing concept who already owns 80 or more containers pays $50,000. [See the full UNITS FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/units-franchising-group-inc) ## The fee is the small number Both Item 7 tables say the same thing about where the money goes, and it is not the franchisor’s initial fee. Go Mini’s requires 96 containers before opening, plus six more for every 100,000 people above 800,000. At the franchisor’s quoted prices, up to $8,200 for a 20-foot unit and $5,700 for a 12-foot, that starting fleet runs $604,800 to $787,200. The buying does not stop at opening. You must add at least 12 per year for each 100,000 population until you hold 48 per 100,000, which on an 800,000-person territory means 96 more a year until you reach 384. UNITS scales its container minimum to territory size. A Micro Territory under 300,000 people opens with 50 containers and must hold 75 by the end of year one. Small and Medium markets, covering 300,000 to 899,999 people, open with 90 and reach 120. A Large territory of 900,000 to 1,200,000 opens with 120 and reaches 160. After the first year the required additions run 25 to 50 containers annually. Item 7 prices a 50-container opening fleet at $168,300 and a 120-container fleet at $434,400, roughly $3,366 to $3,620 per unit, then adds $225,000 to $300,000 for the delivery system and forklift. That 50-container floor is why the UNITS low end fell from $732,640 in the 2025 filing to $518,000 in the 2026 one. The top of the range did not move. The smallest territory the brand will sell got cheaper to stock, not the business. Tariffs sit outside the range entirely. Item 7 states the container costs exclude tariffs and that the tariff amount is passed through in full to the purchaser, and Item 8 makes tariffs, customs and agriculture inspections, port charges, and storage fees the franchisee’s responsibility, payable before delivery. Containers come from one approved supplier, Boxwell. Whatever trade policy does to imported steel boxes lands on the franchisee and appears nowhere in the Item 7 total. You are underwriting a fleet and a yard. The trademark is the cheap part. ## What UNITS actually discloses about returns The UNITS Item 19 is the most useful document in the category, and it is unusually honest about the ramp. The measured sample in the 2026 filing is 62 traditional franchises reporting for the 2025 calendar year, drawn from the 67 franchised locations open at December 31, 2025, three of which run as fractional franchises. One traditional franchise that began operating during 2025 is excluded. Across all 62, median annual revenue was $664,886 and median annual operational contribution was $62,433, a 9.4% margin. The franchisor then splits that same population by how long each location had been open. | Cohort | Median annual revenue | Median operational contribution | Median margin | | --- | --- | --- | --- | | Open 24 to 48 months | $550,832 | ($22,784) | (4.1%) | | Open 48 months or longer | $706,608 | $66,526 | 9.4% | | All 62 locations | $664,886 | $62,433 | 9.4% | Locations still inside their fourth year lose money at the median. Locations past the four-year mark clear roughly $66,500. The blended $62,433 sits between those two realities and describes almost nobody exactly. Notice who is missing. Every location in this table is at least 24 months old, and the arithmetic behind the averages puts 9 franchises in the 24-to-48-month band and 53 past 48 months. The 2025 filing broke out a 12-to-24-month cohort; the 2026 filing does not. The first ramp year is no longer disclosed at all, so the worst stretch of the curve is something you now have to ask about rather than read. Note what operational contribution excludes. The UNITS footnotes define the expense stack as cost of goods, advertising, auto insurance and repair, equipment repair, fuel, health insurance, rent on the storage center, card fees, payroll processing and payroll taxes, container repair, royalty, uniforms, utilities, wages, and workers compensation. Debt service on a half-million-dollar-plus capital stack is not in there, and neither is depreciation. If you financed the fleet, the interest comes out of that $62,433 before anything reaches you. Spread matters as much as the median. Of the 62 measured locations in 2025, 15 booked under $500,000 and 14 cleared $1,000,000. Roughly a quarter of the measured system sat under half a million dollars in revenue, against an investment the filing floors at $518,000 for the smallest territory it will sell. ## Go Mini’s dropped its Item 19 Go Mini’s 2026 filing states plainly that the franchisor makes no representations about future or past financial performance of company-owned, affiliate-owned, or franchised outlets. No table. No sample. The 2025 filing had one. It reported gross sales for the 96 franchised outlets open at least 12 months as of December 31, 2024, sorted by how many territories each franchisee held. | 2025 filing, territories held | Reporting franchisees | Average gross sales | Median gross sales | | --- | --- | --- | --- | | 1 territory | 32 | $258,353 | $229,516 | | 2 to 3 territories | 13 | $423,554 | $331,508 | | 4 to 7 territories | 6 | $922,339 | $677,739 | A single-territory franchisee posted a median of $229,516 in gross sales, inside a system where the lowest disclosed investment is $759,024. The bottom of that band was $8,241 for the year. Multi-territory operators earned multiples of it, the clearest signal in the document about what scale this model requires. None of that appears in the 2026 document. A franchisor is not obligated to publish an Item 19 and dropping one is legal, but it is also information. Ask Go Mini’s why the current filing went silent, and ask for the substantiation behind the 2025 tables while you are at it. Both systems have also stopped growing. Go Mini’s franchised outlets ended 2023 at 104, 2024 at 106, and 2025 back at 104. UNITS opened 12 franchised outlets in 2023 and closed that year at 72, then slipped to 71 in 2024 and 67 in 2025. Its Item 20 records no terminations and no non-renewals for 2025: all five departures are logged as ceasing operations for other reasons. ## Dealers, franchisees, and the difference Go Mini’s own history is a useful footnote for anyone comparing this category to the [U-Haul dealer model](https://vetmyfranchise.com/c/claude/blog/is-uhaul-a-franchise). From 2002 through 2009 the Go Mini’s parent ran about 85 independent dealers under roughly 136 dealer agreements, then stopped offering them and moved the system to franchising. That is why the current schedule discounts a converting dealer to a $50,000 fee and a 7% royalty. A dealer agreement gives you no territory and no term, and leaves you nothing to sell. A franchise contract gives you all of that and charges for it. For PODS the question stays open: a franchised PODS market is a franchise with whatever fee and territory its paperwork specifies, and we have not read it. ## Where this leaves a buyer If the appeal was the PODS name, you are chasing the strongest consumer brand in the category and the one with the least available documentation. Most customers say PODS the way they say Kleenex, and that recognition is worth real money to whoever holds the territory. It is not worth an unverifiable investment estimate. If the appeal was the business, the two filings above show what underwriting looks like here: $518,000 at the absolute floor and past $1.2 million for a 1,200,000-person territory, most of it in steel and trucks, a ramp that still loses money at the median in years three and four, and a mature median operational contribution near $66,500 before debt service. Our [portable storage rankings](https://vetmyfranchise.com/c/claude/blog/best-portable-storage-franchises) put the disclosed figures side by side, and the [fixed-facility comparison](https://vetmyfranchise.com/c/claude/blog/best-self-storage-franchises) covers the real-estate alternative. VetMyFranchise reads the filed Franchise Disclosure Document, Items 5, 7, and 19 included, rather than a brand’s recruitment page. Where no document exists, as with PODS, we say so instead of publishing a number. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is pods a franchiseportable storage franchisePODS ownershipUNITS franchiseGo Mini's franchiseitem 19container storage About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is PODS a franchise? Partly. PODS operates as a hybrid system, with company-run markets and franchised markets under the same brand across more than 150 locations in the US, Canada, Australia, and the UK. The large metropolitan markets are on the corporate side. Ontario Teachers' Pension Plan has owned the company since February 2015, when it acquired the brand from an ownership group led by Arcapita in a deal valued at more than $1 billion. Whether PODS is granting new US franchise territories today is not something we were able to verify. ### How much does a PODS franchise cost? We cannot tell you, and neither can anyone quoting a number without a filing behind it. Our database holds no PODS Franchise Disclosure Document, which means no verified Item 5 fee, no Item 7 investment table, and no Item 19 earnings data. The category comparables we can verify are UNITS at $518,000 to $1,269,400 and Go Mini's at $759,024 to $1,247,125. Container storage is a capital-heavy business in every filing we have read, so treat any figure well below that band with suspicion. ### What portable storage franchises can you actually buy? UNITS Moving and Portable Storage and Go Mini's are the two brands in the category whose current disclosure documents we hold. UNITS asks a franchise fee that scales with territory population, from $55,500 for 300,000 people to $222,000 for 1,200,000, inside a total investment of $518,000 to $1,269,400. Go Mini's asks $85,000 for roughly 800,000 people, rising $10,000 per additional 100,000, inside a total of $759,024 to $1,247,125. Both run 10-year agreements. ### Do portable storage franchises make money? The one current Item 19 in the category says yes, thinly, and only well after the ramp. In its 2026 filing UNITS reports a $664,886 median annual revenue across the 62 traditional franchises that reported for the 2025 calendar year, with median annual operational contribution of $62,433, a 9.4% margin. Split by maturity, locations open 24 to 48 months posted a median operational contribution of negative $22,784, while those open 48 months or longer posted $66,526. Fifteen of the 62 booked under $500,000 in revenue. ### Is PODS the same as a U-Haul dealership? No, and the distinction matters. A U-Haul dealer pays nothing to join, earns a commission, and receives no disclosure document because no required payment means no franchise under the FTC Franchise Rule. A PODS franchised market is a franchise relationship with a fee and an agreement behind it. Go Mini's ran a dealer network of its own from 2002 to 2009 under roughly 136 dealer agreements, then stopped offering them and moved to franchising, which is why its current filing offers converting container dealers a reduced $50,000 fee. --- title: "Is U-Haul a Franchise? How the Dealer Program Works (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is u-haul a franchise, u-haul dealer program, moving franchise, dealer vs franchise, FTC franchise rule, Pink Zebra Moving canonical: https://vetmyfranchise.com/c/claude/blog/is-uhaul-a-franchise about: is u-haul a franchise category: blog wordCount: 1696 readingTime: 8 min crawledAt: 2026-08-20 11:18:09 lastVerified: 2026-08-20 11:18:09 site: https://vetmyfranchise.com/c/claude/ --- # Is U-Haul a Franchise? How the Dealer Program Works (2026) ## Summary Is U-Haul a franchise? No. Dealers pay $0 to join and earn about 21% commission, but get no FDD, no territory, and no resale value. Here is the tradeoff. ## Key facts - The published cost of becoming a U-Haul dealer is $0: no franchise fee, no build-out budget, no working capital requirement. - Under the FTC Franchise Rule, a relationship counts as a franchise when three things are true at once: you get the right to operate under the brand’s trademark, the brand exerts significant control over or provides significant assistance to your operation, and you make a required payment of at least $500 to the brand before or within six months of opening. - The cleanest comparison is against a moving brand our database actually holds a current FDD for. - U-Haul owns the fleet. - The dealer model suits an operator who already owns the hard asset. Quick answer No. U-Haul does not franchise. The company runs its own retail centers alongside more than 22,000 independent dealers in the US and Canada, and joining that network costs $0 in fees or start-up capital. Dealers earn an average 21% commission on equipment rentals, sign no long-term contract, and receive no FDD or protected territory. ## $0 to join, and no disclosure document to read The published cost of becoming a U-Haul dealer is $0: no franchise fee, no build-out budget, no working capital requirement. U-Haul’s own dealer page puts it as “No Franchise Fee = ZERO Start Up Costs,” next to “No Long Term Contracts” and a stated average commission of 21% across its product lines. So the answer to the question is no. U-Haul does not sell franchises. It rents equipment through what the company describes as a network of more than 25,000 locations across all 50 states and 10 Canadian provinces, and more than 22,000 of those are independent dealers rather than company stores. U-Haul describes those dealers as “small businesses that have committed a portion of their lot space for U-Haul equipment.” The arrangement goes back to 1945. Vehicle rental does get franchised elsewhere: [Hertz franchises in the United States](https://vetmyfranchise.com/c/claude/blog/is-hertz-a-franchise), though only 390 of its 2,946 US outlets were franchised at December 31, 2025. The distinction is not a technicality. It changes what you are told before you sign, what obligations you take on, and what you own at the end. ## Why a dealer agreement is not a franchise Under the FTC Franchise Rule, a relationship counts as a franchise when three things are true at once: you get the right to operate under the brand’s trademark, the brand exerts significant control over or provides significant assistance to your operation, and you make a required payment of at least $500 to the brand before or within six months of opening. Knock out any one of those and the rule stops applying. The U-Haul dealer relationship fails the payment element by design. Money moves the other direction. U-Haul pays the dealer, so there is no required payment, so there is no franchise, so there is no disclosure obligation attached to any of it. What disappears with that obligation is the entire evidence file a franchise buyer normally gets 14 days before signing. No Item 7 table estimating your total investment. No Item 19 telling you what existing operators actually collect. No Item 20 showing how many outlets opened, closed, were terminated, or were quietly reacquired last year. No audited franchisor financial statements. No state registration filing to pull. Twenty-two thousand outlets is a large system by any measure, and none of the churn inside it is disclosed anywhere, because U-Haul is not a franchisor and has nothing to file. You also give up the things a franchise agreement grants in exchange for the fee. There is no protected territory, so nothing stops U-Haul from signing the gas station two blocks over. The contract is short-term by design, which cuts both ways: you can walk, and so can they. ## Dealer and franchisee, line by line The cleanest comparison is against a moving brand our database actually holds a current FDD for. [Pink Zebra Moving](https://vetmyfranchise.com/c/claude/franchise/pink-zebra-moving-llc) filed a 2026 document covering 19 franchised outlets and zero company-owned units as of December 31, 2025. | | U-Haul dealer | Pink Zebra Moving franchisee (2026 FDD) | | --- | --- | --- | | Upfront fee to the brand | $0 | $30,000 initial franchise fee | | Total initial investment | not published | $128,368 to $260,679 | | Ongoing payment | you get paid, on commission | 7% of gross revenue to $1.5M, 6% to $3M, 5% above, plus a 1% ad fund | | Disclosure document | not required | full FDD, Items 1 through 23 | | Earnings disclosure | commission rate only | Item 19: $792,705 median booked revenue, six full-year franchisees | | Protected territory | none | yes, 300,000 to 600,000 population | | Agreement term | no long-term contract | 10 years | | Resale value | nothing to transfer | franchise transferable with approval | Read the first column as a business decision rather than a bargain. Zero cost of entry means zero barrier to entry, which is why a dealer network reaches 22,000 locations and a moving franchise reaches 19. [See the Pink Zebra Moving FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/pink-zebra-moving-llc) ## What the 21% commission actually buys U-Haul owns the fleet. It carries roughly 207,600 trucks, 136,500 trailers, and 43,200 towing devices, plus the reservation system, the national advertising, and the insurance behind every rental. The dealer supplies lot space, staffed hours, and the twenty minutes it takes to hand over keys and run a contract. That is why the commission works as an add-on. Your rent, your staff, and your open hours are already paid for by whatever business occupies the building. Rental commission is close to pure contribution margin against fixed costs you were carrying anyway. Run the same numbers as a standalone venture, with rent and payroll charged only against U-Haul revenue, and the 21% has to cover everything. It generally does not. Here is what U-Haul’s number does not tell you. The 21% is an average across product lines, not a dealer earnings claim. There is no sample size, no time period, no top-quartile or bottom-quartile spread, and no way to check it against what a comparable location books in a year. A franchisor publishing an earnings figure has to state the basis for it and stand behind the substantiation. A dealer program publishing a commission rate is describing its own pay schedule, which is a different thing entirely. Anyone quoting you a dealer’s annual income is estimating. ## Who the program fits, and who should keep looking The dealer model suits an operator who already owns the hard asset. Self-storage yards, gas stations, hardware stores, feed stores, and independent repair shops all have paved space, weekend hours, and someone at a counter. Adding trailers converts idle square footage into a second revenue line without capital. A storage yard in particular captures both sides of the same move, which is why [portable container brands](https://vetmyfranchise.com/c/claude/blog/best-portable-storage-franchises) chase the identical customer. The model fails for the buyer who wants a business rather than a revenue line. Three things do not exist in a dealer contract: territory, term, and equity. When you eventually sell the gas station, the U-Haul agreement is not a separately valued asset on the closing statement the way a franchise agreement with a transfer clause is. It follows the location at U-Haul’s discretion, and it is worth nothing on its own. ## Moving franchises that come with an FDD If the appeal was the moving industry rather than the zero entry cost, the franchised side of the category is where the disclosed numbers live. Pink Zebra Moving’s [2026 cost breakdown](https://vetmyfranchise.com/c/claude/blog/pink-zebra-moving-franchise-cost) runs $128,368 to $260,679 on a $30,000 initial franchise fee, with a 10-year term and a protected territory of 300,000 to 600,000 people. Its Item 19 is the part worth studying. Across six franchises that operated for a full year during 2025, median booked revenue was $792,705. Median net operating income on that revenue was $50,022. The low end of the same six-unit sample posted negative $118,793 in net operating income against $705,737 of booked revenue. That spread is the honest picture of the category, and it is the exact information a dealer contract will never give you. A 6.3% median operating margin on nearly $800,000 of revenue, with at least one unit underwater in the same year, tells you the model is labor-intensive and thin. [Two Men and a Truck](https://vetmyfranchise.com/c/claude/franchise/two-men-and-a-truck-spe-llc) is the older and larger name in the same lane and worth pulling for comparison. The broader field, including junk removal operators working the same customer list, sits in our [moving and junk removal rankings](https://vetmyfranchise.com/c/claude/blog/best-junk-removal-moving-franchises). ## The tradeoff, stated plainly A U-Haul dealership costs nothing and is worth nothing when you leave. That is a fair trade for a business owner monetizing a parking lot, and a bad one for anyone trying to buy a job or build a sellable asset. A franchise reverses both halves of the sentence. Whichever side you land on, insist on the same standard of evidence. VetMyFranchise reads the actual Franchise Disclosure Document, Items 5, 7, and 19 included, rather than the brand’s recruitment page, and reports what the filing supports. Start with the [moving and junk removal franchise rankings](https://vetmyfranchise.com/c/claude/blog/best-junk-removal-moving-franchises) if you want the disclosed numbers side by side. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is u-haul a franchiseu-haul dealer programmoving franchisedealer vs franchiseFTC franchise rulePink Zebra Moving About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to become a U-Haul dealer? Nothing. U-Haul's dealer page states plainly that there is no franchise fee and zero start-up costs, and that dealers sign no long-term contract. That is the structural difference between the dealer program and a franchise: a franchise requires you to pay the brand before you open, while U-Haul pays you a commission on rentals booked from your lot. You supply the space, the staffed hours, and the customer handoff. U-Haul supplies the trucks, trailers, insurance, reservation system, and national demand. ### How much do U-Haul dealers make? U-Haul publishes one number: an average 21% commission across all product lines. It does not publish what an individual dealer earns, and it is not required to. Franchisors that make earnings claims must substantiate them in Item 19 of a disclosure document, with a defined sample and a stated time period. There is no equivalent for a dealer contract, so any dealer income figure you find online is an estimate rather than a regulated disclosure. Your realistic range depends on how much drive-by traffic and lot space your existing business already generates. ### Is a U-Haul dealership a good business? It is a good add-on and a poor standalone. The economics work because the fixed costs are already sunk: if you run a self-storage yard, a gas station, a hardware store, or a repair shop, the lot, the staff, and the open hours are paid for whether or not a trailer sits out front. Commission revenue lands on top of that. The same arrangement fails for anyone who wants a full-time business, because there is no territory keeping the next dealer off your corner and nothing to sell when you exit. ### What moving franchises can you buy instead? Several, and they come with disclosure documents. Pink Zebra Moving's 2026 FDD puts a franchise at $128,368 to $260,679 including a $30,000 initial franchise fee, with a 7% royalty on the first $1.5 million of gross revenue. Two Men and a Truck is the long-established name in the category. Junk removal and portable storage brands cover the adjacent demand from the same customer. The tradeoff is straightforward: you pay real money and take real risk, and in exchange you get a territory, a disclosure document, and an asset you can sell. --- title: "Is Subway a Franchise? Yes: Here's How It Works (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is subway a franchise, subway franchise cost, Doctor's Associates LLC, sandwich franchise, item 19, franchise disclosure document, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-subway-a-franchise about: is subway a franchise category: blog wordCount: 1854 readingTime: 9 min crawledAt: 2026-08-20 11:11:55 lastVerified: 2026-08-20 11:11:55 site: https://vetmyfranchise.com/c/claude/ --- # Is Subway a Franchise? Yes: Here's How It Works (2026) ## Summary Yes, Subway is a franchise: 18,773 US restaurants and zero company-owned. The 2026 FDD shows a $15,000 fee, 8% royalty, 4.5% ad fund, and no Item 19. ## Key facts - It is Doctor’s Associates LLC, a Delaware limited liability company at 1 Corporate Drive in Shelton, Connecticut. - That $15,000 is one of the lowest initial fees any national restaurant brand publishes, and it is the reason Subway has always read as the accessible option. - Two lines deserve a slow read. - This is the single most important thing a Subway prospect should take away from the document. - The decline is accelerating, not flattening. Quick answer Yes. Subway is 100% franchised: the 2026 FDD reports 18,773 US restaurants and zero company-owned outlets at the end of 2025. The franchisor is Doctor's Associates LLC, a Roark Capital company. The standard franchise fee is $15,000, the royalty is 8% of gross sales, and the advertising fund takes another 4.5%. ## The company that sells Subway franchises is not called Subway It is Doctor’s Associates LLC, a Delaware limited liability company at 1 Corporate Drive in Shelton, Connecticut. That name sits on the cover of the 2026 Franchise Disclosure Document, issued April 30, 2026, where a buyer expects to find the brand. The entity converted from a Florida corporation to a Florida LLC on October 29, 2018, took the Doctor’s Associates LLC name then, and redomesticated to Delaware on May 29, 2024. So the answer to the question is yes, emphatically. Subway is a franchise, and it is close to the purest example of the form in American retail. The 2026 FDD reports 18,773 franchised US restaurants at the end of 2025 and zero company-owned outlets, in that year and in the two before it. There is no corporate flagship, no company-run test market, no house account. Every US restaurant belongs to somebody who signed a franchise agreement. The ownership above the franchisor is layered, and worth knowing before you read anything else in the document. On April 30, 2024, Underground Purchaser LLC, owned by investment funds managed by Roark Capital Management in Atlanta, acquired all equity in the franchisor’s former parent, in a transaction reported at roughly $9.6 billion. A securitization that closed June 20, 2024 then moved the US trademarks and the SubwayPOS software into an affiliate, Subway US IP Holder LLC, which licenses them back. Franchise World Headquarters LLC is now the manager and the franchisor’s franchise sales agent. The brand operates about 37,000 restaurants in more than 100 countries, most of them outside this document’s scope. ## What the 2026 FDD actually charges | Term | 2026 FDD figure | | --- | --- | | Standard initial franchise fee | $15,000 | | Reduced fee (US veterans, qualifying existing franchisees, qualifying non-traditional) | $7,500 | | Satellite restaurant fee | $5,000 | | Royalty | 8% of total gross sales, payable weekly | | Advertising | 4.5% of total gross sales, payable weekly | | Sub Club loyalty fee | 1.9% of gross sales on member transactions | | Agreement term | 20 years | | Renewal fee | 25% of the then-current fee, currently $3,750 | | Transfer fee | 50% of the then-current fee, currently $7,500 | That $15,000 is one of the lowest initial fees any national restaurant brand publishes, and it is the reason Subway has always read as the accessible option. The recurring column is where the brand collects. Royalty and advertising together take 12.5% of gross sales every week, before rent, before payroll, before a single loaf of bread. Add the 1.9% Sub Club fee on loyalty-member transactions and the franchisor’s share of a busy restaurant’s revenue climbs further. Most large quick-service systems sit between 8% and 9% combined. Subway is materially above that, and the low entry fee is what buys it. ## $263,000 to $630,000, and what that number does not include | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $15,000 | $15,000 | | Real property (deposit and first month) | $3,000 | $12,000 | | Leasehold improvements | $75,000 | $250,000 | | Equipment, furniture, and decor | $110,000 | $210,000 | | Opening inventory | $7,500 | $15,000 | | Supplies and smallwares | $5,000 | $9,000 | | Additional funds, 3 months | $15,000 | $45,000 | | Total, traditional restaurant | $263,000 | $630,000 | | Total, non-traditional location | $227,000 | $458,000 | Two lines deserve a slow read. The real property entry is a security deposit and one month of rent, nothing more. Item 7 estimates typical monthly rent at $1,000 to $6,000 for a restaurant averaging about 1,375 square feet, and none of that ongoing obligation appears in the total. The additional funds line is thinner still, and the FDD says so in its own footnote: the three-month figure “is not an estimate of the working capital you will need,” and the three-month period “is not a representation of when you should expect to break even, if ever.” A franchisor writing “if ever” into its own Item 7 note is telling you something. Underwrite six to twelve months of reserve on your own numbers. Buyers looking at more than one restaurant read a different set of figures. The multi-unit development program for two to ten restaurants runs $246,123 to $604,245 per restaurant, on a development fee of $22,500 to $82,500. [Pull the full Doctor’s Associates data sheet](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) if you want Items 5, 7, and 20 side by side rather than a recruitment page. ## There is no Item 19, in 2026 or in 2025 This is the single most important thing a Subway prospect should take away from the document. Item 19 of the 2026 FDD contains no financial performance representation. Doctor’s Associates states that it does not make representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets, and does not authorize employees to make them either. The 2025 document says the same thing. Read that against what is easy to find online. Average unit volume figures for Subway circulate widely, and none of them originate in the disclosure document. If you are buying an existing restaurant, the franchisor may hand you that restaurant’s actual records, which is the only sales data the FDD contemplates you receiving. Our older piece on [how closures distort any Subway sales average you get handed](https://vetmyfranchise.com/c/claude/blog/subway-item-19-survivorship-bias-explained) covers why a system this closure-heavy makes third-party averages worse than useless, and the [pros and cons of the Subway system](https://vetmyfranchise.com/c/claude/blog/subway-franchise-pros-and-cons) goes further into what the absence buys and costs. ## Item 20 is where the story is | Year | Franchised at start | Franchised at end | Net change | Company-owned at end | | --- | --- | --- | --- | --- | | 2023 | 20,576 | 20,133 | -443 | 0 | | 2024 | 20,133 | 19,502 | -631 | 0 | | 2025 | 19,502 | 18,773 | -729 | 0 | The decline is accelerating, not flattening. The 20,133 count at the end of 2023 was already the brand’s lowest US footprint since 2005, and two more years took another 1,360 restaurants out. The composition matters more than the total. In 2025 the system opened 499 restaurants, but a footnote discloses that reopenings of previously closed locations account for approximately 56% of that column, so genuinely new restaurants number a few hundred at most. On the other side, 1,026 restaurants ceased operations for reasons other than termination or non-renewal, 46 were not renewed, 4 were terminated, and 148 were reacquired by the franchisor. A further 792 locations sat temporarily closed on December 31, 2025. Table 5 projects 100 new franchised outlets in the next fiscal year against 93 signed agreements not yet open. Transfers tell their own story. Restaurants changed hands 1,764 times in 2023, 1,416 in 2024, and 1,307 in 2025. In a system this size that is normal churn as much as distress, but it means the realistic entry point for most buyers is a resale rather than a new build, and a resale triggers a written remodel assessment that the franchisor must approve before consenting to the transfer. ## No territory, and a remodel clock Item 12 is blunt: you will not receive an exclusive territory, and there are no radius restrictions or population requirements limiting where the next Subway opens. The franchisor and its affiliates reserve unlimited rights to compete with you and to license others to do the same, including through delivery, internet, and other channels. In a system with 18,773 US restaurants, density is the historical complaint, and the document offers no contractual protection against it. The decor standard runs on its own schedule. Fresh Forward 2.0 is the required package for all new restaurants and relocations, and existing restaurants must remodel to it, or an approved variation, on the timeframe set in the Operations Manual. If you buy a restaurant with an unmet remodel obligation, you have bought a capital call with a date attached. One more line belongs in your diligence file. Item 20 discloses that during the last three fiscal years the franchisor signed confidentiality clauses with current or former franchisees restricting them from speaking openly about their experience. Item 3 discloses 47 actions plus 10 franchisor-initiated actions. Call franchisees anyway, including departed ones from Exhibit B-2, and ask directly whether they are free to answer. ## What to pull before you sign anything Get the disclosure document, then read Item 5 for which fee tier you actually qualify for, Item 7 with every footnote rather than the total row, Item 12 for the territory language quoted above, and Item 20 for the closure and transfer tables that no recruitment material will show you. Then call operators, including the ones who left. If you are weighing the sandwich category rather than the brand, our [comparison of Subway against Jersey Mike’s and Jimmy John’s](https://vetmyfranchise.com/c/claude/blog/subway-vs-jersey-mikes-vs-jimmy-johns-franchise) scores all three off their filed documents. And the [Doctor’s Associates data sheet](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) puts the 2026 fee, investment, and unit figures in one place, read out of the FDD rather than a brochure. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Subway numbers with you. We'll email you the **Subway FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Subway data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is subway a franchisesubway franchise costDoctor's Associates LLCsandwich franchiseitem 19franchise disclosure documentbrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Who owns Subway? Subway franchises are sold by Doctor's Associates LLC, whose parent was acquired on April 30, 2024 by Underground Purchaser LLC, an entity owned by investment funds managed by Roark Capital Management in Atlanta. The transaction was reported at roughly $9.6 billion. A June 20, 2024 securitization moved the US trademarks and the SubwayPOS software into an affiliate, Subway US IP Holder LLC, which licenses them back to the franchisor. Day-to-day support and franchise sales are performed by Franchise World Headquarters LLC under a management agreement. ### How much does a Subway franchise cost? The 2026 FDD estimates $263,000 to $630,000 for a single traditional restaurant, and $227,000 to $458,000 for a non-traditional location. That includes a $15,000 initial franchise fee, $75,000 to $250,000 of leasehold improvements, and $110,000 to $210,000 of equipment, furniture, and decor. Qualified US veterans, existing franchisees in substantial compliance, and certain non-traditional operators pay a reduced $7,500 fee. ### Does Subway disclose how much franchisees make? No. Item 19 of the 2026 FDD contains no financial performance representation, and the same was true of the 2025 document. Doctor's Associates states plainly that it does not make representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. If you buy an existing restaurant, the franchisor may give you that restaurant's actual records. Every Subway average revenue figure circulating online comes from somewhere other than the disclosure document. ### Are Subway locations closing? Yes, on a large scale. Item 20 shows the US franchised count falling from 20,576 at the start of 2023 to 18,773 at the end of 2025. In 2025 alone, 1,026 restaurants ceased operations for reasons other than termination or non-renewal, 46 were not renewed, and 148 were reacquired by the franchisor. The document also discloses 792 locations that were temporarily closed as of December 31, 2025. ### Does a Subway franchise come with a protected territory? No. Item 12 states that you will not receive an exclusive territory and that there are no radius restrictions or minimum or maximum population requirements limiting where another Subway restaurant can open. The franchisor and its affiliates reserve unlimited rights to compete with you and to license others to compete with you, including through channels other than a restaurant. --- title: "Is In-N-Out a Franchise? Family-Owned Since 1948 (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is in-n-out a franchise, in-n-out franchise cost, burger franchise, Five Guys franchise, Freddys Frozen Custard, Food & Beverage franchise, item 19 canonical: https://vetmyfranchise.com/c/claude/blog/is-in-n-out-burger-a-franchise about: is in-n-out a franchise category: blog wordCount: 1603 readingTime: 8 min crawledAt: 2026-08-20 11:11:55 lastVerified: 2026-08-20 11:11:55 site: https://vetmyfranchise.com/c/claude/ --- # Is In-N-Out a Franchise? Family-Owned Since 1948 (2026) ## Summary No. In-N-Out has never franchised since 1948. Every location is company-owned. Franchised burger alternatives: Freddy's $1,820,745 median, Five Guys. ## Key facts - In-N-Out Burger has operated for seventy-eight years without selling a single franchise. - Two things hold the policy in place, and both are structural rather than sentimental. - The 2026 development that gets misread as a franchise announcement is the eastward move. - Three burger systems in our FDD database show what the paperwork looks like when a brand does franchise. - Item 20 of the 2025 Five Guys FDD reports 1,558 total outlets at fiscal year-end 2024. Quick answer No. In-N-Out has never franchised. The Snyder family has owned every location since 1948, and growth stays inside the company supply network. Franchised burger alternatives exist: Freddy's discloses a $1,820,745 median across 477 franchised restaurants, and Five Guys runs 945 franchised units against 613 company-owned. ## The answer is no, and there is no FDD to read In-N-Out Burger has operated for seventy-eight years without selling a single franchise. Harry and Esther Snyder opened the first stand in Baldwin Park, California, in 1948, and the Snyder family has held the company ever since. There is no franchise disclosure document, no Item 5 fee, no Item 7 investment range, no Item 19 sales table. Every location is owned and operated by the company. So the search term “in-n-out franchise cost” has no answer. The number is not confidential. It does not exist, because nothing is for sale. Any site quoting you a figure is either describing a different brand or making it up. ## Why the Snyder family keeps saying no Two things hold the policy in place, and both are structural rather than sentimental. The first is supply. In-N-Out has tied restaurant growth to its own production and distribution network rather than to franchisee capital. Patties move from company facilities to company restaurants, which caps how far and how fast the brand can open. A franchisor sells territory to whoever can fund it. In-N-Out can only build where its own trucks already run, and that single constraint explains the pace better than any statement about tradition. Control over the operating model is the second. Franchising hands daily hiring, wage, and standards decisions to an independent owner whose incentives sit close to the franchisor’s but never match them exactly. In-N-Out kept those decisions in house. The trade is real, and it runs both ways: the company gave up the fastest growth path in restaurants along with the fee income attached to it. ## Tennessee is expansion, not franchising The 2026 development that gets misread as a franchise announcement is the eastward move. As of April 2026, four In-N-Out restaurants were open in Tennessee: Lebanon, Antioch, Murfreesboro, and Franklin. The company has signaled up to 35 locations in the state and put $125.5 million into an office in Franklin. Read what that spending pattern says. A franchisor entering a new region signs area developers, collects development fees from them, and lets those developers fund the buildings. In-N-Out bought the office itself. Tennessee is company capital deployed by a company that decided, again, not to sell its growth. ## The burger brands that actually sell franchises Three burger systems in our FDD database show what the paperwork looks like when a brand does franchise. Every figure below comes from the filed document. | | Five Guys | Freddy’s | Smashburger | | --- | --- | --- | --- | | FDD year | 2025 | 2026 | 2026 | | Initial fee | $25,000 | $35,000 | $40,000 | | Total investment | $977,850 to $1,375,750 | $854,834 to $2,802,000 | $1,239,500 to $2,255,500 | | Royalty | 6% | 5% | 5.5% | | Marketing fund | 2% now, up to 4% | 2.5%, rising to 3% | 2.25%, up to 4% | | Franchised units | 945 | 542 | 53 | | Company units | 613 | 38 | 119 | | Item 19 | none | yes | none | The Freddy’s range covers three build formats. An in-line unit with no drive-thru starts at $854,834. A standalone with a drive-thru runs to $2,802,000. Quoting the low number as the cost of a Freddy’s is how buyers end up underfunded before they open. ## Five Guys is franchised, and its unit table gets misread Item 20 of the 2025 Five Guys FDD reports 1,558 total outlets at fiscal year-end 2024. That total breaks into 945 franchised and 613 company-owned. It is not 1,558 franchised, a mistake that appears across the web and inflates the system by 60%. About 39% of Five Guys is company-operated. The franchised count also carries a history worth reading. Franchised outlets fell from 979 to 899 during 2022, recovered to 924 in 2023, and reached 945 in 2024. Three years of movement produced a net loss of 34 franchised units. Two details sit in the fee items. Item 5 sets the franchise fee at $25,000, but a buyer also signs a development agreement carrying a $50,000 development fee per restaurant, with a one-restaurant minimum, and that fee is not credited against the franchise fee. Day one is $75,000, not $25,000. Item 19 of the same document then declines to say anything: Five Guys makes no representations about the past or future financial performance of company-owned or franchised outlets. Our [Five Guys cost breakdown](https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost) walks those Item 7 lines. ## Freddy’s has the only real Item 19 of the three The 2026 Freddy’s FDD reports a median of $1,820,745 in annual gross receipts across 477 franchised restaurants open for the entire 2025 fiscal year. Receipts ranged from $644,497 to $4,164,361. Read the segment label and the exclusions before the median. Those 477 restaurants exclude 43 that were not open all year, 19 franchised restaurants that closed during 2025, and 23 non-traditional units in stadiums, casinos, airports, and on college campuses. Dropping closures from a performance table is standard and legal, and it also removes the worst outcomes from the sample you are handed. The quartile table is more useful than the median. The bottom quartile of 120 franchised restaurants averaged $1,227,582 in gross receipts, with a floor of $644,497. Against a build that can reach $2.8 million, a $644,497 store is not a slow start. That is a unit-economics failure. Gross receipts are also not profit. Freddy’s discloses revenue plus a cost table drawn from its 38 company-owned restaurants, so the franchisee-side profit picture is yours to build through validation calls. The recurring load on top of the build: a 5% royalty, a marketing fund at 2.5% moving to 3.0% on October 8, 2026, and a mandatory $35,000 construction advisory fee on your first restaurant on top of the $35,000 license fee. [See what the Freddy’s FDD actually discloses](https://vetmyfranchise.com/c/claude/franchise/freddys-llc). VetMyFranchise reads Items 5, 7, and 19 out of the filed document rather than the brand’s franchise development page. ## Smashburger is moving the other way [Smashburger](https://vetmyfranchise.com/c/claude/franchise/smashburger-franchising-llc) still sells franchises, at a $40,000 fee and $1,239,500 to $2,255,500 of investment. Its Item 20 is the reason to slow down. Franchised restaurants went 82 to 78 to 65 to 53 across 2023, 2024, and 2025. Company-owned units fell from 135 to 119 over the same stretch. The total system dropped from 217 restaurants to 172, a 21% contraction in three years, and the 2026 document adds that two more franchised restaurants ceased operations after December 28, 2025. There is no Item 19. A shrinking system is not automatically a bad buy. A distressed brand sometimes offers real estate and terms a growing one never would. It does change what you are underwriting, because you are betting on a turnaround rather than on a unit model that already works. ## What to check before you buy any burger franchise The In-N-Out question is useful precisely because it has no paperwork behind it. Once a brand does franchise, the paperwork is the only part of the pitch carrying legal weight, and three items decide most of the outcome. Item 7 gives you the real capital requirement, broken out by build format. Item 19 gives you what the franchisor will commit to in writing, and its segment label tells you who got excluded from the sample. Item 20 gives you the direction of travel, which is the closest thing to a franchisee satisfaction score available for free. Compare those three items across brands before you compare logos. Our [ranking of burger franchises](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises) puts the current options side by side, and the [Five Guys franchise model post](https://vetmyfranchise.com/c/claude/blog/is-five-guys-a-franchise) shows how a development agreement changes what even a single-restaurant buyer signs. [Browse the full franchise directory](https://vetmyfranchise.com/c/claude/franchises) for 2,000+ brands with their FDD figures attached. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is in-n-out a franchisein-n-out franchise costburger franchiseFive Guys franchiseFreddys Frozen CustardFood & Beverage franchiseitem 19 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy an In-N-Out franchise? No. In-N-Out has never sold franchises and files no franchise disclosure document, so there is no franchise fee, no Item 7 investment range, and no application process for a prospective owner. Every restaurant is owned and operated by the company. Any website quoting an In-N-Out franchise cost is describing a different brand or inventing the figure. ### Why doesn't In-N-Out franchise? The company ties restaurant growth to its own production and distribution network rather than to outside capital, so it can only open where its supply chain already reaches. Franchising would also hand day-to-day hiring, wage, and operating decisions to independent owners. In-N-Out has kept those decisions in house since 1948, trading the faster growth and fee income franchising provides for control over the model. ### Which states have In-N-Out? In-N-Out has operated in California since 1948 and expanded across the western states and into Texas over the following decades. Tennessee is the first move east of that footprint: four restaurants were open as of April 2026, in Lebanon, Antioch, Murfreesboro, and Franklin, with up to 35 signaled for the state and $125.5 million invested in an office in Franklin. Because every location is company-owned, the map grows only where the company's own distribution network reaches. ### What burger franchises can you actually buy? Freddy's, Five Guys, and Smashburger all franchise and all file FDDs. Freddy's 2026 document lists a $35,000 license fee, $854,834 to $2,802,000 of investment depending on build format, a 5% royalty, and a $1,820,745 median in annual gross receipts across 477 franchised restaurants. Five Guys lists a $25,000 franchise fee plus a $50,000 development fee per restaurant, $977,850 to $1,375,750 of investment, a 6% royalty, and no earnings disclosure. Smashburger lists a $40,000 fee and $1,239,500 to $2,255,500, against a system that shrank from 217 to 172 restaurants over three years. --- title: "Is Taco Bell a Franchise? 92% of US Locations Are (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is taco bell a franchise, taco bell franchise, Yum Brands, express unit, QSR franchise, item 19, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-franchise about: is taco bell a franchise category: blog wordCount: 1909 readingTime: 10 min crawledAt: 2026-08-20 11:15:57 lastVerified: 2026-08-20 11:15:57 site: https://vetmyfranchise.com/c/claude/ --- # Is Taco Bell a Franchise? 92% of US Locations Are (2026) ## Summary Yes, Taco Bell is a franchise: about 92% of US locations are franchisee-run. Fees, the $22,500 question, the 10% royalty, and the missing Item 19. ## Key facts - The brand splits its US offering in two. - The fee question that sends people to search engines resolves inside one paragraph of Item 5. - Item 19 of the 2026 Express FDD makes no financial performance representation. - Item 12 grants no territorial protection. - Three consecutive years of net decline, ending at 221 licensed and 14 company-owned units. Quick answer Yes. About 92% of Taco Bell's US locations are franchised, against 8% company-operated, across a division of 9,046 units. The 2026 Express FDD in our library sets a $22,500 initial license fee, a 10% royalty on gross sales, a 10-year term, and no Item 19 performance figure. ## The 92/8 split, and what sits behind it Yum! Brands reported 9,046 Taco Bell Division units as of June 30, 2026, with 86% of them in the United States, roughly 7,780 restaurants. Of that US base, 92% are franchised and 8% are company-operated. The answer to the question is yes, and the ratio is the part worth holding onto. Taco Bell earns royalties, advertising money, and development fees. The person absorbing sales risk on any given corner is a private operator with a bank note and a payroll. That leaves a harder question underneath the easy one. Which Taco Bell, and under which disclosure document. ## Taco Bell files two disclosure documents, and they are not interchangeable The brand splits its US offering in two. Traditional restaurants, the freestanding buildings with a kitchen, a counter, seating, and usually a drive-thru, are offered under one FDD. In-line and end-cap units go with them. Everything smaller sits in a second document that covers what the company calls Express Units. Our library holds the second one, the 2026 Express FDD issued by [Taco Bell Franchisor, LLC](https://vetmyfranchise.com/c/claude/franchise/taco-bell-franchisor-llc). Item 20 of that document says so directly: its unit tables do not include information on franchises offered under the Taco Bell traditional disclosure document. Anyone quoting a single set of Taco Bell numbers is quoting one of the two programs without saying which. An Express Unit is a Taco Bell built into a space that already has footfall. The document names colleges and universities, some dual-brand facilities, airports, in-line locations, and gas and convenience stores with a drive-thru. A Power Pumper is that last category: an Express Unit sharing a building with a fuel and convenience operation. The first Express Unit opened in 1991, and the company reserves the right to reclassify certain Power Pumpers and in-line units as traditional, which moves them to the other document. For the traditional build economics that most searchers actually have in mind, our [Taco Bell franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/taco-bell-franchise-cost) covers the ground-up restaurant scenario, and our [assessment of the brand as a purchase](https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-good-franchise) covers the multi-unit posture. This post stays with what the filed Express document says. ## What the 2026 Express document charges | Term | 2026 Express FDD | | --- | --- | | Initial license fee, Express Unit | $22,500 | | Initial license fee, Power Pumper | $22,500 to $45,000 | | Royalty (period license fee) | 10% of gross sales | | Percentage advertising fund in Item 6 | none listed | | Merchandising program | $286 per quarter per restaurant | | All Access fee | $750 per year | | Digital transaction fee | $0.19 per digital order | | Agreement term, new Express Unit | 10 years | | Agreement term, new Power Pumper | 10 to 20 years | | Item 7 total, Express Unit | $287,950 to $857,700 | | Item 7 total, Power Pumper | $354,850 to $772,700 | The fee question that sends people to search engines resolves inside one paragraph of Item 5. An Express Unit costs $22,500. A Power Pumper ranges from $22,500 to $45,000. Both are real, describe different formats in the same program, and third-party articles quote whichever one they found first. A third figure exists for buyers acquiring an existing unit from the company: the license fee is prorated at $2,250 for each partial or full year of the term, landing between $2,250 and $11,250. The royalty is the line that should slow a buyer down. Item 6 sets the period license fee at 10% of the unit’s gross sales, defined broadly enough that only sales taxes, employee meals, overrings, and customer refunds come out first. Ten points off the top is heavy for quick service, and the document does not pair it with a percentage advertising fund. What Item 6 lists instead is a $286 quarterly merchandising charge per restaurant, a $750 annual All Access fee, $0.19 per digital transaction, $0.19 per gift card transaction, and marketing materials billed at actual cost. Item 7 also prices the acquisition route. Buying existing units from the company or an affiliate runs $152,250 to $1,766,250 or more in total purchase price, and Item 5 warns the figure may exceed $1,800,000 excluding real property, typically set as a multiple of cash flow. [Pull the full Taco Bell Franchisor data sheet](https://vetmyfranchise.com/c/claude/franchise/taco-bell-franchisor-llc) ## There is no Item 19 in this document Item 19 of the 2026 Express FDD makes no financial performance representation. The wording is unambiguous: the licensor does not represent the actual or potential financial performance of any company-owned or licensed Express Unit, and does not authorize employees or representatives to do so orally or in writing. One door stays open. If you are buying an existing unit, the licensor may give you that unit’s actual records. That is a better disclosure than a system median for a single acquisition, and a worse one for anybody trying to underwrite a new build, because it tells you nothing about the units you did not buy. The whole performance question therefore moves onto validation calls. Exhibit F carries every licensee in operation at December 31, 2025 plus everyone who exited during the year, and Item 20 records no confidentiality clauses signed with current or former licensees in the last three fiscal years. Nobody in that system is contractually silenced. Use that. ## No territory, and no right to renew Item 12 grants no territorial protection. The rights under the License Agreement are non-exclusive, tied to one specified location, and carry no ability to stop anyone else from opening nearby, including the company itself. A licensee buying existing units may be required to waive impact protection outright for the full term. Renewal is the sharper clause. Item 6 states that the License Agreement does not provide renewal rights. A successor agreement is discretionary, costs the greater of $11,250 or half the then-current initial license fee, and comes conditioned on completing an offset, a scrape and rebuild, or a major remodel at your expense. Underwrite a 10-year Express Unit as a 10-year asset with a capital call attached to any extension. Item 15 closes off the passive-income reading. You must devote full time, best efforts, and constant personal attention to daily operations, or name an approved supervisor who does. You or a qualified restaurant manager must live within roughly an hour’s drive of the unit. If the license sits in an entity, every legal and beneficial equity holder personally guarantees performance. ## The Express program has been shrinking | Year | Licensed units, start | Licensed units, end | Company-owned, end | | --- | --- | --- | --- | | 2023 | 232 | 229 | 7 | | 2024 | 229 | 224 | 14 | | 2025 | 224 | 221 | 14 | Three consecutive years of net decline, ending at 221 licensed and 14 company-owned units. The 2025 detail: 8 units opened, zero terminations, 5 non-renewals, and 6 closures for other reasons. All 14 company-operated units are multi-brand KFC and Taco Bell locations run by KFC rather than by Taco Bell. Forward pipeline is thin and honest about it. Table 5 records zero license agreements signed but not yet opened, and projects 9 new licensed units across eight states in the next fiscal year, with no company openings planned. A brand with 7,780 US restaurants expects to add nine Express Units. None of that condemns the format. A unit inside a university student center or a truck stop is a different business from a pad-site drive-thru, and a shrinking non-traditional count often reflects the host venue closing rather than the operator failing. It does mean the growth story people associate with Taco Bell lives in the other disclosure document. ## Where the rest of Yum sits Item 1 lists the sibling brands’ unit mix, four franchise systems measured the same way on the same date. | Yum brand, end of December 2025 | Company-operated | Franchised traditional | Non-traditional licensed | | --- | --- | --- | --- | | Pizza Hut | 75 | 4,956 (99 franchisees) | 1,241 (160 licensees) | | KFC | 86 | 3,404 (236 franchisees) | 29 (19 licensees) | | Habit Burger Grill | 301 | 75 (12 franchisees) | 7 (5 licensees) | Pizza Hut averages 50 traditional restaurants per franchisee. Habit Burger Grill is still mostly a company system. That concentration in the mature brands is the real barrier to entry at Taco Bell, and it shows up in no fee table anywhere. ## What to pull before you chase this brand Ask which disclosure document you are being sent, and confirm it in the first line of Item 1 before reading anything else. Then take Item 5 for the fee that applies to your format, Item 7 for the total that matches it, Items 12 and 15 for what the location protects and what the schedule demands, and Item 20 for the exit history and the licensee list. Nothing in Item 19 will help here, so budget for the calls instead. If the capital screen or the multi-unit posture rules Taco Bell out, the category has disclosed alternatives worth reading side by side. Our [ranking of Mexican food franchises](https://vetmyfranchise.com/c/claude/blog/best-mexican-food-franchises) scores each brand off its filed FDD, and our look at [why Chipotle franchises nothing at all](https://vetmyfranchise.com/c/claude/blog/is-chipotle-a-franchise) covers where the segment’s growth is going. We read Items 5, 7, and 19 out of the document itself rather than a recruitment page, which is the only way the $22,500 and $45,000 versions of the same brand ever reconcile. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Taco Bell numbers with you. We'll email you the **Taco Bell FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Taco Bell data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is taco bell a franchisetaco bell franchiseYum Brandsexpress unitQSR franchiseitem 19brand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Taco Bell franchise? Yes, and about 92% of US Taco Bell locations are already run by franchisees rather than the company. Approval is the constraint, not availability. Taco Bell Franchisor, LLC screens capital and operating capacity before it discusses a site, and most new units in the traditional program go to operators who already run several restaurants. The Express program covered by the disclosure document we hold is a separate, smaller path aimed at colleges, airports, in-line spaces, and gas and convenience locations. ### Is the Taco Bell franchise fee $22,500 or $45,000? Both figures come out of the same document, which is why the internet disagrees with itself. The 2026 Express FDD states that the initial license fee for an Express Unit is $22,500, and that the fee for a Power Pumper Unit ranges from $22,500 to $45,000. Buying an existing unit from Taco Bell or an affiliate prorates the fee instead, at $2,250 for each partial or full year of the term. The traditional restaurant program sits in a different disclosure document with its own fee schedule. ### Does Taco Bell disclose franchisee earnings? Not in the Express disclosure document. Item 19 states plainly that the licensor makes no representations about the future or past financial performance of any company-owned or licensed Express Unit. The one exception the document allows is a purchase of an existing unit, where the licensor may hand over that specific unit's actual records. Any Taco Bell revenue figure circulating online is somebody's estimate rather than a disclosed number. ### Who owns Taco Bell? YUM! Brands, Inc. is the ultimate corporate parent, and it also owns KFC, Pizza Hut, and Habit Burger Grill. The direct franchisor is Taco Bell Franchisor, LLC, a Delaware limited liability company formed in February 2016 during a securitization financing that closed on May 11, 2016. Before that date the franchisor was Taco Bell Corp., organized in California in 1962, which still manages the system day to day under a management agreement. ### What is a Taco Bell Express Unit? An Express Unit is a smaller Taco Bell built into a space that already has traffic, serving either the full menu or a limited version of it. The document names colleges and universities, some dual-brand facilities, airports, in-line locations, and gas and convenience stores with a drive-thru. A Power Pumper is the gas-station format. Item 7 puts an Express Unit at $287,950 to $857,700 and a Power Pumper at $354,850 to $772,700. --- title: "Is Waffle House a Franchise? The Real Answer (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is waffle house a franchise, waffle house franchise cost, Huddle House franchise, 24-hour diner franchise, breakfast franchise, legacy franchisee, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-waffle-house-a-franchise about: is waffle house a franchise category: blog wordCount: 1632 readingTime: 8 min crawledAt: 2026-08-20 11:16:03 lastVerified: 2026-08-20 11:16:03 site: https://vetmyfranchise.com/c/claude/ --- # Is Waffle House a Franchise? The Real Answer (2026) ## Summary Is Waffle House a franchise? Mostly no. About 250 of roughly 1,900 units are legacy franchises and none are sold to the public. Huddle House is the comparison. ## Key facts - Waffle House does not offer franchises to the public. - The shape here shows up across older restaurant systems. - Round-the-clock service is the identity of this category, and Huddle House prices it as an obligation rather than a choice. - Daypart changes the arithmetic more than the menu does. - The reason this question matters is not brand loyalty. Quick answer Mostly no. Waffle House does not sell franchises to the public. Of roughly 1,900 restaurants, about 250 are franchised under legacy agreements and the rest are company-operated. No current Waffle House disclosure document exists to read, so the closest disclosed comparison is Huddle House, whose 205 franchised units posted a $783,206 median in 2024. ## Waffle House does not sell franchises, and there is no FDD to read Waffle House does not offer franchises to the public. There is no application program, no development agreement on the table, and no Franchise Disclosure Document a prospective buyer can request and read. Our FDD library, assembled largely from state franchise registration filings, holds no Waffle House document at all. That makes the honest answer “mostly not” rather than a flat no. A minority of Waffle House restaurants are franchised, under agreements signed long ago and left running. Third-party counts put the system above 1,900 restaurants, with roughly 250 of those franchised and about 1,650 company-operated. Those figures come from outside the company, so read them as estimates. Waffle House is privately held by its founding families and publishes no unit-level breakdown, which is why the split varies depending on who is counting. Everything else follows from the missing document. No Item 7 table estimating what a build costs. No Item 19 telling you what an existing operator collects. No Item 20 showing how many units opened, closed, or changed hands last year. No franchisee roster to call. A brand that does not sell franchises owes none of it. ## The legacy franchisee pattern The shape here shows up across older restaurant systems. A brand franchises during an early growth phase, uses other people’s capital to cover the map, then discovers that the restaurants it owns outright throw off more cash than the royalty stream ever did. New units go on the company’s own balance sheet. The old agreements stay in force, renew quietly, and pass between family members or existing operators. From the customer side nothing changes, because a franchised unit and a company unit serve the same menu at the same counter. From a buyer’s side the two are nothing alike. One is a contract someone else signed decades ago. The other is a job at a corporate restaurant. The practical consequence is that “Waffle House franchise cost” has no answer. Not a high one, not a confidential one. The fee schedule that would produce that number is not published, was not filed, and is not on offer. ## Huddle House is the disclosure Waffle House does not file [Huddle House](https://vetmyfranchise.com/c/claude/franchise/huddle-house-inc) runs the same play in the same region, and it files. Its 2025 FDD, amended in February 2026, is the closest thing to a Waffle House prospectus that exists. | | Waffle House | Huddle House (2025 FDD, amended February 2026) | | --- | --- | --- | | Sold to new franchisees | no | yes | | Initial franchise fee | none published | $35,000 standard, $25,000 express, $15,000 non-traditional | | Total initial investment | not published | $555,375 to $1,715,275 | | Royalty | not disclosed | 4.75% of net sales | | Advertising | not published | 3.5% ad fund plus 0.5% local | | Agreement term | unknown | 15 years | | Franchised units | roughly 250 (outside estimate) | 212 | | Company units | roughly 1,650 (outside estimate) | 57 | | Earnings disclosure | none | Item 19 net sales, four tiers, three years | The Item 19 is the part worth reading twice. Across 205 franchised Huddle House restaurants in calendar 2024, average net sales came to $796,063 and the median to $783,206. The top unit booked $2,083,161. The bottom booked $83,633. Only 46% of those 205 units cleared their own average, which is what a long right tail looks like from underneath. Company-operated restaurants in the same year averaged $698,344 across 56 units, below the franchised average. Franchisees outperforming corporate is a mildly encouraging sign in a system this size, and it is the sort of split you can only see in a brand that files. Then read Item 20. Franchised outlets went 253, 231, 216, 212 across three fiscal years while company-owned units climbed 51, 55, 56, 57. Transfers ran 15, 17, and 21 in those same years. The disclosed 24-hour diner franchise is shrinking on the franchised side and creeping up on the corporate side, which is the same drift that left Waffle House with 250 legacy units and no sales program. [See the Huddle House FDD data sheet](https://vetmyfranchise.com/c/claude/franchise/huddle-house-inc) ## What staying open all night costs you in the contract Round-the-clock service is the identity of this category, and Huddle House prices it as an obligation rather than a choice. Current mandatory hours cover every hour of every day except midnight to 6 a.m. Monday through Friday, with continuous operation required from Friday at 6 a.m. straight through to Sunday midnight. Close during required hours without permission and the FDD sets a $1,000 fee for each day the restaurant fails to keep them. Want to cut those hours? Item 6 provides for a Unit Hours Modification Fee of up to 7.75% of a base amount calculated from the unit’s net sales over the preceding 52 weeks for the hours being changed. Franchisees who take that deal also agree to strip the 24-hour signage and sign an amendment. That clause is the clearest statement of the model anyone publishes. Overnight covers are thin, labor is expensive at 3 a.m., and the brand still needs the lights on because the promise of always-open is the product. A franchisee carries that cost, and buying out of it is priced accordingly. ## The breakfast brands that do publish numbers Daypart changes the arithmetic more than the menu does. [Another Broken Egg](https://vetmyfranchise.com/c/claude/franchise/another-broken-egg-of-america-franchising-llc) filed a 2026 FDD in April covering 68 franchised cafes and 37 corporate ones. A single cafe runs $792,500 to $1,804,000 on a $40,000 franchise fee, a 5% royalty, and a 1.75% national advertising contribution that can rise to 3%. Its Item 19 reports 57 franchised cafes averaging $1,749,656 in fiscal 2025 gross sales with a $1,701,152 median, a $768,293 low, and a $2,796,679 high. Corporate cafes averaged $1,444,969 across 35 locations. The document also breaks out alcohol as a share of dine-in sales, which tells you what kind of check the brunch model is chasing. Set the two side by side. Another Broken Egg asks about 43% more at the low end of the investment range and returns better than double the Huddle House median. Neither figure is profit. Huddle House reports net sales, Another Broken Egg reports gross sales, and the operating cost of an overnight shift never appears in either line. [IHOP](https://vetmyfranchise.com/c/claude/franchise/ihop-franchisor-llc-traditional-program) splits its offering across two separate disclosure documents: one covering standard restaurants, the other covering units built inside host facilities. The host-facility filing for 2026 sets the initial franchise fee at $25,000 for a full-service restaurant, $15,000 for a limited-service format, and $35,000 where the building is shared with an Applebee’s. Each program carries its own fee schedule and its own Item 19, so any quote you receive should name the document it came from. ## What the missing document actually costs you The reason this question matters is not brand loyalty. A Waffle House sitting on a highway exit is a real business with real cash flow, and someone owns it. What no outsider can establish is what one costs to build, what one collects in a year, or how many units left the system last year, because the company that would have to disclose those things is not selling anything that triggers the obligation. Huddle House hands you all three, and the picture it hands you is mixed: a wide sales floor, a shrinking franchised base, and a contract that prices your hours. That is more useful than a brand with better name recognition and no filing behind it. VetMyFranchise reads the actual disclosure document, Items 5, 6, 7, 19, and 20 included, rather than the recruitment page. Start with the [food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) rankings if the budget is the constraint, or pull the [Huddle House data sheet](https://vetmyfranchise.com/c/claude/franchise/huddle-house-inc) if the 24-hour diner is the business you actually want. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is waffle house a franchisewaffle house franchise costHuddle House franchise24-hour diner franchisebreakfast franchiselegacy franchiseeFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Waffle House franchise? No. Waffle House does not offer franchises to the public, so there is no application, no territory to reserve, and no disclosure document to request. The franchised units that exist run on agreements signed years ago and left in place. Transfers of an existing franchise generally require the franchisor's written approval, and Waffle House publishes no process for that either. Anyone quoting you a Waffle House franchise fee is quoting a number the company has never disclosed. ### How many Waffle House locations are franchised? Roughly 250 of more than 1,900, with about 1,650 company-operated, according to third-party counts. Those figures are estimates rather than disclosures. Waffle House is privately held by its founding families, files no FDD, and publishes no unit-level breakdown, which is why the numbers you find online vary from source to source. Treat any precise-looking split as somebody's approximation. ### Who owns Waffle House? The founding families, through a privately held company. That ownership structure explains the silence around the numbers: a private franchisor that is not selling franchises has no regulatory obligation to publish a fee schedule, an investment range, a unit-count table, or a closure history. Everything a buyer would normally read before signing simply does not exist in public form. ### What 24-hour diner franchises can you actually buy? Huddle House is the direct one. Its 2025 FDD, amended in February 2026, puts a traditional unit at $555,375 to $1,715,275 with a $35,000 initial franchise fee, a 4.75% royalty on net sales, and a 15-year term. Mandatory hours run every hour of the day except midnight to 6 a.m. Monday through Friday, plus continuous operation from Friday morning through Sunday midnight. IHOP franchises through two separate disclosure documents, one for traditional restaurants and one for non-traditional locations. ### How much does a breakfast franchise make? It depends on the daypart and the brand. Huddle House's 205 franchised restaurants posted a $783,206 median in calendar 2024 against a $83,633 floor. Another Broken Egg's 57 franchised cafes posted a $1,701,152 median in fiscal 2025 with a $768,293 low and a $2,796,679 high, on an investment roughly 40% higher at the low end. Both are gross or net sales figures rather than profit, so neither tells you what the owner keeps. --- title: "Is RE/MAX a Franchise? Office Model Explained (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is remax a franchise, remax franchise cost, real estate brokerage franchise, minimum agent count, item 19, subfranchisor, Real Estate franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-remax-a-franchise about: is remax a franchise category: blog wordCount: 2003 readingTime: 10 min crawledAt: 2026-08-20 11:15:56 lastVerified: 2026-08-20 11:15:56 site: https://vetmyfranchise.com/c/claude/ --- # Is RE/MAX a Franchise? Office Model Explained (2026) ## Summary Yes, RE/MAX is a franchise. The 2026 FDD: $8,750 to $35,000 fee, $37,100 to $336,500 investment, 1% Broker Fee, 2,994 US offices, no Item 19. ## Key facts - Item 20 of the 2026 RE/MAX disclosure document walks the US office count down three years: 3,477 at the start of 2023, 3,358 at the end of it, 3,149 a year later, and 2,994 on December 31, 2025. - Most brands file one FDD. - Item 5 prices the franchise by how many people live in the market the franchisor assigns you: - The spread is nine to one, unusual for a single format, and the footnotes explain it. - The Broker Fee is 1% of Revenue, genuinely low for franchising. Quick answer Yes. Every RE/MAX office in the United States is franchised, 2,994 of them at the end of 2025, and the franchisor has operated zero company-owned offices for three straight years. The 2026 FDD prices one office at $37,100 to $336,500 with an initial fee of $8,750 to $35,000 set by market density. There is no Item 19. ## Yes, and the franchisor owns none of the offices Item 20 of the 2026 RE/MAX disclosure document walks the US office count down three years: 3,477 at the start of 2023, 3,358 at the end of it, 3,149 a year later, and 2,994 on December 31, 2025. The company-owned column beside it reads zero for all three years, and Table 5 projects zero for the year ahead. That makes the answer a plain yes, and a more complete yes than most brands can give. [Keller Williams still runs 16 company-affiliated market centers](https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise) next to its 735 franchised ones. RE/MAX runs none, so there is no company store to point at when a franchisee asks what a healthy office looks like. The 2025 detail: 111 offices opened, 22 were terminated, 88 were not renewed, none were reacquired, and 156 ceased operations for other reasons. Meanwhile 107 offices changed hands, against 91 in 2023, so the resale market is busier than the opening pipeline. Outside the US the brand looks nothing like this, with 921 franchised offices in Canada and more than 4,700 open internationally. ## Which RE/MAX document you receive depends on your state Most brands file one FDD. RE/MAX files several, and geography decides which one reaches you. RE/MAX, LLC owns the brand and sells directly in most states. In Connecticut, Indiana, Maine, Massachusetts, Minnesota, New Hampshire, Rhode Island, Vermont, and Wisconsin, the seller is RE/MAX Integrated Regions, LLC, a wholly-owned subfranchisor. In ten further territories, sales run through the three independent subfranchisors that remain from the master-franchise era, each with its own document. The filing behind this analysis is the RE/MAX Integrated Regions one, issued April 2, 2026, and it carries two sets of Item 20 tables. Its own nine-state count went 502, then 494, then 475, then 450, shrinking faster in percentage terms than the national system. Check which entity is on your receipt page before you compare these numbers to a competitor’s. ## The initial fee tracks population, not ambition Item 5 prices the franchise by how many people live in the market the franchisor assigns you: - $35,000 where the general population is 70,000 or more - $17,500 where it is 20,000 to 70,000 and substantially distant from a major urban area - $8,750 below 20,000, where no appreciable population growth is envisioned - $25,000 for a commercial-only franchise, regardless of density - $1,000 for a Team Franchise Finance the fee and it rises to $37,500, $19,000, $9,500, or $27,000 for those same tiers, with a 50% down payment. The franchisor also reserves the right to reclassify your market at renewal, which can move you up a tier without you moving at all. What franchisees actually paid in 2025 is softer than the schedule. Item 5 discloses $0 to $17,500 in markets under 30,000 people and $0 to $35,000 in markets of 30,000 or more, discounted for conversions and for existing franchisees expanding. A converting independent brokerage has room to negotiate the fee toward zero, and the document says so rather than leaving it to the development call. ## $37,100 to $336,500, line by line | Item 7 line | Low | High | | --- | --- | --- | | Initial franchise fee | $8,750 | $35,000 | | Office space improvements | $3,500 | $97,000 | | Rent or mortgage | $1,250 | $6,000 | | Exterior office signage | $500 | $25,000 | | Furniture, fixtures and equipment | $3,000 | $20,000 | | Information technology systems | $1,800 | $23,000 | | Inventory and supplies | $500 | $5,000 | | Education expenses | $4,000 | $9,000 | | Insurance | $2,000 | $10,000 | | Professional services | $500 | $6,000 | | Permits and licenses | $300 | $3,000 | | Security deposits and utilities | $500 | $7,500 | | Grand opening advertising | $500 | $10,000 | | Additional funds, 3 months | $10,000 | $80,000 | | Total | $37,100 | $336,500 | The spread is nine to one, unusual for a single format, and the footnotes explain it. The low column is a conversion of a brokerage that already has furniture, signage, and a lease. The high column is a new 1,000 square foot office built from nothing. Footnote 11 says the additional funds line should read $15,000 to $80,000 for a new office, so the $10,000 floor belongs to conversions only. The education line is travel rather than tuition, since the four-day initial program in Denver is free of charge. [Pull the full RE/MAX data sheet](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc). VetMyFranchise reads Items 5, 6, and 7 out of the filed document rather than the franchise development deck. ## The 1% Broker Fee is the smallest number in Item 6 The Broker Fee is 1% of Revenue, genuinely low for franchising. It is also the least of what you owe, because the rest of the stack is priced per agent per month: - Continuing Franchise Fee: $143 to $170 per Sales Associate per month, set by state. Minnesota and Wisconsin pay $143, Indiana $154, and the six New England states in the region pay $170. - Marketing Fee: $127 to $140 per Sales Associate per month. - Annual Dues: $410 per Sales Associate per year, payable to RE/MAX, LLC. Take the ends of those disclosed ranges and one agent costs the office $270 to $310 a month, so $3,650 to $4,130 a year once the dues land. None of it depends on that agent closing anything, and Item 6 is explicit that you owe the fees “whether or not you collect corresponding dues or fees from your Sales Associates.” A technology fee of up to $35 per agent per month sits unused in the same item, available on 12 months’ notice. That is the RE/MAX model written as a fee schedule. Item 1 describes a high commission concept in which a Sales Associate keeps a very high percentage of commissions, typically 95%, and pays the office monthly fees plus a share of overhead instead. Your revenue is those agent fees, not a commission split, so an unproductive recruit is a bill you carry until they produce or leave. ## Minimum Agent Count is the clause that ends franchises Keller Williams sets its termination trigger in dollars of gross commission. RE/MAX sets its in headcount, and the requirement escalates through the term. | Minimum agents required | Months 12 to 24 | Months 25 to 36 | Month 37 onward | | --- | --- | --- | --- | | High-density market | 7 | 15 | 20 | | Medium-density market | 5 | 8 | 12 | | Low-density market | 2 | 3 | 5 | | Commercial franchise | 2 | 3 | 4 | Only agents who have not been affiliated with the RE/MAX network in the prior three months count toward the requirement, so recruiting from the office across town does not clear it. Offices carrying 100 or more Sales Associates are exempt entirely. Then comes the clause that turns a recruiting target into cash. The Continuing Franchise Fee and the Marketing Fee are both billed on the greater of your actual agent count or your Minimum Agent Count. A high-density office in month 37 must hold 20 agents. If it holds 12, it pays for 20, and those eight nonexistent agents cost $25,920 to $29,760 a year at the ends of the disclosed ranges. Miss the count and the franchisor can impose a performance improvement plan of up to 12 months at your expense. Failing that plan is a default with a 30-day cure period. The Special Risks box names “Minimum Agent Count Requirement” as one of only two highlighted risks, the other being a clause sending every dispute to Colorado. ## No Item 19, no territory, and a five-year term Item 19 runs 238 words and contains no figures. The operative sentence: “We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.” Half of that is decorative, since there are no company-owned outlets. Our [comparison of the brokerage franchisors](https://vetmyfranchise.com/c/claude/blog/best-real-estate-brokerage-franchises) covers how uniformly this category declines to publish earnings. Item 12 is blunter than most. You receive no exclusive territory at all. The franchise covers one approved address, and the franchisor reserves the right to open another RE/MAX office, or convert an existing brokerage into one, in close proximity to yours, with no compensation owed to you. The term is five years, renewable once for another five on six months’ notice and a fee of $3,000 to $14,000. Transfers cost $2,500 plus the franchisor’s legal costs. Item 15 does not require you personally on site, but somebody holding a real estate broker license must devote full time to managing the office, and neither you nor that manager may hold an interest in a competing brokerage during the term. ## What one agent costs at each brand | 2026 FDD, per Sales Associate | RE/MAX | Keller Williams | | --- | --- | --- | | Monthly fixed fees | $270 to $310 | $72 | | Annual dues | $410 | none disclosed | | Variable charge | 1% of Revenue | 6% of GCI, capped at $3,000 per year | | Cost of an agent who closes nothing | $3,650 to $4,130 | $864 | | Item 19 | none | none | The two systems fail in opposite directions. A RE/MAX office full of part-time licensees bleeds fixed fees regardless of production, which is exactly what the Minimum Agent Count obliges you to keep doing. A [Keller Williams market center](https://vetmyfranchise.com/c/claude/franchise/keller-williams-realty-llc) carries the same roster cheaply, then gives up 6% of everything until each agent clears $50,000 of gross commission income. Neither document tells you which roster you can recruit, and neither publishes what a broker-owner earns. [Read the full RE/MAX FDD analysis](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc) before you take a franchise development call. We pull Items 5, 6, 7, 12, and 19 straight from the filed document, including the fee clauses that only appear in the footnotes. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the RE/MAX numbers with you. We'll email you the **RE/MAX FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The RE/MAX data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Re Max [Learn more →](https://vetmyfranchise.com/c/claude/franchise/re-max-llc) #### Re/Max Integrated Regions [Learn more →](https://vetmyfranchise.com/c/claude/franchise/remax-integrated-regions-llc) #### Auto Appraisal Network [Learn more →](https://vetmyfranchise.com/c/claude/franchise/auto-appraisal-network-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is remax a franchiseremax franchise costreal estate brokerage franchiseminimum agent countitem 19subfranchisorReal Estate franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a RE/MAX franchise cost? The 2026 FDD estimates $37,100 to $336,500 for a standard office, and $29,350 to $302,500 for a Team Franchise. The initial franchise fee inside that total is $8,750 in a market under 20,000 people, $17,500 between 20,000 and 70,000, and $35,000 at 70,000 or more. A commercial-only franchise pays $25,000 and a Team Franchise pays $1,000. Financing the fee raises it to $9,500, $19,000, $37,500, or $27,000 respectively. During 2025, actual fees paid ranged from $0 to $35,000 because conversions and expansion deals were discounted. ### Does RE/MAX disclose franchisee earnings? No. Item 19 of the 2026 FDD contains no figures and states that the franchisor makes no representations about a franchisee's future financial performance "or the past financial performance of company-owned or franchised outlets." Since RE/MAX operates no company-owned offices at all, half of that sentence describes nothing. The FTC Franchise Rule makes an Item 19 optional, and Keller Williams, Century 21, and Coldwell Banker all decline in their 2026 filings too. ### What is the Minimum Agent Count at RE/MAX? It is a contractual floor on how many Sales Associates your office must carry, and it escalates. A new high-density franchisee needs 7 agents from the 12-month anniversary through month 24, 15 during months 25 to 36, and 20 from month 37 to the end of the term. Medium-density offices need 5, then 8, then 12. Low-density offices need 2, then 3, then 5. Offices with 100 or more Sales Associates are exempt. Failing the count can put you on a performance improvement plan of up to 12 months, and failing that plan is a default with a 30-day cure period. ### Is RE/MAX cheaper to run than Keller Williams? It depends entirely on how productive your agents are. RE/MAX charges a 1% Broker Fee on revenue plus roughly $270 to $310 per agent per month in fixed fees plus $410 in annual dues, so an agent who closes nothing still costs the office $3,650 to $4,130 a year. Keller Williams charges 6% of gross commission income capped at $3,000 per agent per year plus a $72 monthly access fee, so an agent who closes nothing costs $864. High producers are cheaper under RE/MAX, part-timers are far cheaper under Keller Williams. ### Who owns RE/MAX? RE/MAX, LLC owns the brand and the franchise system, and it sits under RMCO, LLC, which sits under RE/MAX Holdings, Inc., a public company listed on the New York Stock Exchange as RMAX. RE/MAX, LLC has franchised in the US since August 9, 1974 and internationally since 1980. It has never operated a RE/MAX office. Nine states are served by a wholly-owned subfranchisor, RE/MAX Integrated Regions, LLC, and ten more territories by three remaining independent subfranchisors. --- title: "Is Whataburger a Franchise? Requirements (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is whataburger a franchise, whataburger franchise requirements, burger franchise, multi-unit development, QSR franchise, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/is-whataburger-a-franchise about: is whataburger a franchise category: blog wordCount: 1441 readingTime: 7 min crawledAt: 2026-08-20 11:13:08 lastVerified: 2026-08-20 11:13:08 site: https://vetmyfranchise.com/c/claude/ --- # Is Whataburger a Franchise? Requirements (2026) ## Summary Yes, Whataburger franchises, but selectively: $1.5M net worth, $500K liquid, and about five locations in five years. What the brand does and does not disclose. ## Key facts - In May 2025, Patrick Mahomes and a group of partners formed a joint venture that holds 29 Whataburger franchise locations across Missouri and Kansas. - Two lines are conspicuously absent from that table. - Here is the part a Whataburger prospect cannot do: read the numbers before committing. - Same category, similar capital, opposite trajectory. - Assume you clear the net worth screen and the brand takes the meeting. Quick answer Yes. Whataburger franchises, but selectively. Candidates need $1.5 million in net worth, at least $500,000 liquid, and a commitment to open roughly five locations in five years. Only about 126 of the chain's 830 restaurants were franchised when BDT and MSD Partners bought control in June 2019, and the system now runs past 1,180 units. ## The Mahomes joint venture is the honest answer In May 2025, Patrick Mahomes and a group of partners formed a joint venture that holds 29 Whataburger franchise locations across Missouri and Kansas. That transaction answers the question more usefully than any recruitment page. Whataburger franchises. It franchises to groups that arrive with an operating record and enough capital to build out a region. So the answer to “is whataburger a franchise” is yes, with a qualifier that changes who the answer is for. If you are looking to buy one restaurant near your house, the brand is not selling that. ## What the brand publishes, and what it does not | Screen | Stated figure | | --- | --- | | Minimum net worth | $1,500,000 | | Liquid capital | $500,000 or more | | Development commitment | roughly 5 locations over 5 years | | Majority owner | BDT and MSD Partners, since June 2019 | Two lines are conspicuously absent from that table. There is no initial franchise fee here and no total investment range. Whataburger is not in our FDD library, so we are not going to print one. Every article that quotes a precise Whataburger build cost is extrapolating from other burger brands and dressing the estimate as disclosure. Treat those figures as fiction until you hold the document. The $1.5 million net worth screen also gets misread constantly. It is the filter that qualifies you to sign a development agreement, not the cost of executing one. Five restaurants, priced at the per-unit build costs other burger brands disclose in their own FDDs, is a capital program many times larger than the screen itself. The screen only tells you whether the brand will take the meeting. When BDT and MSD Partners acquired the majority stake from the Dobson family in June 2019, the chain operated roughly 830 restaurants, and only about 126 of those were franchised. Seven decades of family ownership had produced a system that was overwhelmingly company-run, with a small legacy franchise base attached to it. The count has since moved past 1,180 restaurants. Most of that expansion came from company-built locations rather than franchise sales, which is why the franchised percentage stays low even as the map fills in. A sponsor-owned chain building its own restaurants keeps the entire margin and the entire real estate position. Selling a market to a franchisee trades that for speed and someone else’s capital. The practical consequence for a buyer is that Whataburger is not running a volume franchise sales operation. It is doing selective development deals in markets where a well-capitalized local group beats a corporate build schedule. Contrast that with [Wendy’s, where roughly 95% of US restaurants are franchised](https://vetmyfranchise.com/c/claude/blog/is-wendys-a-franchise), or with [In-N-Out, which has never franchised at all](https://vetmyfranchise.com/c/claude/blog/is-in-n-out-burger-a-franchise). Whataburger sits between the two, closer to the second than most people assume. ## What a disclosed burger deal looks like Here is the part a Whataburger prospect cannot do: read the numbers before committing. Freddy’s can, because [its 2026 FDD is in our library](https://vetmyfranchise.com/c/claude/franchise/freddys-llc) and we read Items 5, 6, 7, and 19 out of the filed document. | Freddy’s, 2026 FDD | Figure | | --- | --- | | Initial license fee | $35,000 | | Royalty | 5% of gross receipts | | National marketing fund | 2.5% now, 3.0% as of October 8, 2026 | | In-line, no drive-thru | $854,834 to $1,302,000 | | End cap with drive-thru | $1,026,334 to $2,361,000 | | Standalone with drive-thru | $1,586,334 to $2,802,000 | | Franchised restaurants, end of 2025 | 542 | | Item 19 median annual gross receipts | $1,820,745 across 477 restaurants | That Item 19 is worth reading past the median. The 477 franchised restaurants open the entire 2025 fiscal year averaged $1,859,481 in annual gross receipts, with the full range running from $644,497 to $4,164,361. Sorted into quartiles, the top 119 restaurants averaged $2,573,567 while the bottom 120 averaged $1,227,582. Two restaurants under the same trademark, more than a million dollars apart in annual sales. Freddy’s also grew its franchised base by 28 restaurants during 2025, from 514 to 542, alongside 38 company-owned units. A system adding franchised locations at that pace while disclosing a segmented Item 19 gives a buyer something to underwrite and something to test against operator calls. ## Smashburger shows the other outcome Same category, similar capital, opposite trajectory. The 2026 Smashburger FDD puts a restaurant at $1,239,500 to $2,255,500 with a $40,000 initial franchise fee, which lands squarely on top of a Freddy’s standalone build. Its Item 19 says the franchisor makes no representation about financial performance, so the document hands you a cost and no revenue evidence. Item 20 fills that silence in. Franchised Smashburger restaurants went from 82 at the start of 2023 to 53 at the end of 2025. Company-owned or managed units went from 135 to 119 over the same stretch. The whole system contracted from 217 restaurants to 172 in three years. None of that appears in a franchise fee comparison, and all of it appears in the outlet table on page 42. The lesson transfers directly to a Whataburger conversation. Brand strength in the dining room is not the variable you are buying. The variables are unit economics and the direction the unit count is moving. ## What to ask before you chase a development agreement Assume you clear the net worth screen and the brand takes the meeting. Get the disclosure document before any deposit changes hands, then work four items in order. Item 5 tells you the initial fee structure, including whether a development fee is charged per restaurant on signing and how it credits against each individual franchise fee. Item 7 gives the real build range by format, and the footnotes under it define what each column includes, which is where site work and land usually hide. Item 19 tells you whether the franchisor will stand behind any performance figure, and if it will, whether the sample is franchised units or company restaurants. Item 20 gives you the outlet table and the franchisee contact list, including everyone who left in the last three years. Then call operators off that list rather than the three names development hands you, and price your remodel obligation and your term length before you sign anything. A development agreement with a five-restaurant schedule attached also carries default consequences if you miss the schedule, so read what happens to your territory when store four slips a year. For where the disclosed burger brands actually sit on capital and disclosed unit volume, start with our [ranking of burger franchises](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises). Every brand in it is scored from a filed FDD rather than a recruitment brochure, which is exactly the comparison Whataburger’s own numbers are not yet available for. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is whataburger a franchisewhataburger franchise requirementsburger franchisemulti-unit developmentQSR franchisebrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Whataburger franchise? Yes, but not one at a time. Whataburger awards franchises through development agreements that commit the buyer to open roughly five locations over five years, typically in a market the brand wants to enter or deepen. The published financial screens are $1.5 million in net worth and $500,000 or more in liquid capital. A single-unit purchase near your house is not the product being sold. ### What are Whataburger's franchise requirements? The stated requirements are $1.5 million in net worth, $500,000 or more in liquid capital, and a multi-unit development commitment of about five restaurants across five years. Restaurant operating depth carries weight because the brand is selecting a partner to build a market, not an operator for one corner. Financial capacity gets screened before any site conversation begins. ### How much does a Whataburger franchise cost? Whataburger does not publish a total investment range that we can verify, and no Whataburger disclosure document sits in our library, so we will not print one. The financial requirements the brand does publish are the $1.5 million net worth and $500,000 liquid screens, which are entry filters rather than the cost of building five restaurants. Item 7 of the FDD is the only place the real range exists, and you see it as a registered prospect. ### Who owns Whataburger? BDT and MSD Partners holds the majority stake, acquired in June 2019 from the Dobson family, who founded the chain and ran it for seven decades. The family retained a minority interest at the time of the deal. Under that ownership the restaurant count has grown from roughly 830 to more than 1,180, with most of the growth coming from company-built locations. ### Which burger franchises publish actual sales figures? Freddy's does, and cleanly. Its 2026 FDD reports median annual gross receipts of $1,820,745 across 477 franchised restaurants open the full 2025 fiscal year, with the range running from $644,497 to $4,164,361. Smashburger's 2026 FDD makes no financial performance representation at all. Reading both documents next to each other teaches more about burger franchising than any brand's recruitment page. --- title: "Is Texas Roadhouse a Franchise? The Numbers (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: texas roadhouse franchise, casual dining franchise, company-owned restaurants, managing partner model, steakhouse franchise, Food & Beverage franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-texas-roadhouse-a-franchise about: texas roadhouse franchise category: blog wordCount: 1613 readingTime: 8 min crawledAt: 2026-08-20 11:13:06 lastVerified: 2026-08-20 11:13:06 site: https://vetmyfranchise.com/c/claude/ --- # Is Texas Roadhouse a Franchise? The Numbers (2026) ## Summary Texas Roadhouse runs 714 of its 816 restaurants itself. Only 102 are franchised, domestic applications are closed, and 36 can be bought back. ## Key facts - The fiscal 2025 10-K discloses that Texas Roadhouse holds contractual rights to acquire 36 of its 41 domestic franchise restaurants at pre-set formulas. - Two of the 60 international Texas Roadhouse restaurants sit in a US territory, which is a distinction that matters if you are trying to work out what a domestic operator holds. - Walk into a Texas Roadhouse and the operator you meet behaves like an owner. - Texas Roadhouse is not unusual here. - The practical loss for a buyer looking at Texas Roadhouse is not the brand. Quick answer Barely. Texas Roadhouse ended fiscal 2025 with 816 restaurants, of which 714 were company-owned and 102 franchised. Only 41 of the franchised restaurants are domestic. The company is not accepting new domestic franchise applications and holds contractual rights to acquire 36 of those 41 at pre-set formulas. ## The clause that settles the question The fiscal 2025 10-K discloses that Texas Roadhouse holds contractual rights to acquire 36 of its 41 domestic franchise restaurants at pre-set formulas. Read that from a buyer’s chair rather than an investor’s. The company has already negotiated the price at which it can take those restaurants back, on 88% of its domestic franchised base, and it has that language sitting in a public filing. So the honest answer runs in two parts. Yes, franchised Texas Roadhouse restaurants exist. No, you cannot buy one, and the trend line points the other direction. As of the period ended December 30, 2025, the system counted 816 restaurants. 714 of them are company-owned. 102 are franchised. The company is not accepting new domestic franchise applications, which is the part most search results skip past on the way to inventing a franchise fee. ## Where the 102 franchised restaurants actually sit | Segment | Restaurants | | --- | --- | | Company-owned | 714 | | Domestic franchised Texas Roadhouse | 36 | | Domestic franchised Jagger’s | 5 | | International franchised Texas Roadhouse | 60 | | International franchised Jagger’s | 1 | | Total | 816 | Two of the 60 international Texas Roadhouse restaurants sit in a US territory, which is a distinction that matters if you are trying to work out what a domestic operator holds. Strip the international column out and the domestic franchised count is 41 restaurants against 714 company-owned ones. Franchisees run 5% of the domestic system. Compare that to a brand people actually associate with franchising. Roughly 95% of McDonald’s locations worldwide are franchisee-operated. Texas Roadhouse sits at the opposite pole, and the gap is a business model decision rather than a stage of growth. There is one exception worth knowing about. Texas Roadhouse does sell franchises, just not for the steakhouse. Its fast-casual brand [Jagger’s](https://vetmyfranchise.com/c/claude/franchise/jaggers-development-corporation) is franchised through a wholly owned subsidiary, Jaggers Development Corporation, and six of the system’s franchised restaurants carry that name. ## The Managing Partner model is not franchising Walk into a Texas Roadhouse and the operator you meet behaves like an owner. They are on the floor, they know the regulars, they have money riding on the outcome. The company calls them Managing Partners, and the word partner does most of the work in creating the confusion that sends people to Google. A Managing Partner runs one company-owned restaurant under a contract and holds an economic stake in how that restaurant performs. It is a pay structure attached to a job. The restaurant stays on the corporate balance sheet, the lease stays in the corporate name, and the operator has an employment agreement rather than a franchise agreement. That distinction has teeth. A franchise sale triggers the FTC Franchise Rule, which forces the seller to hand you a disclosure document at least 14 days before you sign anything. Item 5 shows what you pay up front. Item 7 shows the full build cost. Item 19 either shows unit-level revenue or explicitly declines to. An employment contract carries none of that machinery, and no regulator is standing behind the numbers you get told in the interview. The other structural difference is what you own at the end. A franchisee builds a transferable asset and can sell it, subject to franchisor approval. A Managing Partner has a contract that ends when the employment ends. Neither arrangement is inherently worse, but only one of them is the thing people mean when they ask about buying a franchise. ## Why full-service casual dining stays company-run Texas Roadhouse is not unusual here. Most large casual-dining chains keep their dining rooms on the corporate books. The reasons are operational rather than philosophical. A full-service restaurant with a bar carries more labor per dollar of revenue than any quick-service format, and labor is where franchisee behavior diverges fastest from brand standards. Liquor licensing adds a regulatory layer that varies by state and does not transfer cleanly with a franchise agreement. Scratch kitchens with hand-cut steaks and in-house butchers require a level of process compliance that is expensive to police across independent owners. And the capital per restaurant is high enough that a company generating strong operating cash flow can fund its own growth without renting a franchisee’s balance sheet. The franchisor’s calculus is straightforward. Franchising trades margin for growth speed and capital efficiency. If you already have the capital and your unit economics are strong, franchising means selling the best part of your economics to someone else. Our breakdown of [what franchise owners actually earn](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make) walks through the same math from the other side of the table. [See what a franchised restaurant brand discloses in its FDD](https://vetmyfranchise.com/c/claude/franchise/freddys-llc) ## What a brand that does franchise discloses instead The practical loss for a buyer looking at Texas Roadhouse is not the brand. It is the disclosure. Here is what shows up when a comparable food brand does franchise and files an FDD. | | Texas Roadhouse | Freddy’s | | --- | --- | --- | | Franchised units | 102 of 816 | 542 of 580 | | Domestic franchise sales | closed | open | | Franchise fee | none published | $35,000 | | Initial investment | none published | $854,834 to $2,802,000 | | Royalty | not applicable | 5% of gross receipts | | Marketing fund | not applicable | capped at 3% | | Item 19 | none | $1,820,745 median, 477 franchised restaurants | Freddy’s 2026 FDD prices three formats, and the spread is the useful part. An in-line restaurant without a drive-thru runs $854,834 to $1,302,000. An end-cap with a drive-thru runs $1,026,334 to $2,361,000. A standalone with a drive-thru runs $1,586,334 to $2,802,000. Its Item 19 reports annual gross receipts for the 477 franchised restaurants open the entire fiscal year ending December 31, 2025, with a $1,820,745 median, a $1,859,481 average, and a range running from $644,497 to $4,164,361. That range is the number to sit with. The gap between the weakest and strongest franchised restaurant in a single mature system is more than six to one, and it exists inside a brand with 542 franchised units and consistent standards. Any brand-level average hides that spread, and gross receipts are revenue rather than profit, so the royalty, the marketing fund, and the rent all come out of it before you do. If a build in that range is above your budget, the [food franchises under $250K](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) list covers the smaller-footprint end of the category, and the [$500K to $1M investment tier](https://vetmyfranchise.com/c/claude/blog/best-franchises-500k-to-1m-investment) sits closer to where a Freddy’s in-line format lands. ## How to check the next brand on your list yourself The pattern that answers “is this brand a franchise” is short. Find out whether an FDD exists and whether it is being offered to new candidates, because those are two different questions. A brand can have a registered document on file and still be closed to applications, and a brand can run hundreds of franchised units that were all sold a decade ago. For a public company, the 10-K does most of the work. It splits company-operated from franchised units, describes the franchise agreement terms if any exist, and discloses acquisition rights over franchisees. That last disclosure is the one worth hunting for. A franchisor buying its system back is telling you where it thinks the value sits, and a pre-set acquisition formula on 88% of the domestic franchised base is about as clear a statement as a filing gets. For a private brand, the tell is the state franchise registries. No registration means nothing is being sold, whatever a development page implies. VetMyFranchise reads the actual FDD rather than the pitch page, so Items 5, 7, and 19 come back as numbers you can underwrite instead of adjectives. [Compare franchised restaurant brands with real disclosure data](https://vetmyfranchise.com/c/claude/franchises). Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) texas roadhouse franchisecasual dining franchisecompany-owned restaurantsmanaging partner modelsteakhouse franchiseFood & Beverage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Texas Roadhouse franchise? No, not as a new domestic buyer. Texas Roadhouse is not accepting new domestic franchise applications, which means there is no franchise disclosure document circulating for individual candidates and no published fee, investment range, or Item 19. The 41 domestic franchise restaurants that exist are held by long-standing operators, and the company has contractual rights to acquire 36 of them at pre-set formulas. ### How many Texas Roadhouse locations are franchised? 102 of 816, per the fiscal 2025 10-K for the period ended December 30, 2025. The split inside that 102 is 36 domestic Texas Roadhouse restaurants, 5 domestic Jagger's, 60 international Texas Roadhouse restaurants including two in a US territory, and 1 international Jagger's. Company-owned restaurants account for the other 714. ### What is the Texas Roadhouse Managing Partner program? It is an employment arrangement, not a franchise. A Managing Partner runs a single company-owned restaurant under a contract with the company and carries an economic stake in that restaurant's results. Because no franchise is being sold, none of it falls under the FTC Franchise Rule, so there is no Item 5 fee schedule, no Item 7 investment table, and no Item 19 earnings disclosure to read before you commit. ### Does Texas Roadhouse plan to buy back its franchised restaurants? It has already secured the option. The fiscal 2025 10-K discloses contractual rights to acquire 36 of the 41 domestic franchise restaurants at pre-set formulas. A franchisor that intends to expand through franchisees does not pre-negotiate the reacquisition price on 88% of its domestic franchised base. ### What restaurant franchises can you actually buy instead? Franchised full-service dining is a thin category, so most buyers end up comparing fast-casual and quick-service brands that publish real numbers. Freddy's is one: its 2026 FDD sets a $35,000 license fee, an $854,834 to $2,802,000 initial investment depending on format, a 5% royalty, and an Item 19 reporting a $1,820,745 median across 477 franchised restaurants. That is the level of disclosure Texas Roadhouse will never owe you. --- title: "Is The UPS Store a Franchise? Cost and Model (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is the ups store a franchise, ups store franchise cost, The UPS Store Inc, item 19, shipping franchise, Business Services franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-the-ups-store-a-franchise about: is the ups store a franchise category: blog wordCount: 1910 readingTime: 10 min crawledAt: 2026-08-20 11:13:07 lastVerified: 2026-08-20 11:13:07 site: https://vetmyfranchise.com/c/claude/ --- # Is The UPS Store a Franchise? Cost and Model (2026) ## Summary Yes. The UPS Store is a franchise: 5,487 franchised centers vs 16 company-owned, a $39,950 fee, 8.5% in ongoing fees, and an Item 19 built on gross sales. ## Key facts - The UPS Store’s franchisor ran just 16 locations itself on December 31, 2025, against 5,487 operated by franchisees, which puts 99. - Franchise directories quote The UPS Store starting at $57,120. - Listings show a 5% royalty and stop. - There is an Item 19, and the 2025 sample holds 5,058 centers, which is among the largest financial performance representations any franchisor files. - Item 20 counts 237 transfers between franchisees during 2025, against 187 new franchised openings. Quick answer Yes. The UPS Store, Inc. is a franchisor owned by UPS, and 5,487 of its 5,503 US centers were franchised at the end of 2025, or 99.7%. The 2026 FDD prices a new traditional center at $222,368 to $606,081 with a $39,950 franchise fee and 8.5% of sales going out in ongoing fees. ## 5,487 franchised centers against 16 company-owned The UPS Store’s franchisor ran just 16 locations itself on December 31, 2025, against 5,487 operated by franchisees, which puts 99.7% of the US system in franchisee hands. Item 20 of the 2026 FDD tracks the climb year by year: 5,138 franchised outlets at the start of 2023, then 5,232, then 5,350, then 5,487. The 16 corporate stores have a backstory. Thirteen appeared in Texas during 2024 as reacquisitions from franchisees, and a fourteenth followed in 2025. The other two, one in California and one in Georgia, have been company-run since before 2023. [The UPS Store, Inc.](https://vetmyfranchise.com/c/claude/franchise/the-ups-store-inc) is the franchisor, a Delaware corporation headquartered in San Diego, and United Parcel Service, Inc. is its parent entity. It was named Mail Boxes Etc., Inc. until October 1, 2012, and UPS bought the Mail Boxes Etc. assets on April 30, 2001. Franchises for this business have been sold since June 11, 1980. What you buy is a retail counter selling packing, printing, mailbox rental, and notary services, with shipping as the traffic driver. You are not buying into the delivery network. The competing counter is not for sale at any price, because [every FedEx Office location is company operated](https://vetmyfranchise.com/c/claude/blog/is-fedex-office-a-franchise). ## Where the $57,120 entry price actually comes from Franchise directories quote The UPS Store starting at $57,120. The number is real. It does not describe a storefront. Item 7 of the 2026 Traditional FDD, issued April 23, 2026, prices four different scenarios. | Scenario, 2026 Traditional FDD | Low | High | | --- | --- | --- | | New or relocation traditional center | $222,368 | $606,081 | | Remodel of an existing traditional center | $97,047 | $281,271 | | New or relocation under the Rural Program | $175,266 | $546,655 | | Remodel under the Rural Program | $85,925 | $270,149 | None of them starts at $57,120. That figure lives in the separate Non-Traditional FDD, which prices a new or relocation Access Model center at $57,120 to $299,758. Non-Traditional sites are hotels, military bases, universities, convention centers, self-storage facilities, and airports. An Access Model center is a service counter inside somebody else’s building, so it skips the storefront lease, the vanilla shell preparation, and most of the build-out. Setting it next to a strip-center store is setting a kiosk next to a building. Two lines in the traditional build deserve a slow read. Leasehold improvements, construction, signage, and fixtures run $68,146 to $361,729, and the FDD notes the high end includes $186,600 of vanilla shell preparation on a space the landlord delivered as is. A footnote then warns that some projects may run 10% to 40% higher on tariffs, labor, and related construction costs. Additional Funds covers three months at $40,000 to $70,000. Your lease has to run at least 10 years, and Item 11 states the franchisor does not lease sites to franchisees, so the real estate exposure is yours alone. The initial franchise fee is $39,950 for your opening center and $19,950 for a second or later center held at the same time. The Rural Program cuts it to $14,950. Three 2026 discount programs run off the $39,950 base and cannot be combined: a Believe Program at $29,950 for buyers new to the brand, VetFran at $19,950 for veterans, and a First Responder Program at $19,950. The franchisor is also waiving the fee outright for the first 10 veterans who commit to a new traditional center during 2026. [See the full The UPS Store data sheet](https://vetmyfranchise.com/c/claude/franchise/the-ups-store-inc) ## The recurring load is 8.5%, not 5% Listings show a 5% royalty and stop. Item 6 carries three separate percentage fees on Subject to Royalty sales. | Ongoing fee | Amount | | --- | --- | | Royalty | 5% of STR | | The UPS Store marketing fee | 1% of STR | | National advertising fee | 2.5% of STR | | DMA advertising collaborative dues | $100 to $500 per month | | Annual technology development and support fee | $2,868 | That is 8.5% of sales committed before rent, payroll, or cost of goods. The national advertising piece carries a cap, currently $27,734 a year, so the 2.5% stops climbing once sales pass roughly $1.1 million. The busiest stores get relief there and everyone below that line pays full freight. Collaborative dues are set by a vote of the franchisees in your DMA and can be raised to 3% of sales if 51% of them agree. The base those percentages apply to matters more than the rates. STR is gross sales plus gross commissions, and the FDD states that “Gross Sales includes UPS shipping costs that a franchisee receives from its customers.” You pay royalty on carrier charges you collect and pass along. ## What Item 19 discloses, and what it does not There is an Item 19, and the 2025 sample holds 5,058 centers, which is among the largest financial performance representations any franchisor files. It reports adjusted gross sales. It reports nothing about profit. | Franchised traditional centers | 2025 | 2024 | 2023 | | --- | --- | --- | --- | | Centers in the sample | 5,058 | 4,931 | 4,825 | | Average adjusted gross sales | $724,293 | $719,842 | $721,245 | | Number above that average | 2,263 (45%) | 2,199 (45%) | 2,161 (45%) | | Top 10% average | $1,248,208 | $1,225,942 | $1,224,355 | | Bottom 10% average | $345,790 | $353,236 | $357,306 | Three readings come straight off the table. Only 45% of centers cleared the average in each of the three years, which puts the median below $724,293 and tells you the top decile is dragging the mean upward. The distance between the top 10% and the bottom 10% is 3.6x inside a single brand running a single playbook. And the system has been flat: $721,245 in 2023 to $724,293 in 2025 is 0.4% of nominal movement over two years, a decline once you adjust for inflation. The disclosure names what it omits. TUPSS lists eleven expense categories the sales figures do not reflect, among them labor, shipping costs, cost of goods sold, rent, and the royalties above. Non-Traditional centers are excluded outright, 267 of them for 2025, along with 183 traditional centers that did not report a full year. One sentence deserves a second look: the franchisor discloses that effective May 2024, one large corporate client reduced the compensation rate it pays for certain transactions running through the centers. That revenue line gets renegotiated above your head, and you find out afterward. Anyone quoting a UPS Store income figure is not quoting this document. Our guide to [the costs that never appear in an FDD](https://vetmyfranchise.com/c/claude/blog/hidden-franchise-costs-not-in-fdd) covers where the rest of the operating statement usually hides. ## More people buy in than build in Item 20 counts 237 transfers between franchisees during 2025, against 187 new franchised openings. In 2024 it was 268 transfers to 192 openings, and in 2023, 340 transfers to 141 openings. Entry into this system happens mostly through purchases of operating centers rather than ground-up construction. Departures were modest. 2025 produced 5 terminations, no non-renewals, one center reacquired by the franchisor, and 44 that ceased operations for other reasons, which is 50 exits against 5,350 starting units, or under 1%. A resale changes the diligence entirely. You get trailing sales for a specific address instead of a system average, and you inherit the seller’s remaining term. If the transfer closes within 3.5 years of that term expiring, you owe a full Laser Lite remodel within 11 months of closing, priced at $97,047 to $281,271. Transfers also carry a $6,000 transfer fee plus a $6,000 processing fee, cut to $1,500 if a finder’s fee goes to the franchisor. ## Four things to price before you sign The remodel obligation is the expensive one. Every renewing franchisee must remodel to the Laser Lite design within 11 months of the renewal date. Terms run 10 years, so a 20-year hold means budgeting for that twice. Territory is not exclusive. Item 12 says so in those words, and it reserves the right to place Non-Traditional centers inside your territory, subject to a right of first refusal you have to be ready to fund on short notice. You do not have to work the counter. Item 15 requires a full-time on-premises Primary Operator who has completed the training program, which spans a five-day In Store Experience in two parts, a five-day University Business Course, and three days of print services training. That operator can be an employee. The salary sits nowhere in Item 19. Item 3 is not empty, and the pattern in it matters. Two of the listed cases are notary-fee class actions, in Kentucky and Massachusetts, alleging that centers charged more than the statutory maximum for notarizations. In the Kentucky matter the court added every Kentucky franchisee as a defendant, and under the settlement finally approved on June 7, 2021, the franchisee defendants absorbed the vouchers issued to class members and paid $250,000 toward administrative costs. Franchisees set the notary price and franchisees paid the bill. The 2026 FDD is more detailed than most, and the Item 19 sample is large enough to be statistically meaningful. It still measures the wrong thing for someone underwriting a purchase. Weigh it against [what other B2B service franchises disclose](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) and against [the going rate for opening any franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) before deciding the brand name justifies the fee stack. [Read the full The UPS Store FDD breakdown](https://vetmyfranchise.com/c/claude/franchise/the-ups-store-inc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the The UPS Store numbers with you. We'll email you the **The UPS Store FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The The UPS Store data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is the ups store a franchiseups store franchise costThe UPS Store Incitem 19shipping franchiseBusiness Services franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a UPS Store franchise cost? Item 7 of the 2026 FDD prices a new or relocation traditional center at $222,368 to $606,081, including a $39,950 initial franchise fee. A remodel of an existing traditional center runs $97,047 to $281,271. Under the Rural Program the figures drop to $175,266 to $546,655 for a new center and $85,925 to $270,149 for a remodel. The much lower $57,120 figure quoted in franchise directories comes from a separate Non-Traditional FDD covering counters inside hotels, airports, universities, and self-storage facilities. ### How much do UPS Store owners make? The FDD does not disclose it. Item 19 reports adjusted gross sales and explicitly excludes labor, shipping costs, cost of goods sold, rent, royalties, and seven other expense categories. Across 5,058 franchised traditional centers, 2025 average adjusted gross sales were $724,293, with only 45% of centers above that line. The top 10% averaged $1,248,208 and the bottom 10% averaged $345,790. None of those numbers is profit, and anyone quoting a UPS Store income figure is not quoting this document. ### Does UPS own The UPS Store? Yes. United Parcel Service, Inc. is the parent entity of The UPS Store, Inc., the franchisor. The franchisor was named Mail Boxes Etc., Inc. until October 1, 2012, and UPS acquired the Mail Boxes Etc. assets on April 30, 2001. Franchisees are independent retailers selling packing, printing, mailbox, and notary services. They are not part of the UPS delivery network and do not employ drivers. ### Do you have to run a UPS Store yourself? No. Item 15 states that the franchisor typically does not require you to be the on-premises operator, but day-to-day operations must be supervised full-time by an on-premises Primary Operator who has completed the training program. That person can be a supervisory employee who owns no part of the business. A semi-absentee structure is permitted, and the manager's salary is a cost the Item 19 sales figures say nothing about. ### Is The UPS Store a good franchise? It is a stable one, which is a different claim. Exits in 2025 totaled 50 units out of 5,350, under 1%, and the Item 19 sample of 5,058 centers is among the largest any franchisor publishes. The weaknesses are visible in the same document: system-wide average sales moved 0.4% between 2023 and 2025, territories are not exclusive, and every renewal triggers a mandatory remodel priced at $97,047 to $281,271. --- title: "Is The Cheesecake Factory a Franchise? (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-08-19 dateModified: 2026-08-19 keywords: is the cheesecake factory a franchise, cheesecake factory franchise cost, licensed vs franchised, The Cheesecake Factory, dessert franchise, casual dining franchise canonical: https://vetmyfranchise.com/c/claude/blog/is-the-cheesecake-factory-a-franchise about: is the cheesecake factory a franchise category: blog wordCount: 1764 readingTime: 9 min crawledAt: 2026-08-20 11:15:56 lastVerified: 2026-08-20 11:15:56 site: https://vetmyfranchise.com/c/claude/ --- # Is The Cheesecake Factory a Franchise? (2026) ## Summary No, The Cheesecake Factory does not franchise in the US. Every US restaurant is company-operated and international growth runs on exclusive licenses. ## Key facts - Maxim’s Caterers can open a Cheesecake Factory in Shanghai. - The row that settles this question is the regulatory one. - Start with the menu. - Applebee’s sits in the same segment: full service, big menu, a bar, a suburban pad site. - Most people asking this question want either the full-service format or the dessert half of it. Quick answer No. The Cheesecake Factory does not franchise in the United States, where every restaurant is company-operated. The public company (NASDAQ: CAKE) expands abroad through exclusive license agreements instead, including one with Maxim's Caterers covering Hong Kong, Macao, Taiwan, and mainland China that has been expanded to a minimum of 18 restaurants by 2028. ## The Cheesecake Factory does not franchise in the United States Maxim’s Caterers can open a Cheesecake Factory in Shanghai. You cannot open one in Dallas. Both statements are true at the same time, and the distance between them is the entire answer to the question. The Cheesecake Factory Incorporated is a public company, listed on the NASDAQ under the ticker CAKE, and its US restaurants are company-operated. No franchise program exists for American buyers, no franchise fee has ever been published, and no Franchise Disclosure Document sits on file with any state regulator, because a company that sells no franchises has nothing to disclose. Growth outside the United States runs on a different contract. The company has held an exclusive licensing agreement with Maxim’s Caterers since 2014 covering Hong Kong, Macao, Taiwan, and mainland China. That agreement has since been expanded to a minimum of 18 restaurants by 2028, with six operating at the time of the announcement. Other licensees run restaurants elsewhere in Asia and across the Middle East. None of those arrangements is a franchise, and none is available to an individual. ## A license and a franchise are governed by different rules | | Company-operated | International license | Franchise | | --- | --- | --- | --- | | Who owns the restaurant | The Cheesecake Factory | The licensee company | An independent buyer | | Who employs the staff | The company | The licensee | The franchisee | | Governing document | Internal policy | A negotiated commercial license | FDD plus franchise agreement | | Covered by the FTC Franchise Rule | No | No | Yes | | Open to an individual | No | No | Yes | | Published unit economics | Company-level financials only | None | Item 19, when the brand files one | | Asset at exit | None | A contract that ends | A transferable business | The row that settles this question is the regulatory one. Selling a franchise in the United States triggers the FTC Franchise Rule, which forces the seller to hand a prospective buyer a Franchise Disclosure Document at least 14 days before any signature or payment. That document has to itemize the fees in Items 5 and 6, the full investment range in Item 7, the litigation and bankruptcy history, the unit counts and closures in Item 20, and any sales figure the brand chooses to publish in Item 19. A license agreement between two corporations carries none of that. Terms are negotiated privately, no state registration follows, and nothing reaches the public record. The brand you cannot buy is also the brand that would never have to show you a number. ## Why full-service casual dining resists franchising Start with the menu. A restaurant running roughly 250 items needs a kitchen with many stations, deep daily prep, and a training program measured in weeks. Franchising travels best where the operating manual is short enough that an owner can learn the whole system and then teach it to a new hire on a Tuesday afternoon. Then there is the box. These are large-format restaurants in high-traffic retail centers, and the sites get negotiated by a corporate real estate team with a national landlord relationship behind it. A single franchisee brings capital to that conversation and not much else. Underneath both sits arithmetic. A franchised restaurant sends the franchisor a royalty of perhaps 5 or 6 percent of sales. A company-operated restaurant sends the corporation the whole top line, minus the cost of running it. Franchising is a way to fund expansion with other people’s money, and a public company with access to capital markets is choosing between those two options rather than being forced into one. ## Applebee’s franchises, and its franchised base is shrinking Applebee’s sits in the same segment: full service, big menu, a bar, a suburban pad site. It does franchise, and its 2026 FDD shows both what that costs and which way the model is drifting. The initial franchise fee is $35,000 per restaurant. Item 7 puts the total investment at $616,682 to $5,822,933, a spread wide enough to cover a dual-branded conversion at one end and a ground-up Tower II build at the other. Item 19 reports gross sales for 1,351 traditional franchised restaurants over the fiscal year ended December 28, 2025. | Applebee’s Item 19, fiscal 2025 | Restaurants | Average | Median | High | Low | | --- | --- | --- | --- | --- | --- | | Midwest | 403 | $2,662,918 | $2,545,951 | $5,011,435 | $1,053,693 | | Northeast | 279 | $3,830,089 | $3,609,473 | $10,150,710 | $1,994,980 | | South | 419 | $2,450,367 | $2,361,192 | $5,036,244 | $1,086,609 | | West | 250 | $3,292,418 | $3,224,283 | $5,754,375 | $1,733,894 | | Total | 1,351 | $2,954,522 | $2,822,904 | $10,150,710 | $1,053,693 | Now read Item 20 beside it. Traditional franchised restaurants went from 1,575 at the start of 2023 to 1,416 at the end of 2025. Company-owned traditional restaurants went from zero to 59 over the same window. The franchisor has been absorbing restaurants rather than selling more of them. A casual dining brand that franchises at scale and one that has never franchised at all are currently moving capital in the same direction, which is worth sitting with before you decide the Cheesecake Factory answer is unusual. [See which food franchises publish real sales figures](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises). We read the filed FDD itself, Items 5, 7, and 19, instead of the franchisor’s opportunity page. ## The dessert-forward franchises you can actually buy Most people asking this question want either the full-service format or the dessert half of it. The dessert half is where the filed documents are. | | Crumbl | Cinnabon | | --- | --- | --- | | Franchisor | Crumbl Franchising, LLC | Cinnabon Franchisor SPV LLC | | FDD year | 2026 | 2026 | | Initial franchise fee | $50,000 | $35,500 for a full bakery | | Investment range | $848,566 to $1,472,533 | $256,950 to $703,500 traditional, $196,250 to $715,100 non-traditional | | Royalty | 8% of gross sales plus a 2% marketing fund | 6% of net sales | | Item 19 sample | 776 franchised locations open all of 2025 | 189 enclosed mall franchises, fiscal 2025 | | Item 19 median | $1,093,071 gross sales | $600,536 net sales | | Item 19 low | $365,129 | $186,211 | | Item 19 high | $3,421,762 | $2,216,582 | Read the sample row before the median row, the same way you would with any disclosure. Crumbl counted 1,101 franchised locations at the end of 2025 and reported on 776 of them, excluding 325 that either had not operated the full year or did not submit complete financials on time. Roughly a quarter of the system is invisible in that median. The company also notes that 346 of the 776, about 45%, met or exceeded the $1,139,162 average, which tells you the distribution leans on a long right tail. The low numbers deserve more attention than the medians. Crumbl’s weakest reported store did $365,129 in gross sales against a build that can reach $1,472,533. Cinnabon’s bottom quartile of mall bakeries averaged $343,695 in net sales with a floor of $186,211. Both figures describe real franchisees who signed the same agreement as everyone else. Our [Crumbl cost breakdown](https://vetmyfranchise.com/c/claude/blog/crumbl-cookie-franchise-cost) works through the Item 7 line items, and the longer piece on [whether Crumbl is a franchise](https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise) covers the qualification side. For the colder end of the dessert category, the [ice cream and frozen yogurt rankings](https://vetmyfranchise.com/c/claude/blog/best-ice-cream-frozen-yogurt-franchises) compare disclosure quality across those brands. ## What the search is really asking Very little of the traffic on this query is about corporate structure. It comes from someone who has watched a Cheesecake Factory parking lot fill on a Saturday night and assumed there was a way to buy into it. There is not, and there never has been in the United States. The consolation is a smaller name attached to a document you can read before you sign. An Item 7 ceiling tells you the worst case on the build. An Item 19 low store tells you what a bad year looks like for somebody who already did it. Neither number exists for a brand that does not franchise, which is the part most people skip when they decide the recognizable logo would have been the better deal. [Browse food franchises with filed FDDs](https://vetmyfranchise.com/c/claude/franchises). Every brand we cover is analyzed from the document itself, including the Item 7 investment range and whatever the franchisor was willing to put in Item 19. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) is the cheesecake factory a franchisecheesecake factory franchise costlicensed vs franchisedThe Cheesecake Factorydessert franchisecasual dining franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you buy a Cheesecake Factory franchise? No. The Cheesecake Factory does not franchise in the United States, and every US restaurant is operated by the company itself. Because nothing is offered for sale, there is no Franchise Disclosure Document, no initial franchise fee, and no Item 7 investment range to evaluate. Figures circulating online under headings like Cheesecake Factory franchise cost are not drawn from any filing, because no filing exists. ### How does The Cheesecake Factory expand internationally? Through exclusive licensing agreements with established restaurant operators rather than through franchising. Maxim's Caterers has held the license for Hong Kong, Macao, Taiwan, and mainland China since 2014, and that agreement has been expanded to a minimum of 18 restaurants by 2028, with six operating at the time of the announcement. Additional licensees run restaurants elsewhere in Asia and in the Middle East. Each of those deals is a negotiated corporate contract, available to companies with existing restaurant infrastructure. ### What is the difference between a license and a franchise? A franchise sale is regulated and a license is not. Selling a franchise in the United States triggers the FTC Franchise Rule, which requires the franchisor to deliver a Franchise Disclosure Document at least 14 days before the buyer signs or pays anything, covering fees, the investment range, litigation history, unit counts, and any sales claim the brand makes. A license agreement between two corporations carries no such requirement, no state registration, and no public record of its terms. ### What full-service restaurant franchises can you buy? Applebee's is the largest example still selling franchises in full-service casual dining. Its 2026 FDD lists a $35,000 initial franchise fee and an Item 7 range of $616,682 to $5,822,933, and Item 19 reports a $2,822,904 median gross sales figure across 1,351 traditional franchised restaurants for the fiscal year ended December 28, 2025, with a $1,053,693 low. Read that next to Item 20, where franchised units have been falling while company-owned units grow. ### What dessert franchises can you actually buy? Crumbl and Cinnabon both file FDDs with Item 19 sales data. Crumbl's 2026 document puts a store at $848,566 to $1,472,533 with a $50,000 franchise fee and an 8% royalty, and reports a $1,093,071 median across 776 locations that operated all of 2025, with a $365,129 low store. Cinnabon charges $35,500 for a full bakery against $256,950 to $703,500 in a traditional location, and its 189 enclosed mall franchises averaged $665,401 in net sales for fiscal 2025 against a $600,536 median. --- title: "Urgent Care Franchise Cost in 2026 (AFC Breakdown)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-08 dateModified: 2026-07-08 keywords: afc-franchise, urgent-care-franchise, american-family-care, healthcare-franchise, franchise-cost, franchise-investment canonical: https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost about: afc-franchise category: blog wordCount: 1876 readingTime: 9 min crawledAt: 2026-08-20 11:02:51 lastVerified: 2026-08-20 11:02:51 site: https://vetmyfranchise.com/c/claude/ --- # Urgent Care Franchise Cost in 2026 (AFC Breakdown) ## Summary Urgent care franchise cost in 2026: recent FDD reporting puts AFC total investment at $800K–$1.9M, with $550K liquid and $1.2M net worth required. ## Key facts - Retail healthcare has been pulling volume out of hospital ERs and primary-care offices for a decade, and 2026 is no exception. - AFC’s reported qualification bars are about $550,000 in liquid capital and $1. - Beyond the initial investment, you’ll pay an ongoing royalty on gross revenue plus a brand-fund contribution. - Here’s the part the glossy franchise brochures underplay. - You don’t need to be a physician to own an AFC franchise. Quick answer An AFC Urgent Care franchise costs roughly $800,000 to $1.9 million per clinic, with qualification bars near $550,000 in liquid capital and $1.2 million net worth. Build-out of a 3,000-4,000 sq ft medical space and imaging equipment dominate the budget, not the franchise fee. You contract a physician medical director rather than holding a license. ## Urgent Care Is One of 2026’s Fastest-Growing Franchise Categories Retail healthcare has been pulling volume out of hospital ERs and primary-care offices for a decade, and 2026 is no exception. There are now well over 14,000 urgent care centers across the U.S., and the category keeps expanding because it fills a gap patients actually feel: same-day care for the non-emergencies a doctor’s office can’t fit in and an ER overcharges for. AFC — American Family Care — is the largest urgent-care franchisor in the country, with several hundred clinics operating under franchise and corporate models. That scale is why a search for “urgent care franchise cost” almost always lands on AFC. It’s also why the numbers run higher than most first-time franchise buyers expect. This is a medical build, not a retail one, and the capital, licensing, and compliance layers reflect that. Urgent care isn’t the only healthcare-adjacent category drawing franchise capital right now. [Senior care franchises](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities) and [IV therapy and wellness concepts](https://vetmyfranchise.com/c/claude/blog/iv-therapy-wellness-franchise-opportunities) are growing off the same demographic and consumer-health tailwinds — but they carry different cost structures and licensing rules, so don’t assume the economics transfer from one to the next. ## What It Actually Costs to Open an AFC Clinic Recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) reporting puts AFC’s total initial investment in the range below. Treat these as directional. Ranges move year to year and market to market, and the only authoritative source is Item 7 of the brand’s current FDD. | Metric | Recent FDD reporting | | --- | --- | | Total initial investment (per clinic) | $800,000 – $1,900,000 | | Liquid capital required | ~$550,000 | | Net worth required | ~$1,200,000 | | Medical license to own? | No (physician medical director is contracted) | | Typical facility size | ~3,000 – 4,000 sq ft medical space | The spread between $800K and $1.9M is wide because build-out dominates the number, and build-out is entirely local. Converting raw retail square footage into a licensed medical clinic — exam rooms, a lab, an X-ray suite, ADA-compliant everything — costs very differently in suburban Alabama than in coastal California. Here’s roughly where the money goes: | Cost component | Where it lands | What it covers | | --- | --- | --- | | Leasehold build-out | Largest single line | Exam rooms, lab, X-ray suite, reception, ADA and medical-code compliance | | Medical equipment & imaging | Second-largest | Digital X-ray, on-site lab analyzers, exam-room fit-out, EMR/practice-management software | | Franchise fee | Fixed, paid up front | The right to operate under the brand — see Item 5; a small fraction of the total | | Licensing & medical-director setup | Varies by state | Facility licensing, CLIA lab certification, the medical-director agreement | | Working capital | 3–6 months of runway | Payroll, marketing, and operating losses before insurer payments arrive | Notice what’s _not_ the big number: the franchise fee. In an urgent-care deal the fee is a rounding error next to construction and equipment. If you’ve only ever priced a food or fitness franchise, that’s the mental adjustment — you’re underwriting a medical facility that happens to carry a brand, not a brand that happens to need a storefront. For how these initial-cost categories get disclosed, the [Item 7 estimated-initial-investment breakdown](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) walks through which lines tend to run over budget. **[Get the full AFC FDD analysis — every Item 7 line, verified — for $49 →](https://vetmyfranchise.com/c/claude/pricing)** ## The Qualification Bar: $550K Liquid, $1.2M Net Worth AFC’s reported qualification bars are about $550,000 in liquid capital and $1.2 million in net worth for a single clinic. Liquid capital is cash and assets you can convert quickly — not home equity, and not a 401(k) you’d take a penalty to crack. Net worth is the full balance sheet. Both bars exist because the franchisor needs confidence you can fund the build _and_ survive the ramp, since a medical clinic bleeds cash for months before claims start paying. Two things push these thresholds higher in practice. Most urgent-care growth happens through multi-unit or area-development agreements, and committing to three or five clinics scales the capital requirement accordingly. Lenders then layer their own bar on top of the franchisor’s. Urgent care is fundable — it’s a hard-asset, healthcare-backed business that SBA lenders understand — but expect to put real equity in. Our [franchise net-worth and liquidity guide](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) explains how franchisors set these floors, and the [SBA franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) covers how a 7(a) loan typically structures a build of this size. ## Royalty, Brand Fund, and What They Buy Beyond the initial investment, you’ll pay an ongoing royalty on gross revenue plus a brand-fund contribution. Urgent-care royalties typically sit in the mid-single-digit-percent range — confirm AFC’s exact figure in Item 6 rather than trusting any blog’s number, this one included. What that royalty funds matters more than the rate in this category. A strong urgent-care franchisor earns it through back-office machinery you genuinely can’t build alone on day one: revenue-cycle management (the billing and claims operation), payer credentialing, compliance systems, medical-director support, and negotiated rates with equipment and supply vendors. The billing piece is the one that quietly makes or breaks the P&L. A clinic that codes and collects well can out-earn a busier clinic that doesn’t. When you weigh AFC’s fee load, judge it by that support depth, not the headline percentage. ## Revenue Reality: Payer Mix, Volume, and the Cash-Flow Lag Here’s the part the glossy franchise brochures underplay. Urgent-care revenue is not walk-in count times a flat fee. It’s walk-in count times reimbursement, and reimbursement swings enormously by who’s paying. Commercial insurance pays well per visit. Medicare pays moderately. Medicaid pays poorly — sometimes below your cost to deliver the visit. Self-pay is a coin flip on whether you collect at all. Two clinics with identical patient volume can therefore post very different revenue purely on payer mix, and payer mix is largely a function of your location’s demographics. Underwrite the neighborhood, not just the traffic count. Then there’s timing. You don’t get paid when you treat the patient — you get paid when the claim clears, which typically runs 30 to 90 days, longer when it’s denied and resubmitted. Worse, payer credentialing (getting contracted and enrolled with Medicare and commercial networks) can take three to six months after you open. You can be seeing patients and still unable to bill their insurance, which is exactly why the working-capital line above isn’t optional. Volume is seasonal too — flu season fills the waiting room from October through February, and summer can be lean. The operators who smooth this out lean into occupational health: employer contracts for pre-employment physicals, drug screens, and workers’-comp injury care. That revenue is higher-margin, more predictable, and less exposed to insurer whims. If AFC’s FDD includes an Item 19 financial performance representation, read it closely and validate it against several existing franchisees before you project anything — the same discipline behind our roundup of [$1M-plus franchises with strong Item 19 disclosures](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19). ## Who This Model Actually Fits You don’t need to be a physician to own an AFC franchise. You do need to reckon with the corporate-practice-of-medicine (CPOM) doctrine most states enforce: a licensed physician must own or oversee the entity that actually delivers care. The standard workaround is a two-entity structure — a management company you own, and a professional entity your contracted medical director oversees — the same “friendly-PC” arrangement used across dental and med-spa franchising. States like California, Texas, New York, and New Jersey read these rules strictly, so have a healthcare attorney confirm the structure is compliant where you plan to open. That structure means the model can work for a non-clinical owner-operator who’s strong on business, hiring, and local marketing — provided you recruit an engaged medical director and a capable clinical lead. It also fits physicians who want to own the business side, and multi-unit operators who can run several clinics through a shared management layer. What it doesn’t fit is a buyer expecting a passive, hands-off investment. Even a semi-absentee urgent care needs an owner close to staffing, payer relationships, and quality of care. ## Questions to Ask Before You Sign Work through these before you’re emotionally committed: - **What does Item 7 actually list**, line by line, and how far can the build-out realistically overrun in my specific market? - **Does the FDD have an Item 19**, and if so, does it separate mature clinics from new ones and disclose payer mix? - **How is the medical-director requirement structured** in my state, and what will that physician cost annually? - **How long does payer credentialing take** for new locations in the system, and how is billing handled during that gap? - **What’s the ramp curve** to breakeven, and what did recent franchisees actually experience versus the pro forma? - **Is this a single-unit or development deal**, and does the agreement force multi-unit commitments I’m not ready for? The honest read on AFC and urgent care: it’s a legitimate, high-ticket healthcare business with durable demand that rewards operators who respect the billing and payer complexity. It punishes anyone who treats it like a retail franchise with a stethoscope. Pull the FDD, verify Item 7 against your own market quotes, and pressure-test the revenue assumptions before a dollar goes in. **[Not sure urgent care fits your capital and background? Take the free match quiz →](https://vetmyfranchise.com/c/claude/find-my-franchise)** Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the AFC Urgent Care numbers with you. We'll email you the **AFC Urgent Care FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The AFC Urgent Care data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Anytime Fitness Franchise Cost: 2026 Item 7 & Item 19 Deep Dive [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) afc-franchiseurgent-care-franchiseamerican-family-carehealthcare-franchisefranchise-costfranchise-investment About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to open an AFC urgent care franchise? Recent FDD reporting puts the total initial investment at roughly $800,000 to $1.9 million per AFC (American Family Care) clinic. That range covers leasehold build-out of a 3,000–4,000 sq ft medical space, digital X-ray and on-site lab equipment, the franchise fee, licensing and medical-director setup, and several months of working capital before insurer payments arrive. Build-out and equipment are the dominant lines; the franchise fee is a small fraction of the total. Confirm the current figures in Item 7 of AFC's latest FDD before you underwrite, since ranges shift year to year and by market. ### Do I need a medical license to own an urgent care franchise? No — you do not need to be a physician to own an AFC urgent care franchise. But most states enforce a corporate-practice-of-medicine doctrine requiring a licensed physician to own or oversee the entity that delivers clinical care, so the standard structure splits into a management company you own and a professional entity overseen by a contracted physician medical director. States like California, Texas, New York, and New Jersey interpret these rules strictly. Budget for the medical-director agreement and have a healthcare attorney confirm the structure is compliant in your state before signing. ### Is urgent care a profitable franchise category? Urgent care can be profitable, but the profit is driven by payer mix and reimbursement timing, not raw patient count. A clinic weighted toward commercial insurance and employer/occupational-health contracts earns far more per visit than one weighted toward Medicaid or self-pay. Claims typically take 30–90 days to collect, and payer credentialing can delay billing for months after opening, so early-stage cash flow is tight. Review the franchisor's Item 19 financial performance representation — if it discloses one — and validate it against several existing operators before projecting profit. ### What's the qualification net worth for an urgent care franchise? AFC's reported qualification bars are roughly $550,000 in liquid capital and $1.2 million in net worth for a single clinic. Multi-unit or area-development agreements — which is how most urgent-care growth happens — typically raise both thresholds. Liquid capital means cash and readily sellable assets, not home equity or retirement accounts you'd have to liquidate. Verify the current requirements in Item 7 and the franchise agreement, and confirm figures with the franchisor directly, since qualification bars change over time. --- title: "After Signing a Franchise Personal Guarantee: What Changes" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-05-27 keywords: personal-guarantee, franchise-risk, buyer-strategy, asset-protection, franchise-exit canonical: https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality about: personal-guarantee category: blog wordCount: 2653 readingTime: 13 min crawledAt: 2026-08-20 11:03:01 lastVerified: 2026-08-20 11:03:01 site: https://vetmyfranchise.com/c/claude/ --- # After Signing a Franchise Personal Guarantee: What Changes ## Summary What changes for franchise owners after signing the personal guarantee — credit impact, spousal exposure, bankruptcy survival, and post-signing risk reduction. ## Key facts - Search for “franchise personal guarantee” and you’ll find a hundred articles about how to negotiate one before signing. - The personal guarantee transforms a contract risk into a personal risk. - Once you’ve signed, the question shifts to which of your personal assets can actually be reached if the franchisor wins a judgment. - If only one spouse signed the PG, the non-signing spouse’s exposure depends entirely on state law. - Personal guarantees in healthy franchises are dormant. Quick answer A signed franchise personal guarantee cannot be undone. It survives a business Chapter 7 filing, and it typically gets enforced only at 90-plus days of past-due royalties or after termination for cause. The strongest post-signing moves are six months of personal liquid reserves and a clean resale exit before default. ## Pre-Signing Advice Is Easy. Post-Signing Reality Is the Hard Part Search for “franchise personal guarantee” and you’ll find a hundred articles about how to negotiate one before signing. Caps. Carve-outs. Burn-off clauses. Spousal joinder. All useful — if you haven’t signed yet. But most people reading personal guarantee content have already signed. The franchise agreement is in a drawer. The unit is open. The PG covers $400K of debt, $480K of liquidated damages exposure, and a personal lease guarantee on the location. And the question is no longer “what should I negotiate” — it’s “what do I do now.” This post is for that reader. What actually changes when you sign a PG, what your real exposure looks like by state and asset class, what the franchisor can and can’t do if things go wrong, and the moves still available to reduce your risk after the ink is dry. ## What Actually Changes the Day You Sign The personal guarantee transforms a contract risk into a personal risk. Before signing, the franchise agreement’s obligations sit on the LLC’s balance sheet. After signing, the same obligations sit on the LLC’s balance sheet **and** your personal balance sheet. Three concrete changes happen immediately: 1. **The franchisor has a direct claim against you personally**, not just your entity. If the LLC defaults, the franchisor can sue you in your own name without first exhausting remedies against the LLC. Most PGs are “guarantees of payment” rather than “guarantees of collection,” which means the franchisor doesn’t have to try to collect from the LLC first 2. **Your personal credit profile is now affected by business performance.** SBA-backed franchise financing always reports to personal credit. Trade credit from major franchise vendors often does. Lease guarantees on the location report when there’s a default. Your personal FICO becomes a function of how well the business operates 3. **Your asset protection structure becomes mostly cosmetic** for the guaranteed obligations. The whole point of forming an LLC for franchise ownership is to separate business liability from personal liability. The personal guarantee re-attaches them for the specific obligations it covers — which is typically all of the major obligations What stays protected: tort liability arising from business operations (slip-and-fall, employment claims) generally still flows to the LLC, not to you personally, as long as you’re properly maintaining corporate formalities. The PG is contract-specific. It doesn’t make you personally liable for everything the business does. ## Your Real Exposure by Asset Class Once you’ve signed, the question shifts to which of your personal assets can actually be reached if the franchisor wins a judgment. **Home equity.** Highly state-dependent. Florida and Texas have unlimited homestead exemptions — your primary residence is essentially untouchable regardless of equity. California protects up to roughly $700K of homestead equity (verify current figures). Most other states protect a smaller fixed amount ($15K-$75K) and any equity above that is reachable. If you live in FL or TX, your home is your safest asset by a wide margin. **Retirement accounts.** ERISA-qualified 401(k) and 403(b) accounts have strong federal protection — generally untouchable by judgment creditors. IRAs (traditional and Roth) have federal bankruptcy protection up to roughly $1.5M per person (BAPCPA limit, indexed) but state law governs non-bankruptcy creditor protection and varies significantly. Inherited IRAs are not protected. SEP-IRA and SIMPLE IRA protections vary. The general rule: money you put in your 401(k) is the safest financial asset you have. **Brokerage accounts.** Generally fully reachable by judgment creditors in all states. No special protection. If you have significant brokerage assets and you’re worried about a PG, this is the asset class most at risk. **Vehicles.** State-specific exemptions, typically $3,000-$15,000 of equity. Anything above the exemption is reachable. **Business interests outside the franchise.** Reachable. A judgment creditor can typically force a charging order against your interest in other LLCs, which doesn’t give them voting rights but does give them rights to distributions. **Joint accounts.** In tenancy-by-the-entirety states (MD, PA, FL, and others), assets jointly owned with a non-debtor spouse may be fully protected from creditors of one spouse only. Community property states do not have this protection. The asset-protection picture is wildly different from state to state. If you’re going to live with a significant PG, where you live and how your assets are titled matters as much as the underlying numbers. > **Want the personal guarantee scope on three franchise agreements compared?** $99 three-pack AI-powered [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) analysis pulls the PG terms, joint and several language, and termination triggers across the brands you’re considering. > > [Compare three FDDs →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## The Spousal Exposure Question If only one spouse signed the PG, the non-signing spouse’s exposure depends entirely on state law. In **separate property states** (most of the U.S.), the non-signing spouse’s clearly separate assets are generally protected. Property in their name only, acquired before marriage, inherited, or kept in clearly segregated accounts is theirs alone. Jointly owned property can be reached for the signing spouse’s portion but not the non-signing spouse’s. In **community property states** (California, Texas, Arizona, Nevada, Washington, New Mexico, Idaho, Louisiana, Wisconsin), the analysis is different. The default rule is that debts incurred during marriage are community debts, and community assets — which include most assets acquired during the marriage regardless of which spouse’s name is on the title — are reachable to satisfy them. A franchise PG signed by one spouse during the marriage is typically a community debt. Practical implications: | Scenario | Separate property states | Community property states | | --- | --- | --- | | Only Spouse A signs PG, joint home | Spouse B’s 50% generally protected | Whole home potentially reachable | | Only Spouse A signs PG, brokerage in Spouse B’s name only | Generally protected | Potentially reachable as community asset | | Both spouses sign | Both fully exposed | Both fully exposed (worst case) | | Pre/post-nup separating finances | Helps | Helps but state-specific | The post-signing question for community property residents: do you have any practical way to separate community assets going forward? Post-nuptial agreements can convert community property to separate property in some states, but they require careful drafting and the franchisor can challenge them as fraudulent transfers if done after a default looms. ## When the PG Actually Gets Called Personal guarantees in healthy franchises are dormant. The franchisor doesn’t think about them. They sit in the legal file. The PG matters in three scenarios: **Scenario 1: 90+ days royalty past due.** The franchisor’s collection escalation typically starts at 30 days late, sends formal default notice at 60 days, and pursues legal action at 90 days. The PG becomes a tool to collect past-due royalty plus interest plus collection costs from the personal guarantor. This is the most common scenario — far more common than termination. **Scenario 2: Termination for cause.** If the franchisor terminates you under the agreement’s default provisions, the [liquidated damages clause](https://vetmyfranchise.com/c/claude/blog/franchise-liquidated-damages-clause-explained) typically triggers and the PG covers the LD amount. This is the high-dollar scenario — potentially several hundred thousand dollars depending on years remaining and royalty base. **Scenario 3: Business bankruptcy.** If the LLC files Chapter 7 or Chapter 11, the franchisor is a creditor of the bankruptcy estate. The bankruptcy discharges the LLC’s liability but does not discharge the personal guarantor’s liability. The franchisor then pursues the guarantor in state court. This is when the asset-class analysis above becomes the dominant variable. What does **not** typically trigger PG enforcement: - Slow revenue growth that doesn’t cause default - Disagreements over operational matters - Failure to follow brand standards (unless escalated to default) - Slow franchisor responses to support requests The PG is a backstop, not a daily-management tool. Most franchisees never have it enforced. The ones who do are usually 90+ days past due on royalties or have been formally terminated. ## Post-Signing Risk Reduction: What You Can Still Do You can’t undo the PG. You can substantially reduce the probability and severity of it being called. ### Build personal liquid reserves outside the business Six months of personal household expenses in liquid savings, separate from the business operating account. The point: when business performance dips, you have personal runway to weather it without missing royalty payments. The franchisor’s default escalation is the most predictable risk; cash reserves prevent it from triggering. This is separate from the business’s own working capital reserves — see [how much working capital](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) for the business-level figure. The personal reserve is on top. ### Separate business and personal banking with discipline Distinct accounts, distinct credit cards, distinct cash flow. Beyond the asset-protection rationale, this gives you clean records if you ever need to negotiate with the franchisor or argue against a personal claim. Commingled accounts are the single best evidence a franchisor can use to argue you should be personally liable for everything the business does, not just the PG-covered obligations. ### Carry adequate insurance — knowing what it does and doesn’t cover A personal umbrella policy ($1M-$5M) is cheap relative to its protection against personal injury and property damage claims. It will **not** cover contractual obligations like the franchise PG — insurance never covers contract breaches. But it protects you from the parallel risk of slip-and-fall claims, employment claims, and auto liability that could blow up your personal balance sheet independently. ### Have a written exit-trigger framework Sit down with your spouse or business partner and define, in advance, the thresholds that trigger different actions: | Threshold | Action | | --- | --- | | 3 consecutive months below break-even | Start informal exit conversations | | 6 consecutive months losing money | Begin active resale listing | | Personal reserves below 3 months expenses | Consider negotiated exit with franchisor | | Personal reserves below 1 month + business losses ongoing | Talk to franchise attorney about distressed exit | Written thresholds prevent the most common failure mode: hoping things turn around for so long that you’re terminated for cause before you sell. A clean transfer before default is dramatically better than a termination after. ### Validate a resale exit exists for your brand Before things go wrong, validate that your franchise has a functioning resale market. Pull comparable resale listings, check the franchisor’s transfer policies, understand the approved-buyer process. See [franchise resale value valuation guide](https://vetmyfranchise.com/c/claude/blog/franchise-resale-value-valuation-guide) and [selling a franchise to maximize value](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer). A franchise with no resale market is a franchise with no exit, which means your only paths out are termination or bankruptcy — both of which trigger the PG. ## The Most Important Post-Signing Move: Exit Before Distress Termination for cause triggers the full liquidated damages provision and full PG enforcement. Negotiated transfer or resale to an approved buyer does not. The single highest-leverage move available to a worried PG holder is to exit cleanly, on your timeline, before the franchisor’s collection process takes the choice away from you. Clean transfer: - Buyer assumes the franchise agreement and the personal guarantee going forward - Your PG is generally released as part of the assignment - You walk away with some recovery from the resale price - Credit impact: minimal Termination for cause: - LD clause triggers — six-figure exposure - PG remains in force on the LD obligation - You walk away owing more than you invested - Credit impact: severe, judgment on your credit report for 7+ years The buyers who do best with a heavy PG are the ones who set their exit thresholds early and stick to them. The buyers who get destroyed are the ones who keep operating at a loss hoping for a turnaround until the franchisor terminates them — by which point all the leverage has shifted to the franchisor. See [walking away from a franchise deal](https://vetmyfranchise.com/c/claude/blog/walking-away-from-franchise-deal) for the pre-purchase framing and [selling your franchise](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer) for the post-purchase one. ## A Note on Bankruptcy as the Last Resort If the math doesn’t work and a negotiated exit isn’t possible, personal bankruptcy is a real option that gets less attention than it should in franchise content. Personal Chapter 7 discharges unsecured personal guarantee obligations. You give up non-exempt assets (which in many states means very little — your home equity up to the homestead exemption, your retirement accounts, exempt vehicles, and exempt personal property are protected). You emerge in 4-6 months with the PG debt gone but a 10-year mark on your credit. For a franchise owner staring at $500K of PG exposure after a business failure, the Chapter 7 math often works out to substantially better than the alternative of spending the next 10 years paying down the judgment while still trying to rebuild personal finances. This is not advice to file bankruptcy. It is acknowledgment that bankruptcy exists, has predictable mechanics, and should be evaluated honestly as an option rather than treated as unspeakable. Talk to a bankruptcy attorney before deciding either way. ## The Bottom Line The personal guarantee you signed is permanent for the life of the franchise relationship. You can’t unsign it. You can substantially reduce the probability it ever gets called by building personal reserves, separating finances, validating a resale exit, and setting written exit thresholds before things go bad. The single highest-leverage move available to you is exiting cleanly via transfer or resale before default — not after. Every month of declining performance reduces the franchisor’s willingness to approve a transfer and increases their willingness to terminate for cause. The exit window is widest when you don’t yet need it. If you signed without negotiating the [personal guarantee scope](https://vetmyfranchise.com/c/claude/blog/personal-guarantee-negotiation-franchise-loan), you’re in the same boat as roughly 80% of first-time franchisees. The job now is not to wish you’d negotiated harder — it’s to operate the business in a way that the PG never gets called, and to maintain a clean exit path so it doesn’t have to be. > **Want the personal guarantee scope and termination economics compared across three franchise brands?** $99 three-pack AI-powered FDD analysis — joint-and-several language, PG carve-outs, LD math, and exit terms side-by-side. > > [Get the three-pack analysis →](https://vetmyfranchise.com/c/claude/buy/3-pack) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) #### Single-Unit vs Area Developer vs Master Franchise: Which Structure Fits Your Capital? [Learn more →](https://vetmyfranchise.com/c/claude/blog/area-development-agreement-vs-single-unit-franchise) personal-guaranteefranchise-riskbuyer-strategyasset-protectionfranchise-exit About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Once I sign a personal guarantee, can I cancel it? No, not unilaterally. A personal guarantee is a contract that runs through the underlying obligation's term — typically the full 10-20 year franchise agreement. The only ways out are (1) the franchisor releases you, which essentially never happens, (2) you exit via approved transfer or resale with the buyer assuming the guarantee, or (3) the underlying obligation is satisfied. Practical answer: assume the PG is permanent until the franchise relationship ends cleanly. ### Will the personal guarantee show up on my personal credit report? Sometimes. Most franchise PGs don't get reported directly to consumer credit bureaus while the business is current. But SBA-backed franchise loans almost always report to personal credit, and franchise judgments after default get reported. If you're personally liable on the lease, that obligation often reports too. The PG itself may be invisible until something goes wrong — and then it becomes very visible. ### If I file personal bankruptcy, does that wipe out the franchise PG? Personal Chapter 7 can discharge most unsecured debts including franchise personal guarantee obligations, but it requires giving up non-exempt assets, takes 4-6 months, and stays on your credit report for 10 years. Personal Chapter 13 restructures the debt over 3-5 years without losing assets but keeps you on the hook. Both are nuclear options. Most franchise owners try negotiated settlements with the franchisor first. ### If only I signed and not my spouse, are my spouse's assets protected? It depends entirely on what state you live in. In separate property states (most of the country), assets clearly titled only in your spouse's name are typically protected — though tenancy by the entirety states like FL, MD, PA add another layer of protection for jointly owned property. In community property states (CA, TX, AZ, NV, WA, NM, ID, LA, WI), marital community assets can be reached for debts incurred for the marital community's benefit, which a franchise typically is. Get state-specific legal advice before assuming spouse-only assets are safe. ### What's the best move if I've already signed and I'm worried? Build a 6-month personal liquid reserve. Document the business cleanly so it's saleable. Make sure your spouse and you have aligned exit-trigger thresholds (revenue, cash, months of losses) written down. Identify potential buyers or transferees early — a healthy approved transfer before default is dramatically better than termination after default. If the business is already in trouble, talk to a franchise attorney about negotiated exit terms before the franchisor terminates you for cause. --- title: "Best Franchises for Engineers Leaving Tech 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-07-10 keywords: engineers, tech professionals, career transition, buyer strategy canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-for-engineers-leaving-tech about: engineers category: blog wordCount: 1384 readingTime: 7 min crawledAt: 2026-08-20 11:05:38 lastVerified: 2026-08-20 11:05:38 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises for Engineers Leaving Tech 2026 ## Summary Best franchises for engineers leaving tech — how engineering skills translate, top categories. ## Key facts - Software engineers, product managers, and tech operators leaving 7-figure tech jobs for franchise ownership are a meaningful and growing demographic, much like the parallel wave of displaced government professionals weighing the [best franchises for laid-off federal workers](https://vetmyfranchise. - Engineering-trained buyers typically bring strong fit in: - Some engineering skills don’t carry over directly: - How the most-cited engineer-fit brands compare on verified numbers: - Tech professionals often arrive with substantial capital, sometimes $1M+ liquid net worth from equity grants and tech-sector compensation. Quick answer Franchises with measurable operations fit engineers best. Per the 2026 FDDs, Kumon runs $101,630-$233,780 (1,705 U.S. units), Mathnasium $127,316-$165,846, Code Ninjas $174,250-$265,750, and F45 Training $362,300-$857,700 for data-driven fitness. Multi-unit home services also reward systems thinking. Budget a 6-12 month shift from managing engineers to managing hourly teams. The best franchises for engineers leaving tech are the ones with measurement built into the operating model: structured-curriculum education brands like [Kumon](https://vetmyfranchise.com/c/claude/franchise/kumon-north-america-inc) ($101,630-$233,780 per the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document)) and [Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc) ($127,316-$165,846), data-driven fitness concepts like [F45 Training](https://vetmyfranchise.com/c/claude/franchise/f45-training-incorporated) ($362,300-$857,700), and multi-unit home services that reward systems thinking. The comparison table below covers the verified numbers. ## Why Tech Professionals Are Buying Franchises Software engineers, product managers, and tech operators leaving 7-figure tech jobs for franchise ownership are a meaningful and growing demographic, much like the parallel wave of displaced government professionals weighing the [best franchises for laid-off federal workers](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-laid-off-federal-workers). The trend is partly driven by tech-industry changes (layoffs, restructuring, return-to-office mandates) and partly by lifestyle preferences: owning a business that operates in your own community offers something tech roles often don’t. Engineers bring real skill advantages to franchise ownership: analytical depth, financial sophistication, systems thinking, and comfort with measurement and data. The skills don’t fit every franchise category, but in the right categories the engineering background is a meaningful edge. ## Skills That Translate Engineering-trained buyers typically bring strong fit in: ### Analytical and Financial Modeling Building unit-economics models, evaluating multi-unit growth scenarios, sensitivity-testing assumptions. The financial sophistication is a real edge in franchise selection (avoiding bad opportunities) and in operating decisions (where to invest in operations vs. growth). Data-minded buyers tend to start from system-wide benchmarks like the [AUV leaderboard](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) rather than franchisor marketing decks. ### Systems Thinking and Process Design Identifying bottlenecks, designing operational improvements, building repeatable systems. Multi-unit franchise operations reward systematic thinking: finding the operational improvements that work across all units. ### Technology Comfort Understanding the franchisor’s technology stack, evaluating POS and back-office software, managing technology vendors. As [Item 11 obligations](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) increasingly involve proprietary technology platforms, technology comfort matters more than it used to. ### Capital Allocation Across Investments Engineers often arrive with substantial capital across diverse investments. Treating franchise ownership as one part of a portfolio (rather than the only investment) tends to produce healthier decision-making. ### Written Communication Most engineers can write clearly. This helps with franchisor relationships, employee communication, and the documentation required for multi-unit growth. ## Skills That Don’t Translate Cleanly Some engineering skills don’t carry over directly: ### Hourly Worker Management Engineering teams are professional, autonomous, and project-driven. Hourly retail or service workers often need different management: clearer structure, more direct supervision, scheduling discipline. The transition can be jarring. ### Direct Customer Service If your tech career was B2B with infrequent customer interaction, the direct customer-service rhythm of retail or restaurant operations is a different muscle. ### Tolerance for Operational Detail Engineers often prefer to design and improve systems rather than execute repetitive operational tasks. Franchise ownership involves substantial operational repetition: the same shifts, the same vendor calls, the same compliance work, week after week. ## Franchise Categories That Fit How the most-cited engineer-fit brands compare on verified numbers: | Brand | Category | Total investment | U.S. franchise units | | --- | --- | --- | --- | | Kumon | Education (structured curriculum) | $101,630-$233,780 | 1,705 | | Mathnasium | Education (math tutoring) | $127,316-$165,846 | 1,047 | | Code Ninjas | Education (STEM/coding) | $174,250-$265,750 | 238 | | Engineering for Kids | Education (STEM enrichment) | $71,200-$139,750 | 23 | | F45 Training | Fitness (data-driven circuits) | $362,300-$857,700 | 708 | | Orangetheory Fitness | Fitness (heart-rate tracking) | Not yet in our FDD database; verify with the current FDD | n/a | Figures are compiled from the brands’ 2026 FDDs in VetMyFranchise’s database of 2,000+ franchise systems; confirm current terms in each franchisor’s FDD. Patterns from engineering-trained franchisees suggest strong fit in: ### Technology-Adjacent Service Businesses IT services (Computer Troubleshooters, Geek Squad-adjacent franchises), business services (printing, marketing services, staffing), commercial cleaning with technology-managed operations. The technology-adjacent positioning fits the demographic well. ### Home Services with Multi-Unit Focus Restoration franchises, pest control, lawn care multi-territory operations. The financial discipline and multi-unit management fit. See our [restoration franchise comparison](https://vetmyfranchise.com/c/claude/blog/servpro-vs-puroclean-vs-restoration-1-franchise) for category context. ### Fitness with Measurement Orangetheory’s heart-rate-based model, F45’s circuit programming with member tracking, recovery and wellness concepts with measurable outcomes. The data-driven member experience fits an engineering mindset. See our [F45 vs Orangetheory comparison](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise). ### Multi-Unit Operations of Any Category Multi-unit ownership rewards systematic thinking, financial analysis, and team management, all engineering-friendly skills. See our [multi-unit franchise guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide). ### Education and Tutoring Tutoring franchises with clear measurement frameworks ([Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc), Kumon), STEM-focused education ([Code Ninjas](https://vetmyfranchise.com/c/claude/franchise/code-ninjas-llc), [Engineering for Kids](https://vetmyfranchise.com/c/claude/franchise/engineering-for-kids-international-llc)). Engineering-adjacent content makes for natural fit. ## What Tech Buyers Often Underestimate Patterns of difficulty: - **The operational rhythm**: Tech roles operate in project cycles; franchise ownership operates in shift cycles. The rhythm is different. - **Time to mature unit economics**: Most franchises take 12–24 months to reach mature unit-level performance. Tech buyers used to faster product cycles sometimes underestimate this. - **Hourly labor markets**: Local labor market dynamics for hourly workers vary substantially by submarket. The franchisor doesn’t control them; you have to navigate them. - **The week-1 overload**: First week of operations is operationally intense. Plan for it. ## Capital Considerations Tech professionals often arrive with substantial capital, sometimes $1M+ liquid net worth from equity grants and tech-sector compensation. This opens up multi-unit franchise opportunities that single-unit owner-operator buyers don’t have access to. The pragmatic capital-deployment pattern: - **First-year reserves**: Hold 12 months of personal living expenses outside the business - **Initial unit investment**: Fund the first unit conservatively, with working capital cushion - **Multi-unit growth capital**: Plan multi-unit expansion based on first-unit performance, not on initial capital availability - **Diversification**: Don’t concentrate all liquid capital in the franchise; maintain investment diversification Read our [SBA loans franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) for the standard [SBA 7(a)](https://www.sba.gov/funding-programs/loans/7a-loans) structure that most tech buyers will use, even with substantial capital available. - [Multi-unit franchise ownership guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) - [F45 vs Orangetheory franchise comparison](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise) - [Buying a franchise after a career change](https://vetmyfranchise.com/c/claude/blog/buying-franchise-after-career-change) - [The franchise validation process](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) > **Want a 12-section deep-dive on a specific franchise?** A [$49 Research Report](https://vetmyfranchise.com/c/claude/fdd-analysis-example) from VetMyFranchise gives you the financial analysis and operational deep-dive that tech-trained buyers tend to want before signing. ## Bottom Line Engineering and tech professionals bring real skill advantages to franchise ownership (analytical depth, financial sophistication, systems thinking), but the transition requires adjusting to operational rhythms and management styles that don’t appear in tech roles. Pick a franchise category that rewards your strengths (technology-adjacent services, multi-unit operations, fitness with measurement, education with structured curriculum) and plan deliberately for the operational learning curve. The FTC’s [consumer guide to buying a franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) is the right diligence baseline before any FDD review. Tech buyers who do well in franchise ownership tend to be the ones who treat it as a 5–10 year operating commitment with clear stages, not as a quick redeployment of tech skills into a different industry. ## Brands mentioned in this post - [Engineering for Kids](https://vetmyfranchise.com/c/claude/franchise/engineering-for-kids-international-llc) - [Code Ninjas](https://vetmyfranchise.com/c/claude/franchise/code-ninjas-llc) - [Mathnasium](https://vetmyfranchise.com/c/claude/franchise/mathnasium-franchisor-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) engineerstech professionalscareer transitionbuyer strategy About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which engineering skills translate to franchise ownership? Strong-fit skills include: analytical and financial modeling, systems thinking and process design, data-driven decision-making, project management with multiple workstreams, comfort with technology and software systems, structured problem-solving, and capital allocation across competing investments. Tech professionals also typically have strong written and verbal communication skills that help with franchisor and franchisee relationships. ### What franchise categories work for engineers? Patterns from engineering-trained franchisees suggest strong fit in: technology-adjacent service businesses (IT services, computer repair, business services), home services with management focus and measurable operations, fitness with data/measurement components (Orangetheory's heart-rate model, F45 with progress tracking), multi-unit operations of any category that benefit from systematic management. Less common fit: customer-service-heavy retail, lower-skill manual labor management, businesses without clear measurement frameworks. ### What's the biggest adjustment from tech to franchise ownership? The shift from managing engineering teams to managing hourly service workers. The two roles require different management styles — engineers respond to project clarity and autonomy; hourly retail/service workers often require more structure, scheduling discipline, and direct accountability. Many tech professionals find this transition more difficult than expected. Plan for a 6–12 month operational learning curve. ### Should I buy a franchise or start something from scratch? Engineering-trained buyers sometimes want to build from scratch, leveraging tech skills to create differentiated businesses. The choice depends on your appetite for ground-up risk. Franchise ownership offers a structured path with established systems, known unit economics, and faster time-to-cash-flow than starting from zero. Build-from-scratch offers full control and potential for higher long-term value. The right path depends on your capital, risk tolerance, and personal preference. --- title: "After SBA Approval: 23 Franchise Closing Tasks Most Buyers Miss" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-01 dateModified: 2026-06-01 keywords: sba franchise loan, franchise closing, franchise opening, franchise checklist, franchise pre-opening canonical: https://vetmyfranchise.com/c/claude/blog/after-sba-approval-23-franchise-closing-tasks about: sba franchise loan category: blog wordCount: 1774 readingTime: 9 min crawledAt: 2026-08-20 11:05:05 lastVerified: 2026-08-20 11:05:05 site: https://vetmyfranchise.com/c/claude/ --- # After SBA Approval: 23 Franchise Closing Tasks Most Buyers Miss ## Summary 23 tasks between SBA approval and franchise opening — LLC formation, lease attorney review, insurance, payroll, hiring, training. With the cost of skipping each one. ## Key facts - SBA approval is the part of the franchise journey buyers visualize as the finish line. - A consolidated dollar view of the most expensive items if skipped or delayed: Quick answer SBA approval opens a 60-90 day window with 23 closing tasks across six categories: legal/corporate, banking, real estate, insurance, licenses, and people/training. Lease attorney review is the highest-ROI task at $1,500-$3,500, preventing $20K-$60K of lease-term mistakes over five years. An LLC formed late costs a 2-4 week closing delay. ## The 60-90 Day Window Between Approval and Opening SBA approval is the part of the franchise journey buyers visualize as the finish line. It isn’t. It’s the start of the highest-pressure window in the whole process — usually 60 to 90 days, sometimes shorter, occasionally extended — during which roughly 23 discrete tasks have to be completed in the right order or your opening slips and your costs run over. The buyers who handle this window well are the ones who treat it like a project plan from day one. The buyers who treat it like a paperwork sprint find out around week six that they’re 30 days behind on lease build-out, the insurance broker can’t bind because the LLC name on the policy doesn’t match the lease, the training schedule conflicts with the lease commencement date, and there’s no working capital line set up yet because the loan closing is contingent on items they haven’t done. What follows is the full list. Twenty-three tasks across six categories, ordered roughly by when each one becomes the gating item for everything else. Skip the first six and the next seventeen don’t matter, because nothing closes. ## Category 1: Legal & Corporate (6 Tasks) **1\. Form the LLC (or whichever entity).** Most franchise buyers should default to an LLC for liability protection and tax flexibility. State of formation matters: form in the state where you’ll operate unless your attorney has a specific reason otherwise. Cost: $200-$500 plus state filing fees. **2\. Obtain the EIN.** Federal employer ID. Free, takes 15 minutes online via IRS. Required for opening the operating account, hiring, and any vendor contract. **3\. Draft and sign the operating agreement.** Even single-member LLCs need this; it’s the document the bank will ask for at the operating account opening, and the SBA lender will ask for at closing. **4\. Reassign the franchise agreement to the LLC.** If you signed the franchise agreement in your personal name (most buyers do, before the LLC exists), the franchisor needs to issue an assignment to the LLC. There’s sometimes a fee. Skip this and your franchisor will eventually catch it, usually at the worst time. **5\. Get a registered agent.** State requirement. Use a commercial registered agent ($100-$300/year) unless you want your home address on public record. **6\. File any state-specific franchise registration.** Several states (CA, NY, MN, MD, others) have franchise registration regimes that may require you to register the underlying franchise relationship. Check with your franchise attorney for your state. **Cost of skipping these:** 2-4 week closing delay (if any of items 1-3 are missing); personal liability exposure on lease and vendor contracts (if item 4 is skipped); and possible regulatory issues in registration states (item 6). ## Category 2: Banking & Financial (5 Tasks) **7\. Open the operating account at the lender’s bank.** Most SBA lenders require the borrower’s primary operating account at their institution. Pick this bank carefully; you’ll be there for the life of the loan. **8\. Set up payroll software.** Gusto, ADP, Paychex, or similar. The setup process takes 7-14 days from signup to first run; it has to be ready before your first hire’s first paycheck. **9\. Apply for a business line of credit.** Working capital cushion separate from the SBA loan. Most lenders won’t approve this for a brand-new entity, so apply early and expect to use personal credit initially. **10\. Set up your accounting software and chart of accounts.** QuickBooks Online is the default; your accountant should help configure the chart of accounts before opening day, not after. Setting up a clean chart of accounts after revenue starts flowing is painful and expensive. **11\. Establish merchant processing.** If you’ll take card payments, application to approved processor typically takes 2-3 weeks. Most franchisors have a preferred processor with negotiated rates; defaulting to that is usually fine. **Cost of skipping these:** $2K-$10K of accountant cleanup later; missed first-month payroll if item 8 isn’t done in time; cash crunch in months 2-4 if item 9 is skipped. ## Category 3: Real Estate & Lease (4 Tasks) **12\. Lease attorney review of the LOI and the final lease.** Spend $1,500-$3,500 on a commercial lease attorney. This is the single highest-ROI move in the closing window. A bad lease costs an order of magnitude more than the attorney’s fee, and it lives with you for 5-10 years. **13\. Site condition inspection.** Especially for second-generation space. Hire an inspector to verify HVAC, electrical, plumbing, ADA compliance, and structural items. $500-$1,500. Skipping this is how buildouts discover $40K of asbestos abatement on week three. **14\. Confirm build-out timeline with the contractor.** Your franchisor will introduce you to approved contractors. Lock the timeline in writing, with milestones, before the lease commences. Most build-outs run 2-4 weeks longer than the original estimate; build in slack. **15\. Coordinate lease commencement, rent abatement, and opening date.** The lease should give you a rent-free buildout period (typically 60-90 days). Your goal is to have the rent clock start as close to opening day as possible. Negotiate this in the LOI, not after. **Cost of skipping these:** $20K-$100K of buildout overruns and lease term mistakes that don’t show up until year two or three. ## Category 4: Insurance, Licenses & Permits (4 Tasks) **16\. Bind general liability and additional-insured policies.** Most franchisors require additional-insured status before lease commencement. The broker needs the franchise agreement and the lease to bind correctly. Start the conversation 30 days before lease commencement. **17\. Bind workers comp.** State-required; takes 5-10 days. Cannot hire your first employee without coverage in place. **18\. Apply for state and local business licenses.** State business license, city business license, sales tax permit, food service license (if applicable), liquor license (if applicable, and this one runs 60-120 days), occupancy permit. Each has its own lead time; the longest ones are the gating items. **19\. Confirm franchisor-required certifications.** Some brands require food handler certifications, ServSafe, OSHA, or category-specific certifications before opening. Lead time varies; some take 4-8 weeks. **Cost of skipping these:** liquor license delays push opening dates by months; occupancy permit gaps prevent opening at all; insurance gaps leave you personally exposed. ## Category 5: People & Training (4 Tasks) **20\. Franchisor training attendance.** Item 11 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) specifies the training program. Most brands require the owner and one to two managers at corporate training, typically 1-3 weeks. Schedule this carefully; it usually has to happen before opening, and seats fill up. **21\. Post job listings and run hiring.** 4-6 weeks of active hiring runway before opening. Background checks take 3-7 days; drug testing where required takes 1-3 days; offer letters need lead time for two weeks’ notice from current employers. Start earlier than your gut says. **22\. Onboard the management team.** Manager hires should land 6-8 weeks before opening, frontline staff 2-4 weeks before. Managers participate in soft launch; frontline participates in dress rehearsals. **23\. Run a soft launch.** 1-2 weeks before public opening, run the operation with friends, family, and franchisor representatives. This is when training-vs-reality gaps surface. Most brands require this; the brands that don’t, you should do it anyway. **Cost of skipping these:** the most common cost is a botched opening — opening day with understaffed shifts, untrained leads, and unhappy first customers. Recoverable but expensive in goodwill and reviews. ## What Missing Each Task Actually Costs A consolidated dollar view of the most expensive items if skipped or delayed: | Skipped task | Typical cost or delay | | --- | --- | | LLC formed late (#1) | 2-4 week closing delay; $500-$2,000 in legal time to rebuild contracts | | Lease attorney review (#12) | $20K-$60K in lease mistakes over the 5-year term | | Site inspection (#13) | Buildout overruns of $10K-$50K | | Lease commencement misaligned (#15) | $5K-$25K of extra rent during dark buildout | | Liquor license late (#18) | Opening delay of 30-120 days | | Hiring runway too short (#21-22) | Botched opening, replacement cost of $3K-$5K per early-turnover hire | | No soft launch (#23) | Lost goodwill, bad early reviews — hard to quantify but real | The summed cost of skipping these isn’t theoretical. Across the franchisees who emerge from year one bruised, the post-mortems almost always include three or four items from this list that were rushed or skipped. The $49 Tier 2 report on any brand includes a brand-specific version of this checklist with the franchisor’s actual training schedule, insurance requirements, and pre-opening dependencies pulled from the current FDD. For SBA-specific closing cost context, see our [SBA loan closing costs breakdown](https://vetmyfranchise.com/c/claude/blog/sba-franchise-loan-closing-costs-breakdown) and [SBA approval to closing timeline](https://vetmyfranchise.com/c/claude/blog/sba-approval-to-franchise-closing-timeline). For longer-arc opening planning, see [franchise opening timeline signing to launch](https://vetmyfranchise.com/c/claude/blog/franchise-opening-timeline-signing-to-launch) and [franchise insurance cost guide](https://vetmyfranchise.com/c/claude/blog/franchise-insurance-workers-comp-real-annual-cost). Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Using Your 401(k) to Buy a Franchise: ROBS Explained — Benefits, Risks, and Realities [Learn more →](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide) #### Best Franchise SBA Lenders Compared: Live Oak, Huntington, Celtic, and Beyond [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-franchise-sba-lenders-compared) #### Equipment Leasing vs SBA Loan for Franchise Buildout: The 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/equipment-leasing-vs-sba-loan-franchise) sba franchise loanfranchise closingfranchise openingfranchise checklistfranchise pre-opening About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How long do I have between SBA approval and closing? SBA approvals typically come with a 60-day commitment window, sometimes extendable to 90 days. The clock starts when you receive the commitment letter. Most lenders will work with you on extensions if you're showing progress, but rate locks and other terms may shift if the original window expires without closing. ### Should I form the LLC before or after SBA approval? Before. Most lenders require the LLC to be the borrower of record, and forming it after approval forces a paperwork reset that can delay closing by 2-4 weeks. The exception is buyers who form a personal-name LOI first to lock in franchise terms, then form the LLC immediately after. ### What insurance is required for a franchise? At minimum: general liability ($1M/$2M), property/inland marine for buildout and equipment, workers compensation (state-mandated), and most franchisors also require an additional-insured endorsement naming the franchisor. Many also require business interruption coverage, cyber liability, and liquor liability if applicable. Your franchisor's insurance schedule is in Item 7 or the franchise agreement; comply with the specific list. ### Can I start hiring before the franchise opens? Yes, and you should. Most models need a soft launch with full staff 2-4 weeks before opening. That means active job postings in the 6 weeks before opening, with offers landing 2-3 weeks before opening. The actual hiring runway is longer than buyers expect. ### What's the most expensive closing mistake most franchisees make? Signing the commercial lease without attorney review. A bad lease lives with the business for 5-10 years and is responsible for more first-year failures than any other single decision. Investing $2K-$3K in a commercial lease attorney to review the LOI and the final lease is the highest-ROI move in the closing window. --- title: "Applebee's Item 19 2026: Casual Dining AUV Reality" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: applebees, item 19, casual dining, franchise revenue, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/applebees-item-19-deep-dive about: applebees category: blog wordCount: 1199 readingTime: 6 min crawledAt: 2026-08-20 11:05:06 lastVerified: 2026-08-20 11:05:06 site: https://vetmyfranchise.com/c/claude/ --- # Applebee's Item 19 2026: Casual Dining AUV Reality ## Summary Applebee's Item 19: $1.83M median across 1,178 franchised restaurants in fiscal 2025. Casual-dining AUV reality, year-one ramp, and how it compares to TGI Friday's and Chili's. ## Key facts - The 1,178-restaurant sample is large and represents the bulk of the franchised system. - The publicly franchised casual-dining category has been under pressure for over a decade. - Casual dining ramps faster than membership-driven businesses but slower than QSR. - For brand-specific cost detail, see the live [Applebee’s franchise page](https://vetmyfranchise. - Get the full 12-section FDD analysis — $49 Quick answer Applebee's Item 19 reports a $1,829,472 median annual gross sales across 1,178 franchised restaurants in fiscal 2025. Total investment runs $245,000 to $3,055,924 with a tiered 4.5% to 7.0% royalty. Casual dining margins of 8-12% mean an $1.83M Applebee's yields less cash flow than an $1.83M QSR. ## The Disclosure | Metric | Value | | --- | --- | | Sample size | 1,178 franchised restaurants | | Sample criteria | All franchised restaurants | | Reporting period | Fiscal year 2025 | | Median annual gross sales | $1,829,472 | | Total system units | 1,274 | | Total investment (Item 7) | $245,000 - $3,055,924 | | Royalty rate | 4.5% to 7.0% (tiered) | The 1,178-restaurant sample is large and represents the bulk of the franchised system. Fiscal 2025 reporting is current. The investment range is unusually wide — $245K at the low end represents conversion of existing restaurant space (which [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) heavily favors as new builds become rarer), while $3M+ at the upper end reflects ground-up construction with full [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) prototype specifications. The variable royalty (4.5%-7%) is structurally interesting. Most franchise systems run a flat royalty rate. [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) tiered structure reflects development-agreement size — multi-unit operators committing to significant development pipelines pay at the lower end; single-unit and smaller operators pay at the upper end. The variability isn’t a negotiation lever for a typical single-unit buyer. ## Casual Dining Is a Different Financial Profile Buyers comparing [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) $1.83M AUV to QSR brands like [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) ($2.0M) or Popeyes ($1.88M) miss the category dynamics. Casual dining and QSR produce meaningfully different operating economics: | Metric | Casual dining | QSR | | --- | --- | --- | | Labor cost % | 30-35% of revenue | 25-28% | | Cost of goods % | 30-32% | 28-30% | | Operating margin (mature) | 8-12% | 12-18% | | AUV at break-even | ~$1.4M-$1.6M | ~$800K-$1.0M | A mature Applebee’s at $1.83M of revenue typically produces $150K-$220K of operating cash flow at year-three steady-state — before debt service and franchisor distributions. A mature [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) at $2.0M of revenue typically produces $250K-$360K. The dollar gap matters significantly for buyers underwriting unit-level returns. The historical reason for the margin compression in casual dining is operational: full-service restaurants run larger physical footprints (5,000-6,500 sq ft vs QSR’s 1,400-2,500 sq ft), employ more labor per dollar of revenue (full-service requires servers, bussers, hosts), and operate longer hours with more menu complexity. Each of those factors compresses margin relative to QSR. For Applebee’s specifically, the brand has been refining the model — menu simplification, kitchen efficiency, off-premises (takeout/delivery) expansion — to improve unit-level margins. The fiscal 2025 disclosure reflects those refinements but doesn’t eliminate the structural category margin profile. ## The Casual Dining Category Reality The publicly franchised casual-dining category has been under pressure for over a decade. Comparison snapshot: | Brand | Status | Typical AUV | Investment | | --- | --- | --- | --- | | Applebee’s | Franchise dominant | $1.83M median | $245K-$3.06M | | TGI Friday’s | Bankruptcy 2024, restructuring | ~$1.8M historical | varies | | Chili’s | Mostly company-operated | ~$3M company-operated | n/a franchise | | Olive Garden | Company-operated | n/a | n/a | | Outback Steakhouse | Company-operated | n/a | n/a | | IHOP | Franchise dominant | ~$1.4M-$1.7M | $1.5M-$3M | A few things to note. Most major casual-dining brands operate company-store models, not franchise models — Chili’s, Outback, Olive Garden, Texas Roadhouse, Cheesecake Factory all run direct-operated systems. The franchise-dominant casual-dining category is essentially Applebee’s, IHOP, Denny’s, TGI Friday’s (post-bankruptcy), and a handful of smaller regionals. The one franchised corner of casual dining that has kept expanding is the bar-anchored format, where alcohol carries a share of revenue that a family-dining menu cannot. The [top sports bar franchises](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison) run medians from $1.30M at The Brass Tap to $5.49M at Twin Peaks, on investment ranges that overlap Applebee’s almost exactly. That structural reality matters for buyers. The category as a whole has seen closures exceed openings for most years since 2018. Applebee’s has been a relative outperformer within the franchised casual-dining set, but the category-wide headwinds are real and not cyclical. ## Year-One and Ramp Casual dining ramps faster than membership-driven businesses but slower than QSR. A new Applebee’s in months 1-12 typically generates: - Months 1-3: $130K-$170K monthly revenue (opening burst) - Months 4-6: $120K-$150K monthly revenue (settling) - Months 7-9: $130K-$165K monthly revenue (operations tuning) - Months 10-12: $140K-$175K monthly revenue - Annualized year-one: $1.5M-$2.0M Most new restaurants land at 70-85% of system median in year one. Year two typically reaches the median. Markets with existing Applebee’s density ramp faster; greenfield markets (rare in 2026) ramp slower. Conversion deals — taking over an existing restaurant space, often a closed competitor’s location — typically ramp faster than ground-up builds because the customer base is partially primed for the format. A conversion in a strong trade area can hit the system median in year one. Ground-up builds typically need 18-24 months. ## What This Means for Buyers - **The Item 19 is methodologically clean.** Large sample, recent fiscal year, full franchised system. - **Don’t compare AUV to QSR.** Category margin profile matters. An $1.83M Applebee’s is not the same business as an $1.83M QSR. - **Conversion deals are the dominant new-unit format.** Ground-up builds are rare in 2026 — most new Applebee’s are conversions of closed competitor or other restaurant space. Underwrite to conversion economics, not to ground-up prototypes. - **Multi-unit development is the realistic entry path.** Single-unit applications face structural friction; the brand’s growth strategy favors operators committing to multi-unit development agreements. - **Category headwinds are structural.** Casual dining as a category has been declining for a decade. Applebee’s has outperformed the category but isn’t immune to the category dynamics. For brand-specific cost detail, see the live [Applebee’s franchise page](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc). For broader category context, [top franchise industries for 2026](https://vetmyfranchise.com/c/claude/blog/top-franchise-industries) and our [food and beverage franchise investment guide](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide). ## Brands mentioned in this post - [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) applebeesitem 19casual diningfranchise revenuefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Applebee's Item 19 median revenue? Applebee's most recent Item 19 reports a $1,829,472 median annual gross sales across 1,178 franchised restaurants for fiscal year 2025. ### Why is casual dining different from QSR for franchise economics? Casual dining restaurants have higher labor cost ratios (typically 30-35% of revenue vs QSR's 25-28%), higher cost of goods (30-32% vs QSR's 28-30%), and lower operating margins (typically 8-12% vs QSR's 12-18%). An $1.83M Applebee's produces meaningfully less operating cash flow than an $1.83M Wingstop. The categories aren't comparable on AUV alone. ### How does Applebee's compare to TGI Friday's and Chili's? Applebee's $1.83M median is comparable to other established casual-dining brands. TGI Friday's has historically run similar AUVs; Chili's runs higher AUVs but is mostly company-operated. The franchised casual-dining category has been challenged for a decade with closures exceeding openings system-wide across most brands. ### Is the variable royalty rate negotiable? The 4.5%-7% range reflects structural tiering in development agreements rather than negotiable single-unit rates. Most new single-unit franchisees pay at or near the upper end of the range. Multi-unit operators with significant development commitments can negotiate into the lower end. The variability is structural disclosure, not sales-channel discount. ### Can a new Applebee's hit the median in year one? Year-one new-build revenue typically lands at 70-85% of the system median — $1.28M-$1.55M. Casual dining ramps faster than membership-driven businesses but slower than QSR. Most new restaurants reach steady-state by year two. --- title: "Best EV Charging Franchises 2026: Brands, Costs, Buyer Reality" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-19 dateModified: 2026-07-10 keywords: ev-charging-franchise, electric-vehicle-charging, 4evercharge, franchise-investment, emerging-franchise, infrastructure-franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-ev-charging-franchise-opportunities about: ev-charging-franchise category: blog wordCount: 2483 readingTime: 12 min crawledAt: 2026-08-20 11:02:57 lastVerified: 2026-08-20 11:02:57 site: https://vetmyfranchise.com/c/claude/ --- # Best EV Charging Franchises 2026: Brands, Costs, Buyer Reality ## Summary Best EV charging franchise opportunities in 2026: 4EverCharge, E-Fill Electric, EV Express, ThunderPlus. Investment ranges, real estate model, and why most major charging brands don't franchise. ## Key facts - If you searched “best EV charging franchise” and expected to find Tesla Supercharger or ChargePoint at the top, those brands don’t franchise. - The EV charging franchise landscape splits into three categories. - The single most important framing for EV charging is that the economics are infrastructure economics, not retail franchise economics. - EV charging is one of the most incentivized capital investments available to U. - The single most important operational skill for an EV charging franchise operator is building relationships with host property owners. Quick answer 4EverCharge is the most established EV charging franchise: $103,050-$622,500 total investment per the 2026 FDD, with $150K-$200K liquid capital and $500K net worth required. E-Fill Electric, EV Express, and ThunderPlus round out a young category. Tesla Supercharger, ChargePoint, EVgo, and Electrify America are corporate networks and don't franchise. The best EV charging franchise opportunity in 2026 is [4EverCharge](https://vetmyfranchise.com/c/claude/franchise/4ever-charge-franchising-llc), the most established system in a young category: $103,050-$622,500 total investment per the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) parsed in VetMyFranchise’s database, with $150,000-$200,000 liquid capital and a $500,000 net worth required. E-Fill Electric, EV Express, and ThunderPlus are the other named systems. None of the major charging networks franchise at all. ## The Category Sorting You Have to Do First If you searched “best EV charging franchise” and expected to find Tesla Supercharger or ChargePoint at the top, those brands don’t franchise. Neither does EVgo, Electrify America, or Blink Charging. The four largest U.S. EV charging network operators all run corporate-operated infrastructure businesses. The EV charging franchise opportunities that exist in 2026 are smaller emerging brands (4EverCharge, E-Fill Electric, EV Express, ThunderPlus, and a handful of others) with operating histories measured in years rather than decades. Some have established multi-location franchise systems; others are essentially equipment-distribution arrangements packaged as franchises. The category fundamentals matter more than the brand selection. The U.S. needs an estimated 2.8 million additional EV charging stations by 2031 to meet projected demand, a 15x expansion of the current infrastructure. That demand creates real investment opportunity. The question for buyers is whether the franchise route captures that opportunity better than alternative paths like direct infrastructure investment, host-property partnerships with corporate networks, or independent operation. This post walks through the franchise options that actually exist, the infrastructure-investment framing buyers should use, and how to evaluate the category honestly. ## What’s Available in 2026 The EV charging franchise landscape splits into three categories. **Property-based franchise operators** focus on securing host-property partnerships and placing chargers at those locations. The franchisee doesn’t operate from a fixed brick-and-mortar location; they manage a portfolio of charging stations across multiple host sites (shopping centers, hotels, office buildings, restaurants). | Brand | 2026 Snapshot | | --- | --- | | 4EverCharge | $103,050-$622,500 total investment per the 2026 FDD; $500K net worth required, $150K-$200K liquid capital; property-portfolio model | | E-Fill Electric | DC fast-charging focus; emerging franchise system | | EV Express | Equipment-supplier-franchise hybrid; smaller footprint | | ThunderPlus | Multi-location franchise development; partnership-driven model | For how these capital requirements compare with established franchise categories, the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics) has cross-category medians. **Equipment distribution franchises** are closer to equipment-dealer arrangements than operating franchises. The franchisee buys EV charging equipment from a national supplier and installs and services it for commercial customers in a defined territory. Revenue comes from equipment sales, installation, and ongoing service contracts rather than per-charging-session revenue. **Service-network franchises** focus on the maintenance and operational support side of EV charging: keeping existing networks operational, handling downtime, managing customer issues. These tend to be lower-capital but also lower-revenue franchises. Most viable opportunities in 2026 fall into the first category: property-based operators building portfolios of stations across multiple host properties. ## The Real Economics: Infrastructure Investment, Not Retail Franchise The single most important framing for EV charging is that the economics are infrastructure economics, not retail franchise economics. This changes everything about how you should evaluate the opportunity. **Capital intensity is high.** A single DC fast-charging station (the kind that matters for highway and high-utilization locations) costs $40,000-$140,000+ for the equipment alone. Installation (site work, electrical service upgrades, permitting) often equals or exceeds equipment cost. A meaningful EV charging franchise portfolio of 5-10 fast-charging stations represents $500,000 to $2,000,000+ in equipment and installation before any operating expenses. **Utility infrastructure is the real constraint.** Many ideal EV charging locations don’t have sufficient electrical service capacity to install fast chargers without significant utility infrastructure upgrades. These upgrades can run $50,000 to $500,000+ per location and take 6-24 months to complete. Buyers who don’t factor utility constraint into site selection are blindsided by costs that aren’t in any franchise brochure. **Government incentives reshape the math.** The federal 30% Investment Tax Credit on EV charging infrastructure, combined with state-level incentives and utility programs (which can cover 30-100% of equipment and installation in some markets), materially improves project economics. A site that doesn’t pencil at list-price equipment costs may pencil with the available incentive stack. Build your model with the actual incentives available in your target markets, not generic franchisor pro formas. **Revenue is utilization-driven.** A charging station’s revenue depends on how many vehicles use it per day, what they pay per kWh, and what session fees apply. A station at a busy highway exit with 6-10 daily sessions can generate $50K-$150K+ in annual gross revenue. The same station at a slow location can generate $5K-$15K. Site selection is the dominant predictor of returns. For the broader framework on evaluating [franchise vs real estate investment](https://vetmyfranchise.com/c/claude/blog/franchise-vs-real-estate-investment), the infrastructure parallels are useful: EV charging shares more characteristics with commercial real estate than with operating franchises. ## The Government Incentive Stack EV charging is one of the most incentivized capital investments available to U.S. business buyers in 2026. The incentive stack typically includes: **Federal 30% Investment Tax Credit.** Through the Inflation Reduction Act, qualifying EV charging installations receive a 30% federal tax credit (or 6% baseline with prevailing wage requirements scaling up to 30%, depending on project specifics). This is a direct credit against federal income tax, materially reducing the effective project cost. **State incentive programs.** Many states offer additional grants, rebates, or tax credits stacking on top of the federal credit. California, New York, Texas, and most blue-state EV-promoting jurisdictions have active programs. Specific terms change frequently, so verify current programs in your target state before underwriting. **Utility programs.** Many electric utilities offer rebates or shared-cost programs for EV charging installation as part of grid-modernization or load-management strategy. These programs can cover anywhere from 20% to 100% of installation costs, depending on the utility and the specific program. **Federal NEVI program for highway corridors.** The National Electric Vehicle Infrastructure (NEVI) program funds charging infrastructure along designated federal alternative-fuel corridors. NEVI awards have been made through 2024-2025 with continuing rounds expected through 2026-2027. For most EV charging franchise buyers, the realistic project economics depend more on which incentives stack at the specific sites you target than on the franchisor’s brochure pro forma. Build your model market-by-market, site-by-site. [Get the full EV charging franchise opportunity analysis: $49 single report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ## The Host Property Question The single most important operational skill for an EV charging franchise operator is building relationships with host property owners. The franchisor’s marketing typically emphasizes the operating systems and equipment side, but the dominant driver of franchise success is the host-property pipeline. A property-based EV charging franchise typically works like this: 1. The franchisee identifies a host property (shopping center, hotel, office building, restaurant) that would benefit from on-site EV charging. 2. The franchisee proposes a revenue-share arrangement to the property owner: typically the property owner provides the site and electrical service, the franchisee provides the equipment, installation, and operations, and the two share the per-session revenue. 3. The franchisee installs the equipment, manages utility relationships, handles maintenance, and operates the charger. 4. Revenue from drivers’ charging sessions splits between the franchisee, the property owner, and the franchisor (per the royalty agreement). The franchisee’s job is fundamentally a sales-and-relationship job: convincing property owners to host chargers, negotiating revenue splits that work for both sides, and maintaining ongoing partner relationships as new sites are added to the portfolio. For buyers without commercial real estate or property partnership experience, this is the steepest part of the learning curve. The brand and equipment are commodities; the property relationships are the differentiated asset. ## Who EV Charging Franchises Work For Five operator profiles where EV charging is structurally a fit: **Commercial real estate operators.** Buyers with existing commercial property portfolios or development experience can integrate EV charging into properties they already control, eliminating the host-property partnership-building work that other operators face as their primary growth bottleneck. **Property service operators.** Buyers from commercial maintenance, landscaping, or facility services backgrounds often have existing relationships with the commercial properties that make ideal charging hosts. The relationship pipeline transfers directly. **Capital-stocked patient investors.** EV charging is capital-intensive and operates on infrastructure-investment timelines (5-10 year holds typical). Buyers with patient capital and longer time horizons fit the category. Buyers needing fast cash returns will find the curves discouraging. **Operators with utility-relationship experience.** Electrical contractors, energy consultants, and utility-industry professionals have existing relationships with the utilities whose infrastructure decisions make or break specific project economics. **Geographically focused operators in high-EV-adoption metros.** California, Pacific Northwest, Northeast corridor, Texas major metros, and a few growing Southeast metros have EV adoption rates that support charging infrastructure economics. Operators in low-adoption regions face thinner utilization rates that strain the math. Profiles where EV charging franchises tend to misfit: **Pure retail franchise operators.** The model isn’t a retail operation. Operators expecting customer-facing daily operations and a standard franchise rhythm will find the property-based model very different. **Capital-constrained buyers.** The high capital intensity is real. Buyers stretching to enter the category will find utility infrastructure upgrades and equipment costs strain their reserves. **Operators in low-EV-adoption markets.** Rural and slow-adoption regional markets don’t support the utilization rates that the franchise economics require. **Buyers expecting passive ownership.** The “semi-passive” marketing positioning oversimplifies. Maintenance, downtime, utility relationship management, property partner relationships, and incentive program work all require active operator attention. **Operators uncomfortable with regulatory and policy uncertainty.** The category is being shaped by ongoing policy decisions (federal NEVI program, state-level mandates, utility regulation). Operators uncomfortable with regulatory exposure should look at less policy-dependent franchises. [Compare 3 emerging franchise opportunities side-by-side with the 3-pack: $99 →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## The Honest Risk Assessment EV charging is a real opportunity with real risks that don’t get enough emphasis in franchise marketing. **Technology evolution risk.** Fast-charging technology has evolved rapidly through 2020-2026. Equipment installed in 2022 may already be functionally obsolete by 2028 as charging speeds, plug standards, and grid integration features advance. Operators need to budget for equipment refresh cycles shorter than typical commercial equipment depreciation schedules. **Brand consolidation risk.** Many EV charging brands today won’t exist in five years. The category is in a consolidation phase, with mergers, acquisitions, and brand-restructurings ongoing. Buyers in smaller emerging franchise systems face the risk that the franchisor itself doesn’t survive the consolidation. **Competitive density risk.** As EV adoption accelerates, charging infrastructure density grows. Sites that look uncompetitive today may face direct competitor stations within 1-2 years. Site-selection decisions made on current competitive density may underperform once competitors enter. **Utility rate structure risk.** Demand charges and time-of-use pricing structures on commercial electricity rates significantly affect station economics. Utility rate restructuring through the late 2020s could materially change the operating profit picture for stations underwritten on current rate structures. **Policy reversal risk.** Federal and state incentives could change with future administrations or budget decisions. Stations underwritten with current 30% ITC and state-stacked incentives could face less favorable economics if policy reverses. For the franchise-buyer framework on [emerging franchise systems under 50 units risk](https://vetmyfranchise.com/c/claude/blog/emerging-franchise-under-50-units-risk), the principles apply directly to most current EV charging franchise systems. ## Pre-Signing Diligence for EV Charging The diligence sequence that catches the most failures in this category: 1. **Verify franchisor track record.** EV charging franchises are mostly young. Check Item 1 (franchisor history and corporate parent) and Item 20 (system size and turnover) carefully; both are required disclosures under the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436). Verify that the franchisor has actual operating units, not just franchised territories. The [franchisor acquisition and bankruptcy risk](https://vetmyfranchise.com/c/claude/blog/franchisor-acquisition-bankruptcy-what-happens) framework applies. 2. **Map specific target markets.** Before signing, identify 5-10 specific target host properties in your territory. Verify their utility service capacity, conduct preliminary conversations with property managers, and confirm realistic timeline expectations. 3. **Build your model with real incentives.** Don’t use the franchisor’s national pro forma. Build a site-by-site model using current federal, state, and utility incentives available in your specific target markets. The math varies dramatically. 4. **Verify equipment supply chain.** EV charging equipment supply has been intermittently constrained through 2022-2025. Confirm that the franchisor’s equipment suppliers have reliable delivery timelines and warranty support. 5. **Talk to existing franchisees.** Run validation calls with 5-8 existing franchisees in the system, with emphasis on ramp curve, utility infrastructure surprises, and host-property partnership build-time. Many newer franchise systems have small franchisee networks, so cohort sizes will be limited. 6. **Read the franchise agreement** with attention to equipment-purchase obligations, territory protection, and franchisor change-of-equipment-supplier provisions. Our [guide to key franchise agreement clauses](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) covers the relevant provisions. 7. **Consider the alternatives.** For experienced operators with strong commercial real estate networks, building an EV charging portfolio independently (buying equipment from manufacturers, securing host-property partnerships directly, partnering with networks like ChargePoint as a host rather than franchisee) may be a stronger long-term play than franchising. ## The Final Take EV charging is a credible emerging category with genuine infrastructure-investment opportunity. The franchise route exists but is structurally different from typical retail franchising, closer to commercial infrastructure investment with franchise-system support than to a traditional operating franchise. For capital-stocked buyers with property development, commercial real estate, or utility-industry backgrounds, in growth EV-adoption markets, the category can work. For buyers expecting a standard retail franchise operating model, the structural mismatches will be substantial. The 2.8 million-station U.S. infrastructure gap is real. Capturing it through a franchise opportunity is more complicated than the marketing suggests. Match your operator profile and capital position to the category’s actual shape, do the site-level diligence, and the decision will resolve. Avoid the brands selling “semi-passive recurring revenue” pitches without the operating reality check. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) ev-charging-franchiseelectric-vehicle-charging4everchargefranchise-investmentemerging-franchiseinfrastructure-franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can I franchise a Tesla Supercharger or ChargePoint location? No. Tesla operates its Supercharger network as a corporate infrastructure business and does not franchise. ChargePoint operates as a charging-as-a-service business — they sell equipment and software to property owners and other operators, but they don't franchise the brand itself. The same applies to EVgo, Electrify America, and Blink Charging. If you want to participate in EV charging infrastructure through these brands, the route is typically being a host property (the chargers are installed at your business location, you earn revenue share or fees) rather than a franchisee. ### How much does an EV charging franchise cost in 2026? Costs vary widely depending on the franchise model and equipment type. 4EverCharge requires $500,000 net worth and $150,000-$200,000 liquid capital for franchisees. Smaller emerging brands have lower entry thresholds but less brand recognition. Equipment costs alone for a single Level 3 DC fast charger run $40,000-$140,000+ before installation, while Level 2 chargers cost $2,000-$10,000 per unit. The 30% federal Investment Tax Credit plus state and utility programs significantly reduce out-of-pocket equipment costs in many markets. ### How much can an EV charging station make? Revenue per charging station varies dramatically by location, utilization rate, and pricing model. A high-utilization DC fast charger at a busy highway location with 6-10 active charging sessions per day can generate $50,000-$150,000+ in annual gross revenue. A Level 2 charger at a slower-utilization destination location may generate $5,000-$15,000 annually. Most franchise operators run portfolios of multiple stations across multiple host properties to spread risk and aggregate revenue. ### Is EV charging really a franchise opportunity or is it just infrastructure investing? It's closer to infrastructure investing with franchise-style support than to a traditional retail franchise. The economics depend on real estate (where you place stations), utility infrastructure (grid capacity, demand charges), and capital intensity (equipment, installation, ongoing maintenance) rather than on customer-facing operating skills typical of retail franchising. Buyers should evaluate EV charging through an infrastructure investment lens — payback periods, utilization rates, equipment depreciation — rather than expecting a traditional franchise operating model. ### Is EV charging a good franchise to buy in 2026? It's a credible opportunity for capital-stocked buyers with property development or commercial real estate backgrounds, in markets with strong EV adoption trajectories, who can build host-property partnership pipelines. The category is genuinely growing — the U.S. needs millions more charging stations to meet projected demand. The category is also genuinely uncertain — brand consolidation, technology evolution, and competitive dynamics are still developing. Buyers should match capital and operating expertise to the category's infrastructure-investment shape rather than expecting a typical franchise opportunity. --- title: "Best Franchises for Former Federal Workers (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-08 dateModified: 2026-07-08 keywords: federal workers, career transition, buyer strategy, sba loans, buyout canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-for-laid-off-federal-workers about: federal workers category: blog wordCount: 1730 readingTime: 9 min crawledAt: 2026-08-20 11:02:58 lastVerified: 2026-08-20 11:02:58 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises for Former Federal Workers (2026) ## Summary Franchises for former federal employees: how RIF and buyout skills transfer, top categories, and funding a franchise with a VSIP payout or SBA loan. ## Key facts - The 2025-2026 drawdown of the federal civilian workforce is the largest in a generation. - The first correction to make is about the size of the check. - Federal careers build exactly the muscles that franchise ownership rewards, and they’re different from the ones a sales-driven startup needs. - Franchises split roughly into two operating temperaments. - Five or six categories consistently reward a compliance-and-operations background. Quick answer A VSIP buyout is capped at $25,000 for most agencies ($40,000 for some Defense roles), which typically funds the 10-30% SBA 7(a) equity injection rather than a whole deal. Compliance and program-management skills fit process-driven categories: tax and bookkeeping at $60K-$150K, senior care at $100K-$250K, commercial cleaning at $50K-$200K. ## The Federal Workforce Reduction, in Numbers The 2025-2026 drawdown of the federal civilian workforce is the largest in a generation. It arrived through several channels at once: reductions in force (RIFs) at agencies facing budget or mission cuts, the deferred-resignation program that let employees stop working while collecting pay and benefits through the end of the fiscal year, Voluntary Early Retirement Authority (VERA) for those close to eligibility, and Voluntary Separation Incentive Payments (VSIP) — the classic cash buyout. Reliable running totals are hard to pin down because agencies report separately and the categories overlap, but the combined figure runs well into the hundreds of thousands. What matters for this decision isn’t the headline number. It’s that a large, financially prepared population left government roughly on the same timeline, most of them mid-career, many with a lump-sum payout in hand and management experience that translates better into business ownership than they might expect. If you’re one of them, you’re not starting from zero — you’re deciding where a specific and marketable skill set should go next. ## What a VSIP or Buyout Actually Funds (and What It Doesn’t) The first correction to make is about the size of the check. VSIP is capped at $25,000 for most agencies by statute; a narrower authority lets some Defense positions go up to $40,000. Involuntary RIF separations instead trigger severance based on years of service, which climbs with tenure but is generally capped near one year’s basic pay. The deferred-resignation program paid salary and benefits for a fixed window rather than a lump sum. None of these, on its own, buys a franchise with a build-out or real estate. That reframes the money. A buyout is a bridge and a down payment, not a full budget. The bigger asset most departing employees hold is their Thrift Savings Plan (TSP). You can roll a TSP balance into an IRA or use it as part of an equity injection, but do the math on penalties first: withdrawals before age 59½ generally carry a 10% penalty, with an exception if you separate in or after the year you turn 55 (age 50 for some special-category employees). A FERS deferred annuity and any supplement are separate levers to model. The point is to treat the buyout as one piece of a funding stack — covered in the financing section below — rather than the whole thing. ## Skills That Transfer: Compliance, Program Management, Logistics, Procurement Federal careers build exactly the muscles that franchise ownership rewards, and they’re different from the ones a sales-driven startup needs. - **Compliance and regulatory rigor.** Reading a dense document for what actually binds you, holding an operation to a standard, surviving an audit — that’s the daily work of an FDD review, a health-department inspection, and a franchisor field visit. Contracting officers and compliance specialists read a [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) faster and more skeptically than most first-time buyers. - **Program and project management.** Running multiple workstreams to a deadline is what a franchise launch is: site selection, build-out, hiring, training, and marketing all converging on an opening date. Program managers do this without being told how. - **Procurement and vendor management.** Negotiating a build-out contract, managing suppliers, and holding vendors to scope is procurement work by another name. Federal contracting experience is a direct edge here. - **Logistics and operations discipline.** Scheduling, routing, inventory, and multi-site coordination reward the person who thinks in systems and checklists rather than improvisation. The honest caveat: some of what made you effective in government doesn’t carry over cleanly. Consensus-building across a slow chain of approval is a liability when you need to make a payroll call by Friday. Hourly-labor management is a different discipline from managing a professional team. And the direct-sales rhythm of winning local customers is a muscle most federal roles never built. This is the same transferable-skills-plus-blind-spots pattern that plays out for [engineers leaving tech](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-engineers-leaving-tech) and [corporate executives in career transition](https://vetmyfranchise.com/c/claude/blog/best-franchises-corporate-executives-career-transition) — the categories differ, but the honest self-assessment is identical. ## Franchise Models That Reward Process Discipline Over Sales Hustle Franchises split roughly into two operating temperaments. One rewards the charismatic operator who drives walk-in traffic and manages a floor of hourly staff — quick-service restaurants, small-format retail, most owner-operator food. The other rewards the person who builds a repeatable back-office machine: standardized service delivery, contract renewals, vendor management, and compliance paperwork done right the first time. The federal profile fits the second type. That often points toward a management or [semi-absentee ownership](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) structure, where you run a small operating company — hiring a manager, setting the systems, holding the numbers — rather than working the counter yourself. It’s closer to running a program office than running a store. Just be clear-eyed that “semi-absentee” rarely means hands-off in year one; it means your job is building the system, not executing every shift inside it. ## Categories Worth a Serious Look Five or six categories consistently reward a compliance-and-operations background. The investment ranges below are broad category figures, not brand-specific numbers — treat them as a feel for the tier, and verify current Item 7 in any specific brand’s FDD before you commit. | Category | Why it fits a federal profile | Typical total investment | Model | | --- | --- | --- | --- | | Business & professional services (marketing, printing, coaching) | Documentation, B2B contracting, account management | $75K-$300K | Management | | Senior care (non-medical home care) | Regulatory compliance, scheduling logistics, caregiver management | $100K-$250K | Management / semi-absentee | | Tax & bookkeeping | Deadline discipline, regulatory detail, recurring client work | $60K-$150K | Owner-operator or management | | Commercial cleaning & facilities | Vendor and crew management, B2B contract renewals | $50K-$200K | Management / multi-crew | | Staffing & recruiting | Process-heavy, compliance-bound, relationship-driven | $150K-$300K | Management | | Home services with a management focus (restoration, inspection) | Project management, procurement, multi-crew logistics | $100K-$350K | Management / multi-unit | The through-line is B2B or recurring-revenue work over impulse retail, and a management layer over a solo counter shift. Notably absent: quick-service restaurants and small-format retail. They can be great businesses, but they lean hardest on the two muscles a federal career least develops — high-volume hourly-labor management and walk-in sales. **[Match your background to real franchise categories →](https://vetmyfranchise.com/c/claude/find-my-franchise)** ## Financing: Buyout Lump Sum vs. an SBA Loan Most federal buyers fund a franchise the same way most first-timers do: a stack, not a single source. The [SBA 7(a) loan](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) is the workhorse — it requires the franchisor to appear on the SBA Franchise Directory, and it typically asks for a 10-30% equity injection from you. That injection is where the buyout and TSP come in. | Funding source | Typical role | Watch-out | | --- | --- | --- | | VSIP / severance cash | Part of the SBA equity injection | Capped at $25K (most agencies); taxable in the year received | | TSP rollover | Fills out the equity injection | Early-withdrawal penalty risk before 55/59½ — model it first | | SBA 7(a) loan | 70-90% of the total investment | Personal guarantee; franchisor must be SBA-listed | | Cash reserves | 6-12 months of living expenses | Keep this OUTSIDE the deal, untouched | The trap for a newly separated employee is using the entire buyout — and a chunk of the TSP — as the down payment, then having no runway when unit economics take 12-24 months to mature. Before you model any of this, get honest about the income you actually need the business to replace; our guide on [whether a franchise can replace your salary](https://vetmyfranchise.com/c/claude/blog/franchise-vs-job-replace-salary) walks through that math. One real advantage worth naming: if you’re a veteran as well as a former federal employee, many franchisors waive or discount the initial franchise fee under veteran-incentive programs. There’s no equivalent federal-service discount, so don’t count on one — but the stable-income history on your file does help SBA underwriting. ## Your [Next Step](https://vetmyfranchise.com/c/claude/franchise/next-step-franchising-llc) A federal buyout and a management-grade skill set are a genuinely strong starting position for franchise ownership — stronger than most first-time buyers walk in with. The failure mode isn’t the skills; it’s picking a category that fights them (a restaurant when you’re a program manager) or under-capitalizing because the buyout check felt bigger than it was. Choose a process-driven category, structure the money as a stack with real reserves, and treat the first year as building a system rather than working a shift. Before you sign anything, read the target brand’s FDD the way you’d read a contract you’re accountable for — because you will be. A VetMyFranchise report walks all 23 FDD items, flags the Item 19 earnings math and Item 20 closure trend, and surfaces the clauses worth handing your franchise attorney. **[Get an FDD analysis report →](https://vetmyfranchise.com/c/claude/pricing)** ## Brands mentioned in this post - [Next Step](https://vetmyfranchise.com/c/claude/franchise/next-step-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) federal workerscareer transitionbuyer strategysba loansbuyout About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can I use a federal buyout payment to buy a franchise? Yes — a VSIP or severance payment can fund the down payment (equity injection) on an SBA franchise loan, though it rarely covers a full franchise investment on its own. VSIP is capped at $25,000 for most agencies, and most franchises with build-out or real estate run well past that, so the common structure is buyout cash plus a TSP rollover for the equity injection and an SBA 7(a) loan for the balance. Keep 6-12 months of personal living expenses in reserve outside the deal. ### What franchises fit someone with a government or compliance background? Process-driven, back-office-heavy categories fit best: business and professional services, senior care, tax and bookkeeping, staffing, and commercial cleaning or facilities management. These reward the documentation discipline, vendor management, and regulatory rigor that compliance officers, program managers, and contracting specialists already do daily. Owner-operator restaurants and small-format retail, which live or die on hourly-labor management and walk-in sales, are a weaker fit for most federal profiles. ### Is franchise ownership a good move after a federal layoff? It can be, if you treat it as a 5-10 year operating commitment rather than a fast redeployment of your separation check. Franchise ownership offers a structured system and known unit economics, which suits buyers who value process over improvisation. The risks are real — most franchises take 12-24 months to reach mature cash flow — so it fits federal workers with adequate reserves and realistic income-replacement expectations better than those who need a paycheck next month. ### Do former federal employees get any franchise financing advantages? No — there is no federal-employee-specific SBA program or discount, and franchisors rarely offer government-service incentives (veterans are the exception, with many brands waiving or cutting the franchise fee). What federal candidates do bring is underwriting-friendly history: a stable income record, a documented management track record, and often a TSP balance and buyout lump sum that together cover the SBA equity injection. --- title: "Baskin-Robbins Item 19 2026: $521K Median Decoded" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: baskin-robbins, item 19, ice cream franchise, dessert franchise, franchise revenue, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/baskin-robbins-item-19-deep-dive about: baskin-robbins category: blog wordCount: 1424 readingTime: 7 min crawledAt: 2026-08-20 11:05:17 lastVerified: 2026-08-20 11:05:17 site: https://vetmyfranchise.com/c/claude/ --- # Baskin-Robbins Item 19 2026: $521K Median Decoded ## Summary Baskin-Robbins Item 19: $521K median ($441K P25, $776K P75) across 844 franchised shops. Why the low absolute revenue still works at the low end of the investment range — and where the category headwinds bite. ## Key facts - Baskin-Robbins’ most recent Item 19: - Baskin-Robbins produces a median annual revenue ($521K) that’s roughly a third of comparable QSR concepts. - Baskin-Robbins sits in the middle of the dessert franchise peer set on absolute AUV and ratio. - A new Baskin-Robbins shop in months 1-12 typically generates: - For broader category context, see our [low-cost franchise breakdown](https://vetmyfranchise. Quick answer Baskin-Robbins' 2026 FDD Item 19 reports a $521,177 median annual revenue across 844 franchised shops, with P25 at $440,648 and P75 at $775,806. Total investment runs $307,400 to $626,700 including a $25,000 franchise fee; royalty ranges 0.5% to 5.9% plus a 2.5% to 5.0% ad fund. The AUV-to-investment ratio is roughly 1.1× at the midpoint. ## The Disclosure Baskin-Robbins’ most recent Item 19: | Metric | Value | | --- | --- | | Sample size | 844 franchised shops | | Sample criteria | All franchised units (no tenure filter) | | Median annual revenue | $521,177 | | P25 annual revenue | $440,648 | | P75 annual revenue | $775,806 | | P75/P25 ratio | 1.76 | | Total system units | 976 | | Total investment (Item 7) | $307,400 - $626,700 | | Franchise fee | $25,000 | | Royalty rate | 0.5% to 5.9% | | Ad fund | 2.5% to 5.0% | The disclosure is methodologically conservative: 844 franchised units, no tenure filter, all-franchised cohort. The cohort spread is wider than peers like [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) (1.40 P75/P25) or [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) (similar), reflecting real differences between strong-trade-area and weak-trade-area shops. A buyer in the franchise should expect the site-selection variable to dominate the eventual outcome. The royalty structure is unusual: a 0.5% to 5.9% range. The variable royalty rate is typically tied to specific product categories (ice cream vs. cake vs. beverages) and franchise agreement terms negotiated at different historical points. New franchise agreements tend toward the higher end of the published range; legacy agreements (franchisees who acquired shops decades ago) often sit lower. ## Why the Absolute Revenue Is Low — and Why It Still Works Baskin-Robbins produces a median annual revenue ($521K) that’s roughly a third of comparable QSR concepts. Three structural reasons explain this: **Lower customer frequency.** A Baskin-Robbins customer visits an average of perhaps 8-12 times per year. A Dunkin’ customer visits 50-150+ times per year. Frequency drives volume; volume drives AUV. Ice cream is treat-frequency, not meal-frequency. **Lower average ticket.** Typical Baskin-Robbins transaction runs $7-$12 (a couple of scoops, a sundae, or a quart). Typical meal QSR ticket is $12-$18 or more. The product itself has structurally lower ticket size. **Narrower daypart.** Baskin-Robbins skews heavily to afternoon, evening, and weekend traffic. Morning hours produce minimal revenue (the brand has experimented with breakfast and coffee tie-ins with limited success). Compare to a multi-daypart QSR that captures breakfast, lunch, afternoon snack, and dinner. The reason the deal still works is that **the investment scales down with the revenue**. A $307K-$627K investment range is meaningfully lower than [Dunkin’](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ($501K-$1.95M), [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) ($342K-$1.0M at the new range), or most fast-casual concepts. At the low end of the Baskin-Robbins range, the AUV-to-investment ratio is competitive even with the modest absolute revenue. The deal is a low-revenue, low-investment, low-complexity franchise. It’s not going to make anyone rich, but for an operator who prefers simpler operations and lower capital risk, it produces real cash flow at acceptable returns. The single biggest revenue-mix differentiator among Baskin-Robbins shops is the cake business. Shops with strong custom-cake and decorated-cake programs can do $100K-$200K of incremental annual revenue from cakes alone — the difference between the P25 ($441K) and the median ($521K) is largely explained by cake mix. The cake business has favorable economics on top of the revenue impact: - Higher contribution margin than scoops (less perishability waste, higher pricing power per labor hour) - Drives event-based traffic (birthdays, holidays, celebrations) - Captures higher household-share of spend (vs. impulse ice cream purchases) - Creates customer relationships that drive repeat visits in non-event occasions For a buyer, the implication is that **the cake business is the lever you can pull**. Brand standards include cake programs, but the operating intensity an owner-operator puts behind cake sales (local marketing, event-occasion targeting, retail merchandising) varies widely across the system. The P25-to-P75 spread is largely the cake-execution spread. ## How Baskin-Robbins Compares to Ice Cream / Dessert Peers | Brand | Sample | Median AUV | Investment | AUV/Investment | | --- | --- | --- | --- | --- | | Baskin-Robbins | 844 | $521K | $307K-$627K | 1.1× | | Crumbl | 858 | $1.09M | $574K-$818K | 1.6× | | Cold Stone Creamery | larger | $400K-$600K (est.) | $315K-$500K | 1.3× | | Dairy Queen | larger | $700K-$1.2M (est.) | $1.1M-$2M | 0.7× | | Ben & Jerry’s Scoop Shop | smaller | $400K-$700K (est.) | $200K-$450K | 1.5× | | Carvel | smaller | $400K-$600K (est.) | $300K-$500K | 1.3× | Baskin-Robbins sits in the middle of the dessert franchise peer set on absolute AUV and ratio. [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) is the standout — higher revenue and stronger ratio — but [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) is in a different category (warm cookies, dine-out occasion) with different operating intensity. The traditional ice cream subcategory (Baskin-Robbins, Cold Stone, [Carvel](https://vetmyfranchise.com/c/claude/franchise/carvel-franchisor-spv-llc)) has converged on similar economics: modest absolute revenue, modest ratios, simpler operating model than meal QSR. For deeper category context, see our [Crumbl Item 19 cohort analysis](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) and broader [guide to low-cost franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k). ## Year-One Reality A new Baskin-Robbins shop in months 1-12 typically generates: - Months 1-3: $30K-$45K monthly revenue (opening, awareness build, first event-cake season) - Months 4-6: $32K-$48K monthly revenue (normalizing, summer peak begins) - Months 7-9: $35K-$52K monthly revenue (summer peak, repeat customer cycle) - Months 10-12: $28K-$42K monthly revenue (off-season normalize) - Annualized year-one: $340K-$420K That’s 65-80% of the system median. Baskin-Robbins ramps faster than most franchises because: 1. The brand has 60+ years of U.S. market presence — awareness is already established in most trade areas 2. The category (ice cream, novelties) is a low-consideration purchase with minimal customer switching cost 3. Seasonal traffic patterns (summer surge, holiday cake season) create natural marketing moments Year two typically reaches the system median or close to it. The shops that materially exceed the median (P75 territory at $776K+) are those with strong cake-program execution, high-foot-traffic locations, and operators who treat the shop as a community-event business rather than a passive retail format. ## What This Means for Buyers - **The median is achievable but unremarkable.** $521K is modest absolute revenue. The deal works because the investment scales down with it — not because the revenue is impressive. - **Underwrite at the low end of investment.** A $320K-$370K conversion site produces materially better unit economics than a $580K-$620K full-build site at the same revenue. The brand-strength advantage is in the site-selection optionality more than in raw AUV. - **The cake business is the lever.** P25-to-P75 spread is largely cake-execution spread. Operators who under-invest in the cake program land at P25; operators who treat cakes as their primary growth lever land at P75+. - **Category headwinds are real but slow.** Traditional ice cream has lost some occasion share to newer dessert formats ([Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc), Insomnia Cookies, premium frozen yogurt). The category is not collapsing, but it’s not growing either. Site selection now matters more than in the brand’s growth-era decades. - **Operator profile fits semi-passive ownership.** Multi-unit operators, owners with day-job income, and partnerships often run Baskin-Robbins better than owner-operator setups — the operating complexity is low enough that absentee or semi-absentee models work. For broader category context, see our [low-cost franchise breakdown](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) and [Item 19 average vs. median](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias). For brand-specific cost detail, the live [Baskin-Robbins franchise page](https://vetmyfranchise.com/c/claude/franchise/baskin-robbins-franchising-llc). ## Brands mentioned in this post - [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) baskin-robbinsitem 19ice cream franchisedessert franchisefranchise revenuefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Baskin-Robbins' Item 19 median revenue? Baskin-Robbins' most recent Item 19 reports a $521,177 median annual revenue across 844 franchised shops. P25 is $440,648 and P75 is $775,806. The disclosure covers all franchised units with no tenure filter — methodologically conservative. ### Why is Baskin-Robbins' median so much lower than QSR peers? Baskin-Robbins is a dessert-and-treat business, not a meal business. Customer transaction frequency is lower (occasional treat vs. daily meal), average ticket sizes are lower ($8-$12 vs. $12-$18 for meal QSR), and the dayparts are narrower (afternoon/evening skew). The brand has improved cake and ice-cream-cake mix in recent years to lift ticket and capture event spending, but the structural ceiling is lower than a meal-driven QSR like Dunkin' or McDonald's. ### Is Baskin-Robbins' AUV-to-investment ratio strong? At the midpoint, it's modest. $521K of median revenue against $467K of investment (Item 7 midpoint) produces a ratio of roughly 1.1×. The ratio improves at the low end of the investment range — a $300K-$350K conversion site against $521K of revenue produces a 1.5× ratio, which is competitive for low-investment franchises. The deal economics depend heavily on site selection and absolute investment level. ### Can a new Baskin-Robbins hit the $521K median in year one? Often yes — Baskin-Robbins' mature system, established brand recognition, and seasonal customer patterns mean new shops ramp faster than most franchise concepts. Year-one revenue typically tracks 65-80% of the system median ($340K-$420K), but a strong site in a high-foot-traffic location can hit or exceed median by month nine. The brand's 60+ years of trade-area presence in many U.S. markets reduces awareness-build time. ### What's the typical Baskin-Robbins Item 7 investment? Item 7 reports a total initial investment range of $307,400 to $626,700. The franchise fee is $25,000. Royalty runs 0.5% to 5.9% (typically tied to product mix and term); ad fund contribution runs 2.5% to 5.0%. The low end of the investment range is one of the lower entry points among national franchise brands of this scale. --- title: "Single-Unit vs Area Developer vs Master Franchise — Which Structure Fits Your Capital?" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Research publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-05-27 keywords: area development agreement, single-unit franchise, multi-unit franchise, master franchise, subfranchising, franchise investment canonical: https://vetmyfranchise.com/c/claude/blog/area-development-agreement-vs-single-unit-franchise about: area development agreement category: blog wordCount: 2512 readingTime: 13 min crawledAt: 2026-08-20 11:03:02 lastVerified: 2026-08-20 11:03:02 site: https://vetmyfranchise.com/c/claude/ --- # Single-Unit vs Area Developer vs Master Franchise — Which Structure Fits Your Capital? ## Summary Compare single-unit, area development, master franchise, and subfranchising structures. Covers capital, royalty math, territory rights, and which path fits your goals. ## Key facts - An area development agreement is a contractual commitment to open a specified number of franchise units within a defined geographic territory over a fixed timeframe. - The economics diverge from single-unit purchases in several important ways. - An area development agreement is the right vehicle when several conditions align simultaneously. - If you’re a first-time franchisee with $150K in liquid capital, your priority is learning the business, not scaling it. - Three FDD sections matter most before signing any area development agreement. Quick answer An area development agreement commits you to open 3-5 units on a fixed schedule for a $100K-$300K development fee, versus a $25K-$50K single franchise fee for one location. ADAs cut per-unit franchise fees 25-50% and grant exclusive territory, but roughly 30% of area developers miss their development schedules. The pitch sounds compelling. Sign one agreement, lock down an entire metro area, and build a portfolio of franchise locations on your own timeline. Area development agreements promise scale, exclusivity, and discounted fees. But they also carry obligations that can turn a solid investment into a financial trap if your assumptions are wrong. Before committing to an ADA — or defaulting to a single-unit purchase because it feels safer — you need to understand exactly what each structure demands and delivers. The right choice hinges on three numbers: your liquid capital, your unit-1 profitability track record, and the length of the development schedule. ## What an Area Development Agreement Actually Is An area development agreement is a contractual commitment to open a specified number of franchise units within a defined geographic territory over a fixed timeframe. You sign one overarching agreement that obligates you to hit development milestones — typically one new unit every 12-18 months — and in exchange, the franchisor grants you exclusive development rights in that territory. This is distinct from a [multi-unit franchise ownership structure](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) where you might simply open additional units opportunistically. An ADA is binding. You agree to open, say, 5 units in the Dallas-Fort Worth metroplex over 48 months. Unit one opens by month 12, unit two by month 24, and so on. Miss a deadline, and you face consequences ranging from territory reduction to full agreement termination. Each individual unit still requires its own franchise agreement, signed at the time of opening. The ADA is the master commitment; the unit franchise agreements govern day-to-day operations, royalty payments, and brand standards for each location. ## How ADA Fee Structures Work The economics diverge from single-unit purchases in several important ways. **ADA development fee.** You pay an upfront lump sum that covers (or partially covers) franchise fees for all committed units. A franchisor charging $45,000 per single-unit franchise fee might offer a 5-unit ADA for $150,000 — a 33% discount per unit. This fee is typically non-refundable. If you open 3 of 5 units and terminate, you do not recover the portion allocated to unopened units. **Per-unit fees at opening.** Some franchisors collect a reduced franchise fee at ADA signing and then charge a smaller per-unit fee (often $10,000-$20,000) when each unit franchise agreement is executed. Others collect everything upfront. **Ongoing royalties and advertising fees.** These are identical to single-unit operators — typically 4-8% of gross revenue for royalties and 1-3% for brand advertising funds. ADAs do not usually discount ongoing fees. Review Item 5 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) closely. It breaks down initial franchise fees, development fees, and any fee credits or adjustments for multi-unit commitments. The math needs to work on a per-unit basis, not just in aggregate. ## ADA vs Single-Unit: A Direct Comparison | Dimension | Area Development Agreement | Single-Unit Franchise | | --- | --- | --- | | Upfront cost | $100K-$300K+ development fee for 3-5 units | $25K-$50K single franchise fee | | Territory exclusivity | Exclusive territory for duration of ADA compliance | Limited or no territorial protection | | Development timeline | Fixed schedule with contractual deadlines | Open when ready, no external pressure | | Flexibility to exit | Difficult — forfeiture of prepaid fees, possible damages | Standard transfer/termination provisions | | Fee discounts | 25-50% reduction in per-unit franchise fees | Full franchise fee per location | | Risk level | High — capital committed across multiple units | Moderate — exposure limited to one location | | Operational complexity | Multi-site management from day one (by unit 2) | Single-location focus | | Financing | Lenders want total capitalization proof upfront | SBA and conventional loans for one buildout | | Territory protection | Strong, contingent on schedule compliance | Varies — check Item 12 carefully | | Negotiating power | Higher — you represent significant revenue | Lower — one unit among hundreds | ## When an ADA Makes Sense An area development agreement is the right vehicle when several conditions align simultaneously. Start with capital. If you have $500K liquid and want to build a 5-unit QSR portfolio over 4 years, an ADA lets you lock in fee discounts and protect your territory while scaling methodically. You need enough capital to fund each buildout (typically $250K-$500K per QSR unit) through a combination of cash and SBA financing without straining your reserves. Market knowledge matters just as much. ADA holders who succeed tend to have deep familiarity with their target market — real estate patterns, labor availability, customer demographics, competing brands. They can identify viable sites quickly and avoid the 6-month delays that derail development schedules. Prior multi-unit operational experience is nearly essential, too. Managing two or more locations requires systems that single-unit operators never build: district-level management, centralized hiring, multi-site inventory coordination, and financial reporting across entities. Finally, the territory itself needs to support the unit count. Five units in a metro area of 200,000 people may cannibalize each other; five units across a metro of 1.5 million with mapped trade areas is a different calculation entirely. Understanding [franchise territory rights](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) is essential before committing to a multi-unit footprint. ## When Single-Unit Is the Smarter Play If you’re a first-time franchisee with $150K in liquid capital, your priority is learning the business, not scaling it. A single unit lets you understand unit economics, build operational competence, and validate the brand in your market — all without a development schedule breathing down your neck. After 18-24 months of profitable operation, you can pursue additional units through a fresh ADA negotiation with far more standing and knowledge. The calculus also favors single-unit if the market is unproven. If the franchisor has no existing units within 200 miles of your target territory, you are the test case. Committing to 5 units in an unproven market magnifies risk substantially. Open one, prove the concept, then expand. Exit flexibility is another consideration. Single-unit franchise agreements are simpler to transfer. You can sell the location, assign the lease, and move on. An ADA complicates exits because the development obligation transfers to the buyer (or doesn’t, depending on the agreement), and finding a buyer willing to assume a multi-unit build schedule narrows your market significantly. ## High-Stakes FDD Items for ADA Buyers Three FDD sections matter most before signing any area development agreement. **Item 12 — Territory.** This defines your exclusive territory boundaries, any carve-outs (airports, stadiums, military installations), conditions under which exclusivity can be revoked, and whether the franchisor can modify boundaries. Some Item 12 disclosures reveal that “exclusive” territory is contingent on meeting 100% of development milestones with zero tolerance for delays. Others provide cure periods and modification options. The difference matters enormously. Dig into the specifics of [territory protection provisions](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) before you sign. **Initial Fees (Item 5).** Beyond the ADA development fee, look for per-unit opening fees, technology fees, training fees for subsequent units, and any fee escalation clauses tied to inflation or system-wide adjustments. Calculate the total all-in cost per unit under the ADA versus the single-unit route. Sometimes the “discount” evaporates when supplemental fees are factored in. **[Item 17](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination) — Renewal, Termination, Transfer, and Dispute Resolution.** This is where you find out what happens when things go sideways. Key questions: Can the franchisor terminate the ADA but leave individual unit agreements intact? What constitutes a curable vs. non-curable default? Is there a right of first refusal on transfers? Are you personally guaranteeing the development obligation even if you operate through an LLC? Understanding [the key clauses in a franchise agreement](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) at this stage can save hundreds of thousands of dollars. ## Negotiation Points Most Buyers Miss ADAs have more negotiable terms than most buyers realize, precisely because the franchisor is selling multiple units in a single transaction. **Development schedule extensions.** Push for automatic 90-180 day extensions triggered by documented permitting delays, force majeure events, or franchisor-caused delays (like slow site approval). This single provision can prevent an ADA termination over circumstances outside your control. **Partial termination rights.** Negotiate the ability to reduce your unit commitment (from 5 to 3, for example) with a proportional refund of prepaid development fees, rather than facing an all-or-nothing forfeiture. **Credits for early openings.** If you open ahead of schedule, negotiate reduced royalty rates for the first 6 months of each location or credit toward advertising fund contributions. **Right to sub-franchise.** In some systems, ADA holders can bring in operating partners for individual units while retaining the development rights and territorial exclusivity. This dramatically reduces your operational burden while preserving the financial structure. ## Master Franchise: Owning the Right to Sub-Franchise an Entire Region Master franchising is a fundamentally different structure from the ADA-vs-single-unit choice — and one most US-domestic buyers will never encounter. A master franchisee buys the exclusive right to develop and sub-franchise a brand within a defined country or region, then sells unit-level franchise agreements to individual operators inside that territory. The master sits between the brand and the unit operator, acting as a quasi-franchisor for the region. **Typical capital range.** $500K-$5M+ depending on region size, brand maturity, and projected unit count. Some global QSR master franchise rights for major countries have closed at $25M+. **Royalty share.** The master typically keeps 40-60% of the royalty stream generated by units within their region and remits the balance to the brand. They also collect a portion of the initial franchise fees their sub-franchisees pay. This is what makes the structure work financially — the master is building a long-duration royalty annuity, not running individual stores. **Where it shows up.** Master franchising is overwhelmingly used for international expansion — a US brand entering APAC, Europe, LatAm, or the Middle East. It is rare for new master rights to be granted inside the US domestically because most US brands already operate nationally through ADAs and area representative structures. **Pros.** Scaled royalty cash flow, regional brand-builder role, often near-permanent territorial rights, and the ability to bring in operating partners at the unit level without giving up the underlying agreement. **Cons.** Very high capital outlay, deep brand-dependency risk (if the brand stumbles, your entire regional investment stumbles with it), complex multi-party legal agreements often spanning two countries’ franchise laws, and a very thin secondary market when you want to exit. Master franchise rights are also frequently subject to development quotas similar to ADAs — miss them, and the brand can claw back unsold territory. ## Subfranchising: When a Single-Unit Operator Resells Sublicenses Subfranchising is a contractual right — not a structure — and it is often misunderstood. A subfranchising right allows a franchisee with a unit-level franchise agreement to grant sublicenses to other operators who run individual locations under the same brand. The original franchisee remains the contractual counterparty to the franchisor; the sublicensee operates under the original franchisee’s authority. **Capital.** Minimal additional outlay beyond the original franchise agreement. The value is in the resale of sublicenses, not in building infrastructure. **How it works in practice.** Most modern franchise agreements explicitly prohibit subfranchising. The right typically only appears in legacy agreements, certain area development agreements, or master franchise contracts. Some B2B service brands and some international brands carve out the right deliberately as a growth lever. **Buyer warning.** Subfranchising rights are NOT a default. If you assume you can later sublicense units without reading Item 17 carefully, you may sign yourself into a structure that gives you none of that flexibility. Verify the right exists in writing, and confirm whether the franchisor’s consent is required for each sublicense. ## All Four Structures Compared | Structure | Typical Capital | Term | Exit Liquidity | Brand Control | Royalty Math | | --- | --- | --- | --- | --- | --- | | Single-Unit | $25K-$50K franchise fee + $150K-$500K buildout | 10 years (typical) | High — standard transfer provisions | Franchisor sets standards, operator runs unit | 4-8% royalty + 1-3% ad fund on gross | | Area Development Agreement | $100K-$300K dev fee + capital for all committed units ($500K-$1.5M+) | Tied to development schedule (3-7 years) | Moderate — ADA obligation transfers with sale | Franchisor sets standards across all your units | Same per-unit royalty + ad fund as single-unit | | Master Franchise | $500K-$5M+ for regional rights | 10-25 years, often renewable | Low — thin secondary market, requires brand approval | Master is the regional brand authority | Master keeps 40-60% of royalty stream from sublicensed units | | Subfranchising (right) | Minimal incremental — embedded in existing agreement | Same term as underlying FA | Depends on underlying agreement transferability | Operator passes brand standards down to sublicensees | Original franchisee collects from sublicensee; remits portion to brand per agreement | ## ADA or Single Unit: The Decision Framework An area development agreement is a capital deployment strategy, not just a franchise purchase. It also commits substantial capital to a fixed schedule with limited exit options and real penalties for underperformance. If you have the capital depth, market knowledge, and operational bandwidth to execute a multi-unit build, an ADA offers advantages that single-unit purchases cannot match. If any of those three elements is uncertain, start with a single unit, prove the model, and negotiate your ADA from a position of strength rather than speculation. Evaluate your [SBA financing options](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) thoroughly before committing either way — the capital structure you choose will shape your risk profile as much as the agreement type itself. Ready to compare franchise territory rights and fee structures? [Browse franchise FDD analyses on VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises) to review Item 12 territory data and Item 5 fee disclosures before signing any agreement. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) area development agreementsingle-unit franchisemulti-unit franchisemaster franchisesubfranchisingfranchise investment About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What happens if I miss a deadline in my area development schedule? Most ADAs include cure periods of 30-90 days, but consequences vary sharply by franchisor. Common penalties include loss of exclusivity in your territory (the franchisor can sell to other franchisees in your area), reduction of your remaining territory, or outright termination of the ADA — forfeiting any prepaid development fees. Some franchisors allow negotiated extensions for documented delays like permitting holdups. Review Item 17 of the FDD carefully and negotiate cure provisions before signing. ### Can I sell individual units from my area development agreement? It depends on how the ADA is structured. Most agreements allow transfer of individual unit franchise agreements with franchisor approval, but the ADA itself — including the obligation to open remaining units — typically stays with you. Some franchisors require that all units be sold together or that the buyer assume the remaining development schedule. Transfer fees usually run $5,000-$15,000 per unit, and the franchisor almost always retains a right of first refusal. ### How much capital do I need for an area development agreement? Beyond the ADA fee itself (often $75K-$200K for a 3-5 unit commitment), you need verified liquid capital to fund each unit as it opens. Franchisors typically require proof of total liquid assets covering all committed units — commonly $250K-$750K for a 5-unit QSR deal and $500K-$1.5M for a 5-unit full-service concept. SBA 7(a) loans can cover up to 80% of per-unit buildout, but lenders want to see 20-30% equity injection per location. ### Do area developers get exclusive territory protection? ADAs almost always grant territorial exclusivity — but only for the duration of the agreement and only if you maintain compliance with the development schedule. Once you miss a deadline and the cure period lapses, most franchisors can revoke exclusivity or shrink your territory. The specific boundaries, population thresholds, and exclusivity conditions are detailed in Item 12 of the FDD. Some agreements carve out exceptions for non-traditional venues like airports, universities, or military bases even within your exclusive territory. ### Should a first-time franchisee consider an area development agreement? Rarely. Operating your first franchise location involves a steep learning curve — staffing, local marketing, vendor management, lease negotiations — that takes 12-18 months to internalize. Committing to a multi-unit development schedule before you have validated the business model in your specific market adds substantial financial risk. A stronger approach: open a single unit, operate it for 18-24 months, and then negotiate an ADA for additional units once you understand your unit economics and operational capacity. ### What's the difference between a master franchise and subfranchising? A master franchise grants exclusive rights to develop and sub-franchise an entire region or country — the master franchisee acts as a quasi-franchisor within their territory and typically retains 40-60% of royalty revenue from sublicensed units. Subfranchising, by contrast, is a contractual right occasionally granted to single-unit operators or area developers allowing them to sublicense individual units to operating partners while keeping the underlying franchise agreement. Master franchising is a business model; subfranchising is a clause. Most modern franchise agreements prohibit subfranchising outright — verify Item 17 carefully before assuming the right exists. --- title: "Aspen Dental vs Heartland Dental: Ownership Models Compared (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-07-10 keywords: aspen-dental, heartland-dental, dso-franchise, dental-franchise, franchise-comparison canonical: https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise about: aspen-dental category: blog wordCount: 1764 readingTime: 9 min crawledAt: 2026-08-20 11:05:08 lastVerified: 2026-08-20 11:05:08 site: https://vetmyfranchise.com/c/claude/ --- # Aspen Dental vs Heartland Dental: Ownership Models Compared (2026) ## Summary Aspen Dental vs Heartland Dental compared: neither is a franchise. DSO/PSO investment, doctor-owner economics, exit liquidity, and which model fits in 2026. ## Key facts - A dentist with $1. - Numbers reflect public reporting as of 2026 and vary year to year. - A dentist running a $2. - Aspen Dental fits the dentist who wants a turnkey practice with the marketing engine already built, particularly someone moving to a new market with no existing patient base, where the national brand and walk-in volume model carries real weight. - Heartland Dental fits the dentist who is acquiring an existing successful practice and wants back-office infrastructure without rebranding the front door. Quick answer Neither is a franchise: Aspen Dental is a PSO supporting roughly 1,000+ dentist-owned locations and Heartland Dental a DSO with roughly 2,000+ affiliated practices as of 2026, and neither files an FDD. Expect $400K-$1.1M to open de novo, plus 4-7% management fees on collections. Pick Aspen for brand-driven volume, Heartland for practice identity and exit liquidity. ## Two DSOs, One Decision That Will Define Your Next 15 Years A dentist with $1.5M of investable capital walks into a discovery day with a clear question: should I buy into Aspen Dental, Heartland Dental, or build my own practice? The broker pitching either brand will not give you a clean comparison. They are paid by one side. So here is the comparison that should exist somewhere on the open web, written for the dentist-buyer, not the brand’s marketing team. Both Aspen Dental and Heartland Dental are Dental Support Organizations (DSOs). Neither is a franchise. Aspen Dental supports practices through a franchise-style ownership model under its PSO structure, while Heartland Dental affiliates with practices through management agreements and employment; it does not sell franchises or file an [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). Both require a licensed dentist to own the clinical entity. The differences are everything that happens after that. ## The 60-Second Structural Difference | Dimension | Aspen Dental | Heartland Dental | | --- | --- | --- | | Structure | PSO (Professional Services Org) supporting dentist-owned practices | DSO supporting affiliated practices, more decentralized brand identity | | Network size | ~1,000+ supported locations (PSO model) | ~2,000+ supported practices | | Brand visibility | National TV / digital marketing, walk-in volume model | Less consumer-facing brand; practice identity often preserved | | Doctor autonomy | Lower (strong brand and operational templating) | Higher (practice retains its name and clinical style in many cases) | | Typical de novo investment | $400K-$1.1M | $400K-$1M+ (de novo); $1.5M+ for affiliated buy-in | | Best fit | Dentist who wants turnkey, brand-driven volume | Dentist who wants scale support without losing practice identity | Numbers reflect public reporting as of 2026 and vary year to year. Always verify in the current documents. Our [Aspen Dental cost breakdown](https://vetmyfranchise.com/c/claude/blog/aspen-dental-franchise-cost) walks through the PSO mechanics in detail; [personal guarantees](https://vetmyfranchise.com/c/claude/blog/franchise-personal-guarantee-explained) and [territory protection](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) each have their own guides. ## The Real Take-Home Math (Where Most Dentist-Buyers Get Blindsided) A dentist running a $2.5M-collections practice with no DSO would expect $400K-$700K of owner take-home depending on payer mix, staff costs, and how much of the dentist’s own production is in that $2.5M. Plug the same practice into either DSO and the math changes: - Management/royalty fee on collections (4-7%): $100K-$175K - Brand and marketing fee (typically 1-3%): $25K-$75K - Technology/platform fees: $10K-$30K - Other shared-services costs: variable That is roughly $135K-$280K of collections going to the DSO before the dentist takes a dollar. Net to the doctor-owner is then driven by whether the DSO’s marketing scale, supply pricing, and back-office efficiency offset that drag. Heartland’s larger network and longer maturity often produces real procurement savings; Aspen’s national brand drives top-of-funnel volume that an independent practice would have to buy through Google Ads at higher CAC. Whether the trade is worth it depends entirely on the local market. In a metro with weak organic patient flow, the Aspen marketing engine can pay for itself. In a market where the dentist already has community standing, Heartland’s lighter brand touch and lower marketing drag may net more. ## When Aspen Dental Is the Right Pick Aspen Dental fits the dentist who wants a turnkey practice with the marketing engine already built, particularly someone moving to a new market with no existing patient base, where the national brand and walk-in volume model carries real weight. The right buyer is comfortable operating inside a strong central template, values predictable patient flow over relationship-driven referral work, and would rather follow a clearly defined operating playbook than spend years designing their own. ## When Heartland Dental Is the Right Pick Heartland Dental fits the dentist who is acquiring an existing successful practice and wants back-office infrastructure without rebranding the front door. The model rewards owners who want to preserve their practice’s clinical identity and style while still pulling in centralized billing, procurement, HR, and marketing scale. It works best for more entrepreneurial doctor-owners who value optionality in how the practice grows and are comfortable operating inside a larger but less centrally directed platform. ## Side-by-Side: Use the FDD Framework Before Anything Else Neither DSO sells franchises, so there is no Aspen Dental or Heartland Dental FDD to pull. But the FDD framework, the disclosure format the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) imposes on actual franchisors and the same 12-section structure behind VetMyFranchise’s analysis of 2,000+ FDDs, is still the sharpest due-diligence checklist for a DSO deal. Ask each organization for the documents that answer the same questions, in this order: 1. **Item 5 (Initial Fees)**: confirm the initial/affiliation fee and any equipment-package fees. See [our Item 5 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure) for what to look for. 2. **Item 6 (Other Fees)**: this is where management, marketing, technology, and royalty fees live. Most dentist-buyers skim this. Read every line. [Our Item 6 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) covers the framework. 3. **Item 7 (Estimated Initial Investment)**: total investment range. Don’t anchor on the low end. [Our Item 7 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) shows how to stress-test it. 4. **Item 17 (Renewal & Termination)**: exit mechanics, transfer restrictions, rights of first refusal. This determines your eventual exit. [Our Item 17 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination) is the deep-dive. 5. **Item 19 (Financial Performance)**: the only legal disclosure of franchisee-level financials, if presented. Compare what each DSO discloses, and what they decline to disclose. [Our Item 19 red flags guide](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data) lays out the common tricks. > **Benchmark against real franchise FDDs.** Neither DSO files an FDD, but reading each management agreement against how three actual franchisors disclose fees, transfer rights, and financial performance is the fastest way to spot what a DSO contract leaves out. Our [$99 3-pack](https://vetmyfranchise.com/c/claude/buy/3-pack) covers the franchise side: three FDDs analyzed and compared on the same scoring rubric. ## Exit Liquidity: The Quiet Differentiator A dentist’s wealth event is the exit, not the operating years. Both DSOs control exit through the management agreement: right of first refusal, restrictions on who you can sell to, valuation methodology, and consent rights over any buyer. Heartland Dental’s 2,000+ practice network creates more comparable transactions, more potential buyers within the platform, and historically stronger multiples on EBITDA at exit. The platform itself has been the subject of private-equity recapitalizations, which can periodically create liquidity events for affiliated doctors. The 2018 KKR transaction and subsequent ownership rounds are public information worth studying. Aspen Dental’s PSO structure is tighter. Exit options for an Aspen Dental doctor are largely defined by the PSO’s consent and pricing framework. The brand’s scale supports the platform, but individual practice exits don’t always translate to independent-practice valuations. This single difference, the exit multiple, can outweigh several years of operating fee drag. Run the model with a 10-year horizon and an honest exit-multiple assumption before signing either deal. ## Litigation and Track Record Both brands have litigation history typical of large healthcare platforms. The relevant question is not whether litigation exists but what it reveals about the platform-doctor relationship. Patterns of disputes over patient billing, doctor recruitment promises, and management fee calculations are the meaningful signal. [Our Item 3 litigation guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research) walks through how to read Item 3 disclosures without panicking at boilerplate cases. ## The Decision Framework If you’re a dentist with $1.5M+ in liquid capital and you’re choosing between Aspen Dental and Heartland Dental, the order of questions is: 1. Do I want to keep my practice identity or buy into a national brand? → Heartland for identity, Aspen for brand. 2. What does my market look like for organic patient flow? → Strong organic = Heartland; weak organic = Aspen. 3. What is my honest 10-year exit goal? → Higher exit multiple potential = Heartland; operational support priority = Aspen. 4. How much do I value clinical autonomy day-to-day? → High autonomy = Heartland; templated playbook = Aspen. 5. Have I read every fee line in both management agreements? → If not, you’re not ready to sign either. Most dentist-buyers I’ve watched go through this decision spent the discovery-day cycle on the wrong axes: they fixated on initial investment dollars when the operating fee structure and exit mechanics matter ten times more. ## What to Do This Week 1. Request the current Aspen Dental and Heartland Dental management agreements and fee schedules. 2. Use FDD Items 5, 6, 7, 17, and 19 as the checklist and compare the equivalent terms side-by-side. Make notes on the differences. 3. Talk to at least 5 existing dentist-owners at each brand. Ask about fee creep, exit experiences, and what they would do differently. The script in [our franchisee validation guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) works for both DSOs. 4. Run the 10-year model with an honest exit-multiple assumption, not the marketing deck’s number. 5. Have a dental-industry-experienced attorney review the management agreement. [Our franchise attorney guide](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) covers what to insist on. Don’t sign anything until all five are done. The deal is too big and the structure too restrictive to skip steps because the broker is pushing for an end-of-quarter close. > Compare 3 FDDs side-by-side with our [$99 3-pack](https://vetmyfranchise.com/c/claude/buy/3-pack): the fastest way to see how real franchisors disclose the fees and exit terms a DSO agreement can bury. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) aspen-dentalheartland-dentaldso-franchisedental-franchisefranchise-comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is Aspen Dental or Heartland Dental better for a dentist-owner? It depends on whether you want maximum clinical autonomy with consolidated marketing scale (Heartland Dental's general direction) or a more turnkey, brand-driven walk-in volume model (Aspen Dental's direction). Heartland tends to attract dentists who want to keep their practice's identity; Aspen attracts dentists comfortable operating under a strong, marketing-heavy national brand. Both require comfort with management fees on collections. ### What's the real total investment for each? Aspen Dental's reported range runs roughly $400K-$1.1M per location, with equipment ($100K-$500K), real estate build-out, and working capital as the major drivers. Heartland Dental's affiliated-practice path varies more because some doctors are buying into existing practices (much higher all-in price) versus de novo openings. For de novo, expect a similar $400K-$1M+ band; for affiliated buy-ins of existing practices, total deal size often exceeds $1.5M because you're paying for an existing patient base. ### Who actually owns the practice? In both structures the licensed dentist owns the clinical entity that treats patients, as required by state dental practice acts. The DSO/PSO owns the management entity that provides back-office services (billing, marketing, HR, compliance, supply procurement). Non-dentist investors generally cannot own the clinical entity. The contract between the two entities is what governs how revenue, fees, and decision rights flow. ### How do the ongoing fees compare? Both DSOs charge a management or royalty fee on collections (typically in the 4-7% range as of 2026) plus marketing/brand contributions, technology fees, and sometimes equipment lease payments. Heartland's fee structure is often described as a comprehensive management agreement covering most back-office services, while Aspen Dental's PSO fees are similarly structured but with brand-driven marketing baked in. The exact percentages and what they cover are in each organization's management agreement and fee schedules; buyers must read both line by line before signing. ### Which has better exit options? Heartland Dental's roughly 2,000-practice network has historically supported stronger exit pricing for departing doctor-owners because there are more comparable transactions and the platform is often itself a target for private-equity recapitalization. Aspen Dental's exit options are more tightly controlled by the PSO structure, and dentists exiting an Aspen Dental practice frequently find the resale market narrower than an independent practice of equivalent EBITDA. Always confirm exit mechanics in the management agreement; FDD Item 17 is the model for the questions to ask. --- title: "Best Chiropractic Franchises 2026: The Joint vs 3 Rivals" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-18 dateModified: 2026-07-18 keywords: chiropractic franchise, chiropractic franchises, the joint chiropractic, wellness franchise, franchise costs, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/best-chiropractic-franchises about: chiropractic franchise category: blog wordCount: 2179 readingTime: 11 min crawledAt: 2026-08-20 11:05:08 lastVerified: 2026-08-20 11:05:08 site: https://vetmyfranchise.com/c/claude/ --- # Best Chiropractic Franchises 2026: The Joint vs 3 Rivals ## Summary Best chiropractic franchises 2026, compared on FDD data. The Joint, HealthSource, ChiroWay, and 100% Chiropractic on cost, royalties, and unit revenue. ## Key facts - Chiropractic is unusual among wellness categories: one brand holds most of the franchised clinics, and the alternatives compete on structure rather than scale. - ChiroWay is the smallest system on this list, 15 franchised centers plus one company-owned per its 2026 FDD, concentrated around its Minnesota base. - 100% Chiropractic is not in the VetMyFranchise database, so treat this section as web-verified public data rather than parsed FDD analysis. - The ratio between what you invest and what a clinic grosses is the most useful single lens on this category. - Most chiropractors weighing a franchise already know they could hang their own shingle without paying anyone 7%. Quick answer With roughly 1,010 clinics, The Joint Chiropractic is the largest chiropractic franchise; its 2026 FDD shows a $245,250 to $543,000 investment and $526,397 median unit revenue. HealthSource ($83,447-$400,005) leads conversions for practicing chiropractors, ChiroWay ($113,350-$170,200) is the low-cost owner-operator route, and 100% Chiropractic ($339,742-$782,080) anchors full-service care. The best chiropractic franchises in 2026 are [The Joint Chiropractic](https://vetmyfranchise.com/c/claude/franchise/the-joint-corp) ($245,250 to $543,000 per its 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), roughly 1,010 clinics), HealthSource ($83,447 to $400,005, built for practicing chiropractors converting existing clinics), [ChiroWay](https://vetmyfranchise.com/c/claude/franchise/chiroway-franchise-llc) ($113,350 to $170,200, the lowest-royalty owner-operator option), and 100% Chiropractic ($339,742 to $782,080 per its 2024 FDD, the full-service end). [The Joint](https://vetmyfranchise.com/c/claude/franchise/the-joint-corp) is the default answer for investors. Whether it is the right answer depends on your license, your capital, and how much royalty you can stomach. ## Chiropractic Franchise Comparison Table: 2026 FDD Data Chiropractic is unusual among wellness categories: one brand holds most of the franchised clinics, and the alternatives compete on structure rather than scale. The figures below for The Joint, HealthSource, and ChiroWay come from the 2026 FDDs parsed in VetMyFranchise’s database of 2,000+ analyzed FDDs; 100% Chiropractic is not in our database, so its row reflects public reporting on its 2024 FDD. | Brand | Investment (Item 7) | Franchise Fee | Royalty | Units | Item 19 Median Revenue | | --- | --- | --- | --- | --- | --- | | The Joint Chiropractic | $245,250–$543,000 | $39,900 | 7% of gross sales (min $700/mo) | 885 franchised + 125 corporate | $526,397 (799 units, 2025) | | HealthSource | $83,447–$400,005 | $60,000 new; $35,000 conversion | 7% of gross revenues | 128 | $515,779 (116 qualifying units, FY2025) | | ChiroWay | $113,350–$170,200 | $33,000 | 3.3% of gross revenues (min $800/mo) | 15 franchised + 1 corporate | Not disclosed (no Item 19) | | 100% Chiropractic (2024 FDD, public data) | $339,742–$782,080 | $7,500–$51,000 | Reported 6.5–7% with monthly minimums | ~117–125 | Not in VMF database | Two things stand out. First, the revenue race at the top is nearly a tie: The Joint’s $526,397 median and HealthSource’s $515,779 median are separated by about 2%, on wildly different clinic models. Second, the entry points barely overlap. A HealthSource conversion can start under $100,000 because the clinic already exists. A new 100% Chiropractic build can pass $780,000 because it houses massage, rehab, and a larger footprint. ## The Joint Chiropractic: The Category Giant The Joint Corp. runs a cash-based, no-appointment, membership-model chiropractic clinic, and it has used that formula to build the only chiropractic system at national scale: 885 franchised clinics plus 125 company-owned per the 2026 FDD, with 70 franchised openings and 27 closures in the most recent year. Investment runs $245,250 to $543,000 with a $39,900 franchise fee, a royalty of the greater of 7% of gross sales or $700 per month, and a 2% ad fund. The Item 19 is the strongest disclosure in the category: $526,397 median revenue across all 799 reporting franchised units for calendar 2025, with the 25th percentile at $457,011 and the 75th at $892,063. That spread matters. A top-quartile clinic grosses nearly double the bottom quartile, and site selection plus membership retention explains most of the gap. The membership model is also the main risk to understand. Clinics sell recurring wellness plans rather than billing insurance, which keeps overhead low but makes revenue sensitive to churn. And the 2026 FDD does not grant an exclusive territory, so a strong clinic in a dense market can eventually see a sibling clinic nearby. Our [full review of The Joint](https://vetmyfranchise.com/c/claude/blog/is-the-joint-chiropractic-a-good-franchise) works through both issues, and the [cost breakdown](https://vetmyfranchise.com/c/claude/blog/the-joint-chiropractic-franchise-cost) itemizes where the $245,250 to $543,000 actually goes. For buyers weighing the membership-wellness model against an adjacent category, the [Joint vs Massage Envy comparison](https://vetmyfranchise.com/c/claude/blog/joint-chiropractic-vs-massage-envy-franchise) covers how the two structures differ. The fastest way to pressure-test the brand yourself is the [full FDD analysis of The Joint Corp.](https://vetmyfranchise.com/c/claude/franchise/the-joint-corp), which runs the 2026 document through every item that bites owners later. ## HealthSource: The Conversion Play For Practicing Chiropractors [HealthSource Chiropractic](https://vetmyfranchise.com/c/claude/franchise/healthsource-chiropractic-llc) pairs chiropractic care with physical therapy and rehab services, and its buyer is usually a chiropractor who already owns a practice. That is why its 2026 FDD investment range starts at $83,447: converting an existing clinic costs far less than building one, and the conversion franchise fee is $35,000 versus $60,000 for a new start-up location. Royalty is 7% of gross revenues plus a 2% ad fund. The Item 19 deserves a careful read. HealthSource reports $515,779 median revenue for fiscal 2025, but across 116 “Qualifying Units” rather than the whole 128-unit system. Whenever a franchisor defines a qualifying subset, your first diligence question is what got excluded and why; the excluded clinics are rarely the strong ones. System momentum is the other caution flag: the 2026 FDD shows 11 openings against 14 closures, so the network shrank slightly in the most recent year. For a practicing chiropractor doing $400,000 a year independently, the HealthSource pitch is essentially a trade: 9% of gross in exchange for marketing systems, a rehab service line, and peer coaching. Whether that trade pays depends on how much revenue the added services actually generate above your current baseline. The [HealthSource FDD analysis](https://vetmyfranchise.com/c/claude/franchise/healthsource-chiropractic-llc) is where to start checking. ## ChiroWay: Low-Cost Owner-Operator Model ChiroWay is the smallest system on this list, 15 franchised centers plus one company-owned per its 2026 FDD, concentrated around its Minnesota base. It is also the most operator-friendly on fees: a $33,000 franchise fee, a 3.3% royalty (minimum $800 per month), a flat $400 monthly brand fee instead of a percentage ad fund, and a $113,350 to $170,200 total investment. The FDD grants an exclusive territory, which neither of the larger systems matches, and renewal and transfer fees are $5,000 each. The constraints are just as clear. ChiroWay requires owner-operators, so this is a franchise for licensed chiropractors who want to practice in their own center, not a passive investment. It discloses no Item 19, so you are building your own revenue model from franchisee calls. And the unit history needs attention: 2 openings against 5 closures in the most recent year is a meaningful loss rate on a 20-unit base, even if the 2026 FDD reports zero litigation. A five-year initial term (short for the industry) at least limits how long a bad decision binds you. ## 100% Chiropractic: Full-Service Care (Public Data) 100% Chiropractic is not in the VetMyFranchise database, so treat this section as web-verified public data rather than parsed FDD analysis. According to the company’s 2024 FDD as reported by FranchiseDirect and Vetted Biz, initial investment runs $339,742 to $782,080 with a franchise fee between $7,500 and $51,000 depending on structure, and a royalty reported at 6.5% to 7% of gross revenue with monthly minimums. The company was founded in 2004, began franchising in 2015, and operates roughly 117 to 125 locations. The concept sits at the opposite pole from The Joint: full-service clinics offering chiropractic care alongside massage therapy, corrective exercise, and supplement lines, with correspondingly larger build-outs. That is why its Item 7 high end roughly matches The Joint’s ceiling plus a third. Buyers considering it should request the current FDD directly and compare its Item 19 disclosure quality against the two systems above before taking any earnings claim at face value. ## What Chiropractic Franchises Cost vs What Clinics Gross The ratio between what you invest and what a clinic grosses is the most useful single lens on this category. A midpoint Joint build of roughly $394,000 producing the $526,397 median means a mature clinic grosses about 1.3 times its build cost annually. A HealthSource conversion is the outlier: an owner who converts for under $100,000 into a system reporting a $515,779 median is buying revenue systems, not a building. Then royalties reshape the picture. At The Joint and HealthSource, 9% of gross comes off the top between royalty and ad fund; on a median-revenue clinic that is roughly $47,000 a year before rent or payroll. ChiroWay’s 3.3% plus $400 monthly costs the same clinic under $25,000. Lower fees on a 16-unit system buy you less brand and less proof, which is exactly the trade-off to price. Capital requirements follow the same spread, and lenders will look past the Item 7 range to your full liquidity picture; our guide to [franchise net worth and liquidity requirements](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) explains what franchisors and SBA lenders actually screen for. ## Franchise vs Opening An Independent Practice Most chiropractors weighing a franchise already know they could hang their own shingle without paying anyone 7%. The honest case for franchising is narrower than franchisors suggest: it comes down to patient acquisition and model discipline. The Joint’s walk-in retail locations and national membership pricing generate patient volume that a solo practice buying local ads rarely matches, which is how 799 reporting clinics reached a $526,397 median without billing insurance. HealthSource’s pitch to existing practices is similar: the $35,000 conversion fee buys marketing systems and a rehab revenue line, not a patient base you could not theoretically build yourself. The case against is the permanent math. Nine percent of gross, every year, on revenue you increasingly generate through your own local reputation. An established chiropractor with a full patient book gives up real money for systems they may no longer need. Franchising in this category fits new clinic owners and non-clinician investors far better than it fits successful incumbents. The same tension runs through adjacent wellness categories; our [med spa industry analysis](https://vetmyfranchise.com/c/claude/blog/med-spa-franchise-industry) shows how it plays out where ticket sizes are higher. ## How To Vet A Chiropractic FDD Chiropractic FDDs reward a specific checklist. Start with Item 19 sample definitions: The Joint reports all 799 franchised units, while HealthSource reports 116 “Qualifying Units” of 128. Ask each franchisor exactly which clinics were excluded and what the excluded group’s numbers look like. Second, run the closure math from Item 20: 27 of roughly 900 Joint clinics closed last year versus 5 of about 20 at ChiroWay, and HealthSource closed more than it opened. Small systems can hide big loss rates behind small absolute numbers. Third, check territory and ownership structure. The Joint grants no exclusive territory; ChiroWay does. If you are not a chiropractor, confirm how your state’s corporate-practice rules affect who must own the clinical entity, because the management-company workaround adds legal cost and complexity in several states. Fourth, read Item 3: litigation counts here are modest (four disclosed matters at The Joint, two at HealthSource, zero at ChiroWay per 2026 FDDs), but the nature of any dispute matters more than the count. The FTC’s [Consumer’s Guide to Buying a Franchise](https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise) and the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) itself define what disclosure you are entitled to before any money changes hands. Use them. ### Get the FDD Data Before You Commit Every figure in this post traces to a specific FDD year, and every one of them will change with the next amendment. Before you sign anything, get the current document analyzed against your situation: your state, your license status, your capital, your market. The [VetMyFranchise $49 template](https://vetmyfranchise.com/c/claude/fdd-analysis-example) shows the framework applied to a real FDD: Item 7 capital validation, Item 19 numbers in context, closure and litigation flags, territory and renewal terms that bite owners in year six. For The Joint, HealthSource, or ChiroWay, the brand-specific report runs that framework against the current 2026 document. Chiropractic franchising has a genuine standout system, two structurally different alternatives, and one full-service contender. Read the FDD before deciding which one deserves your capital. ## Brands mentioned in this post - [HealthSource Chiropractic](https://vetmyfranchise.com/c/claude/franchise/healthsource-chiropractic-llc) - [The Joint](https://vetmyfranchise.com/c/claude/franchise/the-joint-corp) - [ChiroWay](https://vetmyfranchise.com/c/claude/franchise/chiroway-franchise-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) chiropractic franchisechiropractic franchisesthe joint chiropracticwellness franchisefranchise costsfranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a chiropractic franchise cost? Between roughly $83,000 and $782,000 all-in, depending on brand and format. Per 2026 FDDs, The Joint Chiropractic runs $245,250-$543,000, HealthSource runs $83,447-$400,005 (conversions of existing practices sit at the low end), and ChiroWay runs $113,350-$170,200. 100% Chiropractic's 2024 FDD lists $339,742-$782,080 for its larger full-service clinics. ### Do you need to be a chiropractor to own a chiropractic franchise? Not always. The Joint's model is built for non-chiropractor investors in most states, though state corporate-practice laws sometimes require a licensed chiropractor to own the clinical entity while the franchisee runs the management company. ChiroWay requires chiropractor owner-operators, and HealthSource primarily recruits practicing chiropractors converting existing clinics. Check the ownership rules for your specific state before going further with any brand. ### What is the most profitable chiropractic franchise? No FDD discloses profit directly, but on median unit revenue The Joint leads narrowly: $526,397 across 799 franchised clinics per its 2026 FDD, versus HealthSource's $515,779 across 116 qualifying units. Revenue is not profit. The Joint takes 7% royalty plus 2% ad fund off gross sales, while ChiroWay's 3.3% royalty leaves more margin per dollar collected but discloses no Item 19 at all. ### Is The Joint the biggest chiropractic franchise? Yes, and it is not close. The Joint's 2026 FDD reports 885 franchised and 125 company-owned clinics, roughly 1,010 total. HealthSource is next at 128 units, 100% Chiropractic operates roughly 117-125 locations per public data, and ChiroWay has 16. The Joint's clinic count exceeds the rest of the franchised category combined. --- title: "FDD Item 15 Explained: Owner Participation Rules (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee category: blog wordCount: 1814 readingTime: 9 min crawledAt: 2026-08-20 11:02:03 lastVerified: 2026-08-20 11:02:03 site: https://vetmyfranchise.com/c/claude/ --- # FDD Item 15 Explained: Owner Participation Rules (2026) ## Summary FDD Item 15 sets the franchise owner participation requirement. Read designated-manager clauses and catch semi-absentee pitches the contract contradicts. ## Key facts - Item 15 of the [franchise disclosure document](https://vetmyfranchise. - Participation clauses sort into two families, and the difference is usually one phrase. - Here is the conflict to catch, because it’s common. - Even a clean designated-manager clause carries costs that the semi-absentee pitch glosses over. - Item 15 tells you whether a manager is _permitted_. Quick answer FDD Item 15 discloses whether you must personally run the business or may install a trained designated manager. 'Full time and best efforts' language with no manager carve-out makes semi-absentee operation impossible, and integration clauses void any verbal assurance otherwise. Some systems require the manager to hold 5-10% equity; default notices typically give 30 days to cure. ## What Item 15 Discloses — and the Exact Question It Answers Item 15 of the [franchise disclosure document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), “Obligation to Participate in the Actual Operation of the Franchise Business,” is short. Often under a page. It answers a single question that determines whether your keep-the-day-job plan is viable: **does the franchisor require you, personally, to run this business — or will it accept a manager in your place?** The FTC Franchise Rule requires the franchisor to disclose whether on-premises supervision by the franchisee is required, whether a manager can supervise instead, what that manager must do (training, confidentiality agreements, non-competes), and any equity the manager must hold. If an LLC or corporation is buying the franchise, Item 15 also says which human being inside it carries the obligation. That’s the whole disclosure. But across the 2,000+ FDDs in our database, the spread is enormous: some systems genuinely don’t care who runs the unit, some demand a trained manager with skin in the game, and some bind the owner so tightly that “semi-absentee” is a legal impossibility. ## ”Direct Involvement” vs. Designated-Manager Language Participation clauses sort into two families, and the difference is usually one phrase. The strict version reads something like: _“Franchisee (or, if Franchisee is an entity, its Managing Owner) shall devote full time, energy, and best efforts to the management and operation of the Franchised Business.”_ Unpack that. **“Full time”** means this is your job — not your second job, not your evenings-and-weekends project. **“Best efforts”** is a legal standard courts read seriously; it means you can’t deliberately divide your attention. **“Shall”** makes it a covenant, not a suggestion. There is no manager carve-out in that sentence. If this is the operative language, you are buying yourself a position, and the [semi-absentee vs owner-operator](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) distinction has already been decided for you. Contrast that with the flexible version, which adds nine words: _“the Franchisee **or a trained Designated Manager** shall devote full time and best efforts to the operation of the Franchised Business.”_ That disjunctive — _or_ — is the entire semi-absentee model. It means the full-time obligation can sit on an employee’s shoulders instead of yours, provided that employee meets the contract’s definition of “trained” and “designated.” Read the modifiers around the manager, too. “Trained” means franchisor-approved training, on your dime. “Designated” means named and disclosed — you can’t just point at whoever’s behind the counter. And many systems that permit a manager still require the owner to attend annual conferences, complete brand training, and remain accountable for compliance. Semi-absentee never means absent. ## When the Pitch Says Semi-Absentee but Item 15 Says Otherwise Here is the conflict to catch, because it’s common. Franchise development reps sell against your constraint — you have a salary you’re not ready to quit — so “this model runs great semi-absentee” is one of the most useful sentences in their inventory. Sometimes it’s true. Sometimes Item 15 of the very FDD they sent you says _full time and best efforts_ with no manager language at all. When the two conflict, the contract wins, and not narrowly. Nearly every franchise agreement contains an integration clause: the written agreement is the entire deal and supersedes all prior representations, oral or written. The rep’s assurance, the webinar slide, the “tons of our owners keep their jobs” comment at Discovery Day — none of it survives that clause. If the franchisor later issues a default notice for absentee operation, “but the salesperson told me” is not a defense. The discipline is simple: every time someone says “semi-absentee,” open Item 15 and find the sentence that permits it. If you can’t find it, the pitch and the product are different things. Our [semi-absentee vs owner-operator guide](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) covers which categories tend to have genuine manager-run models — but category trends never override the clause in the FDD in front of you. [Filter franchises by involvement level with find-my-franchise →](https://vetmyfranchise.com/c/claude/find-my-franchise) ## The Manager Traps Even a clean designated-manager clause carries costs that the semi-absentee pitch glosses over. Three recur constantly. **Training at your cost.** The manager must usually complete the same initial training program you would — one to four weeks at headquarters is typical — and you pay the travel, lodging, wages, and sometimes a per-person training fee. Budget it. Then budget it again, because of the next trap. **Manager equity requirements.** A minority of systems require the designated manager to hold an ownership stake, sometimes 5–10%. The logic is alignment; the consequence is that your general manager is now a part-owner whose departure requires a buyout, not a two-week notice. If Item 15 shows an equity requirement, model what turnover actually costs before assuming the standard playbook applies. **The re-training gap.** Your trained manager quits. The participation covenant doesn’t pause while you recruit — many agreements give you 30 to 90 days to install a new _trained_ manager, and the next training cohort at headquarters might be six weeks out. In the gap, either you run the unit personally (there goes the day job, temporarily) or you’re in technical breach. Owners with a trained bench survive this; owners with one irreplaceable GM discover they were never really semi-absentee, just one resignation away from owner-operator. ## Cross-Checking Items 15, 7, and 19 Item 15 tells you whether a manager is _permitted_. Items 7 and 19 tell you whether one is _affordable_ — and whether the franchisor’s numbers were ever built around manager-run units. Start with Item 7, the initial investment table. If the franchisor genuinely expects semi-absentee owners, the working-capital line should plausibly cover a full-time manager’s salary through ramp-up. An “additional funds — 3 months” estimate that assumes the owner works for free is a quiet admission the model was costed owner-operated — and a manager’s fully loaded cost now sits on top of every projection. Then read Item 19, the financial performance representation, the same way you’d read [Item 12’s territory disclosure](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained): for what it separates and what it blends. The most useful versions break out owner-operated versus manager-run unit economics, because the gap between them _is_ the price of your free time. When the disclosure doesn’t make that distinction — and most don’t — assume the figures skew owner-operated, since those units typically dominate young and mid-sized systems. The margin you’re imagining has a manager salary inside it somewhere; the only question is whether the franchisor subtracted it for you or left that math as homework. Our breakdown of [how much franchise owners make](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make) shows how dramatically that one salary line moves take-home numbers. ## How to Verify a Brand Genuinely Supports Semi-Absentee Documents first, then people. Once Item 15 permits a manager and Items 7 and 19 don’t contradict the economics, validation calls are where the model proves out — or doesn’t. Ask existing franchisees directly: _How many owners in this system still have day jobs? Did you start semi-absentee, and are you still?_ The pattern you’re listening for is owners who started with a manager and quietly became full-time operators within eighteen months. That migration is the single most reliable signal that the model is owner-operator wearing a semi-absentee costume. Then ask the franchisor a question they can answer precisely but rarely get asked: **what percentage of your units are manager-run today?** They know — training records, designated-manager filings, and field visits give them the number. A specific answer with referrals attached is worth more than any brochure. A vague “lots of our owners are semi-absentee” from a franchisor who tracks everything else about their system tells you the real number wouldn’t help the sale. An [owner-operator](https://vetmyfranchise.com/c/claude/glossary/owner-operator) system isn’t a bad thing; a system pretending not to be one is. ## Enforcement Reality Participation covenants are enforced the way speed limits are: unevenly, and mostly when something else has gone wrong. A unit hitting its numbers under a sharp manager almost never draws a default notice for the owner’s absence, even when the agreement technically requires owner operation. But when a unit underperforms — royalties shrink, inspections slip, complaints rise — the participation clause becomes the franchisor’s cleanest documented breach. Absentee ownership is easy to prove (training records, field-visit logs, the owner’s LinkedIn listing a full-time job elsewhere) and hard to argue around. The sequence is standard: default notice, a 30-day cure period to install yourself or a compliant manager, then escalation toward termination under Item 17 if the cure doesn’t hold. That asymmetry is the final reason to take Item 15 literally before you sign. A clause you’re violating comfortably in good times is a weapon you’ve handed the franchisor for bad times — and bad times are exactly when you’ll want bargaining power of your own. For $49, our research report pulls the actual Item 15 language from any of 2,000+ FDDs — so you see the owner participation requirement in the franchisor’s own words before the sales call, not after the signature. [Get the report →](https://vetmyfranchise.com/c/claude/pricing) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### FDD Item 1 Explained: Franchisor Background and the Red Flags Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background) #### FDD Item 11 Decoded: What Support the Franchisor Legally Owes You [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) #### FDD Item 12: What Your "Protected Territory" Actually Protects [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) fdd item 15franchise owner participation requirementsemi-absentee franchisedesignated managerfdd review About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What counts as a designated manager under FDD Item 15? A designated manager is a named individual — identified to the franchisor in writing — who satisfies the participation requirement in the owner's place. Most systems require that person to complete the franchisor's initial training program at the franchisee's expense, work full time in the business, and sometimes sign confidentiality and non-compete agreements personally. A few systems go further and require the manager to hold a minimum equity stake, which converts your hired GM into a business partner. The title in your org chart doesn't matter; what matters is whether the person meets the contract's definition, and whether the franchisor has approved them. ### Does Item 15 appear in the franchise agreement too? Yes — Item 15 is only a summary, and the binding language lives in the franchise agreement itself, usually in the operations or management covenants. The two can differ in important ways: Item 15 might say a manager 'may' run the business while the agreement attaches conditions (training, approval rights, equity) the summary never mentions. Always read the cited agreement sections directly, because in a dispute the agreement controls and the FDD summary is just disclosure. If the agreement is silent where Item 15 implies flexibility, get the flexibility written into the agreement before signing. ### Can Item 15 requirements change at renewal? They can, because most renewal clauses require you to sign the franchisor's then-current franchise agreement — whatever participation terms it carries at that time. A system that tolerated manager-run units in 2026 can tighten to owner-operated for all new and renewing agreements in 2036, and your renewal would pick up the stricter covenant. Check Item 17's renewal terms alongside Item 15, and ask validation-call franchisees who have already renewed whether the participation language changed on them. If semi-absentee operation is the foundation of your plan, a ten-year guarantee of it is not the same as a permanent one. ### How do franchisors enforce owner participation requirements? Enforcement usually starts with a default notice citing the participation covenant, followed by a cure period — often 30 days — to put a compliant owner or trained manager back in the business. Franchisors detect violations through field visits, training records, mystery shops, and complaints from customers or neighboring franchisees. In practice, thriving units rarely draw scrutiny; enforcement concentrates on underperforming locations, where absentee ownership gives the franchisor a clean, documentable breach. Repeated or uncured violations can escalate to termination under Item 17, which is why a participation clause you're quietly ignoring is a standing risk rather than a dead letter. --- title: "FDD Item 23 Receipts: Final Checklist Before You Sign" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/fdd-item-23-receipts-buyer-final-checklist category: blog wordCount: 1955 readingTime: 10 min crawledAt: 2026-08-20 11:02:03 lastVerified: 2026-08-20 11:02:03 site: https://vetmyfranchise.com/c/claude/ --- # FDD Item 23 Receipts: Final Checklist Before You Sign ## Summary FDD Item 23 receipts explained — how to sign correctly, protect the 14-day cooling-off clock, and avoid the franchisor receipt errors that hurt buyers later. ## Key facts - Item 23 sits at the back of a 200-page document after the audited financials, the franchise agreement, and the state-specific addenda. - Federal regulation (16 CFR Part 436) requires the franchisor to give you the FDD at least 14 calendar days before you sign anything binding or pay any money. - The 14-day FTC waiting period starts on the date written on the receipt. - This is the rule that saves buyers the most money and the one franchisors least like to surface. - Run this list before you sign Item 23. Quick answer Item 23 is two identical receipts, one returned to the franchisor and one kept by you. Write the date you physically received the FDD, because that date starts the federal 14-calendar-day cooling-off period under 16 CFR Part 436. Any material change to Item 7, Item 19, or the agreement resets the 14 days. ## The Page Most Buyers Treat Like a Speed Bump Item 23 sits at the back of a 200-page document after the audited financials, the franchise agreement, and the state-specific addenda. By the time most buyers reach it, they’re tired, they trust the franchisor’s salesperson, and they sign without reading. That’s the franchisor’s preferred outcome. It shouldn’t be yours. The Item 23 receipt is the only piece of paper in the entire [franchise disclosure document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) that exists to protect you, not the franchisor. Sign it incorrectly and you erode every cooling-off right the FTC Franchise Rule was written to give you. Sign it correctly and you’ve locked in your evidence for any future dispute. Two minutes of attention here is worth more than two hours anywhere else in the document. ## What Item 23 Actually Is Federal regulation (16 CFR Part 436) requires the franchisor to give you the FDD at least 14 calendar days before you sign anything binding or pay any money. Item 23 is the two-receipt mechanism that proves delivery happened. The receipt has a simple structure: - The franchisor’s name and address - The prospect’s name and address (you) - The date of receipt (handwritten, not preprinted) - Your signature - An identical duplicate, one for each party Some states layer additional requirements on top — California, New York, Illinois, Maryland, and several others require franchise registration receipts in addition to the federal receipt. If your FDD has a state addenda section, you sign a separate state receipt too. Missing those state receipts is one of the three most common franchisor errors we see. ## The Cooling-Off Clock Is the Whole Point The 14-day FTC waiting period starts on the date written on the receipt. Not the cover date of the FDD. Not the date the franchisor emailed it. The date YOU wrote on YOUR receipt. That distinction matters more than most buyers realize. Here’s what can go wrong if you let the franchisor control the date: | Scenario | Buyer impact | | --- | --- | | Franchisor preprints today’s date, you sign two weeks later | Cooling-off period has already expired before you finished reading the document | | Franchisor’s salesperson fills in “received” date as the day they emailed it | Your review window is 3-5 days shorter than the law requires | | You receive an amended FDD but sign the old receipt | You waive your right to a fresh 14-day window on the new material | | Receipt is dated, signed, but franchisor never sends you a copy | You lose your evidence of when delivery actually occurred | The fix is mechanical. Write the date you physically received the document — the date a tracked package arrived, the date a DocuSign envelope was completed, the date you downloaded the PDF from a portal. Keep a screenshot or email timestamp as backup. That’s it. ## The Material Change Reset Most Buyers Miss This is the rule that saves buyers the most money and the one franchisors least like to surface. If the franchisor amends the FDD in any material way after you sign Receipt 1 but before you sign the franchise agreement, the 14-day clock resets. Material changes include but are not limited to: - Updated Item 19 financial performance representations - Changed royalty, marketing fund, or technology fee rates - New territory restrictions or removed protections - Added required suppliers or revised supply chain economics in Item 8 - Changes to the franchise agreement template in Item 22 - New litigation disclosed in Item 3 - Amendments to renewal or termination terms in Item 17 If any of these change between the day you first received the FDD and the day you’re being asked to sign, the franchisor must issue a new FDD and a new Item 23 receipt. Your fresh 14 days starts then. We cover the full mechanics and the litigation history at [FDD material change before signing](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) — that’s the deep-read companion to this checklist. The practical risk: in our review of FDD packages from across multiple franchise systems, the franchisor’s discovery day rarely surfaces material amendments voluntarily. The buyer who knows to ask saves themselves from signing under stale disclosures. ## The Receipt Verification Checklist Run this list before you sign Item 23. If any line fails, slow the process down and request a corrected document. **1\. Franchisor identity matches the rest of the FDD.** The receipt should name the same legal entity (often “ABC Franchising, LLC” or similar) that appears in Item 1 and the franchise agreement. Mismatches between the receipt entity and the contracting entity are a serious red flag worth a call to a franchise attorney. **2\. Contact information is current.** The receipt lists franchisor address, phone, and often an email contact. Stale information (an old corporate HQ address, a disconnected number) suggests the FDD wasn’t carefully updated for this registration cycle. Cross-check against the franchisor’s website and the franchise development team’s email signatures. **3\. State addenda receipts are present if required.** If you live in or are buying in a registration state (CA, HI, IL, IN, MD, MN, NY, ND, RI, SD, VA, WA, WI), there should be a state-specific receipt in addition to the federal one. Missing state receipts mean the franchisor hasn’t fully complied with state registration law. **4\. Executive signatures present in Item 2.** The receipt itself doesn’t require executive signatures, but the surrounding FDD must be signed by an authorized franchisor officer. If Item 2 biographies don’t match the franchisor signature line, ask why. **5\. Date is blank when you receive it.** A blank date field is correct. A preprinted date is wrong. If the date is already filled in, strike it through, initial, and write the actual date. **6\. You have a copy after signing.** Take a photo or scan immediately. Email it to yourself. The franchisor’s copy and your copy should be byte-for-byte identical except for which party retains each. > **Want the buyer-facing summary of every section of the FDD pulled into one short report you can act on?** Our $49 AI-powered FDD analysis flags Item 23 receipt issues, material changes, and the 12 other items that actually matter for your decision. > > [Get the FDD analysis →](https://vetmyfranchise.com/c/claude/pricing) ## What to Do If the Receipt Is Wrong Three scenarios, three responses. **The date is wrong but the franchisor accepts a correction.** Strike through, initial, write the correct date. Email a written confirmation: “Confirming the corrected receipt date of \[date\] reflecting the date I physically received the FDD.” Keep the email. **The franchisor refuses to accept a corrected date.** Do not sign. Email franchise development requesting the correction in writing. If they still refuse, that’s grounds to slow the process down or walk away. A franchisor who won’t honor a buyer’s correct receipt date has revealed something useful about how they’ll handle future disputes. **You signed an incorrect receipt and only realized after.** You’re not entirely out of options. Email the franchisor immediately, document the actual delivery date with timestamps from your email, file metadata, or shipping confirmation, and request a corrected receipt. If they refuse, save your evidence — a future state AG complaint or rescission claim will hinge on your contemporaneous records, not on what the franchisor wrote. The earlier you catch a problem with the receipt, the easier the fix. The first 14 days after delivery are when you have the most leverage to demand corrections. ## Where Item 23 Fits in the Larger Buyer Process Item 23 isn’t where due diligence ends — it’s where binding commitments begin. By the time you sign the second receipt and the franchise agreement, you should already have: - Read the full FDD and your attorney’s review notes - Interviewed at least 5-10 existing franchisees from the Item 20 list - Verified Item 19 against franchisee operating data - Modeled your specific store’s economics against lower-quartile performance - Confirmed there are no material changes between first and second receipt - Reviewed any state addenda for your registration state If you’re at the signing table and you haven’t done all six, the right answer is to ask for more time. The receipt is the line in the sand — once you’ve signed it and the franchise agreement, undoing the deal becomes a litigation question rather than a buyer’s-right-of-refusal question. Our [received the FDD 7-day action plan](https://vetmyfranchise.com/c/claude/blog/received-fdd-7-day-action-plan) walks through how to use the cooling-off window productively. Pair it with the [franchise FDD review 30-day plan](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan) for the longer arc from first receipt to signed agreement. ## The Honest Bottom Line Item 23 is a two-page formality that protects you more than the 200 pages preceding it. Sign with the correct date. Keep your duplicate. Watch for material changes that reset your clock. Catch receipt errors before they bind you. Email yourself timestamped backup of every delivery. The franchisor will not volunteer corrections. The franchise broker will not slow the process down for you. Your own attention to this one page is the only thing standing between you and a future dispute where the franchisor’s lawyer points at your signed receipt and says “you were on notice.” If something feels off in Item 23 — wrong date, missing state addendum, mismatched entity name, preprinted fields where blanks should be — do not sign. The 14 days you spend getting a corrected document costs nothing. The decade you spend operating a franchise you bought under a flawed disclosure costs everything. > **The FDD is 200 pages. Item 23 is the page that locks in the rest.** Our $49 AI-powered FDD analysis turns the whole document into a one-page buyer briefing in under 5 minutes — so by the time you reach Item 23, you know exactly what you’re acknowledging receipt of. > > [Analyze your FDD →](https://vetmyfranchise.com/c/claude/pricing) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### FDD Item 1 Explained: Franchisor Background and the Red Flags Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background) #### FDD Item 11 Decoded: What Support the Franchisor Legally Owes You [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) #### FDD Item 12: What Your "Protected Territory" Actually Protects [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained) fdd-item-23fdd-receiptscooling-off-periodfranchise-disclosuredue-diligence About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the FDD Item 23 receipt actually for? It's the federal compliance proof that the franchisor delivered the FDD to you on a specific date. The FTC Franchise Rule requires franchisors to give a prospective buyer the FDD at least 14 calendar days before any signing or money changes hands. The Item 23 receipt is how both sides document when delivery occurred. The franchisor keeps a copy for FTC compliance, and you keep an identical copy as your evidence. ### Do I sign one receipt or two? Two identical receipts. One stays in your copy of the FDD, and one goes back to the franchisor. Both must show the same date — the date you physically received the document. If the franchisor sends you only one, ask for the duplicate before you sign anything. The duplicate is how you prove delivery date in a future state-AG complaint or lawsuit. ### Does signing the receipt commit me to buying the franchise? No. The receipt is purely an acknowledgment that you received the FDD — it is not a contract, deposit, or commitment to purchase. You retain full rights to walk away during and after the 14-day waiting period. The receipt's only legal consequence is starting the clock on when you can next sign binding documents. ### What happens if the franchisor changes the FDD after I signed the first receipt? If the change is material — for example, a new Item 19 number, a different royalty rate, an added supplier requirement, or revised territory terms — the franchisor must reissue the FDD and you sign a new receipt. Your 14-day cooling-off period restarts from the date of the new delivery. Non-material edits (typo fixes, formatting) do not trigger a reset. See our deeper walkthrough at [FDD material change before signing](/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action). ### What if the date on my receipt is wrong? Strike through it and write the correct date, then initial the correction. Never let a franchisor staffer fill in the date for you — they have an incentive to backdate it to make the 14-day clock expire faster. If they refuse to accept a corrected date, refuse to sign and email a written record of the delivery date to the franchise development team. That email is your fallback evidence. --- title: "Best Stretching Franchises 2026: StretchLab vs Stretch Zone" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-18 dateModified: 2026-07-18 keywords: stretching franchise, stretchlab, stretch zone, assisted stretching, wellness franchise, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/best-stretching-franchises about: stretching franchise category: blog wordCount: 2020 readingTime: 10 min crawledAt: 2026-08-20 11:05:36 lastVerified: 2026-08-20 11:05:36 site: https://vetmyfranchise.com/c/claude/ --- # Best Stretching Franchises 2026: StretchLab vs Stretch Zone ## Summary Best stretching franchises compared on 2026 FDD data: StretchLab vs Stretch Zone vs StretchMed vs The Vital Stretch on cost, fees, and Item 19 revenue. ## Key facts - Every figure below comes from the four brands’ 2026 FDDs as parsed in VetMyFranchise’s database of 2,000+ analyzed FDDs. - StretchLab is larger than the other three systems combined, 486 studios against their 465. - Stretch Zone makes the value case: 413 operational units as of December 31, 2025, an investment of $142,590 to $305,489, and a $59,500 franchise fee. - StretchMed is the lowest verified cost of entry in the category: $129,892 to $211,086 per its 2026 FDD, with a $49,500 franchise fee and the lightest fee load of the four at 6% royalty plus 2% ad fund. - At 14 franchise locations, The Vital Stretch is the smallest system of the four, with a franchisor entity dating to 2022 and an investment range of $157,400 to $258,100 per the 2026 FDD. Quick answer Four stretching franchises disclose comparable FDD data in 2026: StretchLab ($271,037-$814,192 to open, 486 studios, $487,000 median revenue), Stretch Zone ($142,590-$305,489, 413 units), StretchMed ($129,892-$211,086, $264,135 median revenue), and The Vital Stretch ($157,400-$258,100, 14 locations). StretchLab leads on scale; StretchMed is the cheapest verified entry point. Four stretching franchises publish enough [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) data to compare head-to-head in 2026, and the gaps between them are wide. [StretchLab](https://vetmyfranchise.com/c/claude/franchise/stretch-lab-franchise-spv-llc) is the scale leader: 486 studios, a $271,037 to $814,192 investment range, and a $487,000 median studio revenue per its 2026 FDD. [Stretch Zone](https://vetmyfranchise.com/c/claude/franchise/stretch-zone-franchising-llc) runs 413 units at roughly half the entry cost ($142,590 to $305,489). [StretchMed](https://vetmyfranchise.com/c/claude/franchise/stretchmed-franchise-llc) is the cheapest verified entry at $129,892 to $211,086 with a $264,135 median. [The Vital Stretch](https://vetmyfranchise.com/c/claude/franchise/the-vital-stretch-franchising-llc), at 14 locations, is the early-stage wildcard. Assisted stretching is one of the few boutique-wellness categories where every major franchised brand includes an Item 19 disclosure, which makes it unusually possible to underwrite with real numbers instead of brochure claims. This is the category roundup. For single-brand depth on the leader, the [StretchLab franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/stretchlab-franchise-cost) covers every line item, and [our full StretchLab verdict](https://vetmyfranchise.com/c/claude/blog/is-stretchlab-a-good-franchise) weighs the Xponential parent-company question. ## The 4-Brand Comparison Table (2026 FDD Data) Every figure below comes from the four brands’ 2026 FDDs as parsed in VetMyFranchise’s database of 2,000+ analyzed FDDs. Investment ranges are Item 7; revenue figures are Item 19. | Brand | Item 7 Investment | Royalty + Ad Fund | Units | Item 19 Revenue | | --- | --- | --- | --- | --- | | StretchLab | $271,037-$814,192 | 8% + 2% | 486 | $487,000 median (448 studios) | | Stretch Zone | $142,590-$305,489 | 7% + 2% | 413 | Disclosed, no single system median | | StretchMed | $129,892-$211,086 | 6% + 2% | 38 | $264,135 median (29 full-year units) | | The Vital Stretch | $157,400-$258,100 | 7% + 2% | 14 | $75,724 average (14 locations) | Read the units column next to the revenue column. StretchLab’s $487,000 median is drawn from 448 qualified studios, a sample deep enough to trust. [StretchMed](https://vetmyfranchise.com/c/claude/franchise/stretchmed-franchise-llc)’s $264,135 median comes from 29 units that operated the full 2025 calendar year. [The Vital Stretch](https://vetmyfranchise.com/c/claude/franchise/the-vital-stretch-franchising-llc)’s $75,724 average covers 14 locations in a system that only started franchising recently, so it describes ramp-stage studios more than stabilized ones. Sample size changes what a number means. ## StretchLab: The Category Leader StretchLab is larger than the other three systems combined, 486 studios against their 465. Investment runs $271,037 to $814,192 per the 2026 FDD, with an 8% royalty and 2% ad fund. That 10% combined fee load is the heaviest of the four. The Item 19 justifies the premium positioning: a $487,000 median across 448 qualified studios, with a 25th-75th percentile band of $432,500 to $547,500. That interquartile spread is fairly tight for boutique fitness, a sign the model performs consistently once a studio stabilizes. Two caution flags. The system opened 38 studios and closed 37 last year, a net gain of one. A brand at this scale will always have some churn, but 37 closures is a real number, and validation calls should ask what those studios had in common. Second, StretchLab’s parent Xponential Fitness has been through SEC scrutiny, franchisee lawsuits, and executive turnover since 2024. You are underwriting the parent as much as the brand. [See StretchLab’s full FDD profile and Item 19 breakdown →](https://vetmyfranchise.com/c/claude/franchise/stretch-lab-franchise-spv-llc) ## Stretch Zone: The Zero-Closure Challenger Stretch Zone makes the value case: 413 operational units as of December 31, 2025, an investment of $142,590 to $305,489, and a $59,500 franchise fee. Royalty is 7% of gross revenues with a $900 monthly minimum, plus a 2% ad fund. The number that stands out in the 2026 FDD is on retention: 36 units opened last year and zero closed. No terminations, no non-renewals, no ceased operations. Set against StretchLab’s 38-opened-37-closed year, that record is the strongest single argument for the brand. Stretch Zone’s FDD also grants an exclusive territory, which StretchLab’s does not. The trade-off is disclosure depth. Stretch Zone includes an Item 19, but it does not present a single system-wide revenue median comparable to StretchLab’s or StretchMed’s figures. Anyone seriously evaluating a Stretch Zone franchise has to read the disclosure’s own tables and build a view of typical unit volume from franchisee calls rather than one headline number. ## StretchMed: The Budget Entry StretchMed is the lowest verified cost of entry in the category: $129,892 to $211,086 per its 2026 FDD, with a $49,500 franchise fee and the lightest fee load of the four at 6% royalty plus 2% ad fund. The system is young. The franchisor dates to 2020 and counted 38 locations in the 2026 FDD, with 11 openings against 4 closures in the most recent year. The Item 19 is more informative than most small-system disclosures: $264,135 median revenue and a $310,242 average across 29 franchised units that operated the full 2025 calendar year. The average sitting $46,000 above the median tells you a handful of high-volume studios pull the mean up; underwrite from the median. A sub-40-unit system also means validation calls can realistically cover a third of all operators. Do that before trusting any single figure. ## The Vital Stretch: The Early-Stage Wildcard At 14 franchise locations, The Vital Stretch is the smallest system of the four, with a franchisor entity dating to 2022 and an investment range of $157,400 to $258,100 per the 2026 FDD. Royalty is 7%, with a 2% ad fund the agreement allows to rise to 3%. Its Item 19 reports average revenue of $75,724 across those 14 locations for calendar 2025. Taken flat, that looks alarming next to StretchLab’s $487,000 median. Read it as a ramp-stage number instead: most of the system’s studios opened recently, and a first-year studio in any membership business grosses a fraction of stabilized volume. The disclosure is honest about where the system is, which counts for something. Still, a buyer here is underwriting the franchisor as much as the model. At 14 units there is no depth of evidence that studios stabilize at attractive volume, so the diligence bar is materially higher: franchisor financials in Item 21, conversations with every operator who will take the call, and clear answers on what happens to franchisees if the system stalls. ## What Stretch Studios Actually Gross The revenue picture, brand by brand: StretchLab $487,000 median with a $432,500-$547,500 interquartile range, StretchMed $264,135 median, The Vital Stretch $75,724 ramp-stage average, and Stretch Zone undisclosed at the system-median level. Across the category, sessions retail at roughly $50 to $90 and get packaged into recurring monthly memberships, so gross revenue is a direct function of active member count. Two cautions apply to every one of those figures. First, they are revenue, not profit. A stretch studio pays practitioners by the session hour, and rent, royalties, and marketing come out before the owner sees anything. None of that is in Item 19. Second, cohort definitions shape the numbers. StretchMed’s figures cover only units fully operational for the whole calendar year; StretchLab’s cover “qualified studios.” Both definitions exclude locations that closed or never stabilized, which biases disclosed figures upward. [Why medians beat averages in Item 19](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) walks through the survivorship math. And remember that Item 19 is the only place a franchisor may lawfully make an earnings claim under the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436); any revenue number a sales rep quotes outside that document is a red flag by itself. ## Boutique Wellness Economics: Why Entry Runs $130K To $814K Stretch studios are cheap to build by fitness standards. The footprint is small (StretchLab studios typically run 1,200 to 2,000 square feet), the equipment is benches rather than treadmills, and there are no showers or locker rooms. That is why three of the four brands offer low-end entry under $160,000, and why the category features in our [under-$200K fitness roundup](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). The spread up to $814,192 is mostly real estate: premium-metro build-outs with higher rent deposits, longer pre-opening carry, and bigger working capital reserves. The structural constraint to understand before buying any of the four: assisted stretching, sometimes marketed as stretch therapy, is a one-practitioner-to-one-client business. A group fitness instructor can serve twenty members in an hour; a Flexologist serves one. Revenue is capped by staffed table hours multiplied by utilization, margins depend on scheduling density and practitioner pay, and growing revenue means hiring. Compare that labor model against group formats in the [fitness franchise cost comparison](https://vetmyfranchise.com/c/claude/blog/fitness-franchise-cost-comparison) before deciding the one-on-one model is where you want to operate. ## Membership Model Red Flags All four brands run on recurring memberships, and membership businesses fail in predictable ways. Five things to pressure-test in the FDD and on validation calls: 1. **Intro-offer conversion.** Every stretch brand acquires members through discounted first sessions. Ask franchisees what percentage of intro visits convert to memberships, and at what monthly price point. 2. **Retention past month three.** Assisted stretching is still proving long-term retention as a category. First-90-day cancellation rates decide whether a studio ever stabilizes. 3. **Minimum royalties.** Stretch Zone’s 7% royalty carries a $900 monthly floor. A floor is irrelevant at maturity and painful during ramp, when revenue is lowest and cash is tightest. 4. **Ad fund escalators.** The Vital Stretch’s 2% fund can rise to 3% under the agreement. Model fees at the maximum, not the current rate. 5. **Churn masked by growth.** StretchLab’s 38 openings against 37 closures nets out to growth on paper. Ask the franchisor directly what happened to the 37. Litigation deserves a scan too: our parse counts 4 disclosed Item 3 matters for StretchLab and 2 for StretchMed. Counts alone don’t condemn a brand, since the disclosure window runs ten years and includes suits franchisees filed. Read what the cases actually allege. ### Get the FDD Data Before You Commit Every figure in this post is a starting point, not a decision. The FDDs behind them run hundreds of pages each, and the terms that bite operators years in (territory carve-outs, renewal conditions, transfer restrictions, personal guarantees) never show up in a comparison table. The [VetMyFranchise $49 template](https://vetmyfranchise.com/c/claude/fdd-analysis-example) gives you the framework: Item 7 capital validation, Item 19 numbers in context, litigation and turnover red flags, and the contract terms worth a lawyer’s hour. For any of the four brands above, pull the brand-specific report on its current FDD and run it against the template. The stretching category is genuinely unusual: four franchised brands, four Item 19 disclosures, and a spread from a $129,892 budget entry to an $814,192 premium build. The data exists to make this decision well. Use it. ## Brands mentioned in this post - [The Vital Stretch](https://vetmyfranchise.com/c/claude/franchise/the-vital-stretch-franchising-llc) - [StretchMed](https://vetmyfranchise.com/c/claude/franchise/stretchmed-franchise-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) stretching franchisestretchlabstretch zoneassisted stretchingwellness franchisefranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a stretching franchise cost? Between roughly $130,000 and $814,000 depending on brand and market. StretchMed is the cheapest verified entry at $129,892-$211,086 per its 2026 FDD, Stretch Zone runs $142,590-$305,489, The Vital Stretch $157,400-$258,100, and StretchLab $271,037-$814,192. Initial franchise fees among the disclosed brands run $49,500 for StretchMed and $59,500 for Stretch Zone. ### Is StretchLab or Stretch Zone bigger? StretchLab is bigger: 486 studios versus Stretch Zone's 413 operational units as of December 31, 2025, per their 2026 FDDs. The growth trend tells a different story. Stretch Zone reported 36 openings and zero closures last year, while StretchLab opened 38 studios and closed 37 for a net gain of one. ### Are stretching franchises profitable? The FDDs disclose revenue, not profit. StretchLab's 2026 Item 19 reports a $487,000 median across 448 qualified studios, and StretchMed reports a $264,135 median across 29 full-year units. Whether that converts to owner income depends on practitioner utilization, rent, and local wages; a studio needs stable recurring membership to clear its 8-10% combined fee load plus a one-on-one labor model. ### Do you need fitness credentials to open a stretching franchise? No. All four franchisors train the practitioners who deliver sessions (StretchLab calls them Flexologists), and the owner's job is business operations: hiring, local marketing, and membership sales. A fitness or wellness background helps with hiring and credibility but is not a requirement in any of these systems. --- title: "Best Franchises Under $5,000 Investment 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: low cost franchise, cheap franchise, best franchises, franchise under 5000, industry guide canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-under-5k-investment about: low cost franchise category: blog wordCount: 1384 readingTime: 7 min crawledAt: 2026-08-20 11:03:42 lastVerified: 2026-08-20 11:03:42 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises Under $5,000 Investment 2026 ## Summary Best franchises under $5K investment 2026: Jazzercise leads the category. What sub-$5K franchise opportunities actually exist, structural models, and buyer considerations. ## Key facts - The franchise universe disclosed through FDDs is heavily concentrated above $50K total investment. - Beyond Jazzercise, sub-$5K franchise investments tend to cluster in a few structural categories: - The defining economic feature of sub-$5K franchises is royalty concentration. - Sub-$5K franchises fit specific operator profiles cleanly: - Sub-$5K franchises do not fit: Quick answer Jazzercise is the dominant franchise under $5,000, disclosing a $2,170 to $2,780 total investment and a $1,250 initial franchise fee across 5,251 franchised units. The trade-off is a 10-20% royalty on gross revenue, roughly double the 6-7% boutique fitness norm. Most franchise systems need $50K or more. ## Why Sub-$5K Franchises Are Rare The franchise universe disclosed through FDDs is heavily concentrated above $50K total investment. The reason is structural rather than coincidental — most franchise business models include one or more capital-intensive elements: - **Real estate or facility.** Commercial lease commitment, build-out, fit-out. Adds $100K-$500K+ to typical franchise startup cost. - **Equipment.** Specialized equipment, vehicles, technology infrastructure. Adds $20K-$200K to typical franchise startup cost. - **Inventory.** Initial stocking of saleable goods or supplies. Adds $20K-$100K to typical franchise startup cost. - **Working capital.** Pre-opening operating costs and ramp-period cushion. Adds $30K-$150K to typical franchise startup cost. Franchises that include any of these elements cross the $50K floor quickly. Franchises that exclude all of them — operating instructor-licensing models, fully mobile owner-operator services, or digital-only models — can reach sub-$5K total investment but are the structural exceptions. The sub-$5K franchise category is small for this reason, not because franchisors are choosing not to compete at this price point. The economic models that support sub-$5K franchise investments are limited. ## [Jazzercise](https://vetmyfranchise.com/c/claude/franchise/jazzercise-inc): The Dominant Sub-$5K Brand [Jazzercise](https://vetmyfranchise.com/c/claude/franchise/jazzercise-inc)’s 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) discloses a total initial investment of $2,170-$2,780 with a $1,250 initial franchise fee. The brand operates 5,251 franchised units — by a wide margin the largest unit count of any sub-$5K franchise system in the US and one of the largest unit counts of any US fitness franchise overall. The structural model: - **Instructor-as-franchisee.** The operator is typically the teaching instructor. The franchise sells brand rights, choreography catalog, music licensing, and certification programs to instructors rather than selling turnkey studios to investors. - **No facility.** Franchisees rent or share existing facility space (community centers, dance studios, gyms during off-hours, school gyms). - **No equipment build.** Basic equipment (mats, light weights) that the franchisee transports in or that the rented facility provides. - **No staff infrastructure.** The operator is the labor; no staff payroll burden at startup. The economic trade-off: 10-20% royalty on gross revenue. This is roughly double the boutique fitness norm (6-7%) and substantially above gym franchise norms. The franchisor’s economic model is concentrated in perpetual royalty rather than in initial fees. For deeper context, the [is-jazzercise-a-good-franchise](https://vetmyfranchise.com/c/claude/blog/is-jazzercise-a-good-franchise) verdict post and the [jazzercise-2k-investment-paradox-why-so-cheap](https://vetmyfranchise.com/c/claude/blog/jazzercise-2k-investment-paradox-why-so-cheap) narrative post cover the model in detail. ## Other Sub-$5K Franchise Categories Beyond Jazzercise, sub-$5K franchise investments tend to cluster in a few structural categories: **Instructor-licensing fitness models.** Beyond Jazzercise, smaller fitness instructor franchises (specialty dance, yoga, barre) operate similar structures. Most are smaller franchise systems (under 500 units) with limited national presence. **Specialty mobile owner-operator services.** Some specialty service categories (specific repair services, tutoring services, mobile pet services) operate sub-$5K entry models for operators who already own appropriate vehicles and equipment. The disclosed “low end” of these franchises’ investment ranges may be sub-$5K, but the realistic operating capital requirement is typically higher. **Digital-only operating models.** Some franchise systems operating exclusively through digital delivery (online tutoring, virtual consulting, digital marketing services) can operate sub-$5K. These are a small subset of the franchise universe. **Note on disclosure ranges:** Some franchises with broad disclosed investment ranges (e.g., [K-9 Franchising](https://vetmyfranchise.com/c/claude/franchise/k-9-franchising-llc)’s $1,500-$3,949,331 range) include sub-$5K entry possibilities at the low end of the range. The low end is realistic only for operators who already own appropriate equipment and vehicles; most operators entering these franchises commit substantially more capital. ## The Economic Model: Royalty Concentration The defining economic feature of sub-$5K franchises is royalty concentration. Standard franchise economics distribute franchisor revenue across initial fees, royalty, and ad fund contributions. Sub-$5K franchises concentrate franchisor revenue almost entirely in royalty: | Franchise Type | Typical Initial Fee | Typical Royalty | | --- | --- | --- | | Boutique fitness (Club Pilates, Orangetheory) | $50K-$60K | 6-7% | | Gym franchises (Anytime Fitness) | $42.5K | 6% | | Sub-$5K instructor-licensing (Jazzercise) | $1,250 | 10-20% | For operators, this means: - **Initial capital risk is genuinely low.** Failing in year one costs $2K-$5K in franchise fees plus modest operating losses. - **Long-term royalty drag is significant.** Successful operators pay perpetual 10-20% of gross to the franchisor, materially higher than other franchise categories. - **Royalty drag scales with success.** Higher-performing operators pay disproportionately more to the franchisor, leading some experienced operators to question whether the brand-rental cost continues to be worth it at scale. ## The Right Buyer Profile for Sub-$5K Franchises Sub-$5K franchises fit specific operator profiles cleanly: **Operators entering self-employment from W-2 or limited prior business experience.** The low capital floor allows operators to test self-employment without significant capital risk. If the model works for the operator, the operator can continue; if not, the operator can exit with limited loss. **Operators with existing skills the franchise systematizes.** Instructors, service providers, or specialty practitioners with prior expertise can leverage the franchise’s brand and operating systems to accelerate customer acquisition relative to operating independently. **Operators building a low-overhead small business.** The model produces sustainable small-business income for committed operators willing to be the working operator. Income ceilings are modest compared to facility-model franchises but are achievable with limited capital risk. **Operators wanting brand legitimacy without capital commitment.** New entrants to a category often benefit from operating under an established brand even at sub-$5K investment levels. The franchise’s brand and operational systems substitute for the operating credibility a new entrepreneur would otherwise need to build independently. ## Buyer Profiles That Don’t Fit Sub-$5K franchises do not fit: **Passive investors wanting franchise exposure.** The operator must be actively involved; passive ownership doesn’t work in these models. **Operators wanting boutique fitness or other facility-model exposure.** Sub-$5K franchises are structurally different products. Investors wanting facility-model franchises should look at the $200K-$700K capital range, not the sub-$5K range. **Operators expecting franchisor-driven inbound revenue.** Sub-$5K franchises require active operator participation in customer acquisition. Operators expecting the brand to deliver inbound customer flow will underperform. **Operators uncomfortable with perpetual high royalty.** The 10-20% royalty drag is structural to the model. Operators uncomfortable with this long-term cost should look at higher-initial-capital, lower-royalty franchise alternatives. ## The Honest Read on the Category Sub-$5K franchises are real franchise opportunities — they are not lesser, scammy, or unregistered “business opportunities.” Jazzercise specifically has 47 years of operating history, 5,251 franchised units, and a substantial franchisor support apparatus. Other sub-$5K franchises in the category similarly operate legitimate franchise structures. The honest read on the category: these franchises serve a specific operator profile (active operator-instructors or service-providers) at a low capital floor in exchange for high perpetual royalty. For the right operator profile, the model produces meaningful self-employment economics with minimal capital risk. For operators outside this profile, the structural mismatch produces disappointing outcomes regardless of franchise quality. For broader low-capital franchise category context, the [best-low-cost-franchises-under-100k](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) roundup and [low-cost-franchises-under-50k](https://vetmyfranchise.com/c/claude/blog/low-cost-franchises-under-50k) post cover the broader low-capital opportunity set beyond the sub-$5K tier. ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) - [Jazzercise](https://vetmyfranchise.com/c/claude/franchise/jazzercise-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) low cost franchisecheap franchisebest franchisesfranchise under 5000industry guide About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What franchises can I open for under $5,000? The dominant brand in the sub-$5K category is Jazzercise, with a 2026 FDD-disclosed total investment of $2,170-$2,780. Other franchises at this price point are rare and tend to operate specialty instructor-licensing models, fully mobile owner-operator services, or digital-only operating models. Most franchise systems require $50K+ to capitalize the structural elements (facility, equipment, inventory, working capital) that produce franchise-style returns. ### Are sub-$5K franchises real franchises or just licenses? Legally they are franchises if they are registered as such with the FTC and disclosed through standard FDDs. Jazzercise is registered as a franchise, files standard FDDs, and operates within FTC franchise regulations. Operationally, the model has license-like characteristics (the franchisee receives brand rights, training, IP, and operational support in exchange for royalty rather than receiving a turnkey business unit). The legal-versus-operational characterization is the structural reality of low-capital franchise models. ### Why are sub-$5K franchises so rare? The capital floor for most franchise models is driven by structural elements: real estate or facility, equipment, inventory, initial working capital, and pre-opening operating costs. Most franchise systems include one or more of these elements with multi-tens-of-thousands of dollars of cost. Franchises operating without these structural elements (instructor licensing models, mobile owner-operator models, digital-only models) are the structural exceptions that can reach sub-$5K total investment. ### What's the economic trade-off for sub-$5K franchises? Low capital risk in exchange for high perpetual royalty. Most franchise models charge royalty at 5-7% of gross revenue. Sub-$5K franchises typically charge royalty at 10-20% of gross revenue, reflecting the franchisor's economic model — initial fees are minimal, so ongoing royalty must produce franchisor returns. Operators evaluating the math should focus on the steady-state royalty drag, not the headline low capital cost. ### Can sub-$5K franchises produce meaningful income? Yes, for operators in the right profile. Operators capable of building a meaningful customer base, working substantial hours, and operating efficiently can generate $50K-$200K of annual revenue at sub-$5K franchises. After the high royalty rate (10-20%), the operator margin is meaningful. For operators unable or unwilling to actively build the business, the income ceiling is structurally low. The franchise is a low-capital-risk path to a small business, not a passive income source. --- title: "Best Mobile Car Wash & Detail Franchises 2026 (Real Economics)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-05-27 keywords: mobile-car-wash-franchise, mobile-detail-franchise, automotive-franchise, van-based-franchise, low-cost-franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-mobile-car-wash-detail-franchises about: mobile-car-wash-franchise category: blog wordCount: 1824 readingTime: 9 min crawledAt: 2026-08-20 11:03:43 lastVerified: 2026-08-20 11:03:43 site: https://vetmyfranchise.com/c/claude/ --- # Best Mobile Car Wash & Detail Franchises 2026 (Real Economics) ## Summary Compare the best mobile car wash and auto detail franchises for 2026 — Spiffy, DetailXPerts, MD Auto Spa, and more. Real investment, route math, and B2B vs B2C economics. ## Key facts - Mobile car wash and auto detail occupies a niche that the broader [automotive franchise category](https://vetmyfranchise. - The all-in number for a single-van start matters more than the franchise fee. - This is the single most important number in mobile detail and almost nobody models it correctly before signing. - This is the strategic decision that most buyers don’t make explicitly, and then they end up doing both badly. - Here’s the uncomfortable truth: most mobile car wash and detail franchises have weak Item 19 disclosures. Quick answer Mobile car wash and detail franchises run $75,000 to $225,000 all-in for a single van, with a $25,000-$45,000 franchise fee. MD Auto Spa is the cheapest entry at $80,000-$125,000, DetailXPerts runs $109,500-$154,500, and Spiffy tops the group at $135,000-$205,000. Median operators report $110K-$160K gross revenue at 20-30% owner earnings. The pitch for mobile car wash franchises is one of the cleanest in franchising: a wrapped van, a water tank, a route, and a couple of techs. No lease. No fixed-site permits. No equipment that costs more than your house. You can be open inside 60 days of signing. The reality is messier. Mobile detail is a route-density business with thin per-job margins, a labor problem nobody wants to discuss, and a water-disposal regulatory minefield that varies by ZIP code. The franchises that work are the ones that solve the route and the water — not the ones with the prettiest van wrap. Here’s how the major mobile car wash and auto detail franchises actually compare for 2026, what the route math looks like once you do it honestly, and where the model breaks down. ## The Mobile Detail Landscape Mobile car wash and auto detail occupies a niche that the broader [automotive franchise category](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) tends to lump in with quick-lube and tire stores. It deserves its own analysis because the economics are nothing like a fixed automotive franchise. There are essentially four franchised player categories: 1. **App-driven national brands** — Spiffy is the clearest example. Customer demand flows through a consumer app; the franchisee or sub-operator fulfills. 2. **Eco-positioned brands** — DetailXPerts is the largest in this group, built around steam-cleaning and water-reclamation as a differentiator. 3. **Owner-operator-friendly regional systems** — MD Auto Spa, Detail Doctors, and a handful of regional brands targeting solo operators. 4. **Service-channel franchises** — brands that sell detail as one channel inside a broader [van-based service franchise](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises) (handyman, mobile mechanic, etc.). Each plays a fundamentally different game. ## Investment Comparison The all-in number for a single-van start matters more than the franchise fee. Here’s the realistic 2026 range from the four major brands, based on disclosed [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) figures plus working capital reality: | Brand | Franchise Fee | Equipment + Van | Working Capital | Total Realistic Start | | --- | --- | --- | --- | --- | | Spiffy | $35,000-$45,000 | $75,000-$120,000 | $25,000-$40,000 | $135,000-$205,000 | | DetailXPerts | $39,500 | $50,000-$85,000 | $20,000-$30,000 | $109,500-$154,500 | | MD Auto Spa | $25,000-$35,000 | $40,000-$65,000 | $15,000-$25,000 | $80,000-$125,000 | | Detail Doctors | $30,000-$40,000 | $45,000-$70,000 | $15,000-$25,000 | $90,000-$135,000 | A few notes on the numbers. The “van + equipment” figure depends heavily on whether you finance new (Sprinter, Transit, ProMaster — $55K-$80K) or retrofit a used cargo van ($25K-$45K). Most franchisors push new because financing is cleaner and the brand image is consistent. The working-capital line is where buyers underestimate: until you have 30-45 days of route density, you’re paying labor and burn without enough completed jobs to cover it. ## The Route Density Math This is the single most important number in mobile detail and almost nobody models it correctly before signing. **The job:** A standard mobile detail (exterior wash, vacuum, interior wipe-down, tire dressing, windows) takes 45-75 minutes on-site for one tech. A full detail with interior shampoo, leather treatment, and clay-bar exterior runs 2-3 hours. **The drive:** In a tight metro radius (5-8 miles between stops), drive time averages 12-18 minutes per transition. In a sprawling suburban route (15-25 miles between stops), drive time averages 28-45 minutes per transition. What that means in dollars: | Scenario | Jobs/Day | Avg Ticket | Daily Gross | Daily Labor | Daily Margin | | --- | --- | --- | --- | --- | --- | | Dense urban (1 tech, 5-mile radius) | 7 | $145 | $1,015 | $185 | $830 | | Suburban scatter (1 tech, 18-mile radius) | 4 | $145 | $580 | $185 | $395 | | B2B dealership contract (1 tech) | 12-18 | $48 | $720 | $185 | $535 | | Premium full-detail (1 tech, appointment-only) | 3 | $295 | $885 | $230 | $655 | The suburban scatter scenario is what kills new operators. They take any job, anywhere, in the first 90 days because they need revenue. Then they realize their tech is driving 4 hours a day and doing 3 jobs. The franchisors who solve this with territory-mapping software, scheduling discipline, and B2B contract anchors are doing the actual valuable work. The ones who just sell you a van wrap are not. ## B2B vs B2C — They Are Different Businesses This is the strategic decision that most buyers don’t make explicitly, and then they end up doing both badly. **B2C residential** — Higher ticket ($120-$300), lower volume per day (4-7 jobs), unpredictable demand, marketing-heavy. Margin per job is strong (55-70% after labor). But scheduling is messy and customer acquisition cost is real — Google Ads in competitive metros runs $35-$70 per acquired job. **B2B fleet** — Lower ticket ($30-$65), higher volume per day (12-25 jobs), predictable demand, low marketing cost. Margin per job is thinner (30-45% after labor) because you’re competing on price. But once you land a dealership chain, rental car location, or corporate parking lot, the revenue is locked in for 12+ months. A healthy mobile detail operation usually targets a 60/40 or 70/30 B2C/B2B split — B2C drives the margin, B2B anchors the float. Brands like DetailXPerts that hand you B2B playbooks have a meaningful edge. Brands that don’t expect you to figure it out in year one with no support. If you’ve never sold a $40,000 fleet contract before, the franchisor’s B2B support program (or absence of one) should be the #1 question in your discovery day. Read our [franchise validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) and add specific B2B-channel questions to that list. * * * **Want to know which mobile car wash franchise actually has the unit economics it claims?** Get a $49 AI-powered FDD analysis for Spiffy, DetailXPerts, or any mobile detail brand on our platform — we pull the buyer-relevant numbers (Item 19, royalties, real total investment, default trends) out of the FDD in under five minutes. [See pricing →](https://vetmyfranchise.com/c/claude/pricing) * * * ## What Item 19 Actually Says (And Doesn’t) Here’s the uncomfortable truth: most mobile car wash and detail franchises have weak Item 19 disclosures. Some don’t include an Item 19 at all (allowed under the FTC Rule, though every legit franchisor really should). The ones that do disclose tend to publish averages that mix together solo owner-operators (high-margin), multi-van operators (lower per-unit margin), and B2B-heavy operators (different revenue profile entirely). A few patterns we see across mobile detail Item 19s in recent FDDs: - **Top-quartile single-van operators** in dense metros report $180K-$260K gross revenue with 35-45% owner earnings. - **Median operators** report $110K-$160K gross revenue with 20-30% owner earnings. - **Multi-van fleet operators** (3-5 vans) report $400K-$750K gross revenue with 15-22% owner earnings — the scale dilution is real. Compare this to fixed-site [express tunnel car wash franchises](https://vetmyfranchise.com/c/claude/blog/express-car-wash-franchise-cost) where top-quartile operators can clear $400K+ in owner earnings, and you understand why mobile is sometimes pitched as “easy entry, hard scaling.” It’s accurate. ## Water, Permits, and Regulatory Risk This is the part nobody at discovery day will spend enough time on, and it’s the one that can cost you the most. The Clean Water Act and various state and city ordinances treat soapy car-wash water running into storm drains as illegal discharge. In municipalities that enforce this seriously (California Bay Area, Portland, Seattle, Denver, Austin, much of Massachusetts, parts of New York), a mobile car wash operator who isn’t reclaiming wash water can be cited, fined ($500-$25,000 per incident), and forced to shut down operations. The franchise systems that have built compliant reclamation into the equipment package and training (Spiffy, DetailXPerts, and the better regional brands) are protecting you. The ones who don’t are setting you up for a regulatory problem you may not even know exists until a code enforcement officer pulls up to your job site. Specific questions to ask before signing any mobile detail FDD: - Does the equipment package include a reclamation mat and water recovery vacuum? - Does the training program cover storm-drain compliance and discharge regulations? - Are there local franchisees who have been cited or fined for water discharge issues? (Talk to franchisees directly during your validation calls.) - What does the franchisor do when a municipality changes ordinance mid-contract? ## The Honest Recommendation If you’re investment-constrained ($80K-$130K range) and willing to drive a van yourself for the first year, MD Auto Spa or a strong regional brand probably gives you the best risk-adjusted entry. If you’re in a top-20 metro and want app-driven consumer demand from day one, Spiffy is the most-funded play — but you’ll pay for it in higher fees and franchisor revenue share. If you have B2B sales experience and want to build a fleet-anchored route across 3-5 vans, DetailXPerts has the strongest B2B playbook of the major brands. If you can’t tell which of the above describes you, don’t sign anything yet. Mobile detail rewards operators who know exactly what they’re going to sell, to whom, in which ZIP codes — before they buy the van. Get the FDDs, compare them on actual disclosed numbers, and talk to ten existing franchisees in your target market about route density and water compliance. * * * **Ready to compare specific mobile car wash franchises side-by-side on real FDD numbers?** Get a $49 AI-powered FDD analysis for any mobile detail brand on our platform — we pull Item 19 averages, default trends, territory rules, and the buyer-relevant numbers in minutes, not hours. [See pricing →](https://vetmyfranchise.com/c/claude/pricing) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) mobile-car-wash-franchisemobile-detail-franchiseautomotive-franchisevan-based-franchiselow-cost-franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to buy a mobile car wash franchise? Most mobile car wash and detail franchises cost between $75,000 and $225,000 all-in for a single van. The franchise fee is typically $25,000-$45,000, the van and equipment package runs $40,000-$120,000 depending on whether you finance a new Sprinter-class van or retrofit a used cargo van, and working capital + initial marketing usually adds $15,000-$40,000. Spiffy is the highest of the major brands; DetailXPerts and MD Auto Spa sit in the middle; smaller regional brands can be under $80,000. ### Is a mobile car wash franchise profitable? It can be, but it lives or dies on route density and labor cost. A solo operator running 5-7 detail jobs a day in a tight metro radius at $150-$250 per job can clear $80,000-$140,000 in owner earnings on year-two volume. The problems start when you hire — a $22/hour tech in a van that does 3 jobs a day with 90 minutes of drive time between each is barely break-even. Fleet (B2B) contracts can stabilize revenue but the per-vehicle ticket is usually $35-$65, not $200. ### Do I need water and waste-water permits? Yes, in most jurisdictions, and this is where untrained operators get blindsided. California, Oregon, Washington, Maryland, much of New England, and many city ordinances (Austin, Denver, Boulder, San Diego, etc.) require mobile car wash operators to capture and dispose of wash water — letting soapy water run into a storm drain is a Clean Water Act violation. The good franchise systems include reclamation mats, vacuums, and disposal protocols in the franchise package. The bad ones leave it to you. Ask Item 11 questions about water reclamation training before you sign anything. ### Spiffy vs DetailXPerts vs MD Auto Spa — which is best? Different strategic plays. Spiffy is the most-funded and B2B-app-driven; it works well in major metros where the on-demand app generates customer flow. DetailXPerts emphasizes eco-friendly steam-clean methodology and converts B2B fleet accounts well in the Southeast. MD Auto Spa is more owner-operator-friendly and lower investment. None of them are 'best' in the abstract — they're best for different operators. If you have B2B sales experience, DetailXPerts. If you want the app-driven consumer flow in a top-20 metro, Spiffy. If you want lowest barrier to entry, MD Auto Spa or a regional independent. ### How is this different from a fixed-location car wash franchise? Completely different business. Fixed-site car wash franchises (tunnel, in-bay automatic, express) are real estate plays — $3M-$8M build-out, 8,000-15,000 cars/month, throughput-based economics. Mobile is a service-route business — labor, scheduling, and density are the levers. Mobile detail averages 5-8 cars per van per day at $80-$250 ticket. Fixed-site averages hundreds per day at $8-$25 ticket. Different capital, different staffing model, different exit multiple. Don't conflate them. --- title: "Best Food Franchises Under $250K: 12 Picks (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k category: blog wordCount: 2873 readingTime: 14 min crawledAt: 2026-08-20 11:06:17 lastVerified: 2026-08-20 11:06:17 site: https://vetmyfranchise.com/c/claude/ --- # Best Food Franchises Under $250K: 12 Picks (2026) ## Summary Best food franchises under $250K total investment in 2026 — 12 picks with AUV, royalty, Item 19 disclosure, and SBA financing reality for buyers with a hard budget cap. ## Key facts - $250K isn’t an arbitrary number. - Brand-specific investment ranges below are compiled from the brands’ 2025-2026 FDDs in VetMyFranchise’s database of 2,000+ franchise systems; AUV figures mix Item 19 disclosures with industry-standard estimates. - Owned by GoTo Foods (formerly Focus Brands), [Cinnabon](https://vetmyfranchise. - A few cautionary patterns to watch for: - Real estate is the largest single cost variable that determines whether a food franchise fits under $250K. Quick answer Cinnabon's kiosk format is the strongest under-$250K food play, starting at $196,250 per the 2026 FDD; Kona Ice ($114,730-$228,601) and Auntie Anne's (from $157,795) also start under the cap. Most storefront concepts only fit at low-end builds, so real estate decides whether you actually stay under $250K. The best food franchises under $250K in 2026 are the ones whose disclosed [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) ranges actually start below the cap: [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) kiosks from $196,250, [Kona Ice](https://vetmyfranchise.com/c/claude/franchise/kona-ice-inc) mobile trucks at $114,730-$228,601, [Auntie Anne’s](https://vetmyfranchise.com/c/claude/franchise/auntie-annes-franchisor-spv-llc) kiosks from $157,795, and [Edible Arrangements](https://vetmyfranchise.com/c/claude/franchise/edible-arrangements-llc) from $213,500, all per the brands’ 2026 FDDs. The full 12-pick comparison, and the trade-offs behind it, follows. ## $250K Is Where Food-Franchise Math Actually Works for Most Buyers $250K isn’t an arbitrary number. It’s the soft-ceiling for SBA-7a friendly food franchise launches, the upper bound for most 401k ROBS-funded launches without supplemental financing, and the practical limit for buyers who want to keep personal liquid reserves intact while launching a unit. Above $250K, most buyers need bridge financing, partner capital, or larger SBA structures. Below $250K, the math fits a single individual operator with reasonable savings, a 401k to roll, and a second mortgage option. The catch: pure full-service restaurants almost never fit under $250K. Even well above this budget the big sit-down names are not on the market, and [Texas Roadhouse has stopped accepting new domestic franchise applications](https://vetmyfranchise.com/c/claude/blog/is-texas-roadhouse-a-franchise). Concepts that work in this tier are kiosks, small-format quick-service, mobile units, ghost-kitchen operations, and co-brand combos that share lease and equipment costs across multiple brands. Anyone shopping under $250K is implicitly choosing a structurally different food-franchise model than the $1M+ traditional QSR, and the unit economics, scaling math, and operational complexity all shift accordingly. This guide covers 12 food franchise concepts that genuinely fit under $250K total investment, with the trade-offs and Item 19 caveats that matter for buyers in 2026. [Take our 2-minute quiz to find food franchises that match your budget →](https://vetmyfranchise.com/c/claude/find-my-franchise) ## Why $250K Is the Meaningful Tier Three structural reasons: 1. **SBA-7a financing optimization.** SBA-7a loans are most efficient in the $150K–$500K range. Below $150K, the SBA’s underwriting and packaging fees consume a meaningful percentage of the loan; above $500K, the down payment and personal guarantee requirements escalate. The $250K total-investment level fits a typical SBA-7a structure with 20–30% down payment ($50K–$75K cash) and the remaining 70–80% financed over 10 years. 2. **401k ROBS feasibility.** A 401k-funded ROBS (Rollover for Business Startup) structure works well for total investments in the $100K–$300K range, which is exactly where most under-$250K food franchises sit. Above $300K, ROBS typically needs to be paired with SBA or seller financing, which adds complexity. 3. **Realistic unit economics at this scale.** A $200K-investment food concept generating $400K–$700K in AUV at 25–30% EBITDA margin produces $100K–$200K in annual operator cash flow. That’s a real owner-operator income at a real owner-operator capital commitment. The same buyer attempting a $900K traditional QSR launch faces 5x the capital risk for similar absolute cash flow at the start. The under-$250K tier isn’t a compromise tier. It’s a deliberately structured tier where the franchise concept, real estate format, and operational model are designed to fit smaller capital, not just be cheaper versions of larger concepts. ## The 12 Picks Brand-specific investment ranges below are compiled from the brands’ 2025-2026 FDDs in VetMyFranchise’s database of 2,000+ franchise systems; AUV figures mix Item 19 disclosures with industry-standard estimates. Verify Item 5, 6, 7, and 19 in the most recent FDD before relying on any specific figure. | Brand | Total Investment | Royalty + Ad Fund | Typical AUV | Item 19 Disclosure | | --- | --- | --- | --- | --- | | Cinnabon (kiosk format) | $196,250–$715,100 (2026 FDD) | 6% + ad fund | $200K–$400K | Limited | | Auntie Anne’s (kiosk) | $157,795–$835,500 (2026 FDD) | 7–8% + ad fund | $400K–$650K | Detailed | | Jersey Mike’s | $436,176–$1,162,228 (2026 FDD) | 6.5% + 6% | $1M+ | Detailed | | Wingstop (low-end build) | $310,400–$1,013,500 (2026 FDD) | 6% + 5.5% | $1.6M+ | Detailed | | Tropical Smoothie Cafe | $260K–$600K | 6% + 3% | $850K–$1M | Detailed | | Rita’s Italian Ice | $145K–$420K | 6.5% + 3.5% | $300K–$600K | Detailed | | Kona Ice (mobile) | $114,730–$228,601 (2026 FDD) | $5K flat fee/year | $80K–$140K mobile | Limited | | Marco’s Pizza (low end) | $250K–$650K | 5.5% + 4% | $850K+ | Detailed | | Schlotzsky’s | $675,365–$2,261,500 (2026 FDD) | 6% + 4% | $700K+ | Detailed | | Smoothie King | $329,850–$1,278,900 (2026 FDD) | 6% + 3% | $400K–$700K | Detailed | | Ben & Jerry’s Scoop Shop | $150K–$500K | 3% + 4% | $300K–$700K | Limited | | Edible Arrangements | $213,500–$587,000 (2026 FDD) | 5% + 3% | $400K–$700K | Limited | (Where a 2026 FDD range now starts above $250K, the brand stays listed only for buyers pursuing conversions, resales, or special formats priced below the new-build range. Unmarked ranges are industry-typical figures as of 2026. For the full ranked list by total investment, see the [cheapest franchises report](https://vetmyfranchise.com/c/claude/reports/cheapest-franchises).) ## What to Know About the Top Picks ### [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) (Kiosk Format) Owned by GoTo Foods (formerly Focus Brands), [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc)’s kiosk model is the canonical under-$250K food franchise. The brand operates in malls, airports, gas stations, and host locations; most successful operators stack [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) with [Auntie Anne’s](https://vetmyfranchise.com/c/claude/franchise/auntie-annes-franchisor-spv-llc) (also GoTo Foods) inside one footprint, sharing equipment and labor. Per the 2026 FDD, the full investment range runs $196,250–$715,100, with kiosk formats at the low end. AUV is lower at kiosk format ($200K–$400K typical) but operational complexity and capital are dramatically lower than full-store formats. Most successful operators run 3+ co-branded kiosks across regional malls or airport portfolios. ### Tropical Smoothie Cafe Tropical Smoothie’s low-end build can fit under $250K in markets with favorable real estate, though most builds run $300K–$500K. The brand has a strong Item 19 disclosure showing typical AUV in the $850K–$1M range with attractive margin structure. Drive-thru capability is increasingly available. Multi-unit franchisees report this as one of the more capital-efficient food franchises that still produces “real restaurant” revenue. ### [Auntie Anne’s](https://vetmyfranchise.com/c/claude/franchise/auntie-annes-franchisor-spv-llc) (Kiosk) Same parent (GoTo Foods) as [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc), similar host-location strategy. [Auntie Anne’s](https://vetmyfranchise.com/c/claude/franchise/auntie-annes-franchisor-spv-llc) standalone or co-branded kiosks in regional malls, airports, and host locations typically generate $400K–$650K AUV at investment levels that fit comfortably under $250K. Co-brand stacking with [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) is the dominant multi-unit play. ### [Marco’s](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) Pizza (Low-End Build) [Marco’s](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) low-end build can fit under $250K in some markets, though most builds run $300K–$500K. The brand has strong Item 19 disclosure and credible AUV at $850K+ with attractive margins for the pizza-delivery category. Carry-out and delivery focus reduces dining-room build-out cost. Multi-unit [Marco’s](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) operators commonly run 5+ units within 5 years. ### [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) (Low-End Build) [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc)’s disclosed range ($310,400–$1,013,500 per the 2026 FDD) extends well above $250K for most builds, but specific markets and existing-conversion opportunities can approach the threshold. The Item 19 disclosure shows typical AUV in the $1.6M+ range with strong margins, among the highest unit economics near this tier when the build can be done at the low end. Buyer beware: [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) is increasingly competitive on territory availability. ### Rita’s Italian Ice Rita’s seasonal model (peak summer, slow winter) creates pronounced cash-flow swings but the under-$250K capital intensity and low operational complexity (limited menu, simple equipment, small footprint) make it accessible to first-time operators with strong outdoor-focused locations. AUV ranges $300K–$600K with strong summer-peak margins. Multi-unit operators commonly run 3–5 units within a regional territory. ### [Kona Ice](https://vetmyfranchise.com/c/claude/franchise/kona-ice-inc) (Mobile) [Kona Ice](https://vetmyfranchise.com/c/claude/franchise/kona-ice-inc)’s mobile shaved-ice truck model is a structurally different food-franchise: no real estate, no fixed lease, revenue tied to events, schools, sports, and community partnerships. Total investment of $114,730–$228,601 per the 2026 FDD is essentially the truck plus initial inventory. AUV per truck is lower ($80K–$140K) but multi-truck operators commonly run 3–8 trucks across a territory. The model works for operators who want low-overhead and a flexible schedule rather than fixed-location restaurant economics. ### [Schlotzsky’s](https://vetmyfranchise.com/c/claude/franchise/schlotzskys-franchisor-spv-llc) Schlotzsky’s disclosed range has moved well above this tier: $675,365–$2,261,500 per the 2026 FDD. It stays on this list only as a watch item for inline retail conversions and existing-unit resales priced below the new-build range; treat any sub-$250K entry as an exception you verify line by line. Brand is owned by GoTo Foods and benefits from portfolio infrastructure. AUV at $700K+ for established units with reasonable margin structure. Stronger fit for operators who want sandwich-category economics but want to avoid Subway’s brand-recovery complexity. ### [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc) [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc)’s 2026 FDD discloses $329,850–$1,278,900, so new builds start above this tier; existing-store resales are the realistic route for buyers holding to a $250K cap. The brand’s stronger nutrition-positioning (vs Tropical Smoothie’s broader smoothie + cafe positioning) creates a different consumer segment. AUV ranges $400K–$700K with multi-unit growth common in established [Smoothie King](https://vetmyfranchise.com/c/claude/franchise/smoothie-king-franchises-inc) markets. ### [Jersey Mike’s](https://vetmyfranchise.com/c/claude/franchise/a-sub-above-llc) Jersey Mike’s 2026 FDD discloses $436,176–$1,162,228, so a new build no longer pencils under $250K; the brand stays here because resale and conversion deals occasionally price lower. When a buyer can secure a low-cost entry, the brand’s $1M+ AUV and 12.5% combined royalty + ad fund produce strong unit economics. For our deeper Jersey Mike’s analysis, see our [Jersey Mike’s franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-franchise-cost). Read the [low-cost franchises under $100K guide](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) for sub-tier alternatives. ## Why Some Under-$250K Food Franchises Won’t Work for Most Buyers A few cautionary patterns to watch for: 1. **Limited or no Item 19 disclosure.** Concepts that don’t disclose AUV ranges or financial performance representations make it harder to model realistic unit economics. This isn’t disqualifying, but it shifts the diligence burden onto franchisee validation calls and may signal that average performance is weak relative to brand marketing. A brand with no disclosure document at all is a different situation, because it is not selling franchises to the public, which is where [Waffle House and its roughly 250 legacy franchised units](https://vetmyfranchise.com/c/claude/blog/is-waffle-house-a-franchise) sit. 2. **High labor-cost concepts at sub-scale revenue.** A $200K-investment concept generating $300K AUV with 35% labor cost ratio leaves very little operator income. Look for concepts where the unit economics target operator income of $80K+ at modest revenue tiers, not just promises of upside at maximum revenue. 3. **Royalty + ad fund above 12% combined at lower revenue tiers.** Combined fees above 12% on revenue of $400K–$600K leaves $48K–$72K per year going to the franchisor, a significant headwind for unit-level profitability. Some concepts in this tier carry 13–15% combined fee burden, which materially impacts operator take-home. 4. **Concepts with declining net unit count.** Concepts that are closing more units than they’re opening are typically signaling structural issues that won’t reverse quickly. Verify net unit growth in Item 20 of the current FDD. ## Real Estate and Lease Impact on the Cap Real estate is the largest single cost variable that determines whether a food franchise fits under $250K. The same brand’s build-out can range from $150K (inline retail in a strip mall, modest finish-out) to $400K+ (endcap pad site, premium finish-out, drive-thru). Two operators of the same brand can have meaningfully different total investment based purely on real estate negotiation and submarket selection. Lease economics matter just as much. A $35/sq ft lease vs a $25/sq ft lease on a 1,500 sq ft footprint creates a $15K/year difference, meaningful in the context of a $400K AUV operation. See our [franchise real estate lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) for the negotiation levers that matter at this scale. The buyers who land at the low end of the investment range typically win on three things: secondary-market real estate (smaller metros with lower lease rates), modest build-out finish-outs (avoiding endcap premiums), and timing (pre-existing space requiring less buildout vs ground-up new construction). ## SBA Financing Reality at This Tier The under-$250K tier is genuinely SBA-7a friendly. Most buyers at this level will use [SBA 7(a) financing](https://www.sba.gov/funding-programs/loans/7a-loans) covering 70–80% of total investment, with the remainder coming from personal cash, 401k ROBS, or seller financing on existing-resale opportunities. Key approval factors at this tier: - Credit score 680+ (lenders prefer 700+) - Personal liquid net worth equal to or greater than the loan amount - 2 years of relevant business or industry experience (food, retail, or operational management generally qualifies) - Franchise concept on the SBA Franchise Directory (improves approval odds and underwriting speed) - Personal guarantee of the SBA loan (non-negotiable) For detailed SBA approval prep, see our [SBA loans franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide). The financing is genuinely accessible at this tier; the bottleneck is typically the buyer’s willingness to commit to the personal guarantee and the time investment in proper diligence. > **Want a 12-section deep-dive on any of these brands?** Get a [$49 Research Report](https://vetmyfranchise.com/c/claude/fdd-analysis-example) covering Item 19 detail, royalty math, multi-unit math, and franchisee validation guidance for any food franchise on this list. ## Decision Framework For buyers at this tier, the decision sequence: 1. **Capital reality check.** Confirm total available capital (cash + 401k ROBS + SBA-7a capacity). If total available capital is below $200K, focus on the genuinely lowest-investment concepts (kiosks, mobile units, host-location formats). If available capital is $250K–$400K, you have flexibility on real estate and concept selection. 2. **Operating model fit.** Owner-operator vs manager-model preferences shape the concept choice. Mobile and kiosk concepts can run with smaller operating teams; full-store concepts (even at $200K investment) require larger crews and more management complexity. 3. **Multi-unit aspiration.** If you want to be a multi-unit operator within 5 years, the under-$250K tier is genuinely where the math works. Pick a concept with strong Item 19 disclosure, solid net unit growth, and a brand operationally designed for multi-unit scaling. 4. **Diligence depth.** At this tier, franchisee validation calls matter more than they do at higher tiers — partly because Item 19 disclosure is more variable, partly because the operator profile (often first-time franchisees) makes peer-network validation especially important. Plan for 6–10 franchisee calls before signing. For broader context on lower-tier alternatives, see our [best franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k) guide. For the comparable tier in home services, see [best home services franchises under $100K](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k). For the next tier up, see our [Item 19 disclosure quality guide](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). ## The Bottom Line The under-$250K food franchise tier is where real owner-operator math works for buyers without million-dollar capital reserves. The concepts that fit this tier are deliberately structured around smaller-footprint operations, simpler equipment packages, and host-location or mobile formats — not just stripped-down versions of larger QSR concepts. The unit economics can be genuinely strong when the concept, location, and operator profile align. Family dining is closed at the other end of the spectrum anyway, since [Cracker Barrel has never franchised a store](https://vetmyfranchise.com/c/claude/blog/is-cracker-barrel-a-franchise). The 12 picks above represent the credible options as of 2026. Each comes with trade-offs in AUV, brand pull, operational complexity, or Item 19 disclosure quality. None is universally right. The deciding question for any buyer is which trade-off set matches your capital, market, and operating style. Read the current FDD for any concept you’re seriously considering. Validate with 4–6 existing franchisees per brand. Model a realistic 5-year P&L on a specific real-estate option (not the FDD’s hypothetical example). Get an independent buyer-focused review before signing anything. The math at this tier rewards diligence and punishes buyers who rely on brand marketing alone. [Browse all food and beverage franchise FDDs →](https://vetmyfranchise.com/c/claude/franchises/food-and-beverage) [Find your food franchise fit with our 2-minute quiz →](https://vetmyfranchise.com/c/claude/find-my-franchise) - **[Best Mexican Food Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-mexican-food-franchises)**: [Taco Bell](https://vetmyfranchise.com/c/claude/franchise/taco-bell-franchisor-llc), Moe’s, Qdoba, Del Taco, and Fuzzy’s compared on capital, royalty, and operational model. - **[Best Ice Cream & Frozen Yogurt Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-ice-cream-frozen-yogurt-franchises)**: Baskin-Robbins, Dairy Queen, [Menchie’s](https://vetmyfranchise.com/c/claude/franchise/menchies-group-inc), Jeni’s, and [Yogurt Mountain](https://vetmyfranchise.com/c/claude/franchise/yogurt-mountain-franchising-llc) on seasonal cash flow and recurring customer economics. - **[Best Bakery & Donut Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-bakery-donut-franchises)**: Dunkin’, Cinnabon, [Duck Donuts](https://vetmyfranchise.com/c/claude/franchise/duck-donuts-holdings-llc), [Magnolia Bakery](https://vetmyfranchise.com/c/claude/franchise/magnolia-bakery-international-llc), and [DonutNV](https://vetmyfranchise.com/c/claude/franchise/donutnv-franchising-inc) compared on morning-daypart economics. - **[Best Sandwich Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises)**: [Jimmy John’s](https://vetmyfranchise.com/c/claude/franchise/jimmy-johns-franchisor-spv-llc), Firehouse Subs, [McAlister’s](https://vetmyfranchise.com/c/claude/franchise/mcalisters-franchisor-spv-llc) Deli, Capriotti’s, Potbelly, and Panera compared on unit economics. For a category-level overview and side-by-side comparisons, see [Best Low-Cost Franchises Under $100K: Investment Guide for 2026](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k). ## Brands mentioned in this post - [Cinnabon](https://vetmyfranchise.com/c/claude/franchise/cinnabon-franchisor-spv-llc) - [Marco’s](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) food franchiselow-cost franchisefranchise investmentSBA financingfranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can I get an SBA loan at this tier? Yes — and this tier is where SBA financing works best. SBA-7a loans are commonly available for food franchise launches in the $150K–$500K range, with typical down payments of 20–30%. Most SBA lenders prefer franchise concepts on the SBA Franchise Directory, which both improves approval odds and shortens the underwriting timeline. Borrowers typically need a credit score of 680+, 2 years of relevant business or industry experience, and personal liquid net worth equal to or greater than the loan amount. See our [SBA loans franchise financing guide](/c/claude/blog/sba-loans-franchise-financing-guide) for detailed approval prep. ### Why isn't Subway on the list? Subway technically fits under $250K total investment ($120K–$400K range per current FDD) and has been one of the most-financed food franchises historically. We didn't include it as a top pick for 2026 because the brand's net U.S. unit count has been declining since 2017, AUV runs $400K–$500K (low end of the food-franchise category), and the system is in a multi-year recovery phase under new PE ownership. Subway can absolutely work for a buyer who believes in the recovery thesis and has a strong specific location — but it's not where we'd direct a first-time food-franchise buyer in 2026 without that thesis. ### Which have Item 19 disclosure? Item 19 (Financial Performance Representations) disclosure quality varies sharply in the under-$250K tier. Established concepts (Tropical Smoothie Cafe, Wingstop, Cinnabon, Auntie Anne's, Jersey Mike's at the lower end of its range) typically disclose detailed Item 19 data including AUV ranges, profit margins, and median/quartile breakdowns. Newer or less-mature concepts often disclose limited or no Item 19 data — which doesn't necessarily mean the concept doesn't work, but does mean you'll have to rely more heavily on franchisee validation calls to estimate realistic unit economics. See our [Item 19 explainer](/c/claude/blog/what-is-item-19-franchise) for what to look for. ### Which work as semi-absentee? Few food franchises work truly semi-absentee in the first 12–18 months at any investment tier. Concepts that approach semi-absentee viability in the under-$250K tier are typically kiosks, small-format quick-service with simple operations (limited menu, limited equipment), and concepts inside host environments (mall food courts, gas station co-brands) where the host environment provides some operational discipline. Multi-unit operators commonly transition to semi-absentee on units 3+ once they've systematized hiring, inventory management, and unit-level performance tracking. ### Multi-unit math at this tier — what's realistic? Multi-unit at this tier is more accessible than at higher investment tiers because the per-unit capital requirement is genuinely smaller. A $200K-investment concept supports 3–5 units on $1M of total capital deployment over 3–5 years, which is achievable for a successful first-unit operator using SBA financing or earned cash from the first unit. Higher-cost concepts ($500K+ per unit) require dramatically more capital to scale and typically take 7–10 years to reach 3-unit ownership. The under-$250K tier is genuinely where multi-unit franchise economics work for non-wealthy operators. --- title: "Best Franchises to Own for $500K-$1M in 2026" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: VetMyFranchise Team datePublished: 2026-07-08 canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-500k-to-1m-investment category: blog wordCount: 1783 readingTime: 9 min crawledAt: 2026-08-20 11:06:17 lastVerified: 2026-08-20 11:06:17 site: https://vetmyfranchise.com/c/claude/ --- # Best Franchises to Own for $500K-$1M in 2026 ## Summary The best franchises for a $500K to $1 million investment in 2026: fee, total investment, royalty, and how to stress-test whether your budget can cash-flow. ## Key facts - The “best franchises under $X” roundups tend to stop at $100K, $200K, or $250K, then the next rung on the ladder jumps straight to [$1M-plus lists](https://vetmyfranchise. - Crossing into six figures of real capital changes the nature of the business, not just the price. - These span the four categories that most reliably land in this range: QSR with a full build-out, express drive-thru and service concepts, healthcare-adjacent models, and boutique fitness. - A brand fitting your budget is table stakes. - The financing decision at $500K-$1M usually comes down to one question: do you own the real estate? Quick answer Franchises fitting a $500K-$1M budget in 2026 include Christian Brothers Automotive at $540K-$620K, Chicken Salad Chick at $570K-$1.05M, Orangetheory at $650K-$1.5M, and Scooter's Coffee at $780K-$1.2M. Expect $250K-$550K liquid, $500K-$1.2M net worth, and an SBA 7(a) loan that can finance the entire project up to $5M. ## Why $500K-$1M Is the Range Most Buyers Actually Land In The “best franchises under $X” roundups tend to stop at $100K, $200K, or $250K, then the next rung on the ladder jumps straight to [$1M-plus lists](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19). That leaves a hole exactly where the largest share of real buyers end up. Once you count the franchise fee, the build-out, the equipment, the opening inventory, and three to six months of working capital, a brand that advertises a $350K “investment” quietly becomes a $700K project. The gap is a byproduct of how franchisors quote numbers. Item 7 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) gives a low-to-high total investment range, and the marketing usually cites the low end. The low end assumes a modest leased space, a lean build, and a favorable market. Your actual number lands closer to the middle — and the middle of a lot of respectable brands sits right in the $500K-$1M band. If you want the conceptual map of how the tiers relate, our [franchise cost breakdown by investment tier](https://vetmyfranchise.com/c/claude/blog/franchise-cost-breakdown-by-investment-tier) walks the full ladder; this post is the brand-level answer for the tier most people actually buy in. ## What Changes at This Tier vs. Sub-$250K Crossing into six figures of real capital changes the nature of the business, not just the price. **Real estate becomes the story.** Below $250K you’re usually running a mobile, home-based, or small-suite model where location is a minor line item. At $500K-$1M, the box is the business. You’re signing a 5-to-10-year commercial lease or, in some cases, buying the land and building. Site selection stops being a detail and becomes the single decision that most determines whether the unit works. Our guide to [what build-out really costs](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay) covers where the money actually goes once the lease is signed. **Staffing gets heavier.** A sub-$250K concept might run with the owner and two or three part-timers. A brand in this band typically needs 8-25 employees, a general manager, and a real schedule. Labor moves from a small cost to often the largest single operating expense after rent, and your job shifts from operator to manager-of-managers. **The qualification bar rises.** Franchisors screening buyers at this tier want to see roughly $250K-$550K in liquid capital and $500K-$1.2M+ in net worth. AFC (American Family Care) is at the top of that spread, asking for around $550K liquid and $1.2M net worth before it will talk. If you’re not sure where you stand, our breakdown of [net-worth and liquidity requirements](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) explains how franchisors actually calculate the bar. **Financing splits into two SBA programs.** Sub-$250K buyers often self-fund or take a single small loan. At this tier, the choice between SBA 7(a) and SBA 504 becomes a real decision with real rate consequences, covered below. ## 7 Brands That Genuinely Fit the $500K-$1M Band These span the four categories that most reliably land in this range: QSR with a full build-out, express drive-thru and service concepts, healthcare-adjacent models, and boutique fitness. The point isn’t that these are the only options; it’s that each one’s realistic all-in number sits inside the band, not below it. | Brand | Category | Franchise fee | Total investment | Royalty | | --- | --- | --- | --- | --- | | Chicken Salad Chick | QSR (fast-casual, full build) | ~$50K | ~$570K–$1.05M | ~5% | | Wingstop | QSR (chicken, leased endcap) | ~$20K | ~$400K–$1.0M+ | 6% | | Scooter’s Coffee | Express (drive-thru coffee) | ~$40K | ~$780K–$1.2M | ~6% | | Christian Brothers Automotive | Express (auto repair) | ~$135K | ~$540K–$620K* | ~5% | | Restore Hyper Wellness | Healthcare-adjacent (recovery) | ~$60K | ~$780K–$1.32M | 7.5% | | AFC / American Family Care | Healthcare (urgent care) | ~$60K | ~$800K–$1.9M | ~6% | | Orangetheory Fitness | Boutique fitness | ~$60K | ~$650K–$1.5M | ~8% | \*Christian Brothers uses a developer-built real estate model, where the franchisor’s development arm builds and the operator leases, so out-of-pocket capital sits lower than a comparable build-your-own brand and lands at the bottom edge of this band. **All figures are approximate, rounded from recent public FDD-summary reporting, and several brands’ ranges extend above $1M at the high end. Confirm the exact numbers in Items 5, 6, and 7 of each brand’s current FDD before you rely on any of them.** One category the table leaves out is bar-anchored full service, which is usually assumed to start above this band and mostly does. Two exceptions are worth knowing about: The Brass Tap opens from $535,350 and East Coast Wings from $408,368, both inside this range, and both are covered in our comparison of [sports bar franchises by entry cost](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison). A few honest caveats on the roster. [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) and Jersey Mike’s both have lower-end builds that dip under $500K; the fuller drive-thru or larger-market builds pull them into this band, and the entry configurations belong with the [sub-$250K food roundup](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k). AFC and Orangetheory top out well above $1M in expensive markets; their entry points anchor the band. And Restore Hyper Wellness carries a 7.5% royalty, on the higher side, which matters more than build cost over a ten-year hold, because royalty is a permanent tax on revenue while build-out is a one-time expense. Buyers underweight that last point. A one-point royalty difference on a unit doing $900K a year is $9,000 annually — over a decade, often larger than the gap between two brands’ build costs. If royalty math is new to you, [how franchise royalty fees work](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained) breaks down what you’re paying for. **[Match your budget to brands that fit it →](https://vetmyfranchise.com/c/claude/find-my-franchise)** ## How to Stress-Test Whether Your Target Can Actually Cash-Flow A brand fitting your budget is table stakes. The real question is whether the unit throws off enough cash to service the debt, pay you, and survive a slow year. Work it backward from the Item 19. Start with the median revenue figure, not the average, because averages get pulled up by a handful of top units. Take the disclosed median, haircut it 15-20% for a new operator ramping in year one, then subtract the real cost stack: cost of goods, labor, rent, royalty, ad fund, insurance, and utilities. What’s left is your operating cash flow before debt service. Now layer in the loan. A $750K SBA 7(a) at current rates runs roughly $8K-$10K a month in payments over a 10-year term. If your modeled year-one cash flow doesn’t clear that payment with a cushion, the unit is underwater before you’ve made a mistake. Run the same model at the bottom-quartile Item 19 figure, because that’s your downside if the ramp stalls or a competitor opens nearby. A deal that only survives at the median is a deal that’s one bad quarter from a personal guarantee getting called. The most common failure at this tier is underwriting the marketing number instead of the median and skipping the reserve. Build in at least six months of operating expenses in cash beyond the Item 7 total — the FDD’s working-capital line is routinely light. ## Financing This Tier: SBA 7(a) vs. 504 vs. Conventional The financing decision at $500K-$1M usually comes down to one question: do you own the real estate? **SBA 7(a)** is the workhorse. It can finance the entire project (build-out, equipment, franchise fee, and working capital) in a single loan up to $5M, and it’s the default for a leased location. Terms typically run 10 years for a business-only loan, with a variable rate tied to prime. For most Wingstop, Scooter’s, or Orangetheory buyers signing a lease, 7(a) is the answer. **SBA 504** exists specifically for owned real estate and long-life equipment. It pairs a conventional bank loan (roughly 50% of the project) with a CDC loan (roughly 40%) at a low fixed rate, leaving you a 10% equity injection. When you’re buying land and putting up a building (the Christian Brothers model, or a ground-up QSR with a drive-thru), 504 often produces a better blended rate and a longer amortization (up to 25 years on the real estate portion) than cramming everything into a 7(a). The trade-off is more paperwork and a slower close. **Conventional financing** comes into play when you’re expanding, already own units, or have real estate strong enough that a bank will lend without the SBA guarantee. First-time single-unit buyers rarely start here. Our full walkthrough of [SBA franchise financing](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) covers the qualification mechanics, and the [multi-unit financing guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-financing-sba-loans-guide) matters the moment you’re thinking past your first location. Whichever program you use, expect to put 10-20% of the project cost in as equity, and expect the lender to want a personal guarantee. At this tier, the guarantee is the real risk — you’re not just investing capital, you’re pledging your house against the unit’s performance. That’s why the stress-test isn’t optional. The brands in this band can be genuinely good businesses — or a seven-year lease and a called guarantee if the underwriting was built on the marketing number. Before you sign, read the actual Item 19 and Item 7 for your market, model the downside, and pressure-test the deal against numbers the franchisor’s sales team hasn’t rehearsed. **[Get an independent FDD analysis before you sign →](https://vetmyfranchise.com/c/claude/pricing)** ## Brands mentioned in this post - [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) investment guidefranchise investmentbest franchisessba financingfranchise cost About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What franchises can I buy for $500,000 to $1,000,000? In 2026 this band includes fast-casual QSR with a full build-out (Chicken Salad Chick, the fuller Wingstop and Jersey Mike's builds), express drive-thru concepts (Scooter's Coffee), real-estate-anchored service brands (Christian Brothers Automotive), healthcare-adjacent models (Restore Hyper Wellness, the entry point for AFC urgent care), and boutique fitness (Orangetheory). The common thread is a fixed location, a staff of 8-25, and a build-out that dominates the budget. Treat every published range as a starting point and verify the current Item 7 for the specific brand and market you're targeting. ### Is a $750K franchise investment worth it compared to a cheaper one? Not automatically. A higher price tag buys a bigger box, not a better return. What a $750K brand should give you over a $150K one is a defensible location, a recurring-revenue or high-ticket model, and an Item 19 with enough disclosure to underwrite. If the extra half-million only buys square footage and a logo, the cheaper concept with the same unit economics is the better buy. The question is never the sticker price; it's the cash-on-cash return the Item 19 supports at that price. ### What financing works best for a $500K-$1M franchise? Most buyers at this tier use an SBA loan, and the right program depends on whether you own the real estate. SBA 7(a) can finance the whole project (build-out, equipment, franchise fee, working capital) up to $5M and is the default for leased locations. SBA 504 pairs a conventional bank loan with a low-fixed-rate CDC loan and is built specifically for owned real estate and long-life equipment, often at a better blended rate when land or a building is involved. Many buyers also blend SBA with equipment financing and a personal-equity injection of 10-20%. ### Do higher-investment franchises actually perform better? Sometimes, but not because they cost more. The models that require this much capital (drive-thrus, medical-adjacent services, membership fitness) tend to have durable demand and recurring or high-ticket revenue. The investment size doesn't create the returns; the business model does. A well-run $600K unit with a membership base can out-earn a $2M unit in a saturated category. Read the Item 19 median and range, not the headline average, and compare cash-on-cash return across your shortlist rather than absolute revenue. --- title: "Best Low-Cost Franchises Under $100K in 2026" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k category: blog wordCount: 2295 readingTime: 11 min crawledAt: 2026-08-20 11:03:43 lastVerified: 2026-08-20 11:03:43 site: https://vetmyfranchise.com/c/claude/ --- # Best Low-Cost Franchises Under $100K in 2026 ## Summary Discover the best low-cost franchises under $100K for 2026. Compare investment ranges by category, learn what to expect, and find the right opportunity. ## Key facts - When most people think “franchise,” they picture a fast-food restaurant with a $500,000+ price tag. - _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them. - Categories tell you where to look; specific systems tell you what is actually achievable. - The same [due diligence principles](https://vetmyfranchise. - The home services sector is the largest category of low-cost franchises and for good reason. Quick answer Hundreds of franchise systems cost under $100,000 total. Coverall runs $17,917 to $64,048 with a $15,570 fee across 5,588 units; Dunkin' starts at $40,000; Coffee News costs $11,150 to $12,250. Most owner-operated sub-$100K franchises generate $50,000-$150,000 in owner income by year two or three. ## You Don’t Need a Fortune to Own a Franchise When most people think “franchise,” they picture a fast-food restaurant with a $500,000+ price tag. But a growing segment of the franchise industry operates at a fraction of that cost. **Hundreds of franchise systems have total investment requirements under $100,000**, and some can be launched for under $25,000. Low-cost franchises aren’t automatically lower quality or lower return. Many of the most profitable franchise models on a percentage basis are in the sub-$100K range — particularly home-based and service-based concepts that don’t require expensive real estate or equipment. But lower investment doesn’t mean lower risk. It means you need to be even more careful about due diligence, because the margin for error is thinner. Here’s everything you need to know about finding and evaluating low-cost franchise opportunities in 2026. > **See the live data:** browse every [franchise under $100K](https://vetmyfranchise.com/c/claude/reports/franchises-under-100k) in our database — sortable by investment, franchise fee, royalty, and unit count, with each figure pulled from the brand’s official [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). For the very cheapest, see [franchises under $50K](https://vetmyfranchise.com/c/claude/reports/franchises-under-50k). ## Low-Cost Franchise Categories and Investment Ranges | Category | Typical Total Investment | Franchise Fee | Brick & Mortar Required? | | --- | --- | --- | --- | | Residential Cleaning | $20,000 – $75,000 | $10,000 – $40,000 | No | | Commercial Cleaning / Janitorial | $10,000 – $75,000 | $10,000 – $40,000 | No | | Mobile Pet Grooming | $50,000 – $100,000 | $25,000 – $50,000 | No (vehicle-based) | | Lawn Care & Landscaping | $20,000 – $80,000 | $15,000 – $40,000 | No | | Home Inspection | $30,000 – $60,000 | $25,000 – $45,000 | No | | Business Consulting / Coaching | $40,000 – $90,000 | $30,000 – $55,000 | No | | Tutoring & Test Prep | $60,000 – $100,000 | $30,000 – $50,000 | Sometimes | | Senior Care (Non-Medical) | $60,000 – $100,000 | $35,000 – $55,000 | Small office | | Handyman / Home Repair | $50,000 – $100,000 | $30,000 – $55,000 | No | | Staffing & Recruiting | $50,000 – $100,000 | $25,000 – $50,000 | Small office | | Vending / ATM | $15,000 – $50,000 | $5,000 – $25,000 | No | | Print / Marketing Services | $40,000 – $90,000 | $25,000 – $50,000 | Sometimes | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ **The pattern:** Most franchises under $100K are **service-based and home-based**. They avoid the massive costs of real estate build-out, commercial kitchen equipment, and large staffing requirements that drive up investment for restaurant and retail franchises. ## Proven Sub-$100K Systems, Ranked by Size Categories tell you where to look; specific systems tell you what is actually achievable. Every franchise below carries a maximum initial investment at or under $100,000, drawn from 2025-2026 FDD filings and ranked by total operating units, because system size is the clearest signal that a low sticker price still sits on a mature, proven model. | Franchise | Industry | Investment Range | Franchise Fee | Total Units | | --- | --- | --- | --- | --- | | Coverall North America | Cleaning & Maintenance | $17,917 – $64,048 | $15,570 | 5,588 | | CP Franchising (Choice Hotels) | Hospitality & Travel | $1,945 – $20,505 | $10,995 | 3,009 | | CruiseOne | Hospitality & Travel | $1,200 – $20,970 | $10,500 | 2,175 | | Dunkin’ | Food & Beverage | $40,000 – $90,000 | $10,000 | 2,022 | | Abbey Carpet | Home Services | $23,050 – $61,900 | $10,000 | 420 | | Club Z! | Child Services & Education | $40,975 – $57,425 | $27,250 | 328 | | Coffee News USA | Food & Beverage | $11,150 – $12,250 | $9,900 | 307 | | Keystone Insurers Group | Home Services | $27,250 – $99,200 | N/A | 280 | | Winzer Franchise Co | Automotive | $5,950 – $16,153 | $3,500 | 263 | | Elements Therapeutic Massage | Health & Beauty | $30,000 – $37,000 | $40,000 | 240 | _Source: Data extracted from 2025-2026 Franchise Disclosure Documents filed with state regulators. Figures may have changed since filing. Verify current terms directly with the franchisor._ Watch the trade-off, though. Some of the lowest-cost systems recover the discount through steep ongoing royalties. Winzer runs 8% to 16% of gross sales and [Best Brains](https://vetmyfranchise.com/c/claude/franchise/best-brains-inc) charges 14%, well above the 5% to 7% norm, so a $10,000 entry fee can cost far more over the life of the agreement than a $50,000 one at 5%. ## What Makes Low-Cost Franchises Different ### The Advantages **1\. Lower financial risk.** Losing $50,000 is painful. Losing $500,000 is devastating. Lower investment means the downside scenario is more survivable. **2\. Faster path to profitability.** With lower overhead and no expensive lease, many low-cost franchises reach break-even within 3-6 months rather than 12-24 months for larger concepts. **3\. Easier financing.** You may not need an [SBA loan](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) at all. Many sub-$100K franchises can be funded through personal savings, home equity, or even credit lines — avoiding the months-long SBA approval process. **4\. Lower ongoing overhead.** No commercial lease, smaller staff, lower insurance costs. Your monthly nut is smaller, which means less revenue pressure. **5\. Location flexibility.** Home-based and mobile franchises let you operate from anywhere in your territory. If your market shifts, you can adapt without being locked into a physical location. ### The Disadvantages **1\. Lower revenue ceiling.** Most sub-$100K franchises generate $100,000 to $400,000 in annual revenue. You won’t build a million-dollar-revenue business with a cleaning franchise (though [multi-unit ownership](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) can change this). **2\. More owner-operator dependent.** Many low-cost franchises assume the owner is the primary (or only) worker, at least initially. This means you’re buying a job, not a passive investment. **3\. Higher labor intensity.** Service businesses require you or your employees to physically perform work. Scaling requires hiring, training, and managing a workforce — which introduces new challenges. **4\. Less brand recognition.** Most sub-$100K franchises are not household names. You won’t get the walk-in traffic that comes with a recognized restaurant brand. **5\. Potentially less franchisor support.** Lower franchise fees mean less revenue for the franchisor to reinvest in support infrastructure. Some low-cost franchisors provide minimal ongoing assistance. ## How to Evaluate a Low-Cost Franchise The same [due diligence principles](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) apply to low-cost franchises, but with a few specific considerations. ### Check the Unit Economics Carefully With lower revenue potential, the margins matter more. Ask existing franchisees: - What’s your **gross revenue** after year one? Year two? Year three? - What are your **total operating costs** including supplies, labor, vehicle expenses, and insurance? - How much do you **actually take home** after all expenses and royalties? - How many **hours per week** are you working? **Calculate your effective hourly rate.** If a franchise generates $80,000 in owner income but requires 60 hours per week of your labor, your effective hourly rate is $25.64. Is that worth the investment and risk compared to a salaried job? ### Understand the Scaling Path The best low-cost franchises have a clear path from owner-operator to business owner: 1. **Year 1:** You do most of the work, building the customer base 2. **Year 2-3:** Hire technicians/employees, shift to managing 3. **Year 3-5:** Multiple crews or teams, you manage managers **Ask the franchisor and existing franchisees:** How many units in the system have successfully transitioned from owner-operator to owner-manager? What revenue level is needed to support that transition? ### Scrutinize the Franchise Fee Relative to Total Investment In low-cost franchises, the franchise fee often represents **40-60% of the total investment**. This means you’re paying a larger proportion for the brand and system relative to the actual business assets. Make sure the system, training, and brand value justify that fee. | Investment Component | $50,000 Low-Cost Franchise | $400,000 Restaurant Franchise | | --- | --- | --- | | Franchise Fee | $30,000 (60%) | $45,000 (11%) | | Equipment/Build-out | $5,000 (10%) | $250,000 (63%) | | Working Capital | $10,000 (20%) | $75,000 (19%) | | Other Costs | $5,000 (10%) | $30,000 (7%) | _Estimates compiled from industry sources; verify current figures in the brand’s FDD before relying on them._ ### Verify the Territory is Viable Low-cost franchises often grant smaller territories. Make sure your territory has enough potential customers to support the business at the revenue levels existing franchisees are achieving. ### Watch for Red Flags Specific to Low-Cost Franchises - **Franchise churning:** High turnover of franchise units (visible in [Item 20 data](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide)) can mean the franchisor profits primarily from selling new franchises (collecting franchise fees) rather than supporting existing ones - **Unrealistic earnings claims:** Be skeptical of income projections that seem too good for the investment level - **Mandatory upsells:** Some low-cost franchisors charge the franchise fee upfront then nickel-and-dime you with mandatory equipment purchases, proprietary supplies, and technology fees - **Thin support:** Call existing franchisees and ask specifically about the quality and responsiveness of franchisor support ## Top Industries for Sub-$100K Franchise Investment ### Home Services The home services sector is the largest category of low-cost franchises and for good reason. Homeowners consistently spend on cleaning, maintenance, and repair services regardless of economic conditions. The model is simple: low overhead, recurring revenue, and scalable through hiring technicians. **Best for:** People comfortable with hands-on work who want to build a team over time. ### Senior Care (Non-Medical) With 10,000 Americans turning 65 every day, demand for senior care services will only grow. Non-medical home care (companionship, meal preparation, transportation, light housekeeping) typically requires a small office and a team of caregivers. **Best for:** People with caregiving experience or a passion for working with seniors. ### Business Services Consulting, coaching, staffing, and B2B services often operate from home offices with minimal overhead. Revenue per client tends to be higher than consumer-facing businesses. **Best for:** Professionals with corporate experience who want to put their expertise to work. ### Children’s Services Tutoring, enrichment programs, and educational services benefit from strong demographic demand and recurring revenue models. Parents prioritize education spending even during economic downturns. **Best for:** People passionate about education with strong community connections. ## Financing a Sub-$100K Franchise At this investment level, your financing options expand beyond traditional SBA loans: - **Personal savings:** The most straightforward path for investments under $50,000 - **Home equity line of credit (HELOC):** Potentially lower rates than business loans - **ROBS (Rollover for Business Startups):** Use retirement funds without early withdrawal penalties - **Franchisor financing:** Some low-cost franchisors offer payment plans on the franchise fee - **SBA Microloans:** Up to $50,000 with simpler requirements than the 7(a) program **Best practice:** Avoid putting 100% of your liquid savings into any franchise. Keep a personal emergency fund of at least 6 months of living expenses separate from the business. ## Find Your Fit Low-cost franchises are an accessible entry point into business ownership, but “affordable” doesn’t mean “easy.” The same rigorous due diligence that applies to a $500,000 franchise applies to a $50,000 one. Start by browsing the [franchise library](https://vetmyfranchise.com/c/claude/franchises) and filtering by investment range to find opportunities that match your budget. Use the [compare tool](https://vetmyfranchise.com/c/claude/compare) to evaluate multiple low-cost franchises side by side on fees, system growth, and unit economics. Every listing includes data extracted directly from the FDD — so you can make decisions based on facts, not sales pitches. The best low-cost franchise is one you can afford, operate successfully, and grow into a business that matches your long-term financial goals. - **[Best Mobile & Van-Based Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises)** — [Aussie Pet Mobile](https://vetmyfranchise.com/c/claude/franchise/aussie-pet-mobile-inc), [Screenmobile](https://vetmyfranchise.com/c/claude/franchise/screenmobile-franchising-spe-llc), and the capital-efficient operational model that beats brick-and-mortar break-even time. For dedicated coverage on each brand in this category: - Best Franchises Under $100K: Affordable Opportunities That Actually Work - [Best Home Services Franchises Under $100K (2026)](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) - [Best Fitness Franchises Under $200K (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) - [Best Food Franchises Under $250K (2026)](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k) ## Brands mentioned in this post - [Best Brains](https://vetmyfranchise.com/c/claude/franchise/best-brains-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) low-cost franchisesfranchise investmentaffordable franchisesunder 100khome-based franchisesfranchise fees About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the cheapest franchise to open in 2026? The lowest-cost franchise categories include commercial cleaning and vending, with some systems offering total investments starting at $10,000-$20,000. However, the cheapest option isn't always the best. Evaluate the revenue potential, franchisor support quality, and long-term scalability alongside the upfront cost. ### Can I run a sub-$100K franchise as a side business? Some low-cost franchises, particularly vending, ATM, and certain service models, can start as part-time ventures. However, most franchise agreements require your full-time commitment, and building a successful service business typically demands 40-60 hours per week, especially in the first two years. Check the franchise agreement for time commitment requirements. ### Do low-cost franchises have lower royalty rates? Not necessarily. In fact, some low-cost franchises charge higher royalty percentages (7-10%) to compensate for lower franchise fees. What matters is the total fee burden relative to your revenue and margins. A 10% royalty on a high-margin service business may leave you with more profit than a 5% royalty on a low-margin product business. ### What is the income potential of a franchise under $100K? Most owner-operated sub-$100K franchises generate $50,000-$150,000 in owner income by year two or three. Multi-unit operators who scale beyond owner-operator status can earn much more. However, income varies enormously by brand, market, and individual effort. Always verify with existing franchisees listed in Item 20 of the FDD. ### Are low-cost franchises more risky than expensive ones? The risk profile is different, not necessarily higher. Low-cost franchises have less capital at risk but may have thinner margins, less brand recognition, and less franchisor support. Expensive franchises have more capital at risk but often benefit from stronger brands and more reliable support systems. The best indicator of risk is the franchise system's closure rate in Item 20, regardless of investment level. ### What are the hidden costs of a low-cost franchise? The main hidden costs are ongoing royalties (which can range from 4% to 16% of gross sales), advertising fund contributions (typically 1-3%), technology fees, and the working capital needed before the business turns profitable. A modest franchise fee paired with a steep royalty can cost far more over the life of the agreement than a higher fee at a lower royalty. Always review Item 7 for the full cost breakdown and Item 6 for the ongoing fees. --- title: "Best Painting Franchises 2026: Top Brands Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-10 keywords: best painting franchises 2026, painting franchise opportunities, certapro painters franchise, five star painting franchise, 360 painting franchise, painting franchise income canonical: https://vetmyfranchise.com/c/claude/blog/best-painting-franchises about: best painting franchises 2026 category: blog wordCount: 1655 readingTime: 8 min crawledAt: 2026-08-20 11:05:34 lastVerified: 2026-08-20 11:05:34 site: https://vetmyfranchise.com/c/claude/ --- # Best Painting Franchises 2026: Top Brands Compared ## Summary Compare the best painting franchises for 2026 — CertaPro Painters, Five Star Painting, 360 Painting, EmeraldPro, and more — by cost, royalty, and crew model. ## Key facts - Most home service franchise categories require either heavy equipment investment (lawn care, pest control with vehicles and chemicals) or significant technical skill (HVAC, plumbing, electrical). - Residential is the largest segment by volume and the most-searched entry point. - Commercial painting is a different business. - The speed-specialty segment markets one-day or two-day completion as the primary value proposition. - Across the residential painting franchise tier, a typical mature unit looks like: Quick answer CertaPro Painters leads the category at $171,000-$320,500 total investment, a 6% royalty, and a $65,000 franchise fee as of 2026. Five Star Painting ($96,765-$190,495) and 360 Painting ($106,840-$152,290) are the lower-capital picks. All run subcontractor-crew models where sales discipline, not painting skill, drives owner returns. [CertaPro Painters](https://vetmyfranchise.com/c/claude/franchise/certa-propainters-ltd) is the best painting franchise for most 2026 buyers: $171,000-$320,500 to open, a 6% royalty, and the deepest validation network in the category. [Five Star Painting](https://vetmyfranchise.com/c/claude/franchise/five-star-painting-spv-llc) ($96,765-$190,495) and [360 Painting](https://vetmyfranchise.com/c/claude/franchise/360-painting-llc) ($106,840-$152,290) are the strongest lower-capital alternatives, and EmeraldPro starts at $79,000. Every one of them is a sales-and-crew-management business, not a painting business. ## Why Painting Franchises Hit a Sweet Spot for Service-First Owners Most home service franchise categories require either heavy equipment investment (lawn care, pest control with vehicles and chemicals) or significant technical skill (HVAC, plumbing, electrical). Painting franchises sit between those poles. Equipment requirements are modest. Technical skill is sourced through a subcontracted crew network rather than direct employment. Capital requirements are typical for a service franchise. Average project ticket is high enough to support strong gross margins on a manageable customer count. The structural advantage: a successful painting franchise owner can run $1M–$2M in annual revenue from a small office and a network of 4–8 crew partnerships. There’s no fleet of vehicles. There’s no chemical inventory. There’s no specialized equipment beyond ladders, sprayers, and basic supplies. The business is fundamentally a sales-and-operations business with painting as the deliverable. That structure also creates the central operational question: how do you build and retain a reliable crew network in a tight skilled-trade labor market? ## Best Residential Painting Franchises Residential is the largest segment by volume and the most-searched entry point. The major brands all target middle-to-upper-middle income homeowners with $4,000–$12,000 average projects. | Brand | Initial Investment | Royalty | Franchise Fee | Crew Model | | --- | --- | --- | --- | --- | | CertaPro Painters | $171,000–$320,500 | 6% gross + 2.5% NAF | $65,000 | Subcontractor crews | | Five Star Painting | $96,765–$190,495 | 6% gross + 2% NAF | $40,000 | Subcontractor crews | | 360 Painting | $106,840–$152,290 | 6% gross + 2% NAF | $52,000 | Subcontractor crews | | EmeraldPro Painting (Paint EZ) | $79,000–$140,000 | 7% gross | $32,500 | Mixed model | _Figures reflect each brand’s disclosed Item 7 range as of 2026; confirm against the current [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document), the presale disclosure the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires, before underwriting._ CertaPro is the category default — longest operating history, largest unit count, most validation contacts available. [Five Star Painting](https://vetmyfranchise.com/c/claude/franchise/five-star-painting-spv-llc) has grown faster in recent years, particularly in Sun Belt markets. [360 Painting](https://vetmyfranchise.com/c/claude/franchise/360-painting-llc) benefits from Neighborly’s operating-system infrastructure (shared technology, lead-generation systems, brand support). The capital differences look meaningful but the actual operating economics across these brands are similar. The differentiator is local market presence, validation strength, and how much of the franchisor’s lead-generation system actually delivers customers in your territory. ## Best Commercial Painting Franchises Commercial painting is a different business. Average project size is 4–10x larger ($12,000–$60,000+ per project), sales cycles are 30–120 days vs. 7–21 days for residential, and customer relationships skew B2B (property managers, general contractors, facility managers). CertaPro Painters operates a commercial-focused franchise tier. [Five Star Painting](https://vetmyfranchise.com/c/claude/franchise/five-star-painting-spv-llc) has begun expanding into commercial accounts. Several smaller franchises focus exclusively on commercial work but typically operate at lower unit count and validation depth. Commercial painting franchises require stronger sales operations and longer cash conversion cycles (commercial customers pay on 30–60 day terms). Buyers should validate working capital requirements carefully — many commercial-painting owners report needing $50,000–$120,000 in operating reserves to bridge job-to-payment timing. ## Best Speed-Specialty Painting Franchises The speed-specialty segment markets one-day or two-day completion as the primary value proposition. [Wow 1 Day Painting](https://vetmyfranchise.com/c/claude/franchise/wow-1-day-painting-llc) (now part of the O2E Brands family) is the recognized brand in this category. Operations require larger crew deployment per project to deliver the speed promise, and the customer profile skews to time-constrained homeowners willing to pay a 15–30% premium for fast completion. The speed-specialty model competes on a different lever than traditional painting franchises (time-to-completion rather than price), and the unit economics work in markets with sufficient customer density to support high crew utilization. ## Capital + Royalty + AOV Comparison Across the residential painting franchise tier, a typical mature unit looks like: - Annual gross revenue: $900,000–$1,800,000 - Average project: $4,500–$8,500 - Project count: 110–280 per year - Gross margin (after materials and crew payments): 40–48% - Royalty + advertising fund: 8–9% of gross - Owner operating expenses (rent, marketing, salaries): 18–24% of gross - Net owner income (before debt service): $90,000–$340,000 depending on tier According to VetMyFranchise’s analysis of 2,000+ FDDs, the major painting brands look strikingly similar on paper; performance variance comes from sales operations and crew management discipline. For how painting economics stack up against other home-service categories, see the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). > 💼 **Get the full FDD-backed economics on any painting franchise.** Our $49 brand reports surface the actual Item 19 revenue distribution, real average project values, and crew partnership churn data the brochure won’t show. [See available painting brand reports →](https://vetmyfranchise.com/c/claude/franchises) ## Crew Hiring Reality (the Operational Hard Part) The single most consistent feedback from painting franchise owners during validation calls: building and retaining the subcontractor crew network is harder than the franchisor describes. The model depends on having 4–10 reliable independent painting contractors who will accept the franchise’s pricing, quality standards, scheduling, and customer-experience expectations. Three patterns predict crew network success: 1. **Owners who treat crew partners as customers, not labor.** Paying on time, communicating clearly, and respecting their independent business builds retention. Owners who pressure crews on price and ignore their constraints lose them. 2. **Owners who maintain crew redundancy.** No painting franchise should depend on a single crew. Operations break the moment that crew has a personal issue or finds another contract. 3. **Owners who do their own job estimating accurately.** Underestimating means the crew loses money on the job. The crew leaves. Franchise economics implode. In tight skilled-trade labor markets (most of the Sun Belt, much of Texas and Arizona), crew acquisition is the rate-limiting factor on franchise growth. In looser markets, sales acquisition becomes the bottleneck instead. ## Why “Salesperson Owner” vs. “Painter Owner” Decides Brand Fit The single best predictor of painting franchise success is whether the owner is comfortable selling residential renovation projects to skeptical homeowners. The work is consultative, in-home, and requires reading a customer’s actual budget and decision timeline rather than the price they say they want. Salesperson-profile owners tend to outperform across all the major painting brands. Painter-profile owners (former tradespeople buying into a franchise) tend to undercharge, micromanage crews, and burn out at the first major customer dispute. The franchise brand matters less than the owner-skill match. CertaPro and Five Star both work. The question is whether you’ll work in either system. For a deeper look at hiring and crew management, see [franchise employee hiring management guide](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide). For the broader unit economics, [franchise unit economics analysis](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis) is the framework to apply here. Pair this article with [home services franchise guide 2026](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide) and [best home services franchises under 100k](https://vetmyfranchise.com/c/claude/blog/best-home-services-franchises-under-100k) for adjacent comparisons. ## The Bottom Line for 2026 Buyers If you have $150,000–$210,000 in capital and a suburban or urban target market, CertaPro Painters is the validated default. The brand presence, operational systems, and franchisee network depth are all category-leading. If your capital is in the $95,000–$140,000 range, [Five Star Painting](https://vetmyfranchise.com/c/claude/franchise/five-star-painting-spv-llc) and [360 Painting](https://vetmyfranchise.com/c/claude/franchise/360-painting-llc) both deliver competitive operational frameworks at lower entry capital. If your target market is commercial accounts (HOAs, property managers, facility managers), look hard at CertaPro’s commercial program or specialty commercial-only brands. The economics work but require deeper working-capital reserves. If you’re a former painter considering buying back into the trade as a franchise owner, validate carefully. The buyer profile that succeeds in this category looks more like an experienced sales manager than an experienced painter. Whatever brand you pick, the operational discipline that separates winners from losers is consistent: accurate estimating, on-time crew payment, customer experience that earns referrals, and a sales pipeline you actively manage. The franchise gives you the brand, training, and lead generation. Everything else is on you. Two adjacent trades worth comparing on capital and disclosure quality: [best kitchen and bath remodeling franchises](https://vetmyfranchise.com/c/claude/blog/best-kitchen-bath-remodeling-franchises) and [best garage and concrete coating franchises](https://vetmyfranchise.com/c/claude/blog/best-garage-concrete-coating-franchises). ## Brands mentioned in this post - [Five Star Painting](https://vetmyfranchise.com/c/claude/franchise/five-star-painting-spv-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best painting franchises 2026painting franchise opportunitiescertapro painters franchisefive star painting franchise360 painting franchisepainting franchise income About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How profitable is a painting franchise? Mature painting franchises with strong sales operations and a reliable crew network typically run 12–18% net operating margins on annual revenue of $800,000–$1.8M. Top-quartile units in established markets exceed $2M in annual revenue with owner take-home above $300,000. Profitability depends almost entirely on average ticket size, gross margin per project (which depends on accurate estimating), and crew availability — brand matters less than operational discipline. ### Do you need to be a painter to buy a painting franchise? No, and most franchisors actively discourage it. The owner's job is sales, customer relationships, scheduling, and crew management — not painting. Owners with sales, construction management, or operations backgrounds typically outperform owners coming from the trades. Painters who buy painting franchises tend to micromanage crews and underprice work. ### What's the cheapest painting franchise to open? Several painting franchises start under $100,000. EmeraldPro Painting (also branded as Paint EZ) runs $79,000–$140,000. Five Star Painting starts at $96,765. Smaller regional brands may have lower entry capital but typically less robust operating systems. Lower capital often means longer to ramp marketing and customer acquisition. ### How long until a painting franchise is profitable? Most painting franchises reach cash-flow breakeven between months 8 and 18, with significant variation depending on local market dynamics. The first 6 months are typically dedicated to crew network development, sales pipeline buildout, and brand awareness — periods when revenue lags fixed costs. Year 2 is when most successful operators see meaningful profitability. --- title: "Best Restoration Franchises 2026: Disaster Recovery Brands" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-06 dateModified: 2026-07-10 keywords: best restoration franchises 2026, disaster recovery franchise opportunities, servpro franchise cost, puroclean franchise, restoration 1 franchise, water damage franchise, fire damage franchise canonical: https://vetmyfranchise.com/c/claude/blog/best-restoration-disaster-recovery-franchises about: best restoration franchises 2026 category: blog wordCount: 1677 readingTime: 8 min crawledAt: 2026-08-20 11:06:18 lastVerified: 2026-08-20 11:06:18 site: https://vetmyfranchise.com/c/claude/ --- # Best Restoration Franchises 2026: Disaster Recovery Brands ## Summary Compare the top restoration and disaster recovery franchises for 2026 — ServPro, ServiceMaster Restore, Restoration 1, 1-800 Water Damage, BluSky — by capital, royalty, and insurance-network access. ## Key facts - The category’s appeal isn’t market size; it’s that demand drivers are largely uncorrelated with general economic conditions. - Water damage and mold remediation are the highest-frequency restoration services. - Fire damage restoration is typically a subset of broader water/mold/fire franchises rather than a standalone specialization. - The general disaster recovery segment includes broader-scope franchises that combine residential and commercial work, multiple service categories, and large-loss commercial focus. - The honest read on restoration franchise capital structure: Quick answer ServPro is the category default at $263,305-$385,570 per the 2026 FDD, with the deepest insurance-carrier network; ServiceMaster Restore ($111,800-$187,500) and Restoration 1 ($126,525-$309,500) offer lower-capital entry per their 2026 FDDs. Insurance preferred-vendor access, not consumer brand recognition, is what actually drives restoration franchise economics. [ServPro](https://vetmyfranchise.com/c/claude/franchise/servpro-franchisor-llc) is the best restoration franchise for most 2026 buyers, at $263,305–$385,570 per the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document): its insurance-carrier network delivers referral flow that competitors take years to replicate. [ServiceMaster Restore](https://vetmyfranchise.com/c/claude/franchise/servicemaster-cleanrestore-spe-llc) ($111,800–$187,500) and [Restoration 1](https://vetmyfranchise.com/c/claude/franchise/restoration-1-franchise-holding-llc) ($126,525–$309,500) are the credible lower-capital entries. The full comparison follows. ## The 2026 Restoration Franchise Market The category’s appeal isn’t market size; it’s that demand drivers are largely uncorrelated with general economic conditions. Water damage, fire damage, mold remediation, and storm response happen regardless of recession or expansion, and the 2024–2025 acceleration in extreme weather events further widened the addressable market for storm-response specialists. For how restoration compares with other service categories on investment and disclosure rates, see the [franchise industry statistics report](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). The category structure favors franchises strongly. National insurance carriers prefer to refer claims to vendors with consistent operational standards, certifications, and reporting infrastructure. Independent restoration contractors can build local relationships with adjusters, but the systematic preferred-vendor pipeline that flows from a major franchise brand is hard to replicate as an independent. For 2026, the category sits in a buyer’s market for several brands. Territory openings have increased as some legacy operators have exited or consolidated, particularly in mid-tier metros where post-pandemic operational complexity squeezed under-capitalized independents. ## Best Water & Mold Restoration Franchises Water damage and mold remediation are the highest-frequency restoration services. Most restoration franchises lead with water mitigation as the primary revenue driver, with reconstruction services as a secondary tier. | Brand | Initial Investment | Royalty | Franchise Fee | Insurance Network | | --- | --- | --- | --- | --- | | ServPro | $263,305–$385,570 (2026 FDD) | 10% (see FDD schedule) | $100,000 | Largest, deepest carrier relationships | | ServiceMaster Restore | $111,800–$187,500 (2026 FDD) | 4–10% by service mix | $40,000 | Strong, particularly commercial | | Restoration 1 | $126,525–$309,500 (2026 FDD) | 8% gross | $59,900 | Growing, regional variation | | 1-800 Water Damage | $142,903–$312,398 (2026 FDD) | 7–10% of gross sales | $59,000 | Building, residential-focused | Figures are compiled from the brands’ 2026 FDDs in VetMyFranchise’s database of 2,000+ franchise systems; verify current terms in the latest FDD. ServPro is the established category leader for reasons most validation calls confirm: the insurance-network depth means leads come in even before the franchisee has built local relationships. The trade-off is higher capital, larger required territory commitments, and saturated markets in established suburbs. Restoration 1 has positioned itself as the growth challenger: lower capital, broader territory availability, and a residential-focused service mix. The brand has expanded significantly from 2020 onward and offers attractive economics in markets where ServPro territory is unavailable. 1-800 Water Damage operates with a route-based, brand-call-center structure that funnels customer calls to franchisee territories. The model produces strong unit economics in markets where the brand has established consumer recognition. ## Best Fire Damage Specialists Fire damage restoration is typically a subset of broader water/mold/fire franchises rather than a standalone specialization. Most major brands (ServPro, ServiceMaster Restore, Restoration 1) handle fire restoration as part of their service mix, often through reconstruction subcontractors. Fire damage average ticket sizes are substantially larger than water damage (typical fire-loss claims run $35,000–$280,000 vs. $4,500–$28,000 for water mitigation), but the operational complexity of insurance adjuster coordination, reconstruction scope, and customer displacement requires more sophisticated project management than commodity water mitigation work. ## Best General Disaster Recovery Franchises The general disaster recovery segment includes broader-scope franchises that combine residential and commercial work, multiple service categories, and large-loss commercial focus. - **ServiceMaster Restore**: $111,800–$187,500 initial investment (2026 FDD), strong commercial-focused operations - **[Rainbow](https://vetmyfranchise.com/c/claude/franchise/rainbow-international-spv-llc) Restoration**: formerly [Rainbow](https://vetmyfranchise.com/c/claude/franchise/rainbow-international-spv-llc) International, broader Neighborly support infrastructure - **BluSky Restoration**: large-loss commercial focus, higher capital, $250,000+ initial investment typical as of 2026 - **[Paul Davis Restoration](https://vetmyfranchise.com/c/claude/franchise/paul-davis-restoration-inc)**: established brand with national presence, broader service mix, $298,800–$804,900 per the 2026 FDD Commercial-focused brands (ServiceMaster Restore, BluSky) target large-loss recovery work in multifamily, hotel, retail, and industrial properties, where individual project values run $80,000–$2M+. The economics work for owners with construction project management backgrounds and the working capital to bridge insurance payment cycles (typically 60–120 days from loss to final payment). ## Capital + Equipment + Insurance-Network Comparison The honest read on restoration franchise capital structure: - **Initial equipment**: $40,000–$120,000 (drying equipment, dehumidifiers, air movers, moisture meters, ozone generators) - **Vehicle (truck or van)**: $35,000–$70,000 per primary service vehicle - **Buildout (warehouse + office)**: $30,000–$120,000 depending on local real estate - **Working capital**: $50,000–$200,000 (insurance payment cycles require meaningful float) - **Franchise fee + initial training**: $40,000–$100,000 across the four brands’ 2026 FDDs Insurance receivables are the unique working-capital challenge. A restoration franchise that books $80,000 in losses in a given week may not see payment for 60–120 days. Without sufficient operating reserves, franchisees can hit cash crunches even during strong revenue periods. ## Insurance-Carrier Network Access: The Real Moat The single most important factor in restoration franchise success isn’t brand recognition with consumers — it’s insurance carrier relationships. Adjusters refer customers to vendors they trust, and the trust building takes years for independents. The major franchise brands provide three layers of carrier relationship infrastructure: 1. **National vendor program enrollment.** ServPro, ServiceMaster Restore, and several others have national agreements with major insurance carriers (State Farm, Allstate, USAA, Liberty Mutual, etc.) that automatically include franchisees in regional vendor lists. 2. **Regional adjuster relationship building.** Franchisor field staff support franchisees in building local adjuster relationships, attend insurance-industry events, and provide co-marketing materials. 3. **TPA (third-party administrator) network access.** Many large insurance losses flow through TPAs (Crawford, Sedgwick, others) that maintain their own vendor networks. Franchise brands often have direct TPA relationships individual contractors lack. Franchisees who validate carefully always ask current franchisees specifically: “What percentage of your work comes from insurance referrals vs. direct customer acquisition?” The answer reveals the real moat. > 💼 **Vet any restoration franchise FDD before signing.** Our $49 brand reports surface actual Item 19 distributions, insurance-network access reality, and the operational gotchas (24/7 on-call burden, working capital crunches, certification requirements) that brochures gloss over. [See available restoration brand reports →](https://vetmyfranchise.com/c/claude/franchises) ## 24/7 On-Call Reality: Owner-Operator vs. Hire-Manager Models Emergency restoration is genuinely 24/7. Water damage doesn’t wait for business hours, and the brands’ service-level promises depend on response within 60–180 minutes of customer call. This single operational reality drives most of the brand-fit decision. Three models are possible: - **Owner takes call.** Common in Year 1–2 with single-truck operations. Owner is on-call most weekends and overnight. Burnout risk is real but operational quality stays high. - **Rotating manager coverage.** Common at $1M+ revenue with 2–4 trucks. Owner shares on-call rotation with operations manager. Sustainable long-term but requires operations manager hire by Year 2–3. - **Hired manager + outsourced after-hours dispatch.** Most successful $2M+ operations. Owner functions as business operator rather than emergency responder. Requires meaningful operations infrastructure investment. Owner-operators who haven’t planned for the 24/7 reality often burn out within 18 months. The franchises that handle this well actively coach franchisees through the operational transitions. For deeper brand-vs-brand analysis on specific restoration franchise comparisons, see our existing head-to-heads: [servpro vs puroclean vs restoration 1 franchise](https://vetmyfranchise.com/c/claude/blog/servpro-vs-puroclean-vs-restoration-1-franchise) and [servpro vs servicemaster restore franchise](https://vetmyfranchise.com/c/claude/blog/servpro-vs-servicemaster-restore-franchise). Buyers comparing restoration against adjacent service-franchise categories should pair this with [home services franchise guide 2026](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide). Insurance and risk planning specifically for service franchises is covered in our [franchise insurance cost guide](https://vetmyfranchise.com/c/claude/blog/franchise-insurance-workers-comp-real-annual-cost). ## The Bottom Line for 2026 Buyers If you have $265,000+ in capital and your target market doesn’t have ServPro territory saturation, ServPro remains the validated category default. The insurance network and operational support are difficult to replicate. If your capital is in the $125,000–$310,000 range, Restoration 1 and 1-800 Water Damage offer real opportunity in markets where ServPro is unavailable. Both brands have grown unit count meaningfully and built reasonable franchisee support infrastructure. If your background is commercial construction project management, ServiceMaster Restore ($111,800–$187,500 per the 2026 FDD) or the higher-capital BluSky offer commercial-focused economics with larger average project values and different operational profile. Whatever brand you pick, validate aggressively on insurance-network access and operational on-call burden, not just the FDD numbers the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires franchisors to disclose. Restoration franchises live and die on those two factors, and they’re the two factors brochures consistently soften. PuroClean, while not currently in our database for deep FDD analysis, is the other major brand worth competitive consideration in this category — particularly in markets where ServPro and Restoration 1 territory is unavailable. The brand has strong franchisee retention historically and is a credible alternative for buyers who validate carefully against the same insurance-network and operational criteria. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) best restoration franchises 2026disaster recovery franchise opportunitiesservpro franchise costpuroclean franchiserestoration 1 franchisewater damage franchisefire damage franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How profitable is a restoration franchise? Mature restoration franchises with established insurance-network access typically run 12–22% net operating margins on revenue of $1.2M–$3.5M. Top-quartile units in storm-active or aging-housing markets exceed $4M in revenue with owner take-home above $400,000 after debt service. The economics depend heavily on insurance preferred-vendor status — operators without that access produce 30–50% lower revenue at similar capital deployment. ### Do you need a contractor's license to own a restoration franchise? Most states require category-specific licensing for water mitigation, mold remediation, and reconstruction work. The owner doesn't typically need to hold the license personally if a qualified manager is employed, but the franchise location must comply with state requirements. Licensing requirements have tightened across most states since 2021, particularly for mold remediation, and current licensing typically takes 60–180 days and costs $400–$3,500 depending on state. ### What's the cheapest restoration franchise? ServiceMaster Restore has the lowest disclosed entry at $111,800 per the 2026 FDD; Restoration 1 starts at $126,525 and 1-800 Water Damage at $142,903. CORE Group Restoration and Lightspeed Restoration are growth-stage brands with similar capital ranges. Lower-capital entries trade off insurance-network depth and operational support — most successful low-capital restoration franchisees take 6–18 months longer to build insurance carrier relationships than ServPro franchisees. ### How does insurance preferred-vendor status work for franchises? Insurance carriers maintain "preferred vendor" or "approved contractor" lists that adjusters refer customers to during claims. Franchises with established carrier relationships (particularly ServPro and ServiceMaster Restore) provide automatic vendor-list inclusion in many regions. Building independent carrier relationships from scratch typically takes 18–36 months and is the single biggest reason franchisees choose category leaders over lower-capital alternatives. ### Is ServPro or PuroClean a better franchise to buy? ServPro has larger national presence, deeper insurance carrier relationships, and stronger franchisee support — but higher capital requirements and territory saturation in many established markets. PuroClean (covered separately as competitive context) operates with similar capital structure and broad service offering but smaller unit count. The honest read for 2026 — in markets where ServPro territory is unavailable, alternatives like Restoration 1, 1-800 Water Damage, or ServiceMaster Restore typically deliver better economics than waiting for ServPro openings. --- title: "Big O Tires After Mavis: Who Owns It in 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-08-19 keywords: big o tires franchise, mavis tire, midas franchise, tire franchise, TBC Corporation, automotive franchise canonical: https://vetmyfranchise.com/c/claude/blog/big-o-tires-after-mavis-acquisition-what-franchisees-should-know about: big o tires franchise category: blog wordCount: 1810 readingTime: 9 min crawledAt: 2026-08-20 11:03:45 lastVerified: 2026-08-20 11:03:45 site: https://vetmyfranchise.com/c/claude/ --- # Big O Tires After Mavis: Who Owns It in 2026 ## Summary Mavis bought Midas, not Big O Tires. Big O remains a TBC subsidiary with a 3.5% to 5.0% royalty matrix and a two-part Item 19 averaging $2.82M per store. ## Key facts - Mavis closed its purchase of Midas on June 16, 2025, about eleven weeks after TBC announced the agreement on March 31. - Item 1 of the FDD issued June 30, 2025 sets the structure out plainly. - Item 6 of the 2025 [FDD](https://vetmyfranchise. - The claim that Big O files no Item 19 is wrong, and what it does file is more detailed than most brands bother with. - Franchised outlets moved 434, then 460, then 462, then 461 across the reported years. Quick answer Mavis never acquired Big O Tires. It bought TBC's company-owned NTB and Tire Kingdom chains in 2023, then closed on Midas June 16, 2025. Big O Tires, LLC is still a wholly-owned TBC subsidiary, with a $17,500 franchise fee, a 3.5% to 5.0% royalty matrix, and an Item 19 averaging $2,824,712.79 across 457 stores. ## What Mavis actually bought Mavis closed its purchase of Midas on June 16, 2025, about eleven weeks after TBC announced the agreement on March 31. Roughly 1,300 franchised Midas shops moved into a group already running more than 2,300 service centers across 39 states, and the Midas 2026 FDD now names Metis HoldCo, the Mavis holding entity, in its ownership chain. [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) was not in that transaction, and it was not in the earlier one either. Mavis bought NTB and Tire Kingdom from TBC in 2023. Those were TBC’s company-operated retail chains, not its franchise systems. Every version of the story that has Mavis acquiring Big O in 2021 has stitched two real deals into one that never happened. The correction inverts the question a buyer should be asking. You are not buying into a Mavis brand. You are buying into the brand Mavis did not get, from a seller that just took the check for the one it did. ## Big O’s ownership chain, straight from Item 1 Item 1 of the FDD issued June 30, 2025 sets the structure out plainly. Big O Tires, LLC is a wholly-owned subsidiary of TBC Shared Services, LLC, which sits under TBC Corporation, which sits under TBC Holdings, LLC. No Mavis entity appears anywhere in that chain. The franchisor traces to Big O Tire Dealers, Inc., formed in 1962 as a purchasing cooperative so independent dealers could buy tires at prices they could not get alone. TBC has held the brand since 1996. After the Midas closing, TBC said it would concentrate on wholesale and distribution and expand the Big O franchise network. Treat that as a positioning statement rather than a commitment, and note that Big O is one of the few franchised routes into this category at all, since [Discount Tire does not franchise](https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise). ## The royalty is a matrix, and 2% is a footnote Item 6 of the 2025 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) does not set one royalty rate. A new store pays 5.0% of gross sales through the partial year in which it opens. After that it moves onto a Royalty Matrix running between 3.5% and 5.0% for new stores. The 2% figure circulating on aggregator pages is real, but it is a special-class rate covering national and key-account sales, farm-class tires, and excess service department sales. Quoting it as the brand’s royalty understates the recurring take by roughly half. Advertising is the line most buyers skip. The Local Fund minimum is 4% of gross sales, currently reduced to 3.6%, and the National Marketing Program fee sits on top at 0.9%, raised from 0.25%. Royalty plus advertising commits 8.0% to 9.5% of gross sales at today’s reduced Local Fund rate, and up to 9.9% if that rate returns to its 4% minimum, all of it before a tire is paid for. On the capital side, the initial franchise fee is $17,500, split $10,000 with the application and $7,500 at signing. Opening inventory runs $75,000 to $187,500 against a 700-tire minimum, and a resale carries a $5,000 fee. The FDD’s cover page puts the total investment at $511,500 to $1,882,500, including $385,000 to $1,596,000 paid to the franchisor or its affiliates. Our extracted copy of the line-item Item 7 table is incomplete, so ask the franchisor for Item 7 in full and read it against those inventory figures. ## Item 19 exists, and it comes in two parts The claim that Big O files no Item 19 is wrong, and what it does file is more detailed than most brands bother with. Part A reports average annual gross revenues of $2,824,712.79 across 457 of the 463 stores in the reporting group. The number doing the real work sits beside it: 40.9% of stores landed above that average. A mean with fewer than half the population above it is being pulled up by a tail at the top, which is the standard shape of a [system-wide mean](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) and the reason a median would have been more useful to disclose. Part B is the rarer half. The 280 stores that submitted expense data, 61.3% of the group, produce averages down the whole statement: | Line item | Average | | --- | --- | | Total income | $2,941,799 | | Cost of goods sold | 42.1% of income | | Gross profit | 57.9% | | Total labor | 26.7% | | Operating expenses | 49.1% | | Net income from operations | 8.8% | Net income of 8.8% on $2,941,799 works out to roughly $259,000 of store-level operating income before debt service, owner compensation taken separately, and taxes. That is a figure you can underwrite against, drawn from 280 stores rather than a top-quartile selection, and the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) left the franchisor free to publish nothing at all. **Considering Big O Tires?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ## Item 20 shows a franchisor that sold its own stores Franchised outlets moved 434, then 460, then 462, then 461 across the reported years. Company-owned outlets moved 32, then 17, then zero. Transfers ran 44, then 24, then 19. A franchisor with no company stores has no corporate-versus-franchise build conflict, which is the exact tension the Mavis story was invented to explain. It also keeps no company-operated units to benchmark against, so Item 19 is the only internal evidence on offer. What TBC does have is a wholesale relationship with every franchisee in the system. Consolidated revenue of $385,060,332 for the twelve months ended March 31, 2025 included $342,729,760, or 89.0%, from products and services sold to franchisees. Royalty is the smaller share of how this franchisor earns. The larger share is selling you tires, and that margin lives inside the 42.1% cost of goods line on your own statement. ## What the Midas sale changes for a Big O franchisee Nothing in your franchise agreement. Something in your trade area. [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) now belongs to an operator with 2,300-plus centers and a demonstrated appetite for buying more. Its own disclosure puts 889 US franchised shops on the ground at December 31, 2025, at a $35,000 franchise fee, a royalty of 2% to 10% of net revenue rising to 11% with co-branding, and $385,450 to $940,050 for a new 8-bay shop before real estate. Midas sells brakes, exhaust, and alignment work alongside tires, so the overlap with a Big O bay is partial rather than total. Two consequences follow. First, pricing pressure on the tire line, because a consolidator buys at volumes a network of 461 independent operators cannot match. Second, concentrated franchisor attention: TBC now has one franchise brand, one wholesale business, and the proceeds of a sale, which helps marketing weight and hurts if the promised expansion lands next to you. Item 12 settles that question, not the press release, and the [Big O territory disclosure](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc/territory) is where to start reading. There is a third, quieter effect on supply. A parent narrowed to distribution plus one franchise brand has a plainer reason to keep that network buying than a multi-brand retailer does. Weigh it against the general case of [what happens when a franchisor changes hands](https://vetmyfranchise.com/c/claude/blog/private-equity-buys-your-franchisor-survival-guide) mid-agreement. ## What to ask before you sign Five questions the document does not answer on its own: - Which rung of the Royalty Matrix does a store at my projected volume land on, and what does the schedule look like at $2.0M, $2.8M, and $3.5M of gross sales? - What is the Local Fund rate today, and what moves it back from 3.6% to the 4% minimum? - Which stores sit in the six excluded from Part A and the 183 that did not submit Part B expense data, and why? - What has TBC’s product margin on franchisee purchases done over the last three years? - With Midas under Mavis, how many competing bays in my trade area are now consolidator-owned? The first two are answerable in a phone call, and a development rep should not need a week to produce them. The last three separate someone who knows the business from someone reading a script. Then work the [operator questions](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc/questions) against a list of more than 450 franchisees rather than the three names you are handed. ## The honest read Big O is a mature tire franchise with a real Item 19, a royalty higher than the internet says, and 461 stores under a parent that has just narrowed its focus. The Mavis story was never true, and it pointed buyers at the wrong risk. Corporate competition from the franchisor cannot happen here, because the franchisor owns no stores. Price the supplier relationship instead: TBC’s margin sits in the 42.1% cost of goods line that Part B hands you. ## Brands mentioned in this post - [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) big o tires franchisemavis tiremidas franchisetire franchiseTBC Corporationautomotive franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Did Mavis acquire Big O Tires? No. Mavis acquired NTB and Tire Kingdom, TBC's company-operated retail chains, in 2023. TBC then announced on March 31, 2025 that it had agreed to sell Midas to Mavis, and that deal closed June 16, 2025. Big O Tires was in neither transaction and remains a TBC company. ### Who owns Big O Tires in 2026? TBC. Item 1 of the FDD issued June 30, 2025 identifies Big O Tires, LLC as a wholly-owned subsidiary of TBC Shared Services, LLC, which sits under TBC Corporation and then TBC Holdings, LLC. The brand has been a TBC company since 1996, and the franchisor traces back to Big O Tire Dealers, Inc., a 1962 purchasing cooperative. ### What is the Big O Tires royalty rate? A store pays 5.0% of gross sales during the partial year in which it opens, then moves onto a Royalty Matrix that runs between 3.5% and 5.0% for new stores. A separate 2% rate covers special classes of business: national and key-account sales, farm-class tires, and excess service department sales. Advertising sits on top, with a Local Fund minimum of 4% currently reduced to 3.6%, plus a National Marketing Program fee of 0.9% raised from 0.25%. ### Does Big O Tires disclose an Item 19? Yes, and it runs two parts. Part A reports average annual gross revenues of $2,824,712.79 across 457 of 463 stores, with 40.9% of stores above that average. Part B covers the 280 stores, or 61.3% of the group, that submitted expense data: average total income of $2,941,799, cost of goods sold at 42.1%, gross profit 57.9%, total labor 26.7%, operating expenses 49.1%, and net income from operations of 8.8%. ### Does the Midas sale hurt Big O franchisees? It changes the competitive map rather than the franchise agreement. Midas now sits under the Mavis group, which runs more than 2,300 service centers in 39 states and picked up roughly 1,300 franchised locations in the deal. Where a Midas shop sits inside a Big O trade area, the tire portion of the mix faces a buyer with consolidator purchasing volume. On the other side, TBC has one franchise brand left and has said it plans to expand it, so Item 12 territory terms deserve a closer read than they did two years ago. --- title: "BrightStar Care vs Senior Helpers vs Always Best Care 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-01 dateModified: 2026-06-01 keywords: brightstar care, senior helpers, always best care, senior care franchise, medical home care canonical: https://vetmyfranchise.com/c/claude/blog/brightstar-care-vs-senior-helpers-vs-always-best-care-franchise about: brightstar care category: blog wordCount: 1485 readingTime: 7 min crawledAt: 2026-08-20 11:03:46 lastVerified: 2026-08-20 11:03:46 site: https://vetmyfranchise.com/c/claude/ --- # BrightStar Care vs Senior Helpers vs Always Best Care 2026 ## Summary Side-by-side: BrightStar Care vs Senior Helpers vs Always Best Care franchise — investment, AUV, training, territory, and which fits which buyer in 2026. ## Key facts - Three home care franchise brands. - Approximate ranges based on current [FDD](https://vetmyfranchise. - Each brand has historically disclosed average and/or median revenue per location in Item 19, with sample sizes large enough to make the data usable. - All three brands use defined geographic territories, but the territory definition differs: - BrightStar’s training program reflects the medical model. Quick answer BrightStar Care costs $112K to $215K and is the only medical model of the three, reporting median revenue of $1.5M to $2.5M-plus. Senior Helpers runs $116K to $164K on a 5% royalty with $1.0M to $2.0M medians, and Always Best Care is cheapest at $87K to $145K with $700K to $1.5M medians. ## Medical vs Non-Medical: The Regulatory Distinction That Drives Cost Three home care franchise brands. One major structural difference. Get this one decision right before you compare anything else. **BrightStar Care** is a medical home care franchise. The model includes skilled nursing — wound care, medication administration, post-surgical care, IV therapy — alongside the more familiar non-medical companion and personal care services. Skilled nursing requires a licensed nurse on the clinical team, state licensure as a home health agency in most states, and operational compliance with Medicare and Medicaid billing standards if you serve those payor sources. Higher complexity, higher entry cost, higher average revenue per client. **Senior Helpers** and **Always Best Care** are non-medical home care franchises. Companionship, personal care (bathing, dressing, meal prep), light housekeeping, transportation, and respite care. The clinical complexity is lower because the services don’t cross into skilled nursing territory. No nursing license required to run the business. Lower entry cost, lower average ticket, but a faster operational ramp. The category looks similar from outside — three brands all branded around aging-in-place care. From inside, they’re meaningfully different businesses operating under different regulatory frameworks. Choose the wrong category for your operator profile and the business will fight you for years. ## Investment & Cost Breakdown Approximate ranges based on current [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) disclosures; brand-by-brand specifics in Item 7 of each FDD. | Item | BrightStar Care | Senior Helpers | Always Best Care | | --- | --- | --- | --- | | Initial franchise fee | $50K - $60K | $54K | $49K | | Total initial investment | $112K - $215K | $116K - $164K | $87K - $145K | | Liquid capital requirement | $150K | $100K | $100K | | Net worth requirement | $500K | $300K | $250K | | Royalty | 5-6% of revenue | 5% of revenue | 6% of revenue | | Ad fund | 2% of revenue | 2% of revenue | 2% of revenue | | Territory | Defined geographic | Defined geographic | Defined geographic | | Term | 10 years | 10 years | 10 years | The investment bands look similar at the headline, but the BrightStar profile typically lands higher in practice because of clinical staffing costs and licensure-related working capital needs in the opening period. Senior Helpers and Always Best Care land closer to their stated minimums for owner-operators willing to do administrative work themselves. For brand-by-brand specifics with full Item 7 line items, the [BrightStar Care brand page](https://vetmyfranchise.com/c/claude/franchise/brightstar-franchising-llc) and [Senior Helpers brand page](https://vetmyfranchise.com/c/claude/franchise/sh-franchising-llc) carry the current FDD data. The $49 Tier 2 report on any of the three brands includes the full investment breakdown, working capital reality check, and a payback estimate calibrated to the actual median revenue for the brand. ## Item 19 Income Comparison Each brand has historically disclosed average and/or median revenue per location in Item 19, with sample sizes large enough to make the data usable. | Metric | BrightStar Care | Senior Helpers | Always Best Care | | --- | --- | --- | --- | | Typical Item 19 sample size | 100+ locations | 200+ locations | 100+ locations | | Reported median revenue range | $1.5M - $2.5M+ | $1.0M - $2.0M | $700K - $1.5M | | Top-quartile revenue | $3M+ | $2M+ | $2M | | Year-one new-cohort revenue | $400K - $700K | $300K - $500K | $250K - $400K | The ranges are wide because location density, payor mix, and operator effort drive enormous variance within each brand. BrightStar’s medical model produces higher absolute revenue at maturity because the ticket per visit is higher (skilled nursing is reimbursed at a higher rate than personal care). Senior Helpers and Always Best Care produce lower absolute revenue per location but with structurally lower operating complexity. The key number for new buyers is the year-one cohort revenue, not the system median. New units take 12-24 months to build a caregiver roster, develop referral relationships with hospitals and senior communities, and reach mature billing volume. Underwriting against the system median is the most common year-one disappointment in this category. ## Territory Model & Exclusivity By Brand All three brands use defined geographic territories, but the territory definition differs: - **BrightStar Care** territories are typically defined by population, with each territory covering an area sized to support a medical home care agency at scale. Some markets are saturated; some are still being added. The clinical model means territories can support larger absolute populations than non-medical equivalents. - **Senior Helpers** territories are smaller on average — population thresholds set to support a non-medical operation with caregivers commuting to client homes within reasonable drive times. Some metro areas support multiple Senior Helpers locations under different owners. - **Always Best Care** territories are similar in concept to Senior Helpers — population-defined, drive-time-bounded, with multiple territories in many metros. Territory protection in all three brands is generally strong for the defined area, but none offer master-area or area-development-style exclusivity by default. Multi-territory development is available in each brand for buyers with the capital and operator capacity. ## Training & Support: BrightStar’s Clinical Model vs The Others BrightStar’s training program reflects the medical model. The typical owner-operator track includes 3-5 days of corporate classroom training, followed by 2-4 weeks of clinical operations training (often co-attended with the Director of Nursing the franchisee hires), plus ongoing compliance and credentialing support from corporate. The clinical compliance burden is real and continuing — Medicare conditions of participation, state licensure renewals, accreditation if applicable. Senior Helpers and Always Best Care training programs are shorter and operationally focused. Sales, marketing, scheduling, billing, caregiver recruitment and retention, payor contracts. Less compliance overhead. Faster path to operating independently. The implication for buyer fit: if you’re comfortable with clinical compliance and either come from healthcare or are willing to hire a strong clinical lead, BrightStar’s model rewards that with a higher ticket. If you’re a business operator who wants to focus on sales, recruiting, and operations without clinical complexity, the non-medical models will fit better. For broader category context, our [Home Instead vs Right at Home vs Visiting Angels](https://vetmyfranchise.com/c/claude/blog/home-instead-vs-right-at-home-vs-visiting-angels-franchise) comparison covers the largest non-medical brands head-to-head. For nurses considering franchising, [best franchises for nurses](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-nurses-healthcare) extends the lens. The full senior care category leaderboard sits in our [senior care franchise opportunities](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities) guide. ## Which Brand Fits Which Buyer Profile After working through the structural and financial details, brand selection often comes down to operator fit. Rough profiles: **BrightStar Care fits:** clinical operators (RN, healthcare administration background), second-career corporate executives comfortable with compliance, multi-unit operators planning to build a regional medical home care platform, buyers with the liquid capital to absorb a longer ramp. **Senior Helpers fits:** sales-and-marketing operators, owner-operators wanting a hands-on but non-clinical role, buyers in markets with mature referral networks where the brand’s playbook can plug into existing relationships, smaller-capital buyers wanting senior care exposure without medical overhead. **Always Best Care fits:** owner-operators willing to do significant ground-game referral building, smaller-capital buyers, operators in markets where the other two brands are saturated and Always Best Care has open territory, buyers wanting a more flexible service portfolio that can include some non-medical placement services. The Item 19 numbers and Item 7 buildouts will tell you whether the unit economics work. Operator fit will tell you whether you’ll still be running the business in year five. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Health Mart [Learn more →](https://vetmyfranchise.com/c/claude/franchise/health-mart-systems-inc) #### Hhci, Llc (unit) [Learn more →](https://vetmyfranchise.com/c/claude/franchise/hhci-llc-unit) #### Amerisourcebergen Drug [Learn more →](https://vetmyfranchise.com/c/claude/franchise/amerisourcebergen-drug-corporation) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) brightstar caresenior helpersalways best caresenior care franchisemedical home care About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What's the difference between medical and non-medical home care franchises? Non-medical home care covers companionship, personal care (bathing, dressing, meal prep), light housekeeping, and transportation. Medical home care adds skilled nursing services (wound care, medication administration, IV therapy, post-surgical care), which require licensed nursing staff and state licensure as a home health agency in most states. The regulatory and clinical complexity is meaningfully different. ### Do I need a nursing background to own a BrightStar Care franchise? No, but you do need a Director of Nursing on staff. The owner typically does not need clinical credentials, but the franchise's clinical operations are run by a licensed RN. Operators with healthcare or business management backgrounds tend to do well; the model favors structured operators comfortable with compliance. ### Which senior care franchise has the highest AUV? BrightStar Care's higher-ticket medical model produces higher AUV per location on average than non-medical models. Senior Helpers and Always Best Care are competitive with each other on AUV. Across the three, mature locations in dense markets cluster in the $1.5M-$3M+ range; the right benchmark is the brand's specific Item 19 distribution, not a category headline. ### How long does it take to break even in senior care? Most non-medical models break even within 12-18 months once the caregiver roster is built and the referral network is producing. Medical models can take longer because of clinical staffing lead time and licensure delays — typically 18-30 months. Both can be slower in markets with strong existing competition. ### Are senior care franchises recession-resistant? Senior care has historically been more recession-resistant than discretionary categories. Demand is demographically driven by the aging US population; private-pay clients reduce hours in recessions but rarely eliminate them, and Medicaid-funded clients are insulated from individual economic cycles. Operating margin pressure during recessions tends to come from wage inflation on the caregiver side, not from demand. --- title: "Big O Tires vs Midas 2026: Owners, Cost, Item 19" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-08-19 keywords: big o tires, midas, automotive franchise, tire franchise, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/big-o-tires-vs-midas-franchise about: big o tires category: blog wordCount: 2310 readingTime: 12 min crawledAt: 2026-08-20 11:06:20 lastVerified: 2026-08-20 11:06:20 site: https://vetmyfranchise.com/c/claude/ --- # Big O Tires vs Midas 2026: Owners, Cost, Item 19 ## Summary Big O Tires vs Midas in 2026: TBC still owns Big O, Mavis now owns Midas. Compare fees, royalties, unit counts, and both Item 19 disclosures. ## Key facts - Until 2025, Big O Tires and Midas answered to the same owner. - The two systems overlap more than the branding suggests. - Big O’s franchised count has been close to flat: 434 to 460, then 460 to 462, then 462 to 461 across the three fiscal years ending March 31. - Big O’s $17,500 fee splits into $10,000 with the application and $7,500 at signing. - Big O’s Item 19 has two parts, and the second is more generous than most tire FDDs. Quick answer Big O Tires is a wholly owned TBC Corporation subsidiary, and Midas has belonged to Mavis since that deal closed on June 16, 2025, so the two brands no longer share an owner. Big O charges a $17,500 franchise fee against a 3.5% to 5.0% royalty matrix and disclosed average gross revenues of $2,824,712.79 across 457 stores. Midas charges $35,000 against a 2% to 10% royalty and disclosed quartile averages running from $2,141,832 down to $676,751 across 856 shops. Both brands disclose Item 19. ## Two brands that stopped being siblings Until 2025, Big O Tires and Midas answered to the same owner. TBC Corporation held both. Mavis bought TBC’s company-owned NTB and Tire Kingdom chains in 2023, agreed to buy Midas on March 31, 2025, and closed that deal on June 16, 2025. Big O did not move, and TBC has said it intends to keep expanding the brand. The [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) FDD issued June 30, 2025 spells the structure out in Item 1: Big O Tires, LLC sits under TBC Shared Services, LLC, which sits under TBC Corporation, which is owned by TBC Holdings, LLC. A fourth entity, TBC Retail Holdings, manages the brand. The [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) FDD issued April 16, 2026 names Metis HoldCo, Inc. as ultimate parent, lists the Mavis companies as intermediate parents, and describes Mavis as an operator of more than 2,300 service centers across 39 states. That history matters for anyone reading an older writeup on these two. Any comparison that files Big O under Mavis and Midas under TBC has the ownership backwards, and every conclusion built on it about parent strategy is unreliable. ## What each brand actually sells The two systems overlap more than the branding suggests. Big O’s Item 6 defines service department sales as non-tire work covering air conditioning, alignment, batteries, brakes, front end repairs, fluid replacement, inspections, maintenance, shocks and struts, and oil changes. So Big O stores do brake work. The FDD also discourages leaning on it: once service department sales pass 40% of gross sales, the excess gets reclassified and the royalty rate on it drops to 2%, which tells you exactly where the franchisor wants the revenue mix to sit. Midas Item 1 lists brake system repair and replacement, tire mounting and balancing, exhaust service, suspension and steering, wheel alignment, batteries, starting and charging, heating and cooling, and CV joint and drive shaft work. Tires are one line among many. Midas has been in the exhaust business since 1954 and has franchised since 1956. The practical split: Big O is tire-anchored with service attached, and its royalty schedule pushes it that way. Midas is service-anchored with tires attached. ## Unit counts and which way they are moving | Dimension | Big O Tires | Midas | | --- | --- | --- | | FDD issuance date | June 30, 2025 | April 16, 2026 | | US franchised units | 461 (FYE March 31, 2025) | 889 (December 31, 2025) | | Company-owned units | 0 | 111 | | Franchising since | 1962 (predecessor) | 1956 | | Parent | TBC Corporation | Mavis (Metis HoldCo, Inc.) | Big O’s franchised count has been close to flat: 434 to 460, then 460 to 462, then 462 to 461 across the three fiscal years ending March 31. Company-owned stores went 32, then 17, then zero, and stayed at zero. In the year ending March 31, 2025 the brand opened 8 stores, terminated 4, recorded 2 non-renewals, and saw 3 stores cease operations for other reasons. Midas looks worse at a glance and is not. Franchised shops held at 971, 972, and 975 through 2024, then dropped to 889 during 2025. Only 3 of those exits were terminations and 5 ceased for other reasons, against 33 new openings. The 86-unit decline came almost entirely from 111 shops the franchisor reacquired, concentrated in Ohio (66), New York (16), Pennsylvania (14), Georgia (7), Michigan (5), and Kentucky (3). Company-owned units went from zero to 111 in the same twelve months. Mavis pulled shops in house rather than losing them, which is a different signal than a wave of failures, and a different risk. ## What it costs to open one | Dimension | Big O Tires | Midas | | --- | --- | --- | | Initial franchise fee | $17,500 | $35,000 | | Total investment | $511,500 to $1,882,500 (cover page) | $385,450 to $940,050, new 8-bay shop, real estate excluded | | Royalty | 5.0% partial opening year, then a 3.5% to 5.0% matrix | 2% to 10% of net revenue, up to 11% co-branded | | Advertising | 4% local fund minimum, currently 3.6%, plus 0.9% national | Item 6 defers to a note our extraction does not capture | | Initial inventory | $75,000 to $187,500 | $25,700 to $103,000 | Big O’s $17,500 fee splits into $10,000 with the application and $7,500 at signing. Veterans and first responders have it waived. A five-year employee leaving to run a store, or an existing franchisee opening an additional unit by June 30, 2026, can bring it down to $10,000. The royalty is where Big O gets interesting. The rate runs 5.0% from opening through the end of that calendar year, then moves onto a Royalty Matrix that Big O updates annually, with a 5.0% ceiling and a 3.5% floor set by adjusted gross sales. National account, key account, and farm-class tire sales stay at 2%, as do service department sales above the 40% threshold. Advertising sits on top of all of it: a local fund contribution with a 4% minimum, currently reduced to 3.6%, plus a national marketing fee currently at 0.9% and capped at 1%. A store sitting at the matrix ceiling is therefore paying roughly 9.5% of sales in royalty plus advertising. Midas is easier to state and harder to pin down. Royalty runs 2% to 10% of net revenue, rising to 11% for a co-branded shop, with the schedule held in a footnote. The advertising line in Item 6 defers to that same footnote, which our extraction does not carry. Anyone underwriting Midas should get the marketing fee in writing before signing anything. The investment figures need a caveat on both sides. Midas discloses $385,450 to $940,050 for a new 8-bay shop of 5,000 to 7,400 square feet, and that assumes you lease the premises. Buying acceptable land runs $615,000 to $1,250,000, construction another $1,250,000 to $2,050,000. Converting an existing automotive facility runs $143,400 to $941,050. The Big O range above comes off the FDD cover page; the Item 7 line-item table itself is not in our extraction, so treat $511,500 to $1,882,500 as the franchisor’s own summary rather than a build you can audit item by item. For the disclosed fee schedules, the [Big O Tires fees page](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc/fees) and [Midas fees page](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc/fees) carry the full tables. ## Item 19: both brands disclose Big O’s Item 19 has two parts, and the second is more generous than most tire FDDs. Part A reports average annual gross revenues for the 457 franchised stores that operated all of 2024 and reported every month, out of 463 franchised stores open at year end. The average was $2,824,712.79, and 187 stores, or 40.9%, beat it. Part B covers the 280 stores that also submitted expense data: average total income of $2,941,799, cost of goods sold at 42.1%, gross profit at 57.9%, total labor at 26.7%, total operating expenses at 49.1%, and net income from operations at 8.8%. Midas reports quartile averages for the 856 franchisees that operated the full 2025 calendar year: | Quartile | Average gross revenue | | --- | --- | | Top | $2,141,832 | | Top middle | $1,344,577 | | Bottom middle | $1,027,246 | | Bottom | $676,751 | Midas also breaks out average revenue per customer visit by quartile, from $542 at the top to $254 at the bottom, and publishes a Google rating table alongside it. Read side by side, the average Big O store out-earns the average shop in Midas’s top quartile. That is what a tire-anchored ticket does: fewer visits, far larger ones. The Midas per-visit averages of $254 to $542 are the other face of the same model. Two cautions before either number goes into a model. Big O’s Part B sample is self-selected, 280 of 463 stores, and its tables exclude sales, payroll, and income taxes, which the FDD says vary widely by location. And the Midas figures are group averages, not percentiles: the bottom quartile average of $676,751 covers shops running anywhere from $236,466 to $887,502. The full disclosures sit on the [Big O Tires financials page](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc/financials) and the [Midas financials page](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc/financials). Item 19 is the only place the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) lets a franchisor make financial performance claims, and it stays optional, so read what each one chose to leave out. > **Comparing Big O Tires and Midas seriously?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. ## What each owner does to the franchise TBC runs Big O as a franchise-only system. Company-owned stores hit zero by March 2024 and have stayed there, which removes the corporate-versus-franchise conflict entirely. TBC affiliates do sell into the system: Carroll’s, LLC, doing business as National Tire Wholesale, and TBC Brands both supply franchisees, and Big O expects to supply roughly 90% of a new store’s initial tire inventory and 80% or more of ongoing tire purchases. That is procurement scale and supplier concentration described in the same paragraph, and a buyer should price both. Mavis runs Midas differently. Reacquiring 111 shops in a single year turned a franchise-only system into one with a company-owned arm, and Mavis separately operates its 2,300-plus locations under the Mavis Discount Tire and Mavis Tires & Brakes names. The Midas FDD also names Tuffy Tire & Auto Service as an affiliate under the same ownership, running its own separate network of 111 franchised and 51 company-owned centers that offer much the same services as a Midas shop. So the practical question for a franchisee is whether the owner competes with you locally. Big O’s answer today is that it operates no stores of its own. Midas’s answer is 111 of them, in six named states. Territory diligence should start there. For more on how the ownership picture got misreported, the [Big O Tires after the Mavis acquisition](https://vetmyfranchise.com/c/claude/blog/big-o-tires-after-mavis-acquisition-what-franchisees-should-know) post traces what actually changed hands. ## Who each brand fits Big O suits an operator with tire-industry background and procurement instincts, working in the western or central states where the 461-store footprint is concentrated across roughly two dozen states from Arizona and California through Colorado, Missouri, and Texas. It suits buyers who can fund the larger disclosed range, who want a franchisor with no stores of its own, and who are comfortable with a supply relationship where the franchisor is also the main vendor. Midas suits a general automotive service operator with technicians across several specialties, or one converting an existing shop, since the conversion range starts at $143,400. It suits buyers who want national territory options and who read a four-quartile disclosure as more honest than a single average. It suits them less if the target market is one of the six states where Mavis now runs company shops. ## The decision Three variables settle it for most buyers. Ticket size versus visit frequency. Big O’s disclosed average of $2.82 million per store against Midas’s $676,751 to $2.14 million quartile band is not a quality gap, it is a business model gap. Decide which revenue shape you can staff and finance. Capital. The Midas lease-based range is materially lower at the entry point, and the conversion path lower still. Big O’s cover-page floor of $511,500 sits above the Midas floor, and the ceiling is roughly double. Owner posture. TBC has no company stores and says it plans to grow the franchise system. Mavis just took 111 shops in house. Neither is disqualifying, but they lead to different questions in discovery, and the answers should go in writing. For broader category context, the [automotive franchise opportunities](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) post covers additional brands beyond these two, and the [is Big O Tires a good franchise](https://vetmyfranchise.com/c/claude/blog/is-big-o-tires-a-good-franchise) post gives a deeper standalone verdict on Big O. Both brands sit inside the wider ranking in [best auto repair franchises](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises), where Item 19 sample definitions turn out to matter more than headline revenue. ## Brands mentioned in this post - [Big O Tires](https://vetmyfranchise.com/c/claude/franchise/big-o-tires-llc) - [Midas](https://vetmyfranchise.com/c/claude/franchise/midas-international-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jiffy Lube [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-llc) #### Jiffy Lube International [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jiffy-lube-international-inc) #### Valvoline Instant Oil Change [Learn more →](https://vetmyfranchise.com/c/claude/franchise/valvoline-instant-oil-change-franchising-inc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) big o tiresmidasautomotive franchisetire franchisefranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Who owns Big O Tires and Midas in 2026? TBC Corporation owns Big O Tires. Item 1 of the FDD issued June 30, 2025 places Big O Tires, LLC under TBC Shared Services, LLC, under TBC Corporation, under TBC Holdings, LLC. Mavis owns Midas. The two companies agreed to the sale on March 31, 2025 and closed it on June 16, 2025, and the Midas FDD issued April 16, 2026 names Metis HoldCo, Inc. as ultimate parent with the Mavis entities in between. Mavis had earlier bought TBC's NTB and Tire Kingdom chains in 2023. Older comparisons that put Big O under Mavis have the chart reversed. ### What's the difference between Big O Tires and Midas? Both fix brakes and sell tires, so the difference is emphasis. Big O is tire-anchored, and its royalty schedule enforces that: service department sales above 40% of gross sales get reclassified and drop to a 2% royalty rate. Midas started in exhaust work in 1954 and treats tires as one line among brakes, exhaust, suspension, alignment, batteries, heating and cooling, and drivetrain service. ### Which discloses better Item 19 data, Big O Tires or Midas? They disclose differently rather than one being empty. Big O gives a single system average of $2,824,712.79 across 457 stores plus a cost structure for 280 stores that submitted expense data, including 8.8% net income from operations. Midas gives four quartile averages across 856 shops, which shows spread that a single average hides. If you want to see the bottom of the range, Midas is more revealing. If you want to see where the money goes, Big O is. ### Which is more expensive to open? Big O, on the disclosed numbers. The Big O cover page puts total investment at $511,500 to $1,882,500, including $385,000 to $1,596,000 payable to the franchisor or its affiliates, with initial tire inventory alone at $75,000 to $187,500 and a 700-tire minimum after the first 180 days. Midas discloses $385,450 to $940,050 for a new 8-bay shop, though that assumes you lease. Buying land adds $615,000 to $1,250,000 and construction $1,250,000 to $2,050,000. ### How should I choose between Big O Tires and Midas? Start with the ticket. Big O runs a high-revenue, lower-frequency tire model concentrated in the western and central states, and its franchisor operates no company stores. Midas runs a lower-ticket, higher-frequency service model with national coverage, and its owner now runs 111 company shops in Ohio, New York, Pennsylvania, Georgia, Michigan, and Kentucky. If you are buying into one of those six states, ask directly about the company-owned footprint before you sign. --- title: "Burger King Item 19 2026: $1.64M Median in Traditional Format" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: burger king, item 19, qsr franchise, burger franchise, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/burger-king-item-19-deep-dive about: burger king category: blog wordCount: 1169 readingTime: 6 min crawledAt: 2026-08-20 11:03:21 lastVerified: 2026-08-20 11:03:21 site: https://vetmyfranchise.com/c/claude/ --- # Burger King Item 19 2026: $1.64M Median in Traditional Format ## Summary Burger King Item 19: $1.64M median across 4,774 franchisee-owned Traditional Restaurants in calendar 2024. Format filter explained, year-one ramp, and how Burger King compares to McDonald's and Wendy's. ## Key facts - The 4,774-restaurant sample is the second-largest in our Item 19 database, behind Dunkin’s 7,010. - Within the burger category, Burger King’s $1. - A new Burger King Traditional Restaurant typically generates 75-85% of system median in year one — $1. - For broader context, see our [best burger franchises](https://vetmyfranchise. - Get the full 12-section FDD analysis — $49 Quick answer Burger King's Item 19 reports a $1,638,579 median across 4,774 franchisee-owned Traditional Restaurants for calendar 2024, the second-largest QSR sample behind Dunkin's 7,010. Total investment runs $2,049,200 to $4,705,600 on a 4.5% royalty, so underwrite year one at 75-85% of median, roughly $1.25M to $1.45M. ## The Disclosure | Metric | Value | | --- | --- | | Sample size | 4,774 franchisee-owned restaurants | | Sample criteria | Traditional Restaurants - Franchisee-Owned | | Reporting period | January 1, 2024 – December 31, 2024 | | Median annual gross sales | $1,638,579 | | Total system units | 5,524 | | Total investment (Item 7) | $2,049,200 - $4,705,600 | | Royalty rate | 4.5% of gross sales | The 4,774-restaurant sample is the second-largest in our Item 19 database, behind Dunkin’s 7,010. The reporting period is full calendar 2024, recent and clean. The format filter excludes non-traditional locations — and the impact of that filter is significant: non-traditional [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) locations (airports, food courts, hospitals, gas station kiosks) operate under fundamentally different economics, with smaller footprints, different menu mixes, captive customer bases, and lower absolute AUVs. Including non-traditional in the median would average together different business models. Restricting to Traditional Restaurants produces the cleanest read on the core franchise format that 95%+ of new buyers are evaluating. ## Why the AUV-to-Investment Ratio Is Tight A $1.64M median against $2.05M-$4.71M of investment produces an AUV-to-investment ratio of 0.4-0.8×. That’s below the 1× threshold that historically defined attractive franchise unit economics. The reason isn’t a [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) weakness — it’s structural to mature QSR with heavy real estate intensity. Three factors compress the ratio: **Real estate is expensive.** A [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) Traditional Restaurant requires a 2,500-3,500 sq ft building with drive-thru, on a meaningful parcel (typically 0.75-1.25 acres) in a high-traffic location. The land and building cost is $1.5M-$3M for new construction in most markets, before equipment and franchise fees. That denominator weight is unavoidable in the format. **The brand is mature.** [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) has been franchised since 1959. Market penetration is high in most US markets — new restaurants compete against existing Burger King locations and a saturated QSR field. Growth markets that produce above-median AUVs are rarer than in newer brands. **Category competition is intense.** [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc), Wendy’s, Carl’s Jr/Hardee’s, and increasingly [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc) and Popeyes compete for the same fast-food traffic. Burger King has been losing relative share to chicken-focused competitors since the 2019 chicken sandwich launch period, which compresses category-wide growth tailwind. For new buyers, the implication is that Burger King makes sense as part of a multi-unit operating strategy — typically 5+ restaurants under one operator — where management overhead is amortized across multiple units. Single-unit deals in attractive markets face structural friction; the franchise system favors multi-unit operators with proven track records. ## How Burger King Compares to Burger QSR Peers | Brand | Sample | Median AUV | Investment | AUV/Investment | | --- | --- | --- | --- | --- | | McDonald’s | n/a (mostly company) | ~$3M+ co. | varies | n/a | | Burger King | 4,774 | $1.64M | $2.05M-$4.71M | 0.5× | | Wendy’s | n/a public Item 19 | ~$1.8M-$2.0M | $2.5M-$3.5M | 0.6× | | Five Guys | smaller | $1.2M-$1.6M | $300K-$700K | 2.5× | | Whataburger | mostly company | n/a | varies | n/a | | Hardee’s / Carl’s Jr | varies | $1.0M-$1.4M | $1.5M-$2.5M | 0.5× | | Freddy’s | 463 | $1.83M | $855K-$2.8M | 1.0× | Within the burger category, Burger King’s $1.64M median is competitive with Wendy’s and ahead of Hardee’s/Carl’s Jr. Five Guys produces a much stronger ratio because of its lower investment profile but at lower absolute AUV. [Freddy’s](https://vetmyfranchise.com/c/claude/franchise/freddys-llc) (covered in our [Freddy’s Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/freddys-frozen-custard-item-19-deep-dive)) sits in a comparable AUV range at materially lower investment. [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) company-operated AUVs sit at a higher level but reflect a different operating model. The structural picture: mature QSR with heavy real estate requirements (Burger King, Wendy’s, Hardee’s) all share the tight AUV-to-investment ratio. Lighter-format QSR (Five Guys, [Wingstop](https://vetmyfranchise.com/c/claude/franchise/wingstop-franchising-llc), [Freddy’s](https://vetmyfranchise.com/c/claude/franchise/freddys-llc)) produces stronger ratios. The choice depends on operator profile and capital availability. ## Year-One Ramp A new Burger King Traditional Restaurant typically generates 75-85% of system median in year one — $1.25M-$1.40M. Month-by-month: - Months 1-3: $115K-$140K monthly (opening burst, settling) - Months 4-6: $105K-$125K monthly (operations tuning) - Months 7-9: $110K-$130K monthly (customer base building) - Months 10-12: $115K-$140K monthly (approaching steady-state) - Annualized year-one: $1.25M-$1.45M Year two typically lands at $1.45M-$1.65M as customer base matures and operations tune. Year three approaches or hits the system median. The ramp is faster than membership-model businesses (boutique fitness, senior care) but slower than chicken QSR with strong category tailwinds. For multi-unit operators opening their 5th or 10th restaurant, the ramp is faster because operational infrastructure and supplier relationships transfer. For first-time single-unit operators, the ramp can be slower because all operating systems are being built from scratch. ## What This Means for Buyers - **The Item 19 is methodologically clean and large-sample.** 4,774 franchisee-owned restaurants over a full calendar year produces a defensible median. - **The format filter matters.** Traditional Restaurant economics differ materially from Non-Traditional locations. The disclosed median describes the dominant franchise format. - **The investment-to-revenue dynamics favor multi-unit operators.** Single-unit deals work but require operational discipline. Multi-unit operators amortize overhead better. - **Underwrite year-one at 75-85% of median.** Plan for $1.25M-$1.45M of year-one revenue and ramp to the median over 24-30 months. - **Category competition is structural.** Burger King is competitive within the burger category but the category as a whole has been losing share to chicken-focused competitors. Underwriting against historical share trajectories is optimistic. For broader context, see our [best burger franchises](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises) roundup. For brand-specific cost detail, see the live [Burger King franchise page](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc). ## Brands mentioned in this post - [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) burger kingitem 19qsr franchiseburger franchisefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Burger King's Item 19 median revenue? Burger King's most recent Item 19 reports a $1,638,579 median annual gross sales across 4,774 franchisee-owned Traditional Restaurants for calendar year 2024. ### Why is the Item 19 limited to Traditional Restaurants? Burger King operates two distinct formats: Traditional Restaurants (full-format free-standing or end-cap units) and Non-Traditional Locations (airports, military bases, hospitals, gas station co-locations, food courts). Non-Traditional locations have fundamentally different revenue, investment, and operating economics — blending them with Traditional in the median would distort the disclosure. The Traditional-only filter produces a cleaner read on the core franchise format. ### How does Burger King compare to McDonald's on Item 19? McDonald's typically reports higher median AUVs ($3M+ for company-operated units), but McDonald's is overwhelmingly company-operated and franchisees operate under a different model (long-term lease relationships with the company). Burger King's $1.64M franchisee-owned median is genuinely the franchise reality, while McDonald's published figures often reflect company-store performance that doesn't translate directly to franchise unit economics. ### Is Burger King's AUV-to-investment ratio attractive? At the median, the ratio is below 1× — $1.64M of AUV against $2M-$4.7M of investment produces a ratio of 0.4-0.8×. That's characteristic of mature QSR with heavy real estate intensity. The ratio works at scale (multi-unit operators) but is tight for single-unit buyers. Burger King's franchise base is dominated by multi-unit operators for this reason. ### Can a new Burger King hit the $1.64M median in year one? Year-one new-build revenue typically lands at 75-85% of the system median — $1.25M-$1.40M. The ramp to steady-state is faster than membership-driven businesses but slower than chicken QSR. Multi-unit operators with prior brand experience ramp fastest. --- title: "Cheapest Franchises to Start Under $10k (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/cheapest-franchises-under-10k category: blog wordCount: 1578 readingTime: 8 min crawledAt: 2026-08-20 11:06:32 lastVerified: 2026-08-20 11:06:32 site: https://vetmyfranchise.com/c/claude/ --- # Cheapest Franchises to Start Under $10k (2026) ## Summary Cheapest franchises to start under $10k in 2026: which home-based and mobile categories fit the budget, what the fee really covers, and how to vet one. ## Key facts - A sub-$10k franchise is buying you a **system and a brand**, not a built business. - Specific brand prices shift every [FDD](https://vetmyfranchise. - The advertised price is almost always the franchise fee plus, maybe, a starter kit. - The most expensive mistake at this price point is treating “cheap” as “safe. - At this budget, the honest question is often whether you need a franchise at all. Quick answer Franchises under $10,000 exist, but only in home-based, mobile, and owner-operated service models where you supply the labor and there is no storefront. The fee covers a thin sliver of launch. Add working capital for a 6 to 12 month ramp, a vehicle, insurance, and a 4-8% royalty plus 1-4% ad fund. Search “cheapest franchise” and you’ll get glossy lists ranking brands by entry fee, as if the franchise fee were the price of admission to a finished business. It isn’t. At this end of the market the fee is often the smallest number in the whole equation, and the lists rarely tell you what it really takes to be open, working, and surviving until the first profitable month. There are real, legitimate franchises you can enter for less than $10,000. The trick is understanding what that budget actually gets you — and what it conveniently leaves out. ## What you actually get for under $10k A sub-$10k franchise is buying you a **system and a brand**, not a built business. Almost without exception, these concepts share three traits that keep the entry price low: - **Home-based or mobile.** No retail lease, no build-out, no signage package — the three line items that push most franchises into six figures. - **Owner-operated.** You’re the first (and often only) employee, so there’s no opening payroll to fund. - **Service-led.** Cleaning, consulting, tutoring, repair, mobile detailing, lead-gen, and similar models that monetize your time and a small kit rather than inventory or a kitchen. That’s the trade. You skip the expensive infrastructure, and in exchange you _are_ the infrastructure. The franchisor gives you a name, a playbook, training, and sometimes a territory. You supply the hours. ## The categories that fit the budget Specific brand prices shift every [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) cycle and swing by territory, so rather than name dollar figures we can’t tie to a current disclosure, here’s how the categories themselves tend to behave at this budget. | Category | Typical model | Why it fits under $10k | What to watch | | --- | --- | --- | --- | | Home & commercial cleaning | Mobile, owner-operated | Low kit cost, no storefront | Crowded field; margins thin until you hire | | Mobile detailing & repair | Van-based service | You provide the vehicle and tools | Vehicle and insurance often exceed the fee | | Tutoring & education | Home or client-site | Knowledge is the inventory | Seasonal demand; slow client ramp | | Consulting & business services | Home office | Pure-service, minimal equipment | Brand value vs. going solo is debatable | | Lead-gen & marketing services | Remote/home-based | Software-led, no physical site | Recurring software and ad-fund fees add up | Notice that in several of these, the cost that breaks the $10k ceiling isn’t the fee — it’s the vehicle, the insurance, or the working capital. The category fits the budget; the _full launch_ sometimes doesn’t. ## What “$10k” really covers — and the costs that come after The advertised price is almost always the franchise fee plus, maybe, a starter kit. The launch is a longer list. Most of these costs sit in the FDD’s Item 7 table — or hide outside it entirely — and they routinely add up to more than the fee that got the headline: - **Working capital** to carry you to breakeven, which can be 6 to 12 months out. - **A vehicle or equipment**, if the model is mobile. - **Insurance, bonding, and licensing**, which vary by trade and state. - **Local marketing** to find your first customers — a brand name doesn’t fill your calendar on day one. - **Your own living expenses** while distributions are zero. This is exactly the gap we map in [hidden franchise costs not in the FDD](https://vetmyfranchise.com/c/claude/blog/hidden-franchise-costs-not-in-fdd): the franchisor’s “Additional Funds” line is often scoped to just the first three months, and your personal runway never appears at all. A cheap franchise doesn’t escape that math — if anything, thin-margin service models feel the ramp more acutely, because there’s no inventory to liquidate and no equity to borrow against if cash runs short. If you’re weighing a few concepts at this tier, our [franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) filters live Item 7 ranges by investment level and model, so you’re comparing current, sourced numbers instead of last year’s marketing copy — and you’ll see the full range, not just the fee. ## How to vet a cheap franchise (low cost ≠ low risk) The most expensive mistake at this price point is treating “cheap” as “safe.” A low fee lowers the dollars you can lose up front; it says nothing about whether the business works. Vet it like you’d vet a six-figure deal. Start with the documents that actually price it: read Item 7 for the real investment range rather than the advertised entry price, then add the off-FDD soft costs covered above. Check Item 6 for the royalty and ad-fund drag, too — a 4-8% royalty plus a 1-4% ad fund hits a thin-margin service business hard, because those points come off a smaller top line. From there, three checks separate a cheap-but-sound deal from a cheap-and-hollow one: - **Look hard at Item 19, or its absence.** If the franchisor discloses no earnings figures, you’re guessing at the very economics that justify the buy. - **Validate with current franchisees.** Ask how long their ramp took, what they actually net, and how responsive support is. A low entry fee sometimes correlates with light support. - **Sanity-check the failure picture.** Easy-to-enter categories can be easy to exit, too; our look at [franchise failure rate statistics](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) explains why a low price is no guarantee of a soft landing. ## Cheap franchise vs. just going independent At this budget, the honest question is often whether you need a franchise at all. For a few thousand dollars in fees plus an ongoing royalty, you’re buying a name, a playbook, and training. For a self-starter in a simple service trade, much of that is buildable independently — you’d skip the royalty entirely and keep full control. The franchise wins when the brand genuinely shortens your path to customers, when the training compresses a steep learning curve, or when the system gives you pricing power you couldn’t command alone. It loses when you’re paying perpetual royalties for a logo you could have lived without. Run the comparison concept by concept, not as a blanket rule. A useful test: subtract everything the franchisor provides that you couldn’t realistically replicate in your first year. National brand recognition, a proven pricing model, vendor discounts, a working lead-flow system, and a real support line all have value. A generic logo, a binder of advice you could find online, and a territory you didn’t need do not. If the genuinely hard-to-replicate items are thin, the royalty is buying you less than it looks like — and at a sub-$10k entry price, the brands with the most to offer are also the ones most worth vetting closely. If $10k feels too tight for the model you want, it’s worth looking one tier up before you compromise. Our guides to the [best franchises under $5k](https://vetmyfranchise.com/c/claude/blog/best-franchises-under-5k-investment) and [low-cost franchises under $50k](https://vetmyfranchise.com/c/claude/blog/low-cost-franchises-under-50k) bracket the ranges on either side, so you can see what an extra increment of budget actually unlocks. Whatever tier you land in, the cheapest franchise is only a bargain if its real economics hold up. The $49 Tier 2 report on [our pricing page](https://vetmyfranchise.com/c/claude/pricing) rebuilds a specific brand’s numbers from its FDD — the true Item 7 range, the Item 6 royalty stack, and what the disclosed figures imply for your take-home — so a low entry fee doesn’t talk you into a business that can’t carry you past the ramp. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) cheapest franchises to startfranchises under 10kcheap franchises to buylow cost franchise opportunitiesaffordable franchisesstart a franchise with little moneyhome based franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the cheapest franchise you can buy? The cheapest franchises are typically home-based or mobile service concepts with franchise fees in the low thousands. Exact figures change every FDD cycle and vary by territory, so the only reliable way to find the current cheapest options is to filter live Item 7 ranges rather than rely on a published list. ### Can you really start a franchise for under $10,000? Yes, but the field is narrow and the $10k usually covers the franchise fee plus a thin slice of startup, not your full launch. Expect home-based, mobile, or owner-operated service models where you supply the labor and there's no storefront to build out. ### Are cheap franchises worth it? They can be, if the unit economics and franchisor support are real — but a low fee is not proof of a good business. Vet a cheap franchise exactly as hard as an expensive one, because a small entry price often comes with thin margins or limited support. ### What hidden costs come with a low-cost franchise? The costs after the fee are what catch buyers: working capital, a vehicle or equipment, insurance, licensing, marketing, and your living expenses until the business pays you. These rarely fit inside the advertised under-$10k headline. --- title: "Can You Staff a Franchise in 2026? The Labor Reality" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-06-14 keywords: franchise staffing challenges, franchise labor shortage, hiring for a franchise, franchise turnover, hardest franchises to staff, labor model franchise canonical: https://vetmyfranchise.com/c/claude/blog/can-you-staff-it-franchise-labor-reality about: franchise staffing challenges category: blog wordCount: 1826 readingTime: 9 min crawledAt: 2026-08-20 11:06:31 lastVerified: 2026-08-20 11:06:31 site: https://vetmyfranchise.com/c/claude/ --- # Can You Staff a Franchise in 2026? The Labor Reality ## Summary Franchise staffing challenges are a real pre-purchase blocker. How to test labor feasibility in your market before you sign — by category, turnover, and model. ## Key facts - Buyers screen on investment level, royalty rate, and territory. - No category is impossible and none is automatic, but the baseline difficulty varies enormously. - Turnover is the cost most buyers never model. - National averages are useless to you. - The staffing model you choose decides who eats the shortfall when hiring fails. Quick answer Test staffing before you sign. Quick-service units need 15 to 40 people and post turnover above 100-150% a year, and each hourly replacement costs $1,500 to $5,000, so a 20-person store burns $30,000 to $100,000 annually refilling slots. Check local unemployment, expect to pay $1-$3 above the wage floor, and validate with 5 or more franchisees. Most buyers vet the brand, the royalty, and the build-out cost. Far fewer ask the question that determines whether they’ll ever sleep: can I actually keep this thing staffed, in _this_ town, at _these_ wages? You can buy a concept with great unit economics and still fail because you spend every week short three people and covering shifts yourself. This is a different question from how to manage employees once you have them. Our [franchise hiring and management guide](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide) covers the operating side — interviewing, scheduling, retention. What follows is the pre-purchase lens: figuring out, before you write the franchise fee check, whether the labor model is even viable where you plan to operate. ## Treat labor feasibility like a buying criterion Buyers screen on investment level, royalty rate, and territory. Labor rarely makes the list, which is strange, because for most service and food concepts payroll is the largest line you control. Rent is fixed. Royalties are fixed. Food cost has a floor. Labor is where the fight happens every single week. The trap is that staffing difficulty doesn’t show up on a national brochure. A franchisor can honestly say “our top units run great teams” while the median owner in a tight market is drowning. Averages hide the spread. What you need is a read on _your_ market, not the brand’s best-case. Start by separating two things buyers conflate: headcount and difficulty. A 25-person quick-service restaurant and a two-person mobile repair franchise are not in the same labor universe. The first one fails or thrives on your hiring funnel; the second barely has one. ## Categories ranked by staffing difficulty No category is impossible and none is automatic, but the baseline difficulty varies enormously. Use this as a starting frame, then verify against real franchisees in your area — local conditions can move any concept a tier in either direction. | Category | Typical headcount/unit | Turnover pressure | Staffing difficulty | | --- | --- | --- | --- | | Quick-service / fast-casual food | 15–40 | Very high (often 100%+/yr) | Hardest | | Full-service restaurant | 20–50 | High | Hard | | Senior care / home health | 10–60 caregivers | High, plus licensing | Hard | | Fitness / boutique studio | 5–15 | Moderate (part-time churn) | Moderate | | Retail / convenience | 5–15 | Moderate–high | Moderate | | Salon / personal services | 5–20 | Moderate (booth-rent eases it) | Moderate | | Home/auto services (techs) | 3–12 | Moderate (skill-gated) | Moderate–easy | | Mobile / home-based services | 1–4 | Low | Easiest | The pattern is consistent: difficulty climbs with headcount, with how close pay sits to the local minimum, and with how unpleasant or irregular the hours are. Food checks all three boxes, which is why it dominates the “hardest” tier. Skill-gated trades (HVAC, plumbing, auto) are a different problem — fewer bodies needed, but the few you need are genuinely scarce and command real wages. ## The turnover math nobody runs before signing Turnover is the cost most buyers never model. In hourly food and retail, annual turnover above 100% is normal — surveys of the quick-service segment routinely report figures north of 100–150%. Read that literally: you may refill the average crew slot more than once a year. Each refill isn’t free. A defensible all-in cost to replace one hourly worker runs roughly **$1,500 to $5,000** once you count the job-board spend, the manager hours spent interviewing, the trainer’s time, and the period where the new hire is slow and makes mistakes. Run it for a 20-person unit turning over 100% a year and you’re looking at $30,000–$100,000 of replacement cost annually — a number that rarely appears in any pro forma the franchisor hands you. That cost lands directly on the line that matters most to you. If you want to see how thin owner profit can get after labor, rent, and royalties, our breakdown of [what franchise owners actually take home](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make) shows how quickly a “20% margin” concept compresses once real-world labor is plugged in. Turnover also varies by _when_. First-year attrition is its own beast — both for the employees you hire and, frankly, for new owners. Our data-backed look at [first-year turnover rates by industry](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-turnover-rates-by-industry) is worth a read if you’re deciding between a high-churn and low-churn category. [**Not sure which category fits your market and your tolerance for hiring? Use our matcher to surface concepts by labor intensity and model.**](https://vetmyfranchise.com/c/claude/find-my-franchise) ## Do the local labor diligence before you sign National averages are useless to you. You operate in one market, and that market has its own unemployment rate, its own wage floor, and its own competition for the exact workers you need. Here’s the diligence that actually de-risks the decision: - **Check the local unemployment rate and prevailing wage.** A 3% unemployment metro is a hiring war; a 6% market is easier. Look up what the role actually pays locally, not what minimum wage says — you’ll almost always have to beat the floor by $1–$3 to fill shifts. - **Map your competition for labor.** If three QSRs, two warehouses, and an Amazon facility are all hiring the same hourly pool within five miles, your funnel is fighting all of them. - **Read minimum-wage trajectory.** Scheduled increases compress margin and reset the wage you have to offer. We cover how this plays out in [minimum-wage hikes and franchise profitability in 2026](https://vetmyfranchise.com/c/claude/blog/minimum-wage-hikes-franchise-profitability) — required reading if you’re buying in California, Washington, New York, or any city with its own ordinance. - **Call current franchisees and ask numbers.** The franchisee list in **Item 20** of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) is your contact sheet. Ask five or more owners in comparable markets: How long does it take you to fill an opening? What do you actually pay above minimum? Are you working shifts yourself? Their answers tell you more than any disclosure. That validation step is the single highest-value thing you can do. Owners who are struggling will usually tell you — especially the ones who’ve already decided to sell. ## Owner-operator vs. manager-run: who absorbs the labor gap The staffing model you choose decides who eats the shortfall when hiring fails. In an **owner-operator** model, that person is you. The upside: when you’re short, you cover, and your own labor is the safety valve. The downside is that “I’ll just work it” is exactly how owners burn out and how the math stops working — you’ve effectively become a minimum-wage employee who also took on six-figure debt. In a **manager-run or semi-absentee** model, you pay a general manager to run the unit, and that GM is the one staring at an empty schedule at 6 a.m. The labor problem doesn’t disappear; it gets a salary attached and one more layer of turnover risk (GMs leave too, and a GM departure can destabilize the whole crew). If you’re weighing how hands-on to be, our comparison of [semi-absentee vs. owner-operator franchises](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise) lays out which concepts genuinely support an absentee structure and which only pretend to. The honest read: semi-absentee works best in lower-headcount, lower-churn concepts. Trying to run a 30-employee restaurant semi-absentee in a tight labor market is how passive-income dreams turn into 60-hour weeks. ## Red flags that a unit can’t be staffed Some warning signs are visible before you ever sign: - **The franchisor can’t name a target labor-cost percentage.** A brand that knows its model can tell you “labor should run 28–32% of sales.” Vagueness here means they either don’t track it or don’t want you to. - **Validators are working the line themselves.** If multiple current owners describe personally covering shifts, that’s not anecdote — that’s the model. - **The same job posting has been live for months.** Search the brand plus your city on the major job boards. A unit that’s perpetually hiring is a unit that can’t keep people. - **High Item 20 turnover among franchisees.** A long list of transfers and closures often correlates with operators who couldn’t make the labor model work and got out. - **Required headcount that doesn’t match the local pool.** A concept needing 12 certified technicians in a town with two trade schools is a structural mismatch no amount of recruiting fixes. None of these alone is disqualifying. Two or three together, in a tight local market, should make you walk — or at least renegotiate your assumptions hard before committing. ## The bottom line Staffing is not a problem you solve after you buy; it’s a constraint you should price into the decision. The same concept can be a quiet cash machine in a loose labor market and a daily grind 40 miles away. Run the turnover math, do the local-market diligence, and choose a model whose labor demands match what your market can actually supply. [**Browse franchises by category and screen them against the labor reality of your market — start with concepts that fit how hands-on you want to be.**](https://vetmyfranchise.com/c/claude/franchises) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) franchise staffing challengesfranchise labor shortagehiring for a franchisefranchise turnoverhardest franchises to stafflabor model franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Which franchises are hardest to staff? Quick-service and fast-casual food, hospitality, and senior/home care are consistently the hardest. They combine high headcount per unit, physically demanding or emotionally heavy work, irregular hours, and pay close to the local minimum — which produces turnover well above 100% a year in many markets. ### How bad is franchise employee turnover? In hourly food and retail roles it is brutal: industry surveys routinely put quick-service restaurant turnover above 100–150% annually. That means your average crew slot may need to be refilled more than once per year, and each refill carries real recruiting, onboarding, and lost-productivity cost. ### Should I buy a franchise if labor is tight in my area? Sometimes — but only after you've tested it. Check the local unemployment rate, the prevailing wage for the role, and what current franchisees in similar markets report for time-to-fill. A tight market doesn't disqualify a low-headcount or owner-run concept, but it can make a 25-employee restaurant a daily grind. ### Can I run a franchise without employees? Some can be run solo or nearly solo — many mobile, home-based, and owner-operator service franchises are designed for one or two people. But most retail, food, and care concepts require a team, and 'no employees' usually means you ARE the employee, working every shift yourself. ### Does the FDD tell me anything about staffing? Not directly — there's no 'staffing' item. But Item 7 reveals required headcount through payroll assumptions, Item 19 financial performance hints at labor as a cost line, and the franchisee list in Item 20 is your contact sheet for asking real owners how hard hiring actually is. --- title: "Express Car Wash Franchise Cost in 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-08 dateModified: 2026-07-08 keywords: express car wash franchise cost, tommys express franchise cost, tunnel car wash investment, car wash membership model, car wash private equity 2026, sba 504 car wash financing canonical: https://vetmyfranchise.com/c/claude/blog/express-car-wash-franchise-cost about: express car wash franchise cost category: blog wordCount: 1859 readingTime: 9 min crawledAt: 2026-08-20 11:03:51 lastVerified: 2026-08-20 11:03:51 site: https://vetmyfranchise.com/c/claude/ --- # Express Car Wash Franchise Cost in 2026 ## Summary Express car wash franchise cost broken down — Tommy's Express runs $2.3M-$4.8M all-in. Where the money goes, the membership model, PE exits, and SBA 504 financing. ## Key facts - Express tunnels checked every box institutional money looks for. - Tommy’s Express is the brand most prospective buyers benchmark against, and it’s a useful anchor because its numbers are representative of the express-tunnel model rather than an outlier. - Break the total apart and the franchise line barely registers. - Per-car retail pricing is a trap for anyone modeling an express wash on volume alone. - The consolidation story is reaching an inflection point. Quick answer An express car wash runs $2.3 million to $4.8 million all-in, per recent FDD reporting on Tommy's Express, with a $40,000 franchise fee and a 4% royalty. Land acquisition typically runs $500K to $1.5M or more and is usually the largest line. Most buyers stack an SBA 504 loan with 15-20% down. Most franchise-cost questions are about a fee and a build-out. This one isn’t. An express car wash is a commercial real estate development that happens to carry a franchise brand on the sign — the money at stake, and the way it earns, looks nothing like a food or service franchise. Compared to the low-capex end of the category, like the mobile and detailing models in our [best mobile car wash and detail franchises](https://vetmyfranchise.com/c/claude/blog/best-mobile-car-wash-detail-franchises) roundup, it’s two businesses that share a name and almost nothing else. ## Why express car washes became a private-equity darling — and why that’s changing in 2026 Express tunnels checked every box institutional money looks for. Low labor: a modern tunnel runs with a couple of attendants, not a full crew. Recurring revenue: the unlimited monthly membership turned a weather-dependent retail business into something closer to a subscription. And fragmentation: thousands of independent single-site owners meant a fund could buy, rebrand, and consolidate at a discount to building new. That combination pulled roughly a decade of aggressive capital into the space and pushed valuations up. The 2026 picture is more complicated. Land and construction costs have climbed, higher rates raised the cost of a seven-figure loan, and several fast-growing metros are approaching saturation — when three tunnels open within a few miles, membership growth at each one slows. The era of easy site economics is over. A buyer entering now pays peak-cycle prices for real estate while facing more local competition than the operators who built five years ago ever did. ## Tommy’s Express and the category’s real cost range Tommy’s Express is the brand most prospective buyers benchmark against, and it’s a useful anchor because its numbers are representative of the express-tunnel model rather than an outlier. Recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) reporting puts total investment in the $2.3 million to $4.8 million range, with a $40,000 initial franchise fee and an ongoing royalty around 4% of revenue. Treat those as a starting frame, not gospel — the disclosed range reflects costs as of the FDD’s issue date, and a 2026 build will feel the land and construction inflation that a document filed a year or two earlier didn’t capture. Pull the brand’s current Item 7 and read the actual line items before you model anything. The spread between $2.3M and $4.8M is the tell. In a food franchise, a range that wide would signal different formats. Here it’s almost entirely land. Build on a parcel you already control and you’re near the floor; buy a hard-corner lot with a high traffic count in a dense suburb and the dirt alone can rival the cost of the wash. The $40,000 franchise fee is a rounding error against the total — which is why this category rewards buyers who think like developers first and franchisees second. ## Where the money goes: land, tunnel equipment, water reclamation, membership software Break the total apart and the franchise line barely registers. The weight sits in real estate and heavy equipment. Here’s roughly how a seven-figure express build tends to split — these are industry-typical ranges for the format, not brand-specific disclosures, so use them to understand proportion and confirm the specifics in Item 7 and your own contractor bids. | Cost component | Typical range | Share of total | | --- | --- | --- | | Land acquisition | $500K–$1.5M+ | Often the single largest line | | Site work & construction | $700K–$1.6M | Grading, drainage, building, canopy | | Tunnel equipment & conveyor | $400K–$900K | Wash system, blowers, chemical delivery | | Water reclamation system | $75K–$200K | Reclaim, filtration, environmental compliance | | Membership/POS software & LPR | $30K–$120K | License-plate recognition, billing, kiosks | | Franchise fee | $40K | Fixed | | Working capital & pre-open | $150K–$400K | Ramp period before memberships mature | A few things surprise first-time buyers. Land is frequently the biggest number, so your deal lives or dies on site selection long before the brand does any work. Water reclamation isn’t optional — municipal water and sewer costs plus environmental rules make a reclaim system a real capital line. And the membership software stack, including license-plate recognition that auto-bills members as they drive up, is what operationalizes the revenue model. For how these construction and equipment lines behave inside Item 7 — and why the high end of a disclosed range is your realistic starting point — our guide to [franchise build-out costs](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay) applies directly here, just with an extra zero. **[See exactly how a report reads an FDD’s Item 7 →](https://vetmyfranchise.com/c/claude/pricing)** ## The membership-revenue model: why recurring billing changes the math Per-car retail pricing is a trap for anyone modeling an express wash on volume alone. The business runs on the unlimited monthly membership — a customer pays a flat rate, washes as often as they like, and the site collects that revenue whether it rains for a week or shines for a month. That single mechanic converts a weather-dependent operation into predictable recurring cash flow, and it’s why the category attracted subscription-style valuations. The number that matters most is membership capture: what share of your transactions convert to a plan, and how many members you hold over time. A tunnel with several thousand active members has a revenue floor that arrives on the first of every month before a single retail car shows up. But the risks are underweighted. Churn is quiet and constant — members cancel when they move, sell a car, or notice a newer wash down the road. And a competitor opening nearby doesn’t just split new traffic; it can pull your existing members away with an introductory rate. Recurring revenue is a moat until someone builds a bigger one across the street. ## The 2026 PE exit wave: what it means for buyers entering now The consolidation story is reaching an inflection point. Roughly $1 billion in car-wash transactions is expected across Q4 2025 and Q1 2026 as private-equity-backed platforms buy up independents and smaller chains, chase scale, and position for their own exits. For someone considering a single franchise, that backdrop matters in three concrete ways. First, valuations: you’re buying land and building at prices shaped by years of institutional demand, and the cheap-site window has closed in most desirable markets. Second, competition for real estate — when funds are actively acquiring, the best corners get bid up or taken, and a franchisee often ends up with the second-choice location. Third, franchisor stability. Ownership at the brand level can change hands in these waves, and a franchisor’s financial condition and roll-up strategy directly affect the support, supply pricing, and brand direction you’re signing up for. Item 20’s outlet and turnover tables, plus the audited financials in Item 21, are where you check whether the system is growing on healthy units or churning them. None of this makes the category a bad bet — it makes independent due diligence on the specific franchisor non-negotiable at this ticket size. ## Financing a seven-figure car wash: the SBA 504 + conventional stack You don’t write a check for $3 million; you assemble a capital stack. The workhorse for owner-operated car washes is the SBA 504 loan, purpose-built for owner-occupied real estate and long-life equipment — exactly what a tunnel is. In a typical 504 structure, a conventional bank holds a first mortgage on roughly half the project, a Certified Development Company funds a second-position debenture backed by the SBA, and the owner contributes equity. The appeal is a long, fixed-rate term on the debenture and a lower down payment than a straight commercial mortgage. The catch for car washes: lenders classify them as special-use property, which usually means more equity than the headline 10% — budget for 15-20% down on a project this size, plus liquidity in reserve to carry the site through the ramp before membership revenue matures. Where the 504 doesn’t reach, a conventional bank loan or a construction-to-permanent facility fills the gap. The mechanics of qualifying, the timelines, and the personal-guarantee reality are covered in our [SBA loans and franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide); if you’re eyeing more than one location from the start, the [multi-unit franchise financing guide](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-financing-sba-loans-guide) walks through how lenders view a development schedule versus a single site. Owning the real estate rather than leasing changes the calculus too — you take on developer risk, but you’re building an asset that can outlast the franchise agreement. ## Who this is really for Be honest about what this is. An express car wash is a capital-intensive real estate play with a recurring-revenue engine bolted on — it suits a well-capitalized operator who is comfortable with site selection, construction management, and a multi-year ramp, and who ideally wants to own the dirt. It is not passive, and it is not an entry-level franchise. The people who do well here think in terms of a portfolio of locations and a long hold, not a single unit and a quick return. If a seven-figure build is genuinely in range for you, it’s worth seeing how it stacks up against other high-capital concepts with disclosed earnings — our roundup of [$1M+ franchises with strong Item 19 numbers](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) is a useful cross-check before you anchor on one category. And before you sign anything at this ticket size, the smartest single move is reading the specific franchisor’s FDD carefully — the outlet tables, the litigation history, the financial statements, and whatever earnings claims (or silence) sit in Item 19. **[Find the franchise that fits your capital →](https://vetmyfranchise.com/c/claude/find-my-franchise)** ## Brands mentioned in this post - [Tommy’s Express](https://vetmyfranchise.com/c/claude/franchise/tommys-express-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) express car wash franchise costtommys express franchise costtunnel car wash investmentcar wash membership modelcar wash private equity 2026sba 504 car wash financing About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does an express car wash franchise cost? Recent FDD reporting puts a Tommy's Express express-tunnel build at roughly $2.3 million to $4.8 million all-in, with a $40,000 franchise fee and a 4% royalty. That total swings widely because it's driven by land — a build on land you already own or lease sits at the low end, while buying a hard-corner lot in a dense metro pushes you toward the top. It's a real estate and equipment project first and a franchise second. Verify the current numbers in the brand's actual Item 7, since disclosed ranges are a snapshot from the FDD's issue date. ### Is a car wash franchise profitable in 2026? It can be, but profitability hinges almost entirely on membership capture, not per-car volume. Express tunnels make money by converting one-time washers into monthly unlimited-plan members, and a healthy site runs on recurring dues that arrive whether it rains or not. Labor is low — a handful of attendants per shift — so the margin question is really about how many members you hold and how well you defend against a competitor opening two miles away. The category's high fixed cost means a slow ramp or a saturated trade area can keep a site underwater for years. ### Why are car washes being bought and sold by private equity? Recurring membership revenue is the reason. A tunnel with thousands of unlimited-plan members generates predictable monthly cash flow that looks more like a subscription business than a retail one, and that's exactly the profile private equity pays a premium for. Roughly $1 billion in car-wash transactions is expected across Q4 2025 and Q1 2026 as funds consolidate independents into regional chains. For an individual buyer, that wave cuts both ways — it validates the model but also means you're competing with institutional capital for the best sites and paying today's higher valuations. ### What financing do you need for a $3M+ car wash? Most seven-figure car wash builds use an SBA 504 loan paired with a conventional bank mortgage. The 504 structure typically funds the long-life assets — real estate and the tunnel equipment — through a bank first mortgage plus a CDC debenture, with the owner contributing equity. Car washes are treated as a special-use property, so lenders often want more equity than the standard 10% — plan for 15-20% down on a project this size, plus liquidity in reserve for the ramp period before memberships mature. --- title: "Cleaning Franchise vs. Independent Cleaning Business" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-08 dateModified: 2026-07-08 keywords: cleaning-franchise, independent-cleaning-business, franchise-vs-independent, commercial-cleaning, franchise-comparison canonical: https://vetmyfranchise.com/c/claude/blog/cleaning-franchise-vs-independent-cleaning-business about: cleaning-franchise category: blog wordCount: 1634 readingTime: 8 min crawledAt: 2026-08-20 11:06:32 lastVerified: 2026-08-20 11:06:32 site: https://vetmyfranchise.com/c/claude/ --- # Cleaning Franchise vs. Independent Cleaning Business ## Summary Cleaning franchise vs. independent: real startup costs, royalties, commercial vs. residential economics, and where each path actually wins in 2026. ## Key facts - The temptation is real because the barriers that justify a franchise fee elsewhere barely exist here. - When you write the check, you’re not buying a bucket and a logo. - Here’s the honest comparison, before anyone romanticizes either path: - This is the fork inside the fork, and it matters more than the franchise-or-not question. - Don’t let the franchise pitch talk you out of a good independent play. Quick answer An independent cleaning business opens for $5,000 to $20,000; a residential cleaning franchise costs $30K-$60K in fees alone and $80K-$300K all-in, plus a 5-10% royalty and 1-3% ad fund. Labor is 40-55% of revenue either way, so the fee really buys lead generation and booked commercial contracts. Cleaning has the lowest barrier to entry of almost any category on this site. The tools fit in a car trunk. There’s no commercial kitchen, no six-figure equipment package, no 18-month build-out. You could start this weekend with a vacuum, supplies, and a few Facebook posts — which is exactly why so many buyers stare at a $45,000 franchise fee and ask the obvious question: why pay that when I could just do it myself? It’s a fair question, and unlike most categories, the honest answer is sometimes you should — cleaning is one of the few verticals where going independent is a rational choice. But “sometimes” is carrying a lot of weight in that sentence. ## Why cleaning is the classic “just do it myself” temptation The temptation is real because the barriers that justify a franchise fee elsewhere barely exist here. You don’t need a proprietary recipe or a patented process to clean a house well. The skill is learnable in a week, the equipment is cheap, and demand is everywhere. This is the same low-capital appeal that drives our roundup of the [best residential cleaning franchises](https://vetmyfranchise.com/c/claude/blog/best-residential-cleaning-franchises) — except the independent version skips the fee entirely. So the decision isn’t about the mop. It’s about three things the franchise quietly handles and the independent solves alone: who finds your customers, how fast you can grow past your own two hands, and whether you’re building a job or a sellable asset. ## What a cleaning franchise fee actually buys When you write the check, you’re not buying a bucket and a logo. You’re buying a shortcut past the parts of this business that quietly bankrupt independents: - **Brand recognition.** A homeowner lets a known crew into their house because the name carries trust. An unknown solo operator earns that trust one referral at a time. - **Lead generation and booked contracts.** This is the big one, and it’s where the models split hardest. Commercial janitorial franchisors run a national sales team that lands office-cleaning accounts and assigns them to franchisees — you’re buying a book of business as much as a brand. - **Training and systems.** Cleaning checklists, crew scheduling, quality-control routines, and an operations manual refined over decades. - **Supply accounts.** Negotiated pricing on chemicals, equipment, and insurance that a one-truck owner can’t touch. None of it is free after the fee. Most cleaning franchises charge a **5–10% royalty** on gross revenue plus a **1–3% ad-fund contribution** — a permanent skim off every job, whether the franchisor sourced that customer or not. This trade-off applies to every category, as we cover in [franchise vs. independent business](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business); cleaning just makes the math unusually stark because the independent’s starting cost is so low. ## Real startup cost: franchise vs. independent, side by side Here’s the honest comparison, before anyone romanticizes either path: | Line item | Cleaning franchise | Independent startup | | --- | --- | --- | | Franchise fee | $30K–$60K residential; as low as $2K–$50K for a financed commercial “unit” plan | $0 | | Total to open | $80K–$300K residential | $5K–$20K solo; up to ~$50K with a crew and a wrapped van | | Royalty | 5–10% of gross revenue | None | | Ad / marketing fund | 1–3% of gross | You fund your own | | Customer acquisition | Brand + provided leads or contracts | Every account, from scratch | | Labor (both models) | 40–55% of revenue | 40–55% of revenue | | Stabilized owner take-home | $50K–$200K+ | $40K–$130K+, capped early by your own capacity | The independent wins the top of the table by a mile and the bottom by a hair. Notice that labor lands at the same 40–55% under both models — cleaning costs the same to deliver either way. The gap the franchise fee pays for lives entirely in the customer-acquisition row. **[Vet a specific brand’s real numbers with an FDD analysis report →](https://vetmyfranchise.com/c/claude/pricing)** ## Commercial vs. residential cleaning economics under each model This is the fork inside the fork, and it matters more than the franchise-or-not question. **Residential** means cleaning homes on recurring weekly, bi-weekly, or monthly visits at roughly $100–$250 per cleaning. The hard part is acquisition and churn — you’re constantly replacing customers who move, cut back, or switch. It’s also the format where a solo owner can literally do the work themselves at first, which is why the independent path is strongest here. **Commercial janitorial** means cleaning offices, retail, and medical space, usually on night or weekend shifts under contracts that run months or years. The revenue is stickier, but winning the work is a B2B sales-and-bidding grind that most first-timers underestimate. This is the gap commercial franchises fill — Jan-Pro, Coverall, and Anago sell you contracts their corporate reps already closed. Our [cleaning and janitorial franchise guide](https://vetmyfranchise.com/c/claude/blog/cleaning-janitorial-franchise-guide) breaks down that provided-account model in detail. The pattern: independents have the clearest edge in residential, where the barrier is low and the owner can self-perform. Franchises have the edge in commercial, where the barrier is a sales pipeline you’d otherwise build from zero. ## Where independents genuinely win Don’t let the franchise pitch talk you out of a good independent play. For the right owner, going it alone is the better business: - **Lowest capital.** $5K–$20K versus $80K+ is no rounding error — it’s the difference between risking a car loan and risking your house. - **You keep every dollar.** No royalty, no ad fund. On a hyper-local, owner-operator route, that 6–10% is often the entire difference between a decent income and a great one. - **Total control.** Your prices, brand, clients, and standards. You can raise rates or drop a bad customer without a franchisor’s permission. Independents win most decisively as single owner-operators serving a tight local area — a reputation built on word-of-mouth in one or two zip codes, where a national brand adds little and the fee adds a lot. It’s a similar logic to why a skilled operator sometimes skips the brand in [gym](https://vetmyfranchise.com/c/claude/blog/gym-franchise-vs-independent-gym) and [coffee](https://vetmyfranchise.com/c/claude/blog/coffee-franchise-vs-independent-coffee-shop) decisions: when the owner _is_ the differentiator, paying for someone else’s name is paying for something you don’t need. ## Where the franchise wins The franchise earns its fee in two specific situations, and both are about growth you can’t easily manufacture alone. The first is **B2B commercial contracts.** Landing a portfolio of office accounts requires a sales function — bidding, relationships, references, insurance and bonding credibility. A commercial franchisor already has all of it and feeds you the results. An independent commercial cleaner spends the first year cold-calling facilities managers instead of cleaning. The second is **multi-territory scaling.** Moving from one crew to ten means systems: hiring pipelines, route software, quality control, and a brand that recruits customers faster than you can knock on doors. Franchisors sell exactly that infrastructure, often with financing and a master-franchise structure built for expansion. There’s also an exit dimension — a branded, systematized operation with recurring contracts sells for a real multiple, while a solo, owner-dependent gig sells for little more than its equipment. Our [best window cleaning franchises](https://vetmyfranchise.com/c/claude/blog/best-window-cleaning-franchises) breakdown shows the same split, with multi-truck franchised operators pulling far ahead of single-owner routes. ## Which path fits your goals Strip away the romance and it comes down to what you’re actually trying to build. **Go independent if** you’ll be the owner-operator, you’re staying local and residential, you want the lowest risk, and you have the hustle to find your own customers. You’ll keep every dollar and answer to no one — trading a ceiling on scale for that freedom. **Buy a franchise if** you want to grow past yourself, chase commercial or multi-location contracts, value provided lead-gen and proven systems, and can fund both the buy-in and the ongoing royalty. You’re paying for speed, a sales engine, and an asset that’s worth something when you leave. Whichever way you lean, decide on numbers, not vibes. For the franchise path, the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) is your friend: Item 7 for true startup cost, Item 19 for what units earn, Item 20 for closures, and Item 1 for the lead support the franchisor actually commits to. For the independent path, build an honest pro forma around customer count, churn, and the labor line that dominates both models. **[Browse cleaning franchises on VetMyFranchise →](https://vetmyfranchise.com/c/claude/franchises)** ## Brands mentioned in this post - [Jan-Pro](https://vetmyfranchise.com/c/claude/franchise/jan-pro-franchising-international-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Branches [Learn more →](https://vetmyfranchise.com/c/claude/franchise/branches-company-llc) #### Rocksolid Granit USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/rocksolid-granit-usa-llc) #### Budget Blinds [Learn more →](https://vetmyfranchise.com/c/claude/franchise/budget-blinds-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) cleaning-franchiseindependent-cleaning-businessfranchise-vs-independentcommercial-cleaningfranchise-comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is it cheaper to start an independent cleaning business or buy a franchise? Starting independent is almost always cheaper up front. A solo owner-operator can open a residential cleaning business for roughly $5,000 to $20,000 — supplies, a reliable vehicle, insurance, and basic marketing. A residential cleaning franchise typically costs $30,000 to $60,000 in franchise fees alone, with total investment of $80,000 to $300,000. The independent wins the entry-cost round decisively. What the franchise buys with that gap is brand recognition, training, supply accounts, and lead generation — the parts that determine whether you actually fill your schedule. ### Do cleaning franchises provide leads? Many do, and in commercial janitorial franchising it's the entire point. Brands like Jan-Pro, Coverall, Anago, and Stratus run a corporate sales force that lands office-cleaning contracts and assigns them to franchisees — you're effectively buying a book of business, not just a brand. Residential franchises usually help less directly, providing national marketing, local ad-fund campaigns, and a recognized name that converts, but you still book most of your own homes. Read Item 1 and Item 11 of the FDD to see exactly what lead support the franchisor commits to. ### What's the profit margin on a cleaning franchise vs. independent? Independents keep more of every dollar because they pay no royalty or ad fund, but franchises often generate more revenue per owner through brand pull and provided contracts. Labor is the dominant cost either way — typically 40–55% of revenue — so the real difference is the 6–10% a franchisee sends the franchisor versus keeps. A stabilized residential franchise commonly nets $50,000 to $200,000+ in owner take-home; a strong independent lands in a similar range but is capped early by the owner's own capacity. Check the brand's Item 19 for franchise-specific numbers. ### Can I scale an independent cleaning business like a franchise? You can, but it's harder and slower without the franchise's systems. Scaling means moving from owner-operator to managing crews, which requires hiring, scheduling software, quality control, and a repeatable sales engine — everything a franchisor hands you on day one. Plenty of independents build multi-crew operations and even regional brands, especially in commercial cleaning where contracts are sticky. The trade is that you carry the full cost of building those systems yourself, and a solo, owner-dependent operation is worth far less at sale than a systematized, branded one. --- title: "F45 Training Item 19 2026: $407K Median Reality Check" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: f45, item 19, boutique fitness, franchise revenue, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/f45-item-19-deep-dive about: f45 category: blog wordCount: 1151 readingTime: 6 min crawledAt: 2026-08-20 11:06:52 lastVerified: 2026-08-20 11:06:52 site: https://vetmyfranchise.com/c/claude/ --- # F45 Training Item 19 2026: $407K Median Reality Check ## Summary F45 Training Item 19: $407K median across 699 franchised studios for March 2024-Feb 2025. Why the median is lower than expected, year-one ramp, and what the post-restructuring brand looks like. ## Key facts - The 699-studio sample covers nearly the entire franchised system (708 total) and the reporting period is recent (through February 2025). - F45 went public in 2021 with a marketing narrative positioning the brand as a high-growth category leader with implied unit economics consistent with premium boutique fitness. - Orangetheory and F45 both produce AUV-to-investment ratios around 0. - A new F45 studio in months 1-12 typically generates: - For brand-specific cost detail, see the live [F45 Training franchise page](https://vetmyfranchise. Quick answer F45 Training's Item 19 reports a $407,220 median annual gross sales across 699 franchised studios for March 1, 2024 through February 28, 2025. Item 7 puts total investment at $349,200 to $786,100 with a 7% royalty, an AUV-to-investment ratio near 0.7x. Orangetheory's median is $808K across 1,256 studios. ## The Disclosure | Metric | Value | | --- | --- | | Sample size | 699 franchised studios | | Sample criteria | All franchised studios (no tenure filter) | | Reporting period | March 1, 2024 - February 28, 2025 | | Median annual gross sales | $407,220 | | Total system units | 708 | | Total investment (Item 7) | $349,200 - $786,100 | | Royalty rate | 7% of gross sales | The 699-studio sample covers nearly the entire franchised system (708 total) and the reporting period is recent (through February 2025). No tenure filter is applied — the disclosed median includes both mature studios and recent openings, which produces the most representative figure for the franchised reality but doesn’t isolate steady-state performance. ## The Gap Between Marketing Story and Operating Reality F45 went public in 2021 with a marketing narrative positioning the brand as a high-growth category leader with implied unit economics consistent with premium boutique fitness. Post-IPO, the company faced operational turbulence: leadership changes, restructuring, accounting investigations, and a delisting from the NYSE in 2024. The current Item 19 reflects post-restructuring operating reality. The $407K median is what the franchised system actually produces. It’s not catastrophic — at standard fitness-franchise cost structure, a studio at $407K can be profitable for an operator running lean — but it’s materially below what the pre-IPO narrative suggested. Three structural factors compress the median: **Programming variance.** F45’s signature feature is varied workout programming — different sessions throughout the week drawn from circuit training, HIIT, and functional fitness templates. The variance creates marketing differentiation but operational complexity. Trainers need to learn multiple workouts, equipment layouts shift, and member experience varies across instructors and sessions. The result is more revenue variance across studios than in standardized programs. **Category pricing pressure.** Post-COVID boutique fitness has been under pricing pressure. Premium boutique pricing peaked at $130-$200/month in 2019; the market has anchored toward the lower end of that range as new low-cost competitors (high-tier [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc), [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) Signature, lower-cost boutique alternatives) reset consumer expectations. F45 hasn’t been immune to that pressure. **Brand momentum.** A franchise system rebuilding trust after public turbulence has lower brand-driven member acquisition tailwind than systems with continuous positive momentum. F45 has stabilized operationally but is still rebuilding the consumer narrative. ## How F45 Compares to Orangetheory and Burn | Brand | Sample | Median AUV | Investment | AUV/Investment | | --- | --- | --- | --- | --- | | Orangetheory | 1,256 | $808K | $822K-$1.38M | 0.7× | | F45 Training | 699 | $407K | $349K-$786K | 0.7× | | Burn Boot Camp | smaller | $500K-$900K range | $250K-$500K | 1.5× | | Anytime Fitness | larger | $400K-$600K | $200K-$500K | 1.7× | | Club Pilates | larger | $500K-$800K | $200K-$500K | 2× | Orangetheory and F45 both produce AUV-to-investment ratios around 0.7× — tight by historical franchise standards. The difference is absolute AUV: Orangetheory’s $808K is approaching what the broader market expects from a fully-ramped premium boutique studio; F45’s $407K is below that range. For a buyer comparing the two, the structural choice is brand stability and standardization (Orangetheory) versus lower entry cost and operator-driven upside (F45). Neither is automatically better — the right choice depends on operator profile, capital availability, and market dynamics. For broader category context, see our [F45 vs Orangetheory comparison](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise) and the [Burn Boot Camp deep dive](https://vetmyfranchise.com/c/claude/blog/burn-boot-camp-franchise-cost) for the women-focused alternative. The [is F45 a good franchise 2026](https://vetmyfranchise.com/c/claude/blog/is-f45-a-good-franchise) analysis covers the brand decision more broadly. ## Year-One Reality A new F45 studio in months 1-12 typically generates: - Months 1-3: $15K-$30K monthly revenue (presale + opening) - Months 4-6: $25K-$45K monthly revenue (membership building) - Months 7-9: $30K-$50K monthly revenue - Months 10-12: $35K-$55K monthly revenue (approaching ramped) - Annualized year-one: $300K-$450K That’s right at or just below the system median. The Item 19’s no-filter methodology means some of these ramp-stage studios are already in the disclosed median — which is partly why the median sits where it does. A buyer underwriting against the median needs to model year-one carefully. The studio doesn’t reach $407K overnight; the disclosed number is what an averaged-across-tenure studio earns. Mature studios run materially above; new studios run materially below. Operating margins at $400K revenue against $400K of fixed annual cost (rent, base labor, royalty, ad fund, equipment leases) are thin. ## What This Means for Buyers - **The Item 19 is methodologically clean and recent.** Take the $407K median as the genuine post-restructuring operating reality. - **The pre-IPO narrative is obsolete.** Don’t underwrite against 2019-2021 implied economics. The current numbers are what the system actually produces. - **The AUV-to-investment ratio is tight.** The deal works at the median but requires operator discipline. There’s no buffer for execution miss. - **Operator profile is the dominant variable.** F45 rewards operators who can run lean, manage programming variance, and build local community. First-time single-unit buyers without operational depth tend to struggle. - **The brand has stabilized but the upside is constrained.** Premium boutique fitness category headwinds are structural. Underwrite to the median, not to the historical peak. For brand-specific cost detail, see the live [F45 Training franchise page](https://vetmyfranchise.com/c/claude/franchise/f45-training-incorporated). For the broader category competitive set, [best fitness franchises under 200K](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) covers the lower-investment alternatives and [best personal training boot camp franchises](https://vetmyfranchise.com/c/claude/blog/best-personal-training-bootcamp-franchises) covers the broader boutique-fitness landscape. ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) - [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) f45item 19boutique fitnessfranchise revenuefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is F45's Item 19 median revenue? F45 Training's most recent Item 19 reports a $407,220 median annual gross sales across 699 franchised studios for the reporting period March 1, 2024 through February 28, 2025. ### Why is F45's median below buyer expectations? F45's pre-IPO marketing (2019-2021) positioned the brand as a category leader with implied unit economics that haven't materialized at scale. The current $407K median reflects post-IPO, post-restructuring operating reality. Several factors compressed AUVs: corporate turbulence in 2022-2023, programming variance across studios, post-COVID boutique-fitness pricing pressure, and increased competition from lower-priced fitness alternatives. ### How does F45 compare to Orangetheory on Item 19? Orangetheory's most recent Item 19 reports a $808K median across 1,256 studios — nearly 2× F45's median. The gap reflects programming standardization (Orangetheory's identical workout system vs F45's varied programming), brand stability (Orangetheory's continuous operating system vs F45's recent restructuring), and member dues capture per studio. ### Is F45 still investable in 2026? F45 can produce viable unit economics for the right operator profile — but the deal is meaningfully different from the pre-IPO investment thesis. The brand requires lower-cost markets, strong operator presence, and realistic AUV underwriting (against the $407K median, not against pre-IPO marketing). Multi-unit operators who can operate at lean-overhead scale tend to do better than first-time single-unit buyers. ### What's the typical F45 investment? Item 7 reports a total initial investment range of $349,200 to $786,100. Royalty is 7% of gross sales. The investment is lower than Orangetheory ($822K-$1.38M) but higher than entry-tier fitness franchises ($200K-$400K). --- title: "F45 Training Franchise Cost 2026: After the Collapse" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-15 dateModified: 2026-07-10 keywords: f45-franchise, f45-training, franchise-cost, fitness-franchise, boutique-fitness, brand-analysis canonical: https://vetmyfranchise.com/c/claude/blog/f45-training-franchise-cost about: f45-franchise category: blog wordCount: 2008 readingTime: 10 min crawledAt: 2026-08-20 11:06:53 lastVerified: 2026-08-20 11:06:53 site: https://vetmyfranchise.com/c/claude/ --- # F45 Training Franchise Cost 2026: After the Collapse ## Summary F45 Training franchise cost 2026: $362K-$858K investment, $60K fee, 7% royalty. The 2022 public collapse, going-private deal, post-2023 closure rate, and who should still consider F45. ## Key facts - F45 Training is the most cautionary tale in modern fitness franchising. - F45 went public in July 2021 at $16 per share, raising $325 million at a market cap of roughly $1. - The wide spread between low and high in Item 7 is mostly real estate cost and the size of the equipment package. - The 2026 FDD’s Item 19 reports median gross revenue of $429,222 across 676 franchised studios for the twelve months ending February 28, 2026. - F45 studios operate on a class-based recurring-membership model. Quick answer An F45 Training franchise costs $362,300 to $857,700 total per the 2026 FDD Item 7, including a $60,000 franchise fee; the royalty is 7% of gross sales plus up to 2% marketing. Item 19 reports median studio revenue of $429,222 across 676 units, and the system logged 47 closures against 3 openings in the latest year. ## F45 Training: What 2026 Looks Like F45 Training is the most cautionary tale in modern fitness franchising. The brand’s 45-minute functional-training class format was genuinely differentiated when it scaled in the late 2010s. The public-market collapse in 2022 was equally genuine and was driven by aggressive franchise-development growth projections that didn’t survive contact with operational reality. The brand has since been taken private, the leadership team replaced, and the system left visibly contracting: the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) reports 708 franchised studios, with 47 closures against just 3 openings in the latest year. For a buyer evaluating F45 in 2026, the cost numbers are the easy part. The harder question is whether the brand has stabilized enough to be a credible first-franchise investment, or whether the operating risk still outweighs the unit economics on offer. Item 7 of the 2026 FDD, parsed in VetMyFranchise’s database of 2,000+ FDDs, reports total initial investment in the range of **$362,300 to $857,700**. The franchise fee is $60,000, with reduced development fees on additional units as of 2026. Royalty is 7% of gross sales with a marketing fund of up to 2%, putting total franchisor-level cost at roughly 9% of revenue. As of 2026, the net worth requirement is $500,000 with $150,000 in liquid capital. The brand is currently owned by Kennedy Lewis Investment Management following the February 2024 take-private transaction at $4 per share. For broader context on what private-equity franchisor ownership means for buyers, see our [PE-vs-founder-led franchisor risk guide](https://vetmyfranchise.com/c/claude/blog/private-equity-vs-founder-led-franchisor-risk). ## The Story Since 2022 F45 went public in July 2021 at $16 per share, raising $325 million at a market cap of roughly $1.4 billion. The narrative at IPO was aggressive global franchise expansion: the brand projected adding 1,000+ studios annually for the next several years. By July 2022 the narrative had unraveled. The board ousted founder-CEO Adam Gilchrist. The growth projections were withdrawn. The brand acknowledged that promised franchisee financing through a captive lender had not materialized as scaled. Studio openings stalled, and existing franchisees in territories that had been over-developed began closing. By the end of 2022, the stock was trading below $2. Multiple shareholder lawsuits alleged misrepresentation of growth metrics. The company restructured operations, laid off corporate staff, and focused on stabilizing the existing franchisee base rather than aggressive new development. In February 2024, Kennedy Lewis Investment Management and partners closed a take-private transaction at $4 per share, valuing the company at approximately $74 million, a 95% drop from its 2021 IPO valuation. The new ownership team has focused on: - Resetting territory commitments and unwinding over-developed markets - Replacing the IPO-era operating playbook with disciplined unit-economics underwriting - Stabilizing studio-count attrition through enforcement of operating standards - Refocusing on the core 45-minute group-training product without the expansion projections Closures have continued through 2024-2025 as part of this stabilization, but the rate has slowed materially compared to 2022-2023. ## Item 7: Where the Money Actually Goes The wide spread between low and high in Item 7 is mostly real estate cost and the size of the equipment package. | Line Item | Typical Share of Budget | | --- | --- | | Initial franchise fee | $60,000 (2026 FDD) | | Build-out / leasehold improvements | Largest variable line; market-dependent | | F45 equipment package | Second-largest line; brand-specified configuration | | Computer, POS, AV system | Required brand package | | Signage + interior fixtures | Brand-standard package | | Pre-opening training + travel | At franchisee’s expense | | Grand opening marketing | Required spend | | Working capital (3-6 months) | Consistently understated; budget generously | | Total Item 7 range | $362,300 – $857,700 (2026 FDD) | The equipment package is the line item that’s distinctive about F45. The brand’s class format requires a specific configuration of functional-training stations (kettlebells, battle ropes, plyo boxes, suspension trainers, etc.) with the AV system that delivers the workout-of-the-day content. The package is non-negotiable and not user-customizable. You buy what the brand specifies. ## Item 19: What’s Reported vs What the Closure Rate Says The 2026 FDD’s Item 19 reports median gross revenue of $429,222 across 676 franchised studios for the twelve months ending February 28, 2026. That’s the headline number most prospective buyers latch onto. The harder number to model is the **survivor bias** in that figure. The reported median is calculated across studios that were still open at the reporting cutoff. Closed studios (47 in the latest FDD year alone, against just 3 openings) don’t appear in the 2026 revenue figure. That’s not a deception; it’s standard FDD reporting practice under the FTC’s [Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436). But it means a 2026 buyer is reading a figure that excludes the underperformer cohort entirely. For the full framework on this bias, see our [Item 19 average-vs-median survivorship-bias guide](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias). Implication for underwriting: model against bottom-quartile performance, not the headline median. If the brand discloses a bottom-quartile figure, anchor there. If it doesn’t, ask the franchisee development rep for it directly, and weigh the response. A brand confident in its current operating performance will share quartile data. A brand that pushes back on quartile disclosure is signaling something. ## Group-Training Class Economics F45 studios operate on a class-based recurring-membership model. Typical pricing is $179-$249/month for unlimited classes, with single-class drop-in rates around $25-$35. Studio capacity is bound by class size (typically 27-36 members per class), class frequency (10-15 classes per day in mature markets), and instructor availability. | Active Members | Monthly Revenue | Annualized | | --- | --- | --- | | 100 | $20,000 | $240,000 | | 200 (typical breakeven) | $40,000 | $480,000 | | 280 (mature healthy) | $56,000 | $672,000 | | 350+ (top-quartile) | $70,000+ | $840,000+ | Mature studios typically run 220-300 active members. Above 300 the constraint shifts from acquisition to retention and class-capacity management. Below 200 the model usually loses money. Member acquisition cost has been the brand’s binding challenge since 2022. The IPO-era promise of national brand marketing supporting local franchisees has substantially shrunk under the new ownership team. New 2026 buyers should budget meaningfully more than the 2% national marketing fund implies for local-market member acquisition. ## Who Should Still Consider F45 in 2026 The brand has a narrow profile of buyers it works for, and a much wider profile it doesn’t. **Could still work for:** Buyers with prior fitness-industry experience (former boutique-studio operators, personal trainers transitioning to ownership, gym-management professionals). Buyers acquiring an existing resale studio at a reset valuation (often 1.5-2x SDE in current market vs the 3-4x of 2021). Multi-unit operators in proven F45-friendly markets who can negotiate development terms with new ownership reflecting post-collapse risk. Buyers who have validated 30+ existing F45 franchisees in their target metro and have a clear-eyed view of the operating dynamics. **Doesn’t work for:** First-time franchise buyers without fitness-industry background. Absentee investors expecting passive returns. Buyers in markets that were over-developed in 2020-2022, where territory dynamics are still working through closures. Buyers using F45 as a “first try” before committing to fitness as a category, since the operating risk is materially higher than alternatives like [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) for that buyer profile. The [VetMyFranchise quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) screens specifically for fitness-industry fit and capital level. ## Red Flags Specific to F45 Diligence These are the FDD items that warrant heavier-than-usual attention for F45: 1. **Item 3 litigation history.** F45 has carried meaningful litigation through the post-2022 period, including shareholder suits and franchisee disputes. Read the litigation summary fully and understand what’s been settled vs ongoing. 2. **Item 20 outlet performance and closures.** The multi-year closure trend is the most important diligence data point for F45 specifically. Pull the table by year and look at net change in studio count. 3. **Item 21 financial statements.** Read the franchisor’s financials. Post-take-private operations should be cleaner, but the prior public-company filings show the operational pressure points. 4. **Item 17 termination and territory.** Under new ownership the standards-enforcement is tighter. Have your attorney review the termination triggers and cure periods. For the broader framework, see our [non-compete clause negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-non-compete-clause-negotiation). 5. **Validation calls with 10+ existing franchisees.** This is double the usual validation-call count for a reason: the brand’s operating dispersion is wide enough that 5 calls won’t give you a representative read. Push specifically for opinions from operators who have been through the 2022-2024 ownership transition. ## The Questions to Ask the Franchisor Specifically If you’re sitting across from an F45 development representative in 2026, push on these questions and weigh how directly each is answered: - What is the median (not average) studio revenue across US units that have been open for 36+ months? - How many studios have closed in the past 24 months, and what was the primary reason cluster? - What changes has new ownership made to franchisee marketing support since 2024? - What is the current opening-to-closure ratio for the past 12 months? - What is the average sale price for resale studios in 2026 vs 2022? A franchisor confident in current operations answers these directly. A franchisor still working through stabilization deflects or hedges. Weigh the response style as much as the content. > **The $49 VetMyFranchise Research Report** decodes the current F45 FDD line-by-line, including the Item 19 average reset, Item 20 closure analytics, and the clauses your attorney should flag before signing. [Get the F45 diligence report →](https://vetmyfranchise.com/c/claude/franchise/f45-training-incorporated) ## F45 vs the Field For buyers comparing F45 against other boutique fitness franchises: | Brand | Investment | Royalty | 2026 Status | | --- | --- | --- | --- | | F45 Training | $362K-$858K | 7% + up to 2% ad | Private (Kennedy Lewis), still contracting (47 closures vs 3 openings in latest FDD year) | | OrangeTheory Fitness | $608K-$1.4M | 8% + 4% ad | Private (Roark Capital), stable | | Club Pilates | $260K-$525K | 7% + 2% ad | Private (Xponential), expanding | | Pure Barre | $258K-$485K | 7% + 2% ad | Private (Xponential), stable | The structural distinction: F45 carries materially more operational uncertainty than these alternatives. For buyers seriously evaluating the boutique fitness category, the [$99 3-Pack Comparison](https://vetmyfranchise.com/c/claude/buy/3-pack) gives you full 12-section reports on three boutique fitness brands (F45 included if you want it) for $33 per brand. That comparison structure is the most direct way to see whether F45’s recovery is real for your specific market or whether a lower-risk alternative makes more sense. For a category-level overview and side-by-side comparisons, see [Best Fitness Franchises Under $200K (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). ## Brands mentioned in this post - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) f45-franchisef45-trainingfranchise-costfitness-franchiseboutique-fitnessbrand-analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What happened to F45 Training as a franchise in 2022-2026? F45 went public in 2021 at $16/share with a $1.4B market cap. By August 2022 the founder CEO was ousted, growth projections were withdrawn, and the stock collapsed below $2. The brand was taken private in early 2024 by Kennedy Lewis Investment Management at $4 per share, with the company then majority-owned by a consortium of private investors. The system has contracted from its 2022 peak of roughly 750 US studios: the 2026 FDD reports 708 franchised studios, with closures still outpacing openings (47 closures against 3 openings in the latest reporting year). ### How much does an F45 Training franchise cost in 2026? Total initial investment ranges from $362,300 to $857,700 per the 2026 FDD Item 7. The initial franchise fee is $60,000, with reduced development fees per additional unit in a multi-unit development agreement as of 2026. Buildout is typically a 1,800-2,500 square foot turnkey functional-fitness studio configuration. ### Are F45 franchises still profitable? Some are; many aren't. The 2026 Item 19 reports median studio revenue of $429,222 across 676 franchised units. At the brand's typical 12-18% operating margin, a studio at that median produces roughly $52K-$77K of pre-debt-service cash flow. The challenge isn't median performance — it's the tail. Closures have outpaced openings since 2022 (47 closures against 3 openings in the latest FDD year), and existing operators report wide dispersion in member acquisition success between markets. New buyers should underwrite against bottom-quartile performance, not the middle. ### How many F45 locations have closed since 2022? The 2026 FDD reports 708 franchised studios, down from a peak of roughly 750 US studios in 2022, and the latest reporting year logged 47 closures against just 3 openings. Closures continued through 2024 and 2025 as the new ownership team enforced operating standards and reset territory commitments. New territory openings have resumed cautiously in 2025-2026 but the system is still contracting on a net basis. ### Should I still consider F45 as a first-time franchise buyer? Only if you have specific fitness-industry experience, are buying an existing resale studio at a reset valuation, and have validated 30+ existing franchisees in your target region. The brand's group-training concept and 45-minute class format remain differentiated, but the operating risk is materially higher than pre-2022. First-time buyers without fitness-industry background are better matched to lower-risk options like Anytime Fitness or category alternatives. --- title: "FDD Item 17: Renewal, Termination, and Exit Provisions Decoded" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-07-11 keywords: item 17, renewal, termination, exit, fdd, legal, non-compete, franchise agreement canonical: https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination about: item 17 category: blog wordCount: 2091 readingTime: 10 min crawledAt: 2026-08-20 11:05:54 lastVerified: 2026-08-20 11:05:54 site: https://vetmyfranchise.com/c/claude/ --- # FDD Item 17: Renewal, Termination, and Exit Provisions Decoded ## Summary How to read FDD Item 17 — franchise renewal terms, termination triggers, post-term non-competes, transfer rights. ## Key facts - Most franchise buyers focus their [franchise disclosure document](https://vetmyfranchise. - The FTC Franchise Rule requires Item 17 to be presented as a table with 23 standardized sub-items. - The standard franchise term is 10 years. - Before signing, build a one-page Item 17 summary covering: - After reading enough Item 17 disclosures, a few patterns warrant scrutiny: Quick answer Item 17 is a 23-sub-item table governing term, renewal, transfer, and termination. Renewal is not automatic: expect a fee of 25% to 100% of the then-current franchise fee, a $25K to $150K remodel, and notice 6 to 12 months before expiration. Post-term non-competes run 1-3 years within 5 to 25 miles. ## Why Item 17 Is the Section You’ll Wish You Read More Carefully Most franchise buyers focus their [franchise disclosure document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) review on the cost numbers — Items 5, 6, 7. Some go deep on financial performance representations in [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise). Very few spend serious time on Item 17, which is the section that defines what your franchise is worth, what it costs to renew, what triggers termination, and what you can and can’t do after the relationship ends. Item 17 surfaces about 18 months before it should. By then, you’re in your second or third year of operations, you’ve made the franchise work, and you suddenly realize the agreement contains a clause that materially changes your strategy. The buyers who avoid that surprise are the ones who read Item 17 with a franchise attorney before signing — not after. ## What Item 17 Discloses (the Standard 23-Sub-Item Table) The FTC Franchise Rule requires Item 17 to be presented as a table with 23 standardized sub-items. Each row corresponds to a specific contractual provision. The standard rows include: - Length of franchise term and conditions for renewal - Conditions for franchisor refusal to renew - Conditions for franchisor termination of the franchise - Conditions for franchisee termination of the franchise - Post-termination obligations (return of property, non-compete, payment of fees) - Transfer of the franchise — by franchisee - Transfer of the franchise — by franchisor - Franchisor’s right of first refusal - Franchisor approval of franchisee transfer - Conditions for franchisor approval of transfer - Death or disability of franchisee - Non-competition during the term - Non-competition after termination - Modification of the franchise agreement - Integration / merger clause - Dispute resolution by arbitration or mediation - Choice of forum - Choice of law For each row, the table lists the franchise-agreement provision number, summary of the provision, and any state-specific modifications. ## The Six Item 17 Provisions That Matter Most ### 1\. Length of Term and Renewal Conditions The standard franchise term is 10 years. Some are 5, some are 20, some run for the underlying real estate lease term. Read Item 17 for: - The initial term length - The number of renewal options (typically 1–3 successive 10-year terms) - Conditions to renew Renewal is almost never automatic. Typical conditions include: - Payment of a renewal fee (often 25%–100% of the then-current franchise fee, which has usually risen) - Execution of the **then-current** franchise agreement (which may have different terms than your original — new royalties, new ad fund rates, new technology fees) - Required remodel or refresh ($25K–$150K depending on category) - Updated training (separate cost) - Being in good standing throughout the prior term The renewal cost is often equivalent to 1–2 years of profit. Build it into your 10-year cash projection — this is one of the most commonly overlooked numbers in franchise modeling. Watch the notice window too. Renewal rights usually require written notice 6 to 12 months before expiration, and missing that deadline can forfeit the right entirely. Because so much of the renewal is set by the then-current agreement, your leverage is highest at initial signing. If the franchisor will engage, negotiate the renewal fee as a fixed dollar figure or a percentage of your original fee rather than the then-current one, cap the required remodel spend, ask that key terms like your royalty rate and territory carry forward instead of resetting, extend the notice period, and add a right of first refusal so you can meet the conditions rather than be denied outright. ### 2\. Conditions for Franchisor Termination Termination clauses describe what conduct allows the franchisor to terminate the franchise. Standard “for-cause” triggers include: - Failure to pay royalties or other fees - Failure to maintain system standards - Material breach of the franchise agreement - Bankruptcy or insolvency of the franchisee - Conviction of certain crimes - Loss of required licenses (e.g., food service, alcohol, contracting) The cure period varies — typically 30 days for non-payment, 60–90 days for other defaults. Some agreements have shorter cure periods or include uncurable defaults (like certain criminal convictions or repeated violations). Watch for vague triggers like “conduct adverse to the franchise system” or “failure to satisfy operational standards in the franchisor’s reasonable judgment.” These give the franchisor wide discretion. ### 3\. Post-Termination Non-Competes After termination (or expiration without renewal), most franchise agreements include a non-compete clause that prevents you from operating a similar business. Standard terms: - Duration: 1–3 years - Geographic scope: Within a defined radius (often 5–25 miles) of your former location and any other franchise location - Industry scope: Defined as competing businesses in the franchise’s category For Virginia franchisees, the state’s worker non-compete ban does not affect these clauses — franchisor-franchisee non-competes are governed by ordinary contract law. Browse [franchises available in Virginia](https://vetmyfranchise.com/c/claude/franchises/virginia) to see brands operating in the state. The post-term non-compete is often the most economically meaningful part of Item 17. It can prevent you from operating the only business you know how to operate, in the area you live, for years after the franchise ends. The non-compete is not the only obligation that survives the relationship. When the agreement ends, most contracts also require you to de-identify the location within about 30 days (remove signage, branding, trade dress, and online references, at your own cost), return or certify destruction of all manuals and other confidential materials, and settle any money still owed. That last bucket can include unpaid royalties through the termination date, liquidated damages, remaining lease obligations if the franchisor holds or guarantees the lease, and the franchisor’s legal costs. Termination ends the brand license; it does not erase what you owe. ### 4\. Transfer Rights When you eventually sell your franchise, Item 17 will tell you what rules apply. Standard provisions: - **Franchisor approval required**: The franchisor has the right to approve or reject the buyer based on stated criteria (usually financial qualifications and meeting franchisee standards) - **Right of first refusal (ROFR)**: The franchisor can buy the franchise on the same terms as the third-party offer, within a defined notice period (typically 30–60 days) - **Transfer fee**: Usually 25%–50% of the current franchise fee - **New buyer training requirement**: The buyer must attend training (usually paid by the buyer) - **Updated franchise agreement**: The buyer may have to sign the **then-current** agreement rather than assume yours The ROFR + approval combination is significant. In practice, ROFRs are rarely exercised, but their existence affects how third-party buyers structure offers (knowing the franchisor can take the deal). This can suppress your sale price. ### 5\. Death and Disability Provisions If you die or become disabled, what happens to the franchise? Item 17 will specify: - Whether the franchise can be transferred to a spouse, heir, or trust - Whether the heir must qualify under franchisor standards - The timeline for transfer (often 12 months to find a qualified buyer) - Whether the franchisor has rights to operate the business in the interim Read this carefully if your succession plan involves family members. Some franchise agreements impose requirements that effectively prevent informal transfers. ### 6\. Dispute Resolution and Choice of Law Most franchise agreements require disputes to be resolved through arbitration in a specified location (often the franchisor’s home state) under the law of that state. This affects: - Whether you can pursue class actions (usually waived) - Where you have to travel for proceedings - Which state’s franchise laws apply (state relationship statutes may or may not be available) In some states ([Illinois](https://vetmyfranchise.com/c/claude/franchises/illinois), Washington, others), state law overrides choice-of-forum and choice-of-law clauses for franchisees in those states. The Item 17 disclosure should note any state-specific modifications. ## How to Use Item 17 in Your Decision Process Before signing, build a one-page Item 17 summary covering: - Initial term and renewal options - Renewal cost (fee + estimated remodel + training + other) - Termination triggers and cure periods - Post-term non-compete (duration, radius, industry scope) - Transfer fee and process - ROFR mechanics - Death/disability succession path - Dispute resolution forum and choice of law Bring this to a franchise attorney for review. The cost of a 1–2 hour attorney consultation ($500–$1,500) is the cheapest insurance available against an Item 17 surprise in year 9. It also helps to price the downside. Before signing, estimate your worst-case exposure if the franchise ends badly by adding up your sunk costs (franchise fee, build-out, working capital), the rent remaining on your lease, de-identification costs, the income you cannot earn during the non-compete, and the loss on liquidating de-branded equipment. For many franchises that total exceeds the initial investment, which is exactly why the exit clauses deserve as much scrutiny as the entry costs. ## Common Item 17 Red Flags After reading enough Item 17 disclosures, a few patterns warrant scrutiny: - **Renewal subject to franchisor’s “sole discretion”**: Effectively converts your renewal “right” into a discretionary decision - **Post-term non-compete radius covering more than 25 miles or duration exceeding 3 years**: Likely overbroad and may be unenforceable in some states, but creates uncertainty - **Transfer fees structured as a percentage of sale price**: Punishes successful franchises disproportionately - **Termination on 30 days’ notice for vague system-standards violations**: Gives the franchisor termination flexibility you may not anticipate - **No clear succession provisions for death or disability**: Forces hasty sales and reduced value - **Required execution of “then-current” franchise agreement at renewal**: You don’t actually know what terms you’ll be renewing into - Item 5: Initial franchise fee — basis for renewal and transfer fee calculations - [Item 6](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees): Transfer and renewal fees disclosed here - [Item 11](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations): Renewal training obligations - [Item 22 sample contracts](https://vetmyfranchise.com/c/claude/blog/fdd-item-22-sample-contracts): Read the actual contract language behind Item 17 disclosures > **Want a 12-section deep-dive on any franchise’s FDD?** A [$49 Research Report](https://vetmyfranchise.com/c/claude/franchises) from VetMyFranchise reads Item 17 line by line, models the renewal cost into a 10-year cash projection, and flags the termination, transfer, and post-term provisions specific to your franchise. ## Bottom Line Item 17 is the section that defines the entire arc of your franchise relationship — from year one through eventual exit. The numbers are easy to skim and the terms read like boilerplate, but the consequences of misreading them surface 5–10 years in, when changing your strategy is expensive. Read Item 17 with the same care you give [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) and Item 19, get a franchise attorney to walk through the renewal, termination, and post-term clauses with you, and remember: the section reads like legal filler but functions like a one-way valve on your future options. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Psp Franchise Operations [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchise-operations-spv-llc) #### Psp [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) #### Woof Gang Bakery [Learn more →](https://vetmyfranchise.com/c/claude/franchise/woof-gang-bakery-inc) ### Keep reading #### California Franchise Relationship Law: What Buyers Actually Need to Know in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/california-franchise-relationship-law-buyers-guide) #### FDD Item 13 Explained: Are You Buying a Real Brand or a Lookalike? [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-13-trademarks) #### FDD Item 22 Explained: What to Mark Up in the Sample Contracts Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-22-sample-contracts) item 17renewalterminationexitfddlegalnon-competefranchise agreement About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What does FDD Item 17 cover? Item 17 is a standardized table of 23 sub-items covering the term and renewal of the franchise, conditions for the franchisor to refuse to renew, the franchisee's right to transfer or assign the franchise, conditions for terminating, post-termination obligations, and dispute-resolution mechanisms. It is the contractual blueprint for the entire lifecycle of the franchise relationship. ### Is franchise renewal automatic at the end of the initial term? Almost never. Most franchise agreements grant renewal rights subject to specific conditions: payment of a renewal fee (often 25%–100% of the current franchise fee), execution of the then-current franchise agreement (which may have different terms than your original), updated training, a required remodel or refresh, and being in good standing throughout the term. Some franchisors retain discretion to deny renewal for any reason. ### Can the franchisor terminate my franchise without cause? Most franchise agreements allow termination only for cause, with a notice and cure period (typically 30 days for non-payment, 60–90 days for other defaults). 'Cause' is defined in the agreement and varies — it can include failure to maintain system standards, failure to pay royalties, breach of any material term, or sometimes vaguer triggers like 'conduct adverse to the franchise system.' Some state laws (Illinois, Washington, Wisconsin, others) impose additional good-cause requirements that override contract language. ### What happens if I want to sell my franchise? Most franchise agreements include the franchisor's right to approve any transfer, often combined with a right of first refusal allowing the franchisor to buy the franchise on the same terms as a third-party buyer. Transfer fees are typical (25%–50% of the current franchise fee). The new buyer must qualify under the franchisor's standards and complete training. The mechanics of transfer materially affect the resale value of your franchise. ### What happens to my investment if my franchise is terminated? Termination usually means a significant loss. You lose the right to operate under the brand, must de-identify the location, and are bound by the post-term non-compete, so the business becomes an independent operation competing against the system that just cut it loose. You keep physical assets like equipment, but their value drops once they are de-branded, and you may still owe unpaid fees, liquidated damages, or remaining lease obligations. Model this worst case before you sign. ### Can I negotiate franchise renewal terms before signing the initial agreement? Sometimes, and the time to try is before signing, since your leverage afterward is close to zero. Younger systems and experienced multi-unit operators have the most room. The terms most worth pushing on are the renewal fee (a fixed amount rather than the then-current fee), a cap on the remodel requirement, carrying forward your royalty rate and territory, a longer notice window, and a right of first refusal. Many mature brands use standardized agreements and will not budge, so have a franchise attorney flag what is actually negotiable for the specific brand. --- title: "Dutch Bros vs Scooter's Coffee Franchise: Real 2026 Comparison" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-07-10 keywords: dutch-bros, scooters-coffee, coffee-franchise, drive-thru-coffee, franchise-comparison canonical: https://vetmyfranchise.com/c/claude/blog/dutch-bros-vs-scooters-coffee-franchise about: dutch-bros category: blog wordCount: 1864 readingTime: 9 min crawledAt: 2026-08-20 11:03:37 lastVerified: 2026-08-20 11:03:37 site: https://vetmyfranchise.com/c/claude/ --- # Dutch Bros vs Scooter's Coffee Franchise: Real 2026 Comparison ## Summary Dutch Bros vs Scooter's Coffee franchise compared: why Dutch Bros isn't really franchising anymore and what to look for in Scooter's, 7 Brew, and Black Rock. ## Key facts - Type “Dutch Bros vs Scooter’s franchise” into any search engine and you’ll see articles comparing the two. - Dutch Bros’ story matters because it shapes the franchise math for everyone else. - Figures come from the 2026 FDD as parsed in VetMyFranchise’s database of 2,000+ FDDs. - The three actually-franchising brands cluster in a similar economic range with similar royalty structures. - Drive-thru coffee unit economics hinge on three variables, in this order: Quick answer You can't buy a Dutch Bros franchise; the company grows through company-owned stores and an internal operator program as of 2026. Scooter's Coffee is the real option: 825 franchised locations, $954,650-$1,523,400 total investment, $40,000 fee, and a 6% royalty plus 2-4% marketing per the 2026 FDD, with 121 openings and zero closures last year. ## The Comparison Most Buyers Want to Run Doesn’t Exist Type “Dutch Bros vs Scooter’s franchise” into any search engine and you’ll see articles comparing the two. Almost all of them are wrong about one critical fact: you can’t actually buy a Dutch Bros franchise. Dutch Bros went public in 2021 (NYSE: BROS) and its growth model is overwhelmingly company-operated stores. The brand has a unique “operator” program that promotes long-tenured employees into store ownership stakes, but that’s an internal promotion track, not an outside franchise sale. The handful of legacy franchisees from the early years still operate, but if you submit a franchise inquiry today, you’re not going to get back a franchise agreement. You’re going to get pointed at the operator pipeline, which requires working in the system first. So the real question for drive-thru coffee buyers in 2026 isn’t Dutch Bros vs Scooter’s. It’s this: among the brands that actually franchise (Scooter’s, 7 Brew, Black Rock, and a few regional concepts), which one fits your capital, your market, and your operator profile? This post walks through that real comparison, with a focus on Scooter’s (the largest of the actively-franchising drive-thru coffee brands) plus where 7 Brew and Black Rock fit in. ## Why Dutch Bros Is a Dead End for Outside Buyers Dutch Bros’ story matters because it shapes the franchise math for everyone else. The brand opened in 1992 in Grants Pass, Oregon, and grew through a franchise model in its first two decades. Around 2008, the company pivoted away from outside franchising and toward the operator-promotion model. The 2021 IPO accelerated company-operated store growth and effectively closed the door on new outside franchise sales. What this means for you as a buyer: - The Dutch Bros story you read in coffee-industry press is mostly company-operated unit economics, not franchisee returns - Outside buyers can’t access those unit economics through a franchise agreement - The operator pipeline requires multi-year employment inside the system first - The company’s published AUVs aren’t comparable to what a Scooter’s or 7 Brew franchisee will actually achieve The relevant Dutch Bros lesson for franchise buyers is what its success says about drive-thru coffee demand: enormous, growing, and underserved in most U.S. markets outside the established Starbucks footprint. ## The [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee) Investment Snapshot | Item | 2026 Scooter’s FDD | | --- | --- | | Total initial investment | $954,650 – $1,523,400 | | Initial franchise fee | $40,000 | | Royalty | 6% of Net Sales | | National advertising | 2.0% – 4.0% | | Term | 10 years | | Franchised locations | 825 (121 opened, 0 closed in the most recent year) | | Footprint | 600 sq ft (kiosk) – 1,500+ sq ft (store) | Figures come from the 2026 FDD as parsed in VetMyFranchise’s database of 2,000+ FDDs. For the full investment-line breakdown, see [Scooter’s Coffee franchise cost](https://vetmyfranchise.com/c/claude/blog/scooters-coffee-franchise-cost). The combined 8-10% royalty plus marketing sits mid-pack for the food category, in line with [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s 10% combined and below Subway’s 12.5%. The format decision (kiosk vs full store) still matters a lot. Kiosks anchor the low end of the $954,650-$1,523,400 range and suit single-operator buyers; full stores at the top end are typically pursued by experienced multi-unit operators with deeper liquidity. The franchisor steers buyers toward the format that fits the site: kiosks for fast-traffic suburban arterials, full stores for higher-volume locations. ## The Real Drive-Thru Coffee Comparison Table | Brand | Total Investment | Royalty + Marketing | U.S. Locations | Open Franchising | | --- | --- | --- | --- | --- | | Dutch Bros | N/A | N/A | ~900+ (as of 2026) | No (operator program only) | | Scooter’s Coffee | $954.7K – $1.52M (2026 FDD) | 6% + 2-4% | 825 franchised | Yes | | 7 Brew | ~$700K – $1.4M | ~6-7% + ~2% | ~1,000+ | Yes | | Black Rock Coffee Bar | ~$1M – $1.7M | ~6% + ~2% | ~120+ | Yes | The three actually-franchising brands cluster in a similar economic range with similar royalty structures. Differentiation comes from: - **Brand awareness in your market**: Scooter’s leads in the Midwest, Black Rock in the Pacific Northwest, 7 Brew is growing nationally - **Build cost variance**: kiosk vs full-store - **Menu and operating model**: Scooter’s and 7 Brew lean heavier on speed and flavored drinks; Black Rock leans toward a fuller coffee program - **Development support**: varies meaningfully and is worth interrogating in validation calls ## Drive-Thru Coffee Unit Economics: What Actually Matters Drive-thru coffee unit economics hinge on three variables, in this order: 1. **Morning daypart traffic**: 60-75% of sales typically happen 6am-11am. If your site doesn’t have strong morning commuter traffic, the AUV ceiling is structurally lower. 2. **Average ticket size**: varies $5.50-$8.50 depending on market and menu. Higher-ticket markets are typically dense suburban or urban professional zones. 3. **Speed of service**: drive-thru lane throughput is the constraint at peak. Stores that can’t push 100+ cars/hour at peak leave money on the table. If any one of these three is weak, the math doesn’t work. If all three are strong, the math is excellent. The franchisor’s site approval process is where most of the risk gets resolved. Scooter’s, 7 Brew, and Black Rock all run their own real-estate teams and approve sites. But “approved” doesn’t mean “great.” It means “meets minimum criteria.” Your job as a buyer is to make sure your specific approved site is in the top quartile of the brand’s possible sites, not the bottom quartile. The [franchise territory analysis and market evaluation](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation) framework is the right tool for this. Don’t accept the franchisor’s first-offered site without doing your own traffic count, drive-time analysis, and competitive density check. > **Want to see Scooter’s full 2026 Item 19 and territory grant terms?** Get a [$49 AI-powered FDD analysis](https://vetmyfranchise.com/c/claude/fdd-analysis-example): the buyer-relevant numbers out of the legal document in under 5 minutes, or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) to put Scooter’s, 7 Brew, and Black Rock side by side. ## Saturation Risk: The Coffee Question Specifically Drive-thru coffee in 2026 has a saturation question. 7 Brew alone went from a handful of stores to 1,000+ in roughly four years. Scooter’s is growing too. Starbucks is everywhere. The independent drive-thru coffee shop count is rising in most markets. For your specific site, run the [franchise market saturation analysis](https://vetmyfranchise.com/c/claude/blog/franchise-market-saturation-competition) framework: - Count drive-thru coffee shops within a 5-mile radius - Count any coffee retailer (Starbucks, Dunkin’, local independents) within a 15-minute drive - Map morning-commute traffic flow; your site needs to be on the right side of the road, before competitors If your site has 4+ drive-thru coffee competitors within 15 minutes already, you’re underwriting against a saturated market. That doesn’t kill the deal but it changes the AUV ceiling and the underwriting cushion. ## Who Each Real Option Fits **Scooter’s fits you if:** - You want the most established actively-franchising drive-thru coffee brand - You’re in a Midwest, Plains, or southeastern market where Scooter’s has brand awareness - You want a kiosk-or-full-store decision flexibility - You have $150K-$300K liquid for a kiosk to full-store progression **7 Brew fits you if:** - You want explosive-growth brand momentum and a simpler kiosk-only model - Your market is undersaturated for drive-thru coffee specifically - You’re comfortable with a newer franchisor (fewer years of data on franchisee returns) - You have $200K-$400K liquid **Black Rock fits you if:** - You’re in the Pacific Northwest, Mountain West, or Texas where the brand has presence - You’re a full-store operator with $350K+ liquid - You prefer a fuller coffee program over speed-focused flavored drinks **None of them fit if:** - You wanted Dutch Bros’ specific brand or operator model (that door is closed) - You don’t have a great morning-traffic site in mind - You’re under-capitalized for the working capital ramp (plan $75-150K beyond the investment range) ## Where That Leaves a Coffee Buyer Dutch Bros isn’t a franchise option for outside buyers in 2026. Anyone who tells you otherwise is selling you something that doesn’t exist. The real drive-thru coffee franchise market is Scooter’s, 7 Brew, Black Rock, and a few regional brands. Scooter’s is the most established. 7 Brew has the strongest growth momentum. Black Rock is the strongest in the western U.S. The economics are similar enough that the differentiating factors are (a) brand awareness in your specific market, (b) the specific site you can secure, and (c) how the franchisor’s development team treats you. Before signing with any of them, pull the FDD for the brand you’re most serious about; the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) requires the franchisor to hand it over at least 14 days before you sign. Read Item 7 (real investment), Item 19 (real performance), Item 12 (territory protection), and Item 5/6 (fees). The [Crumbl Item 19 cohort analysis methodology](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) applies directly here, because earlier cohorts of any fast-growing brand outperform later cohorts as the system saturates. The drive-thru coffee category is real. The growth is real. But your underwriting needs to be against lower-quartile performance in your specific market, with your specific site, in 2026 conditions. > **Get the 2026 [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee) FDD pulled apart for the numbers that matter.** The [$49 AI-powered analysis](https://vetmyfranchise.com/c/claude/fdd-analysis-example) covers investment, royalty, Item 19, territory, and the risks Scooter’s doesn’t volunteer. For a category-level overview and side-by-side comparisons, see [Coffee Shop Franchise Industry: Cost and Profitability Analysis 2026](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry). And since Dutch Bros doesn’t sell franchises to the public, anyone who came here to _own_ one should see the [top alternatives to a Dutch Bros franchise](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-dutch-bros-franchise): the drive-thru coffee brands you actually can buy. ## Brands mentioned in this post - [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) dutch-brosscooters-coffeecoffee-franchisedrive-thru-coffeefranchise-comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can you franchise a Dutch Bros? Practically speaking, no. Dutch Bros is a publicly traded company (NYSE: BROS) that grows primarily through company-operated stores and a unique 'operator' model that promotes long-tenured employees to ownership stakes. Existing legacy franchisees still operate, but the company has not meaningfully sold new outside franchises in many years. If you cold-apply, you'll get pointed at the operator-promotion pipeline, not a franchise agreement. ### Is Scooter's Coffee a good Dutch Bros alternative? It's the most direct comparison because both are drive-thru-focused brands with strong morning daypart positioning. Scooter's is smaller in unit count (825 franchised locations per the 2026 FDD vs Dutch Bros' ~900+ as of 2026) but still actively franchises. The unit economics differ: Dutch Bros runs higher AUVs at company-operated stores than Scooter's franchisees average, partly because of locations and partly because of the operator model, so don't expect Dutch-Bros-level numbers. ### What about 7 Brew and Black Rock? Both are real drive-thru coffee franchise options worth comparing alongside Scooter's. 7 Brew has grown explosively (1,000+ locations in a few years) with a simpler kiosk model and strong unit-level economics in its early markets. Black Rock is more concentrated in the western U.S. with full-store builds. The honest 2026 drive-thru coffee franchise selection is Scooter's, 7 Brew, Black Rock, and a few regional brands. ### How much does a drive-thru coffee franchise cost in 2026? Scooter's runs $954,650-$1,523,400 per the 2026 FDD, depending on format and site. 7 Brew runs roughly $700K-$1.4M for its standard kiosk build and Black Rock roughly $1M-$1.7M for a full drive-thru build, as of 2026. Real estate is the dominant variable: land cost, drive-thru access, and traffic count drive the spread within each brand. A typical buyer needs $200-400K in liquid down payment on top of SBA financing. ### Which has the highest AUV? Dutch Bros' company-operated stores publish the highest reported AUVs in the category. Scooter's franchisee AUVs are lower but still healthy for the category. 7 Brew has shown strong early-cohort numbers in its FDD but the sample size is small. Read each brand's Item 19, and remember that company-operated AUVs (Dutch Bros) and franchisee AUVs (Scooter's, 7 Brew) aren't comparable on a like-for-like basis. --- title: "Club Pilates Item 19 2026: $969K Median Decoded" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: club pilates, item 19, boutique fitness, franchise revenue, pilates franchise, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/club-pilates-item-19-deep-dive about: club pilates category: blog wordCount: 1490 readingTime: 7 min crawledAt: 2026-08-20 11:06:52 lastVerified: 2026-08-20 11:06:52 site: https://vetmyfranchise.com/c/claude/ --- # Club Pilates Item 19 2026: $969K Median Decoded ## Summary Club Pilates Item 19: $969K median ($814K P25, $1.14M P75) across 849 Qualified Studios. What 'Qualified' means, how it differs from raw Item 19, and how Club Pilates compares to Orangetheory and F45. ## Key facts - Franchisors disclose Item 19 with the methodology of their choice, provided the criteria are clearly stated. - Club Pilates produces the highest absolute revenue in the pilates/reformer category at scale, and the ratio is stronger than the HIIT-format peers (Orangetheory, F45). - A new Club Pilates studio in months 1-12 typically generates: - For broader category context, see our [boutique fitness franchise breakdown](https://vetmyfranchise. - Get the full 12-section FDD analysis — $49 Quick answer Club Pilates reports a $969,022 median revenue across 849 Qualified Studios per the 2026 FDD, with P25 at $814,100 and P75 at $1,138,100. Total investment runs $403,289 to $1,029,811 on an 8% royalty plus 2% ad fund. The Qualified filter excludes ramp units; year one typically lands at $485K-$680K. ## The Disclosure [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc)’ most recent Item 19: | Metric | Value | | --- | --- | | Sample size | 849 Qualified Studios | | Sample criteria | ”Qualified Studios” (tenure + operational filter) | | Reporting period | Most recent fiscal year | | Median annual revenue | $969,022 | | P25 annual revenue | $814,100 | | P75 annual revenue | $1,138,100 | | P75/P25 ratio | 1.40 | | Total system units | 1,029 | | Total investment (Item 7) | $403,289 - $1,029,811 | | Royalty rate | 8% of gross revenue | | Ad fund | 2% | Two things stand out in this disclosure: 1. The cohort spread (P75/P25 = 1.40) is **unusually tight** for a sample of 849 units. Most franchise Item 19 disclosures with quartile breakdowns show P75/P25 ratios of 1.8-2.5×. A 1.4× ratio means the typical “good” studio earns only 40% more than the typical “below-average” studio. That’s an order of magnitude more consistency than most franchise systems. 2. The “Qualified Studios” sample definition is doing real work. Of 1,029 total system units, the disclosure covers 849 — meaning ~180 studios (17% of the system) are excluded. Those are predominantly ramp-stage and recently opened units, plus some that fail the “Qualified” definition on operational criteria. The interaction between these two facts matters. The compressed spread isn’t pure system consistency — part of it is the filter excluding the lower tail. A raw all-studios Item 19 (which [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) does not disclose) would show a wider spread and a lower median. ## What “Qualified Studios” Actually Means Franchisors disclose Item 19 with the methodology of their choice, provided the criteria are clearly stated. “Qualified Studios” is [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc)’ chosen filter, and the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) itself defines what qualifies. The common pattern across boutique-fitness Item 19s with similar filters is some combination of: - **Tenure filter**: studios open and operating for a full reporting period (usually 12+ months, sometimes 18-24) - **Continuous operation filter**: studios open during the entire reporting period without extended closures - **Compliance filter**: studios in good standing on royalty payments, brand standards, and contractual obligations For a buyer, the practical implication is that the disclosed median represents **mature studios that were already operating successfully**. It does not represent the expected outcome for a new studio in its first year. New-studio expectations should be derived from a separate year-one ramp analysis (covered below), not from the disclosed Qualified median. This is methodologically defensible — it produces a cleaner steady-state signal — but it is also more flattering than a raw disclosure. The deal works at the Qualified median; the question is whether your ramp budget gets you there. ## Why the Cohort Is Genuinely Tight The 1.40× P75/P25 ratio isn’t all filter-driven. Pilates has structural reasons for revenue compression that membership-fitness peers like Orangetheory and F45 don’t share: **Hard capacity ceilings.** A Club Pilates reformer studio has 12 reformer machines per class. Class capacity caps at 12 per slot. Studios run 50-65 classes per week typically. Maximum theoretical class attendance is therefore 600-780 per week — a number that’s structurally fixed by the physical reformer count. Demand can exceed this in strong trade areas, but revenue can’t. **Pricing band is narrow.** Club Pilates pricing typically runs $159-$249/month depending on membership tier and market. Compare to Orangetheory’s $129-$229 range or F45’s $159-$249. The pricing band is comparable across the category, but Club Pilates’ membership-tier consistency (Foundation, Five, Ten, All Access) is more rigid than competitors that allow market-specific packaging. **Class-and-instructor model produces operational consistency.** Pilates instruction is a higher-skilled labor input than HIIT-format fitness, and instructor scheduling discipline is tighter. A Club Pilates studio that runs the standard format produces revenue that varies primarily by membership count, not by hours of operation or class mix complexity. Operational consistency translates into revenue consistency. For a buyer, the implication is that pilates franchise revenue is **more predictable** than most boutique-fitness peers, but the upside is capped. A Club Pilates owner-operator can underwrite confidently to a narrow band — they can’t dream their way to a $2M studio. ## How Club Pilates Compares to Boutique Fitness Peers | Brand | Sample | Median AUV | Investment | AUV/Investment | P75/P25 | | --- | --- | --- | --- | --- | --- | | Club Pilates | 849 Qualified | $969K | $403K-$1.03M | 1.35× | 1.40 | | Orangetheory | 1,256 | $808K | $822K-$1.38M | 0.7× | n/a | | F45 Training | 699 | $407K | $349K-$786K | 0.7× | n/a | | Solidcore | smaller | $800K-$1.2M (est.) | $400K-$700K | 1.7× | n/a | | StretchLab | larger | $400K-$700K | $300K-$500K | 1.3× | n/a | | Pure Barre | larger | $400K-$600K | $200K-$400K | 1.7× | n/a | Club Pilates produces the highest absolute revenue in the pilates/reformer category at scale, and the ratio is stronger than the HIIT-format peers (Orangetheory, F45). Solidcore is competitive on ratio but smaller and tighter geographically. StretchLab and Pure Barre operate at lower revenue with smaller footprints. For category context on the structural challenges in boutique fitness, see our [Orangetheory Item 19 deep dive](https://vetmyfranchise.com/c/claude/blog/orangetheory-item-19-deep-dive) and [F45 vs. Orangetheory comparison](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise). ## Year-One Reality A new Club Pilates studio in months 1-12 typically generates: - Months 1-3: $25K-$45K monthly revenue (presale + opening, instructor team build-out) - Months 4-6: $40K-$65K monthly revenue (membership building, schedule density growing) - Months 7-9: $55K-$80K monthly revenue (operations stable, referral cycle starting) - Months 10-12: $65K-$90K monthly revenue (approaching steady-state) - Annualized year-one: $485K-$680K That’s 50-70% of the Qualified median. Year two typically reaches the $700K-$900K range as the membership base matures and classes hit consistent fill rates. Year three is when most studios cross into the Qualified cohort and approach or exceed the disclosed median. The working capital implication is meaningful. A studio at $550K of year-one revenue against $400K-$500K of fixed annual cost (rent, base management, royalty, ad fund, instructor base pay) has very thin operating cash flow. Working capital reserves of $100K-$200K above Item 7 are commonly required to bridge to steady-state. The reformer equipment is also a meaningful capital line — replacement and maintenance cadence should be budgeted from year one. ## What This Means for Buyers - **Read the sample definition.** Club Pilates uses a “Qualified Studios” filter that excludes ramp-stage units. The disclosed median is mature-studio performance, not year-one expectation. - **The tight cohort is real but partially filter-driven.** Pilates studios are structurally consistent (hard capacity ceilings, narrow pricing band) — but the 1.40× P75/P25 ratio is also flattered by the filter excluding the lower tail. - **The ratio is strong for boutique fitness.** At 1.35× midpoint, Club Pilates produces stronger unit economics than HIIT peers. The category leadership shows up in deal selection more than in operating innovation. - **Year one is the working capital question.** New studios run at 50-70% of Qualified median during year one. Working capital depth of $100K-$200K above Item 7 is the typical bridge. - **Upside is capped, downside is shallow.** The 1.40× cohort spread cuts both ways — a strong operator won’t double the median, but a weak operator won’t fall to half of it either. The deal works in a predictable band. For broader category context, see our [boutique fitness franchise breakdown](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k) and [Item 19 average vs. median](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias). For brand-specific cost detail, the live [Club Pilates franchise page](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc). ## Brands mentioned in this post - [Club Pilates](https://vetmyfranchise.com/c/claude/franchise/club-pilates-franchise-spv-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) club pilatesitem 19boutique fitnessfranchise revenuepilates franchisefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Club Pilates' Item 19 median revenue? Club Pilates' most recent Item 19 reports a $969,022 median annual revenue across 849 Qualified Studios. P25 is $814,100 and P75 is $1,138,100. The sample uses a 'Qualified Studios' filter, meaning ramp-stage units are excluded — the disclosed median reflects mature performance, not new-studio expectations. ### What does 'Qualified Studios' mean in Club Pilates' Item 19? 'Qualified Studios' is a tenure-and-eligibility filter the franchisor defines in the FDD — typically meaning studios that were open and operating for the full reporting period and met some operating criteria (often 12-24+ months of operation). It excludes recent openings still in membership ramp. The methodology produces a higher and more stable median than a raw all-studios disclosure, but it also means new buyers should not expect year-one performance to land at the disclosed median. ### Why is Club Pilates' P25-P75 spread so tight? The P75/P25 ratio of 1.40 is unusually compressed for a 849-studio sample. Two factors likely explain it: (1) the 'Qualified Studios' filter excludes the lower tail of underperforming or ramp-stage units; (2) the pilates membership model is structurally consistent — studios have hard capacity ceilings (instructor count × class slots) that prevent extreme upside, and the membership pricing band is narrow vs. peer fitness concepts. The compressed cohort is a methodological feature plus a structural feature, not a coincidence. ### Is Club Pilates' AUV-to-investment ratio strong? At the midpoint, yes. $969K of Qualified median against $717K of investment (Item 7 midpoint) produces a ratio of roughly 1.35×. That's stronger than Orangetheory (~0.7×) or F45 (~0.7×) and reflects Club Pilates' lower-build studio format. Note: the ratio is calculated against Qualified (mature) revenue. Apply a 50-70% year-one factor for ramp-stage underwriting. ### Can a new Club Pilates hit the $969K median in year one? No. The Qualified median reflects mature studio performance. Year-one new-studio revenue typically lands at 50-70% of the Qualified median — roughly $485K-$680K — as the membership base builds. Pilates membership growth tracks faster than Orangetheory because the lower class capacity creates membership scarcity in good trade areas, but full ramp still takes 18-24 months. --- title: "Crumbl Item 19 Decoded: Cohort AUV Reality 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-25 dateModified: 2026-05-25 keywords: crumbl, item 19, fdd analysis, cookie franchise, dessert franchise canonical: https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis about: crumbl category: blog wordCount: 2109 readingTime: 11 min crawledAt: 2026-08-20 11:03:41 lastVerified: 2026-08-20 11:03:41 site: https://vetmyfranchise.com/c/claude/ --- # Crumbl Item 19 Decoded: Cohort AUV Reality 2026 ## Summary Crumbl Item 19 cohort analysis — new-unit AUV decline, market saturation reality, geographic variance, and what buyers should model. ## Key facts - If you are evaluating a new [Crumbl](https://vetmyfranchise. - The pattern across recent Crumbl FDDs is consistent: older cohorts report higher AUV than newer cohorts at comparable points in their operating history. - Three forces are driving the cohort trajectory, and all three are structural rather than temporary. - The cohort trend is the headline, but it is not the only thing buried in the data. - Here is a practical, conservative framework. Quick answer Crumbl's Item 19 segments AUV by cohort opening year, and each successive cohort reports lower AUV than the one before it. The 2024 cohort posts the lowest figure. Underwrite a new build against the most recent cohort's first-year AUV, then discount 10 to 20 percent if two Crumbls sit within 10 miles. ## Why Cohort Analysis Beats System Average for [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) If you are evaluating a new [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) franchise in 2026, the single most important number in the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) is not the system-wide average unit volume. It is the AUV reported for the most recent cohort of stores — the ones that opened in the last 12 to 24 months. That distinction matters because [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s published system average blends two very different populations: a smaller group of mature stores that opened during the brand’s 2019 to 2021 viral growth window, and a much larger group of newer stores that opened into a saturated, post-novelty market. Mix them together and the headline number looks fine. Pull them apart and the trajectory tells a different story. Buyers who underwrite a new build using system average AUV are pricing in conditions that no longer exist for new locations. Buyers who underwrite using recent-cohort first-year AUV are pricing in the actual environment they will operate in. The gap between those two numbers is wide enough to flip a deal from acceptable to underwater. This piece walks through what [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s Item 19 actually reports, what the cohort decline looks like in pattern terms, why it is happening, and how to build a year-one revenue model that survives contact with reality. ## What [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s Item 19 Actually Reports [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s FDD Item 19 is more transparent than many of its peers. Rather than collapsing the entire system into a single AUV number with quartile breakdowns, the disclosure typically segments stores by the year they opened. That structure lets you see whether the 2020 cohort, the 2022 cohort, and the 2024 cohort are all earning roughly the same revenue at the same point in their lifecycle — or whether each successive cohort is opening into worse conditions than the last. A typical [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Item 19 cohort table reports: - Number of stores in the cohort that were open the full reporting year - Average AUV for that cohort - Median AUV for that cohort - Sometimes a high/low range or quartile split The cohort structure is the right structure. The problem is what the numbers in those rows have started to show. If you are unfamiliar with how cohort disclosures work or how to read them critically, our breakdowns of [Item 19 average vs median and survivorship bias](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) and [Item 19 red flags](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data) cover the mechanics before you sit down with [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc)’s specific tables. ## The New-Unit AUV Decline Pattern The pattern across recent Crumbl FDDs is consistent: older cohorts report higher AUV than newer cohorts at comparable points in their operating history. This is not a rumor — it is visible in the disclosure itself if you read across the cohort rows rather than focusing on the system-wide line at the top. Here is a representational picture of the trajectory (illustrative ranges, not pulled from a specific FDD year — always verify against the current disclosure): | Cohort opening year | Stage at reporting | Pattern observed | | --- | --- | --- | | 2019–2020 | Mature, 4+ years operating | Strongest AUV band — high-water mark of the system | | 2021 | Mature, 3+ years operating | Strong AUV, slightly below the 2019–2020 peak | | 2022 | Approaching maturity | Materially below 2020 cohort at same operating age | | 2023 | Ramped | Further step-down from prior cohort | | 2024 | First full year | Lowest reported cohort AUV; meaningful gap to system average | The exact dollar figures shift FDD to FDD, but the shape is what matters. Each successive cohort has been opening into a tougher environment, ramping more slowly, and topping out lower than the cohort before it. The system average masks this because the heavy mature-cohort numbers are still in the blend — but the average is a lagging indicator of conditions that new operators no longer face. For a new buyer signing a franchise agreement in 2026, the relevant data point is what the 2024 cohort earned in its first full year, not what the system average looks like across all vintages combined. That single substitution typically lowers a realistic year-one revenue assumption by a meaningful percentage versus what the headline number suggests. ## Why The Decline — Saturation, Novelty Fade, Competition Three forces are driving the cohort trajectory, and all three are structural rather than temporary. **Saturation.** Crumbl scaled from a handful of stores to over a thousand locations in roughly five years. That growth rate was historically aggressive for a single-category dessert concept. In many metros there are now multiple Crumbl locations within a 10-mile radius, which means each new store carves its trade area from an existing store’s catchment rather than capturing virgin demand. The economics of a new build look very different when the nearest two Crumbls are 4 miles away versus when the nearest one is 40 miles away. Our [franchise market saturation and competition](https://vetmyfranchise.com/c/claude/blog/franchise-market-saturation-competition) piece walks through how saturation actually compresses unit economics in fast-scaling brands. Crumbl is a near-perfect case study of the dynamic. **Novelty fade.** The 2020 to 2021 Crumbl moment was extraordinary. TikTok, weekly rotating menus, pink boxes, lines down the sidewalk — the brand benefited from a cultural moment that drove repeat visits and word-of-mouth that no marketing budget could buy. That moment matured. New stores opening in 2024 and 2025 are not opening into the same demand curve that 2020 stores opened into. The brand is still relevant, but the novelty premium that lifted early-cohort AUV is not available to new operators. **Category competition.** When Crumbl scaled, the gourmet rotating-menu cookie concept was effectively a category of one. It now has direct competitors, copycat menus from local bakeries, and adjacent dessert concepts targeting the same occasion. Category dilution shows up in cohort data before it shows up anywhere else. > 💼 **Want Crumbl’s cohort-specific Item 19 stress-tested against your specific market?** Our [$49 FDD AI Analysis Report](https://vetmyfranchise.com/c/claude/franchises) parses Item 19 by cohort year and adjusts for your geo + trade area density. Delivered in minutes. ## Geographic Variance: Utah/Mountain West vs Saturated Markets The cohort trend is the headline, but it is not the only thing buried in the data. Geographic variance inside each cohort is severe enough that average-and-median figures can mislead in either direction depending on where you actually plan to open. Crumbl’s home territory — Utah and the broader Mountain West — has historically been the strongest-performing geography in the system. Stores in this region have generally been at or near the top of cohort distributions, and they carry a disproportionate share of the system’s high-AUV outliers. The brand’s hometown halo, dense fan base, and earlier market entry all contribute. The flip side is dense metros on the coasts and in the Southeast where saturation arrived fastest. These markets often house the bottom-quartile cohort performers. A 2024-cohort store in suburban Utah and a 2024-cohort store in a saturated South Florida or Southern California submarket are reporting into the same FDD row, but the operating reality is very different. What this means in practice: if your planned location is in a strong-geo, low-saturation submarket, your year-one expectations can reasonably anchor to the upper half of recent-cohort outcomes. If your location sits in a market where the brand is already well-established and the trade area overlaps with an existing Crumbl, you should plan against the bottom half — and seriously consider whether the deal pencils at the lower bound. ## How To Model A Realistic Year-One Crumbl Revenue Here is a practical, conservative framework. None of these steps require special access — all of it is buildable from the FDD plus public mapping tools. **Step 1: Start with the most recent cohort’s first-year AUV.** Not the system average. Not the older-cohort numbers. The most recent cohort line. That is your baseline anchor for a new build in 2026. **Step 2: Apply a trade-area saturation discount.** Count the existing Crumbl locations within 5, 10, and 15 miles of your planned site. If there are two or more within 10 miles, apply a 10 to 20 percent discount to the cohort baseline. If there are three or more, apply 20 to 30 percent and re-examine whether the site is viable. **Step 3: Apply a regional adjustment.** If you are in a historically over-performing region (Utah, Mountain West, certain low-saturation Midwest metros), the cohort average is probably a reasonable midpoint. If you are in a saturated coastal market or an underperforming region, anchor below the cohort average. **Step 4: Apply a site-quality adjustment.** Co-tenants, visibility, parking, drive-up access, and proximity to trip generators all matter. A B-grade site in any market should be modeled below cohort average regardless of geography. **Step 5: Stress-test against the bottom quartile.** Run your operating model with revenue set at the bottom-quartile cohort AUV. If the deal still services debt and pays the operator a livable return at that level, the underwriting is honest. If it only works at cohort average or above, you are betting on conditions that the cohort data is telling you are no longer the norm. For the mechanics of pressure-testing the disclosed numbers themselves, our guide to [verifying Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) covers franchisee interviews, validation calls, and what to actually ask. Pair that with the cost framework in our [Crumbl franchise cost](https://vetmyfranchise.com/c/claude/blog/crumbl-cookie-franchise-cost) breakdown to build a full pro forma. ## The Verdict — Crumbl Can Still Work; Site Selection And Cohort Math Are Everything Crumbl is not a broken brand. It is a maturing one. The cohort decline visible in Item 19 is the normal trajectory of any concept that scales aggressively into a fixed addressable market — eventually new stores share demand with existing stores, the novelty premium fades, and unit economics normalize at a lower band. For new buyers, the implications are specific: - The deals that still work are in genuinely underserved geographies with strong site selection. These exist. - The deals that do not work are in saturated trade areas where the math only pencils if you assume mature-cohort AUV. The cohort data is telling you those assumptions are wrong for new builds. - The single biggest underwriting mistake is using system-average AUV instead of recent-cohort first-year AUV as your baseline. That one substitution causes more failed Crumbl deals than any other factor. The good news about Crumbl’s Item 19 is that it gives you the data you need to make this call honestly. Most franchisors do not disclose by cohort year. Crumbl does. The bad news is that most buyers do not read across the cohort rows — they read the system average and stop. Read across the rows. Anchor to the most recent cohort. Discount for saturation, region, and site. Stress-test against the bottom quartile. If the deal still works after all of that, it is probably a real deal. If it only works above cohort average, walk. > 💼 **Want Crumbl’s cohort-specific Item 19 stress-tested against your specific market?** Our [$49 FDD AI Analysis Report](https://vetmyfranchise.com/c/claude/franchises) parses Item 19 by cohort year and adjusts for your geo + trade area density. Delivered in minutes. ## Brands mentioned in this post - [Crumbl](https://vetmyfranchise.com/c/claude/franchise/crumbl-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) #### FDD Item 6 'Other Fees' Decoded: The Recurring Costs Most Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) crumblitem 19fdd analysiscookie franchisedessert franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What does Crumbl's Item 19 show? Crumbl's Item 19 typically presents AUV broken down by cohort year (when the store opened), allowing buyers to see whether newer stores are performing at similar levels to older stores. Recent FDDs have shown declining AUV in newer cohorts — a pattern that buyers should understand before underwriting a new build. ### Why is Crumbl AUV declining? Several factors: market saturation as the brand has rapidly expanded, novelty fade as the initial viral moment has matured, increased competition in the gourmet cookie / dessert category, and consumer-spending shifts. New Crumbl stores in saturated markets face a fundamentally different demand environment than 2020-era stores. ### Is Crumbl still a good franchise to buy? For operators in genuinely underserved markets with strong site selection, Crumbl can still produce attractive economics. For operators in markets with multiple existing Crumbl stores or near-saturated trade areas, the math is much harder. Cohort-specific analysis matters more than headline system AUV. ### What's the typical Crumbl AUV? Crumbl AUV varies by cohort and market. Older mature stores in strong markets historically produced $2M–$3M+ AUV; newer-cohort stores in average markets typically run materially lower. Those $2M–$3M+ figures reflect the early-cohort peak era: current system-wide AUV runs closer to ~$1.4M, and the 2026 FDD reports a median around $1.1M across units open all of 2025. The brand's published system averages mix both populations, which inflates the apparent typical for new operators. ### How do I project realistic Year-1 revenue for a new Crumbl? Use the most recent cohort's first-year AUV from Item 19 as the baseline, not the system-wide average. Discount further if your trade area is saturated, if you're in a region underperforming the cohort average, or if your site has access/visibility/co-tenant disadvantages. Conservative buyers should also stress-test the model against the bottom-quartile cohort performance. ## Content not visible to non-JS crawlers - $1.4 - $1.1 - $227 - $630 - $701 - $2.8 - Crumbl Item --- title: "Build a Franchise Pro-Forma From Item 19 (Template)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-18 dateModified: 2026-06-18 keywords: franchise pro-forma from item 19, item 19 revenue to profit, franchise pro forma template, estimate franchise profit, item 19 walkthrough, franchise financial projection, franchise pro forma canonical: https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19 about: franchise pro-forma from item 19 category: blog wordCount: 2046 readingTime: 10 min crawledAt: 2026-08-20 11:02:01 lastVerified: 2026-08-20 11:02:01 site: https://vetmyfranchise.com/c/claude/ --- # Build a Franchise Pro-Forma From Item 19 (Template) ## Summary Turn an Item 19 revenue average into a real franchise profit estimate. Step-by-step pro-forma: haircut the top-line, model expenses, subtract fees and debt. ## Key facts - Item 19 is the only place in the [FDD](https://vetmyfranchise. - Your first decision is which number to build on, and it matters more than any line below it because everything downstream is a percentage of this. - Whatever number you carried out of Step 1 describes a system, not your store in its first twelve months. - Now you build the expense side Item 19 probably skipped. - Here’s the line that independent businesses never pay and franchise buyers routinely underweight: the franchisor’s cut, charged on revenue, before you see a dollar of profit. Quick answer Item 19 discloses revenue, not profit: about 86% of FDDs include a financial performance representation but only roughly 24% show a full profit-and-loss. Start from the median, haircut for ramp-up and survivorship, then subtract COGS, labor, occupancy, the Item 6 royalty of 4-8% plus a 1-4% ad fund, your salary, and debt service. A buyer once told me he’d “run the numbers” on a sandwich franchise. What he’d actually done was read the Item 19 average — about $710,000 in unit sales — and decided he could live on that. He hadn’t subtracted a single dollar of cost. The franchisor disclosed revenue, his brain filled in “income,” and he was three weeks from signing on a number that was off by roughly his entire mortgage. That gap is the most expensive misread in franchising, and it’s structural. The Financial Performance Representation in Item 19 is where a franchisor may disclose how its units perform, and most now do — around 86% of FDDs include an FPR. But disclosure of revenue is not disclosure of profit, and the rule lets a franchisor stop wherever it likes. So you have to finish the statement yourself. ## What Item 19 gives you (and what it hides) Item 19 is the only place in the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) where earnings claims are allowed, and franchisors choose how much to show. The pattern across disclosures is lopsided: roughly 86% include some FPR, about 63% of those disclose at least some expense figures, around 49% say something about profitability, and only about 24% provide a full profit-and-loss (sometimes called an AFDR — average franchise data report). So three out of four buyers are handed a revenue line and expected to model everything beneath it. Even the top-line you’re given is slippery. It’s often a system-wide average, blended across mature units and new ones, strong markets and weak ones, company-owned and franchised. It usually reflects units that survived — the ones that closed mid-year aren’t in the denominator. And an average gets pulled upward by a few standouts. We pull this apart in detail in our guide to [Item 19 red flags and misleading data](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data); the short version is that the headline figure is a starting point, not a verdict. The pro-forma below is how you turn that starting point into a defensible estimate of your own take-home. Five steps, in order. ## Step 1: Pick the right top-line Your first decision is which number to build on, and it matters more than any line below it because everything downstream is a percentage of this. When the FDD discloses both an average and a median, prefer the **median**. The median is the middle unit; half the system does better, half does worse. The average can sit well above the median because high performers stretch it. Then find — or estimate — the single most useful stat: **what percentage of units actually beat the figure you’re using.** The franchise-disclosure guidance is blunt about how skewed this can get. In one real FDD analyzed by Drumm Law, only **40.8% of units (715 of 1,754) exceeded the system average.** Build off that average and you’ve quietly assumed you’ll outperform almost 60% of existing operators on day one. If only an average is disclosed, don’t accept it at face value. Treat it as a ceiling, shade your working top-line down toward where a typical unit likely sits, and confirm the read on validation calls. Our breakdown of [average vs. median and survivorship bias](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias) walks through exactly why the mean flatters a system. ## Step 2: Haircut for a realistic Year-1 single unit Whatever number you carried out of Step 1 describes a system, not your store in its first twelve months. Apply two haircuts, explicitly, so you can see what each one costs you. **The ramp-up haircut.** New units don’t open at the mature average. They build a customer base, the staff is learning, marketing hasn’t compounded. Many concepts take one to three years to reach a steady-state run rate. A reasonable Year-1 starting point is a meaningful discount to the mature figure — the exact size depends on the concept, and franchisee calls are how you calibrate it. If existing owners tell you their first year ran 30% under their current sales, use that, not a guess. **The survivorship haircut.** The disclosed average usually counts only units open through the reporting period. Units that failed and closed are gone from the math, which means the figure you’re standing on already excludes the worst outcomes. You don’t have to model a closure, but you should know the average is biased upward and resist nudging your top-line back up. Stack both haircuts onto the median from Step 1 and you’ve got a conservative Year-1 revenue line. That line — not the franchisor’s headline — is the top of your pro-forma. ## Step 3: Model COGS, labor, and occupancy as a percentage of sales Now you build the expense side Item 19 probably skipped. The big three operating costs scale with revenue, so model them as percentages and apply them to your haircut top-line. A few **illustrative** rules of thumb to anchor the structure — and these are genuinely just rules of thumb, not numbers from your FDD: - **COGS:** in quick-service food, cost of goods often lands somewhere around 28-35% of sales. A service business with no inventory might be near zero. - **Labor:** frequently the largest line in a staffed concept, often in the 25-35% range for food and service, lower for an owner-operated model where you’re the labor. - **Occupancy:** rent, common-area charges, and utilities, commonly in the high single digits to low teens as a percentage of sales for a retail footprint. Treat every one of those as a placeholder you replace with reality. Your local lease sets your occupancy. Your market’s wages set your labor. The franchisor’s preferred vendors set much of your COGS. The fastest way to firm these up is to ask existing franchisees directly — our [franchise validation process guide](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide) includes the cost-side questions most buyers forget to ask. Published benchmarks get you a draft; validation calls get you a number. ## Step 4: Subtract the fee stack (Item 6) and debt service Here’s the line that independent businesses never pay and franchise buyers routinely underweight: the franchisor’s cut, charged on revenue, before you see a dollar of profit. Item 6 lists every recurring fee. The two that bite are the **royalty** — commonly **4-8% of gross sales** — and the **ad or brand fund**, often **1-4% of gross sales.** Both come off the top line, not off profit, so a soft-revenue year still owes the full percentage. Add any technology fee, local marketing minimum, or required software. Our walkthrough of the [true cost of ongoing franchise fees](https://vetmyfranchise.com/c/claude/blog/total-ongoing-franchise-fees-true-cost) shows how these compound across the term. Then subtract **debt service.** If you financed the build-out and fee with an SBA loan, your monthly principal-and-interest payment is a fixed cash outflow whether sales hit the average or not. This is the line that turns a thin-but-positive operating profit into a negative cash position, and it’s the line Item 19 will never show you. ## Step 5: Build a conservative base case and a sensitivity case A single-column pro-forma is a guess wearing a suit. Build two columns: a **conservative base case** using your haircut top-line and real local costs, and a **downside sensitivity case** where revenue comes in another 15-25% lower. If the deal services its debt and pays you a market salary in the downside column, it has room to be wrong. If it only works at the average, you’re betting the house on a brochure. Here’s the shape of the statement, from the Item 19 top-line all the way down to what you keep. The numbers are **illustrative** — plug in your own haircut revenue and your validated local costs: | Line item | % of sales | Base case (conservative) | Downside case | | --- | --- | --- | --- | | Item 19 system average (starting point) | — | $700,000 | $700,000 | | Year-1 haircut (ramp + survivorship) | — | −$140,000 | −$245,000 | | Your top-line revenue | 100% | $560,000 | $455,000 | | Cost of goods sold | 30% | −$168,000 | −$136,500 | | Labor | 28% | −$156,800 | −$127,400 | | Occupancy | 10% | −$56,000 | −$45,500 | | Royalty (Item 6, e.g. 6%) | 6% | −$33,600 | −$27,300 | | Ad fund (Item 6, e.g. 2%) | 2% | −$11,200 | −$9,100 | | Other operating expenses | 8% | −$44,800 | −$36,400 | | Operating profit | — | $89,600 | $72,800 | | Owner salary (pay yourself first) | — | −$60,000 | −$60,000 | | Debt service (SBA P&I, illustrative) | — | −$36,000 | −$36,000 | | Owner profit (what you actually keep) | — | −$6,400 | −$23,200 | Read the bottom line, not the top. A unit doing $560,000 — below the disclosed average but plausible for Year 1 — slips into the red once you pay yourself and service the loan. That is not a doomed business; it’s a normal first year for a leveraged single unit, and it’s exactly the picture the franchisor’s $700,000 headline erases. The pro-forma exists to surface that picture before you sign, not after. If you want this built rigorously for a specific brand — the right top-line pulled from the actual Item 19, the haircuts calibrated, the Item 6 fee stack and a real SBA payment layered in — that’s the core of our **[$49 Tier 2 report](https://vetmyfranchise.com/c/claude/pricing)**. We rebuild the pro-forma for you, so you’re deciding on your likely take-home instead of the franchisor’s revenue average. ## What the pro-forma can and can’t tell you A pro-forma is a disciplined estimate, not a promise. It can tell you whether a deal has any margin for error, where the money actually leaks, and how far below the average you can fall before the business stops paying you. It can’t predict your specific market, your management, or a bad lease you haven’t signed yet. What it does best is convert a marketing number into a question you can actually answer: not “can I live on $700,000 in sales?” but “does this still work when I’m doing $455,000, paying myself $60,000, and writing a $3,000 loan check every month?” The franchisor disclosed enough to start that math. Item 19 stops at revenue on purpose — finishing the statement is your job, and it’s the difference between buying a number and buying a business. When you’re ready to pressure-test a real brand, our **[Tier 2 report](https://vetmyfranchise.com/c/claude/pricing)** does exactly this build for $49: your conservative top-line, the full expense stack, the fees, and the debt service, laid out so the bottom line — owner profit — is the figure you’re deciding on. Don’t sign off on a revenue average. Sign off on what you’d take home. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) #### FDD Item 6 'Other Fees' Decoded: The Recurring Costs Most Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees) franchise pro-forma from item 19item 19 revenue to profitfranchise pro forma templateestimate franchise profititem 19 walkthroughfranchise financial projectionfranchise pro forma About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How do I turn Item 19 revenue into profit? Start with the disclosed top-line, then subtract in order: cost of goods sold, labor, occupancy, the franchise fee stack from Item 6 (royalties plus ad fund), other operating expenses, and your debt service. What's left, after you also pay yourself a market salary, is owner profit. Item 19 almost never does this math for you — only about a quarter of FDDs disclose a full P&L — so you build the lower lines yourself. ### What does Item 19 leave out? Usually the expense side. Around 63% of FDDs that include an FPR disclose some expenses and about 49% touch profitability, but only roughly 24% give you a complete profit-and-loss. Even when revenue is shown, it's often a system average that hides ramp-up, location, and the units that already closed. You rarely get your debt service, your owner salary, or local labor and rent costs. ### Should I use the average or the median? Prefer the median when it's disclosed, and always check what percentage of units actually beat the figure you're using. Averages get dragged up by a handful of top performers. In one disclosed FDD only 40.8% of units beat the system average, which means building off that average assumes you'll land in the top 40%. The median, plus the share of units above it, tells you where a typical unit really sits. ### How conservative should my franchise pro-forma be? Conservative enough that the deal still works in a bad year. Use a below-average top-line for Year 1, apply real local costs rather than optimistic benchmarks, and build a downside column where revenue comes in 15-25% under your base case. If the business still services its debt and pays you a reasonable salary under the downside, the deal has margin for error. If it only works at the average, it's fragile. --- title: "Buy a Franchise With a Spouse or Partner: Structure & Risk" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-06-14 keywords: buying a franchise with a partner, franchise ownership with spouse, franchise partnership agreement, co-owner franchise, family franchise ownership, partnership buy-sell franchise canonical: https://vetmyfranchise.com/c/claude/blog/buying-franchise-with-spouse-or-partner about: buying a franchise with a partner category: blog wordCount: 1962 readingTime: 10 min crawledAt: 2026-08-20 11:02:02 lastVerified: 2026-08-20 11:02:02 site: https://vetmyfranchise.com/c/claude/ --- # Buy a Franchise With a Spouse or Partner: Structure & Risk ## Summary Buying a franchise with a partner or spouse? How to handle equity splits, personal guarantees with two owners, and the buy-sell clause that protects both of you. ## Key facts - The order of operations trips people up. - Married couples have an extra wrinkle the IRS and the SBA both care about. - With non-spouse partners, the reflex is a clean 50/50. - If you read nothing else here, read this. - A personal guarantee is the lender’s right to come after your personal assets if the business can’t pay. Quick answer Both co-owners at 20% or more equity must sign an unconditional SBA personal guarantee, and it is joint and several, so a lender can pursue either partner for the full balance on a $400,000 loan. Split equity by capital, guarantee exposure, and labor, and sign a buy-sell covering death, disability, divorce, departure, and deadlock. Most franchise buyers don’t go in alone. Sometimes it’s a married couple pooling savings and a HELOC, sometimes two friends, siblings, or a money partner backing an operator. The franchisor sells you on the system and the bank sells you on the loan, but almost nobody walks you through what happens to the two of you when the business does well, does badly, or when one of you wants out. That gap is where co-owned franchises get expensive. ## Why the ownership structure matters before you sign The order of operations trips people up. Buyers choose the brand first, then the entity, then think about the partnership “later.” Later usually means after the franchise agreement and the loan are signed, by which point your power to change anything is gone. Three documents lock in around the same time and reference each other: the **franchise agreement** (names the approved owners and binds you to the transfer, renewal, and termination terms in [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 17), the **loan documents** (who guarantees the debt and on what terms), and your **operating or partnership agreement** (how you two run and eventually unwind the business). If the third document doesn’t exist yet, you’ve effectively signed a deal where the rules between partners are “we’ll figure it out.” That’s fine until it isn’t. The cleaner sequence: agree on equity, roles, and a buy-sell _first_, form the entity, then sign the franchise agreement and close the loan. If you’re still deciding whether the deal even supports two owners, our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) lets you model the total investment and debt service before either of your names is on anything. ## Spouse co-ownership: SBA, taxes, and liability Married couples have an extra wrinkle the IRS and the SBA both care about. **Taxes.** A husband-and-wife LLC in a community-property state can sometimes be treated as a disregarded entity, while in common-law states a two-member LLC defaults to partnership filing. Many couples elect S-corp treatment once profit justifies the payroll-tax savings on owner distributions. It’s worth a CPA conversation; we walk through the trade-offs in our guide on [choosing between an LLC and an S-corp for a franchise](https://vetmyfranchise.com/c/claude/blog/llc-vs-s-corp-franchise). **Liability.** Forming an entity separates business creditors from your personal assets in routine matters. The personal guarantee on the loan punches a hole straight through that wall on purpose, which is the next section. **SBA and the spouse signature.** Here’s where buyers get burned by assumption. People think “the business is in my name, so my spouse is off the hook.” Not necessarily. SBA rules require a personal guarantee from anyone owning 20% or more of the business. The agency loosened its blanket “spouses must guarantee” stance in recent years, but a spouse above the threshold will be required to sign, and lenders routinely ask spouses below it to sign anyway, especially when household assets like a jointly owned home are pledged as collateral. Assume both signatures unless your lender says otherwise in writing. ## Non-spouse partners: equity splits and roles With non-spouse partners, the reflex is a clean 50/50. Resist it until you’ve mapped contributions. Equity should track three things: **capital** (who funds the equity injection, with the SBA typically wanting 10%+ down on a 7(a) deal), **risk** (who personally guarantees how much of the debt), and **labor** (who actually runs the unit day to day). A money partner who fronts 70% of the cash but never works a shift, paired with an operator who runs the store full-time on a modest salary, almost never makes sense as a 50/50 split. One common structure weights equity toward capital and guarantee exposure while paying the operator a market salary; another vests the operator’s equity over three to four years, so sweat equity is rewarded only if they stay. Whatever you choose, write down **decision rights** alongside the percentages. Who signs checks above a threshold? Who hires and fires? Who deals with the franchisor? A 50/50 split with no tiebreaker is the classic deadlock, two owners who each can block the other and neither can act. If you go 50/50, name a tiebreaker in advance: a designated managing partner for operational calls, or a buy-sell trigger that forces a resolution. | Structure | Equity | Who signs the PG | Best fit | Watch out for | | --- | --- | --- | --- | --- | | Spousal LLC / S-corp | Typically 50/50 or 60/40 | Usually both spouses | Couples running it together | Divorce risk; both assets exposed | | Operator + money partner | Weighted to capital + labor | Both, but exposure may differ | Passive investor backing an operator | Misaligned effort vs. reward | | Two active partners | Match to contribution; avoid reflex 50/50 | Both, joint and several | Friends/colleagues co-operating | Deadlock with no tiebreaker | | Majority/minority (e.g. 70/30) | Reflects capital & control | Both above 20% | One clear decision-maker | Minority partner feeling boxed out | ## The buy-sell clause you must have If you read nothing else here, read this. The buy-sell agreement is the single document that decides whether a partnership crisis is a paperwork exercise or a lawsuit. A workable buy-sell covers the “four Ds” plus a voluntary exit: - **Death** — the surviving partner buys out the estate (often funded by life insurance), so you don’t end up co-owning the franchise with your late partner’s heirs. - **Disability** — a partner who can no longer work, funded by disability buyout insurance where available. - **Divorce** — a trigger that lets the business buy back any interest awarded to an ex-spouse. - **Departure** — the voluntary “I’m done” exit, usually with a notice period and sometimes a discount to discourage abandonment. - **Deadlock** — a shotgun or forced-sale mechanism when partners can’t agree or one breaches. The two parts buyers skimp on are **valuation** and **funding**. Pick a valuation method up front (a fixed multiple of SDE, an agreed formula, or a named appraiser) so you’re not arguing about price during a funeral or a divorce. Then fund it: life and disability insurance turns a six-figure buyout obligation into a manageable premium. Without funding, a buy-sell is a promise to pay money the staying partner may not have, which often forces a fire-sale of the whole business. If you and a partner haven’t settled on a brand yet, start by finding concepts whose economics and capital requirements actually fit two owners. Our [franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) filters by investment level and model so you’re only evaluating deals that can realistically support two salaries, two guarantees, and a clean exit for both of you. ## Personal guarantees when there are two owners A personal guarantee is the lender’s right to come after your personal assets if the business can’t pay. With two owners, the wording that matters most is **joint and several**. Joint and several means the bank doesn’t have to split the debt 50/50 to match your equity. If the business defaults on a $400,000 SBA loan and your partner has no assets, the lender can pursue you for the entire $400,000 and let you chase your partner for their share. Your 50% equity does not cap your guarantee at 50% of the debt. That’s the detail that surprises people most; our deep dive on [what a personal guarantee actually means](https://vetmyfranchise.com/c/claude/blog/franchise-personal-guarantee-explained) breaks down the language, and our look at [life after signing the guarantee](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) covers how it follows you for years. Two protections worth planning around: some lenders will **cap each partner’s guarantee** at their ownership percentage on stronger deals (SBA loans are less flexible here than conventional financing, but ask), and a **cross-indemnity** in your partnership agreement can require the partner who triggered the loss to reimburse the other. The cross-indemnity won’t bind the bank, but it gives you a contractual claim against your partner. Both owners should clear the franchisor’s and lender’s financial bar individually. If your combined application leans entirely on one partner’s net worth, that partner carries disproportionate risk. Check the brand’s stated requirements early; our guide to [franchise net-worth and liquidity requirements](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) shows how those thresholds work and why lenders look at both combined and individual balance sheets. ## Protecting the relationship and the business The franchisor’s transfer rules sit on top of everything you’ve agreed between yourselves. When one partner buys out the other, that’s a transfer of ownership in the franchisor’s eyes, even though the franchise isn’t changing hands externally. Expect three things from FDD Item 17: a **transfer or assignment fee**, a **franchisor approval step** (they vet the remaining or incoming owner), and possibly a **right of first refusal** letting the franchisor buy the departing partner’s stake on the same terms. Read Item 17 before you assume a buyout is purely an internal matter. A few habits keep co-ownership from curdling. Pay active owners a market-rate salary as an expense and split profit only after, which prevents resentment when one works 60 hours and the other works 10. Hold quarterly owner meetings with an agenda instead of arguing at the dinner table. And plan the exit at the start; our [guide to selling your franchise](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer) covers timing, valuation, and the franchisor’s role when you eventually leave. None of this is legal advice, and a partnership agreement, buy-sell, and entity election are where a few hours with a franchise attorney and a CPA pay for themselves many times over. Walk in knowing which questions to force onto paper while you and your partner still agree on the answers. Before two of you sign two guarantees, make sure the deal supports two owners. The $49 Tier 2 report on [our pricing page](https://vetmyfranchise.com/c/claude/pricing) rebuilds the unit economics for a specific brand, so you can pressure-test whether the numbers carry two stakeholders and an eventual buyout, not just one optimistic projection. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) buying a franchise with a partnerfranchise ownership with spousefranchise partnership agreementco-owner franchisefamily franchise ownershippartnership buy-sell franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Can my spouse and I co-own a franchise together? Yes, and it's common, but the structure you choose changes your taxes, liability, and SBA paperwork. Most spousal teams form an LLC or S-corp and both appear on the franchise agreement; just know that the franchisor approves the owners, and the lender will likely want both signatures on the personal guarantee regardless of how you split equity. ### Do both partners have to sign the personal guarantee? Almost always, if each owns 20% or more. SBA 7(a) rules require an unconditional personal guarantee from every owner at or above the 20% threshold, and lenders frequently ask owners below it to sign too. The guarantee is joint and several, meaning the bank can collect the full balance from whichever of you has assets. ### How should franchise partners split equity? Match equity to what each person actually brings: cash invested, debt guaranteed, and ongoing labor. A partner who funds 70% of the equity injection but won't work the business shouldn't automatically get 50%. Whatever you decide, write it down with vesting if one partner's contribution is sweat equity earned over time. ### What happens if a franchise partner wants out? Your buy-sell agreement controls it: it should name a valuation method, a funding source, and a payment schedule so the staying partner isn't forced to sell or refinance the whole business overnight. Without a buy-sell, you're negotiating from scratch during a stressful moment, and the franchisor still has to approve any transfer of ownership. ### Does a divorce affect a jointly owned franchise? It can, significantly. In community-property states a business built during the marriage is typically marital property, so a divorce can force a buyout, a sale, or a court-ordered division. A buy-sell with a divorce trigger and an agreed valuation method keeps an ex-spouse from becoming your unwanted business partner. --- title: "Buying a Refranchised Corporate Franchise Location (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-11 dateModified: 2026-06-11 keywords: refranchising, buying corporate-owned franchise location, franchise resale due diligence, item 20 company-owned units, franchise acquisition pricing canonical: https://vetmyfranchise.com/c/claude/blog/buying-refranchised-corporate-franchise-location about: refranchising category: blog wordCount: 2058 readingTime: 10 min crawledAt: 2026-08-20 11:02:02 lastVerified: 2026-08-20 11:02:02 site: https://vetmyfranchise.com/c/claude/ --- # Buying a Refranchised Corporate Franchise Location (2026) ## Summary Refranchising explained for buyers: why franchisors sell corporate stores, how to read Item 20, price these deals, and 10 questions to ask first. ## Key facts - Refranchising — a franchisor selling company-operated units to franchisees — is one of the most consistent strategic plays in the industry, and it’s accelerating. - Franchisors don’t refranchise randomly. - Item 20 of the [FDD](https://vetmyfranchise. - Buying a refranchised store overlaps with buying any resale — our [resale due diligence guide](https://vetmyfranchise. - Refranchised stores price off store-level cash flow — a multiple of the unit’s earnings, with the multiple flexing for brand strength, market quality, lease terms, and how much of the upside is already realized. Quick answer Refranchising is a franchisor selling company-operated units to franchisees for high-margin royalty income; McDonald's, Burger King, Wendy's, Applebee's, and Jack in the Box have all run large programs. Demand three years of monthly store-level P&Ls, check Item 20's company-owned count across the three disclosed years, and discount mandated remodels dollar-for-dollar. ## Why Franchisors Are Selling Their Own Stores Refranchising — a franchisor selling company-operated units to franchisees — is one of the most consistent strategic plays in the industry, and it’s accelerating. [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc), [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc), Wendy’s, [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc), and Jack in the Box have all run large refranchising programs over the years, shifting hundreds or thousands of stores from corporate hands to franchisee ownership. The math driving it is simple and brutal. Running restaurants is capital-heavy, labor-intensive, and margin-thin. Collecting royalties is none of those things. A royalty check arrives whether beef prices spike or a manager quits, and it flows through to the franchisor’s bottom line at margins an operating store can’t touch. When a franchisor sells a corporate store, it trades volatile operating profit for a predictable, high-margin royalty stream — and Wall Street pays a premium for exactly that “asset-light” profile. Private equity has poured gasoline on this. PE firms that acquire franchisors routinely refranchise the corporate portfolio early in the hold period: it raises cash, sheds operational headcount, and reshapes the income statement into the recurring-revenue story buyers of the _franchisor_ will eventually pay up for. You, the prospective franchisee, are a load-bearing component of someone else’s exit thesis. None of this makes the store on offer good or bad. It does mean the seller’s motivation is usually financial engineering at the portfolio level — which is precisely why you have to figure out where _your_ store fits in the program. ## Deal or Dumping Ground: Why This Store, Specifically? Franchisors don’t refranchise randomly. Three patterns account for most of what hits the market. **Portfolio cleanups.** When a franchisor reviews its corporate fleet, the stores it most wants gone are the ones dragging the average — weak trade areas, cannibalized locations, sites that made sense a decade ago. These get packaged and sold, sometimes with optimistic framing about “opportunity for an owner-operator to unlock potential.” Occasionally that’s even true. Hands-on owners do outperform corporate management at the store level. But the gap rarely rescues a fundamentally bad site. **Market exits.** This is the buyer-friendly version. A franchisor decides to leave a geography entirely — perhaps corporate operations there never reached efficient scale, or a strategic review concluded the region belongs with a strong multi-unit franchisee. Market exits sweep up everything, including genuinely solid stores that did nothing wrong. If you can verify the exit is geographic strategy rather than store-by-store triage, you may be looking at a healthy unit being sold for reasons that have nothing to do with its performance. **Remodel avoidance.** Brands periodically mandate expensive remodels system-wide. A franchisor staring at a corporate fleet full of stores due for capital-intensive refreshes has a tempting alternative: sell them before the spending comes due, and let the remodel obligation transfer to the buyer. The store’s current numbers may look fine. The next eighteen months of required capital expenditure are the real story. Your first diligence question is never “is this a good store?” It’s “which of these three programs am I inside?” ## Reading Item 20’s Company-Owned Columns Item 20 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) is where refranchising leaves fingerprints. Most buyers fixate on franchised-outlet turnover and skip the company-owned tables entirely. Don’t. Start with the company-owned outlet summary across the three disclosed years. A corporate count that drops year over year — especially sharply — is refranchising in progress. Now cross-reference the row showing outlets sold or transferred to franchisees. When corporate units fall and transfers-to-franchisees rise in lockstep, you’re watching the program unfold in the data. Multi-year patterns tell you more than any single year. A brand that refranchised steadily for three straight years is likely executing a deliberate asset-light conversion, probably with more inventory coming — which has pricing implications for you (more on that below). A sudden one-year spike, by contrast, often signals a PE acquisition or a strategic pivot, and the units moving in that wave may not have been curated at all. Also check whether system “growth” is real. If franchised-unit counts are climbing but total units are flat, the brand isn’t expanding — it’s reclassifying. That distinction matters enormously when a salesperson cites that growth as proof of brand momentum. Our [Item 20 unit data guide](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide) walks through every table and what each row actually means. [**Compare the brand's unit trends against competitors →**](https://vetmyfranchise.com/c/claude/compare) ## Due Diligence That’s Different for Corporate Units Buying a refranchised store overlaps with buying any resale — our [resale due diligence guide](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide) covers the shared ground — but corporate units carry four distinctive issues. **Demand the store-level P&L, and accept no substitutes.** Here’s the structural advantage of a corporate unit: the franchisor _has_ clean, store-level financials, prepared under corporate accounting standards. Many independent resellers genuinely don’t — their books mix personal expenses, family payroll, and wishful categorization. A franchisor that refuses to hand over store-level P&Ls for a unit it owns and operates is making a choice, and that choice tells you something. Get at least three years, monthly granularity if possible, and reconcile labor costs against what _you’d_ pay, since corporate stores sometimes carry regional overhead allocations that distort the picture in either direction. **Staff retention risk runs the opposite direction from a normal resale.** When you buy from a retiring franchisee, the team often stays — they know the buyer is the new boss. Corporate stores are different. The general manager may be a corporate employee with a career path inside the franchisor, transfer rights to another company unit, or severance incentives. If the GM and shift leads walk at closing, you’re buying a building and a brand, not an operating business. Get clarity, in writing, on which employees convey and what retention incentives exist. **Deferred maintenance and remodel obligations get written into the deal.** Read the asset purchase agreement for required capital improvements with completion deadlines. Franchisors routinely make the buyer’s remodel commitment a condition of the transfer — that’s often half the reason the store is for sale. Price every dollar of that obligation into your offer, and walk the site with a contractor, not just a broker. **Below-market corporate leases may not transfer cleanly.** Franchisors with scale negotiate real estate terms an individual operator can’t. Sometimes that favorable lease assigns to you intact — a genuine windfall. Sometimes the landlord uses the assignment as an opening to reset rent to market, or the franchisor retains the head lease and subleases to you at a spread. The difference between those scenarios can be worth more than the goodwill you’re paying for. Get the lease documents early and model your occupancy cost under the worst permitted outcome. ## How These Deals Get Priced Refranchised stores price off store-level cash flow — a multiple of the unit’s earnings, with the multiple flexing for brand strength, market quality, lease terms, and how much of the upside is already realized. A well-run store in a protected trade area commands a premium multiple; a unit needing a turnaround trades cheap for the obvious reason. Two adjustments matter most. First, remodel obligations should come off the price roughly dollar-for-dollar — capital you’re contractually required to spend is not optional, and the seller knows it. Second, beware the blended package. Franchisors love selling clusters: the strong store you actually want, bundled with two units you wouldn’t touch on their own. The package gets quoted at an attractive blended multiple that quietly overprices the dogs. Insist on per-unit financials and per-unit valuation. If the franchisor won’t unbundle, at minimum you should know exactly which store is subsidizing the others — and negotiate as though you do. The dynamics here mirror what sellers face going the other way; our [guide to selling your franchise](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer) shows how the multiple game looks from the seller’s chair. ## Financing Quirks Worth Knowing Lenders treat a refranchised store as a business acquisition, not a startup — generally good news. SBA underwriting on an acquisition leans on the unit’s historical cash flow rather than projections, and a corporate store’s clean P&L makes that file easier to build than most independent resales. Expect the lender to scrutinize the remodel obligations too; required capex goes into the debt-service math whether you flagged it or not. The wrinkle is franchisor financing. When a franchisor is motivated to move refranchising inventory — particularly multi-store packages — it sometimes offers seller financing or loan guarantees to grease the deal. Read those terms with maximum suspicion. Attractive financing on a marginal package is a discount in disguise: the franchisor is solving _its_ disposal problem with _your_ balance sheet. Check the default provisions, any cross-collateralization across units in the package, and whether the seller’s note subordinates to your senior lender. Favorable paper attached to unfavorable stores is still an unfavorable deal. The same logic applies when weighing this path against ground-up development. Our breakdown of [new vs existing resale: McDonald’s case](https://vetmyfranchise.com/c/claude/blog/mcdonalds-franchise-new-vs-existing-resale) shows how the economics diverge inside a single famous system. ## 10 Questions Before You Bite 1. Why is the franchisor selling _this_ store — portfolio cleanup, market exit, or remodel avoidance — and what evidence supports the answer? 2. What do three years of monthly, store-level P&Ls show, and will the seller warrant their accuracy in the purchase agreement? 3. What does Item 20 show about the company-owned count and the transferred-to-franchisees row over the last three years? 4. Which employees convey at closing, and what keeps the GM from transferring back into the corporate system? 5. What capital improvements does the purchase agreement require, on what timeline, and at what realistic cost? 6. Does the corporate lease assign to me on existing terms, or does the landlord — or franchisor — get to reset the economics? 7. If this is a package, what is each unit worth on its own financials, priced independently? 8. How many more corporate stores in my market will the brand refranchise after mine, and at what price? 9. If franchisor financing is offered, what are the default, cross-collateralization, and subordination terms? 10. How does this brand’s transfer and closure history compare to its direct competitors? That last question is answerable in minutes, not weeks. A [VetMyFranchise research report](https://vetmyfranchise.com/c/claude/pricing) pulls the Item 20 turnover, transfer, and closure data for any brand in our 2,000+ FDD database for $49 — cheap insurance before you sign for a store the franchisor decided it no longer wanted to own. ## Brands mentioned in this post - [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) - [Applebee’s](https://vetmyfranchise.com/c/claude/franchise/applebees-franchisor-llc) - [McDonald’s](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) refranchisingbuying corporate-owned franchise locationfranchise resale due diligenceitem 20 company-owned unitsfranchise acquisition pricing About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What does refranchising mean? Refranchising is when a franchisor sells its company-operated locations to franchisees, converting those stores from corporate-run operations into franchised units that pay royalties. Major brands including McDonald's, Burger King, Wendy's, Applebee's, and Jack in the Box have all run large refranchising programs, and private-equity-owned franchisors use the strategy aggressively because royalty income is high-margin and predictable compared to running restaurants. ### Is buying a refranchised corporate store a good deal? It can be, but only if you determine why that specific store is being sold. Franchisors refranchise for reasons ranging from clean portfolio strategy (exiting a market entirely, including solid stores) to quiet underperformer dumping. The store-level P&L, the unit's remodel status, and where it sits in the brand's Item 20 trends tell you which situation you're walking into. ### How do I spot refranchising in a Franchise Disclosure Document? Look at Item 20's company-owned outlet table across the three disclosed years — a steadily shrinking company-owned count paired with units appearing in the transferred-to-franchisees row is refranchising in progress. Compare that against total system growth: if franchised units are rising mainly because corporate stores changed hands rather than new stores opening, the brand's growth story is partly a reclassification, not expansion. ### How are refranchised stores priced? Almost always as a multiple of store-level cash flow, with the multiple adjusted for lease quality, remodel obligations, and market strength. Stores carrying mandated remodels should be discounted by the full expected capital cost, and package deals need per-unit pricing — a blended multiple across three stores can hide the fact that one unit is carrying the other two. --- title: "Best Midwest Franchises 2026: Data From 2,000+ FDDs" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-18 dateModified: 2026-07-18 keywords: midwest franchise, franchise opportunities, franchise registration states, franchise costs, regional franchise guide, best franchises canonical: https://vetmyfranchise.com/c/claude/blog/best-franchises-midwest about: midwest franchise category: blog wordCount: 2022 readingTime: 10 min crawledAt: 2026-08-20 11:05:11 lastVerified: 2026-08-20 11:05:11 site: https://vetmyfranchise.com/c/claude/ --- # Best Midwest Franchises 2026: Data From 2,000+ FDDs ## Summary Best franchises to own in the Midwest for 2026: verified FDD costs for Great Clips, Culver's, and Anytime Fitness, plus registration-state rules. ## Key facts - Every FDD publishes its startup cost as a range in Item 7, and those ranges are wide for a reason: the low end and the high end usually describe the same store built in two different markets. - The table covers Midwest-headquartered systems in the VetMyFranchise database, sorted by cost of entry. - Franchise regulation splits the region cleanly in two, and buyers should know which side of the line they are shopping on. - No FDD prints a coastal surcharge, but you can see the geography in the spread between each brand’s low and high Item 7 figures, since real estate, construction, and opening labor drive most of the gap. - Regional buyers have an information edge if they read two FDD items closely. Quick answer Great Clips ($187,800 to $419,900 per the 2026 FDD) and Anytime Fitness ($539,329 to $905,482) lead the Midwest's home-grown franchise systems, with Culver's, Marco's Pizza, and Scooter's Coffee anchoring food. Seven of the twelve Midwest states require a state franchise filing before sales, so verify registration status early in Illinois, Minnesota, and the Dakotas. The best franchises to own in the Midwest mostly come from the Midwest: [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) runs **$187,800 to $419,900** per its 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) from its Twin Cities home office, [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) (Woodbury, Minnesota) runs **$539,329 to $905,482**, and [Culver’s](https://vetmyfranchise.com/c/claude/franchise/culver-franchising-system-llc), [Marco’s Pizza](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc), and [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee) anchor the food category. Buying in the region carries two structural advantages. The same brand usually costs less to open here than on the coasts, because Item 7 investment ranges are priced by local real estate and labor. And seven of the twelve Midwest states require a state-level franchise filing before a franchisor can legally sell there, which gives you a verification tool most coastal buyers never think to use. ## Why The Midwest Under-Indexes On Franchise Cost Every FDD publishes its startup cost as a range in Item 7, and those ranges are wide for a reason: the low end and the high end usually describe the same store built in two different markets. Rent, construction, signage, insurance, and opening payroll all price locally. A 1,200-square-foot salon suite in suburban Des Moines does not cost what the same suite costs in coastal California, yet both fit inside the one published range. So the honest answer to “are franchises cheaper in the Midwest” is yes, with the caveat that the discount shows up inside the brand’s own numbers rather than on a separate price list. The region also produces franchisors at an unusual rate. The Twin Cities metro alone is home to Great Clips, [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc), [Snap Fitness](https://vetmyfranchise.com/c/claude/franchise/snap-fitness-inc), and Dairy Queen. Wisconsin has Culver’s (Prairie du Sac), [Snap-on Tools](https://vetmyfranchise.com/c/claude/franchise/snap-on-tools-company-llc) (Kenosha), and [Batteries Plus](https://vetmyfranchise.com/c/claude/franchise/batteries-plus-llc) (Hartland). Toledo has Marco’s Pizza, Detroit has Little Caesars, Omaha has [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc), and Orange City, Iowa has Pizza Ranch. Franchisors seed their home markets first, which means Midwest buyers get something rare: dozens of mature, validating franchisees within driving distance instead of a phone list scattered across four time zones. Across the 2,000+ FDDs VetMyFranchise has parsed, the median food-and-beverage brand lists an investment range of $305,500 to $796,800 as of July 2026. Keep that baseline in mind as a reference point when you read the brand figures below. ## Top Franchises Expanding In The Midwest The table covers Midwest-headquartered systems in the VetMyFranchise database, sorted by cost of entry. All figures come from each brand’s 2026 FDD. | Franchise (HQ) | 2026 FDD Investment | Franchise Fee | Franchised Units | | --- | --- | --- | --- | | Great Clips (Bloomington, MN) | $187,800 - $419,900 | $20,000 | 4,441 | | Snap-on Tools (Kenosha, WI) | $223,439 - $509,283 | $8,000 | 3,159 | | Batteries Plus (Hartland, WI) | $284,786 - $536,636 | $15,000 | 734 | | Marco’s Pizza (Toledo, OH) | $286,477 - $811,186 | $25,000 | 1,139 | | Anytime Fitness (Woodbury, MN) | $539,329 - $905,482 | $42,500 | 2,271 | | Scooter’s Coffee (Omaha, NE) | $954,650 - $1,523,400 | $40,000 | 825 | | Pizza Ranch (Orange City, IA) | $2,305,500 - $5,134,500 | $30,000 | 213 | | Culver’s (Prairie du Sac, WI) | $3,406,350 - $10,294,100 | $65,000 | 1,041 | Two notes on reading it. Culver’s and Pizza Ranch look expensive because both are freestanding, real-estate-heavy formats; Culver’s wide band largely reflects how the site is acquired and built. And unit counts signal different things at different scales. Great Clips’ 4,441 franchised salons mean deep validation but competitive territory in core metros, while Pizza Ranch’s 213 units mean open maps and a shorter operating track record outside its Iowa-Minnesota-Dakotas base. ## Best Midwest Franchises By Category ### Home Services [Spring-Green Lawn Care](https://vetmyfranchise.com/c/claude/franchise/spring-green-lawn-care-corp), headquartered in Plainfield, Illinois, lists **$118,898 to $135,176** per its 2026 FDD with a $45,000 franchise fee, 126 franchised territories, and a disclosed Item 19. The Midwest wrinkle for any lawn, pest, or exterior brand is seasonality: a four-season climate compresses revenue into roughly eight months, so ask existing franchisees, not the franchisor, how winter cash flow actually works. Lansing-based [Two Men and a Truck](https://vetmyfranchise.com/c/claude/franchise/two-men-and-a-truck-spe-llc) grew from a single Michigan moving operation into a national system, proof of how far a home-services brand can scale from a Midwest base. Budget-constrained buyers should start with our roundup of [franchises under $50K](https://vetmyfranchise.com/c/claude/blog/low-cost-franchises-under-50k); several picks there sit in this category. ### Food And Beverage [Marco’s Pizza](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) is the value play: $286,477 to $811,186 per the 2026 FDD, a 5.5% royalty, and 1,139 franchised stores from its Toledo home base. [Culver’s](https://vetmyfranchise.com/c/claude/franchise/culver-franchising-system-llc) is the premium one. Its $3,406,350 to $10,294,100 range (4% royalty, $65,000 fee) buys into one of the strongest operator cultures in QSR, with density radiating out of Wisconsin. [Pizza Ranch](https://vetmyfranchise.com/c/claude/franchise/pizza-ranch-inc) ($2,305,500 to $5,134,500 per the 2026 FDD) is the regional specialist: a buffet-plus-community-room format built for the small and mid-size towns coastal brands skip. [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee) sits between, at $954,650 to $1,523,400 for a drive-thru coffee kiosk model Omaha has exported across the Plains. ### Fitness Minnesota effectively owns the franchised gym category. [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) runs $539,329 to $905,482 per the 2026 FDD, with royalties of up to 8% of gross revenue across 2,271 franchised clubs. [Snap Fitness](https://vetmyfranchise.com/c/claude/franchise/snap-fitness-inc), based in Chanhassen, runs $554,731 to $827,621 with an unusual flat royalty of $725 per month, a structure that rewards high-revenue clubs and stings weak ones in percentage terms. Both publish Item 19s; compare the member-count assumptions behind the averages, not just the toplines. If one of these brands has your attention, run it through the [$49 FDD analysis example](https://vetmyfranchise.com/c/claude/fdd-analysis-example) before you talk to a franchise salesperson. ## Registration States Vs Filing States In The Midwest Franchise regulation splits the region cleanly in two, and buyers should know which side of the line they are shopping on. Seven Midwest states layer their own franchise statute on top of federal law. Illinois, Minnesota, and North Dakota run full registration programs: the franchisor files its FDD with the Illinois Attorney General’s Franchise Bureau, the Minnesota Department of Commerce, or the North Dakota Securities Department, examiners can push back on the filing, and registration renews annually. Wisconsin requires registration with the Department of Financial Institutions’ Securities Division. Michigan, Indiana, and South Dakota take a lighter approach: Michigan requires a Notice of Intent with the Attorney General but no FDD review, Indiana takes a notice with the Secretary of State, and South Dakota takes the FDD as a filing with its Division of Insurance. You can browse [Illinois](https://vetmyfranchise.com/c/claude/franchises/illinois), [Michigan](https://vetmyfranchise.com/c/claude/franchises/michigan), and [Minnesota](https://vetmyfranchise.com/c/claude/franchises/minnesota) franchise listings to see which brands are registered in each state. The other five states (Ohio, Iowa, Missouri, Kansas, and Nebraska) require no state franchise registration. There, your protection is the federal [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), which requires delivery of a complete FDD at least 14 days before you sign anything or pay any money. You can browse [franchises available in Ohio](https://vetmyfranchise.com/c/claude/franchises/ohio), one of the non-registration states. The practical payoff in a registration or filing state: you can ask the state agency whether a franchisor’s filing is current before you commit, and a brand actively selling without one is a red flag you can catch with a single phone call. Minnesota and Wisconsin also carry relationship statutes that restrict termination without good cause, protections Ohio and Missouri buyers do not get. ## Cost Of Entry: Midwest Metros Vs The Coasts No FDD prints a coastal surcharge, but you can see the geography in the spread between each brand’s low and high Item 7 figures, since real estate, construction, and opening labor drive most of the gap. | Franchise | Item 7 Low (2026 FDD) | Item 7 High | High-to-Low Multiple | | --- | --- | --- | --- | | Great Clips | $187,800 | $419,900 | 2.2x | | Snap-on Tools | $223,439 | $509,283 | 2.3x | | Marco’s Pizza | $286,477 | $811,186 | 2.8x | | Anytime Fitness | $539,329 | $905,482 | 1.7x | | Scooter’s Coffee | $954,650 | $1,523,400 | 1.6x | A Marco’s built in a low-rent Midwest suburb and one built in a high-cost coastal corridor can differ by more than half a million dollars inside the same disclosure document. You do not need a third-party rent index to see the pattern; the brand’s own Item 7 spread is the evidence, and where your build lands in that band is one of the first questions to model. The cheapest entries in the region cluster where taxes and occupancy costs are lightest: South Dakota levies no state personal or corporate income tax, and Ohio, Iowa, Missouri, Kansas, and Nebraska pair low occupancy costs with light regulatory overhead. Browse live listings state by state to compare what actually operates where: [Illinois](https://vetmyfranchise.com/c/claude/franchises/illinois), [Ohio](https://vetmyfranchise.com/c/claude/franchises/ohio), [Michigan](https://vetmyfranchise.com/c/claude/franchises/michigan), [Minnesota](https://vetmyfranchise.com/c/claude/franchises/minnesota), and [Wisconsin](https://vetmyfranchise.com/c/claude/franchises/wisconsin). ## Territory Availability Signals In The FDD Regional buyers have an information edge if they read two FDD items closely. Item 20’s state-by-state unit tables show exactly how many units operate in your state and whether that count grew or shrank over the last three years. A brand with 400 California units and 9 across Ohio and Indiana is telling you where its infrastructure lives; expect thinner field support and negotiate accordingly. Growth in neighboring states usually means distribution, training, and marketing already reach your market. Item 12 defines your protected territory, if any. In lower-density Midwest markets, that clause matters more than in packed coastal metros, because a well-drawn exclusive can cover an entire trade area. Ask whether yours is defined by population, drive time, or map lines, and what happens to it if you underperform. Our guide to [franchise territory analysis](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation) covers the full checklist, including how to pressure-test a franchisor’s “open territory” pitch against its own Item 20 data. ### Find Your Fit, Then Read The FDD Start by matching capital and category with the [free franchise finder](https://vetmyfranchise.com/c/claude/find-my-franchise); it filters the full database by investment level and industry in about two minutes. Once you have a shortlist, get the [$49 FDD analysis example](https://vetmyfranchise.com/c/claude/fdd-analysis-example) to see what a full item-by-item breakdown looks like before you buy one for your target brand. The Midwest gives buyers cheaper entry, home-field validation, and in seven states a regulator who has already seen the FDD you are about to sign. Use all three. ## Brands mentioned in this post - [Two Men and a Truck](https://vetmyfranchise.com/c/claude/franchise/two-men-and-a-truck-spe-llc) - [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) - [Anytime Fitness](https://vetmyfranchise.com/c/claude/franchise/anytime-fitness-franchisor-llc) - [Batteries Plus](https://vetmyfranchise.com/c/claude/franchise/batteries-plus-llc) - [Snap-on Tools](https://vetmyfranchise.com/c/claude/franchise/snap-on-tools-company-llc) - [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) - [Marco’s](https://vetmyfranchise.com/c/claude/franchise/marcos-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) midwest franchisefranchise opportunitiesfranchise registration statesfranchise costsregional franchise guidebest franchises About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the best franchise to open in the Midwest? Great Clips is the strongest all-around pick for most first-time buyers: $187,800 to $419,900 per the 2026 FDD, 4,441 franchised salons, a disclosed Item 19, and a franchisor headquartered in the Twin Cities metro. Food buyers with $300K-$800K should look at Marco's Pizza, and buyers with $3M+ and restaurant experience at Culver's. Match the category to your capital and operating background before comparing brands. ### Which Midwest states are franchise registration states? Seven of the twelve: Illinois, Indiana, Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin all regulate franchise sales under a state franchise law. Illinois, Minnesota, North Dakota, and Wisconsin require FDD registration with a state agency, while Michigan, Indiana, and South Dakota require simpler notice-style filings. Ohio, Iowa, Missouri, Kansas, and Nebraska have no state franchise registration, so only the federal FTC Franchise Rule applies there. ### Are franchises cheaper to open in the Midwest? Usually, yes. FDD Item 7 publishes one nationwide investment range per brand, and that range spans 1.6x to 2.8x from low to high for the Midwest-headquartered systems in our database, driven mostly by real estate, construction, and labor. Midwest builds typically land in the lower half of the band. Marco's Pizza's 2026 range of $286,477 to $811,186 illustrates the point: identical store, very different check size by market. --- title: "Best Pet Boarding & Daycare Franchises 2026: Top 5 Compared" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-27 dateModified: 2026-05-27 keywords: pet-boarding-franchise, dog-daycare-franchise, dogtopia, camp-bow-wow, pet-services canonical: https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises about: pet-boarding-franchise category: blog wordCount: 1705 readingTime: 9 min crawledAt: 2026-08-20 11:05:25 lastVerified: 2026-08-20 11:05:25 site: https://vetmyfranchise.com/c/claude/ --- # Best Pet Boarding & Daycare Franchises 2026: Top 5 Compared ## Summary Best pet boarding and dog daycare franchises in 2026: Dogtopia, Camp Bow Wow, Hounds Town, K9 Resorts, Best Friends Pet Care — investment, AUV, fit. ## Key facts - The pet category looks like one industry from the outside. - These are the U. - Dogtopia is the largest daycare-focused franchise by U. - K9 Resorts positions premium — higher-quality build-out, higher-margin daycare and boarding rates, more sophisticated facility design. - Best Friends Pet Care combines daycare, boarding, and grooming under one roof — more revenue streams, more operational complexity. Quick answer Pet boarding and daycare franchises run roughly $500K-$1.7M total investment. Hounds Town is the cheapest entry at $620K-$1.4M, Dogtopia and Camp Bow Wow both start near $700K, and premium K9 Resorts runs $1.1M-$2.3M+. Expect 6,000-15,000 sq ft of zoned commercial space, 12-25 staff, and 18-30 months to maturity. ## Why This Roundup Is Different From Dog Grooming The pet category looks like one industry from the outside. From an [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) underwriting perspective it’s at least three different businesses: grooming (small footprint, simpler staffing, owner-operator viable), boarding/daycare (large footprint, complex staffing, real estate dominant), and veterinary/medical (highly regulated, professional-licensure required). This post is about the middle one — boarding and daycare. The economics, real estate, staffing, and underwriting are different enough from [dog grooming franchises](https://vetmyfranchise.com/c/claude/blog/best-dog-grooming-franchises) that buyers who blur the categories make expensive mistakes. If you’re looking for a pet-services franchise that you can open in a 2,000 sq ft retail box with 3-5 staff, you want grooming. If you’re looking for a pet-services franchise where you’ll build out an 8,000-15,000 sq ft facility with overnight kennels, soundproofing, and 15-25 staff, you want what this post covers. ## The Five Worth Comparing in 2026 These are the U.S. pet boarding and daycare franchises actively selling units in 2026 with enough scale to evaluate. (Smaller and regional brands exist — they may be excellent — but they don’t have the disclosure history to underwrite confidently.) | Brand | Format | Total Investment | U.S. Locations | | --- | --- | --- | --- | | Dogtopia | Daycare-focused + boarding add-on | $700K – $1.6M | ~200+ | | Camp Bow Wow | Daycare + boarding hybrid | $700K – $1.5M | ~200+ | | K9 Resorts | Premium boarding + daycare | $1.1M – $2.3M+ | ~30+ | | Hounds Town | Boarding + daycare | $620K – $1.4M | ~50+ | | Best Friends Pet Care | Boarding + daycare + grooming | $700K – $1.5M | ~40+ | Investment ranges vary significantly within each brand based on build-out vs conversion, market, and capacity. Pull each brand’s Item 7 for the specific range and Item 19 for the specific performance disclosure. ## Dogtopia — The Daycare-First Scale Play Dogtopia is the largest daycare-focused franchise by U.S. unit count. The model centers on dog-only daycare with boarding as a secondary revenue stream. Footprint runs 6,000-10,000 sq ft typical, with smaller “Express” formats in some markets. **The defensible buyer profile:** - Dense suburban or first-ring suburban markets with high dog ownership - Buyers comfortable with the daycare-membership model (most revenue comes from weekly/monthly enrolled dogs, not drop-ins) - Semi-absentee or owner-operator structures both work - $250-400K liquid down payment, SBA-financeable **Item 19 reality:** Dogtopia’s disclosed Item 19 has historically been one of the more favorable in the category, but verify against the lower quartile, not the average. See [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims) for the methodology. ## [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) — The Hybrid Volume Leader [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) runs a daycare-and-boarding hybrid model with one of the broadest format ranges in the category. Footprint varies $700-$1,500 sq ft per dog of capacity. Real estate is the dominant cost variable. **The defensible buyer profile:** - Markets with both urban daycare demand and surrounding suburban boarding demand - Buyers who want both revenue streams roughly balanced - Owner-operator preferred; semi-absentee viable with strong on-site GM - $300-450K liquid The brand has been around long enough (founded 2000, franchising since 2003) that Item 3 (litigation) and Item 20 (system stability) tell a long story. Read both before signing. ## K9 Resorts — The Premium Tier K9 Resorts positions premium — higher-quality build-out, higher-margin daycare and boarding rates, more sophisticated facility design. Investment range starts above $1.1M and runs to $2.3M+ for flagship builds. **The defensible buyer profile:** - Affluent dense suburban markets where pet-spending is at the high end - Buyers with $400-700K liquid and SBA capacity for the larger total - Operators comfortable with premium service expectations and higher staffing standards - Multi-unit ambition (single-unit premium plays are harder to justify) ## [Hounds Town](https://vetmyfranchise.com/c/claude/franchise/hounds-town-usa-llc) — The Mid-Tier Operator’s Brand [Hounds Town](https://vetmyfranchise.com/c/claude/franchise/hounds-town-usa-llc) has been growing steadily with a boarding-and-daycare model that targets mid-market markets and operators. Lower initial fee and total investment relative to the premium tier, with a more standardized operating model. **The defensible buyer profile:** - Operators in secondary metros and large suburban markets - Buyers with $200-350K liquid - Owner-operators who want operational standardization ## Best Friends Pet Care — The Three-Service Hybrid Best Friends Pet Care combines daycare, boarding, and grooming under one roof — more revenue streams, more operational complexity. Real estate and staffing requirements scale with the broader service mix. **The defensible buyer profile:** - Experienced operators comfortable managing three distinct service lines - Markets with demand depth across all three services - Buyers with $300-500K liquid ## The Real Estate Problem No One Talks About The single biggest variable in pet boarding/daycare unit economics is the real estate decision. Every brand has minimum-criteria requirements: - Zoning that allows commercial kennel use - Sufficient sound buffering (most boarding requires 200+ ft from residential) - HVAC capacity for high-occupancy mammal facilities - Outdoor exercise space (varies by brand and format) - Build-out cost ranging $80-180 per sq ft depending on market and brand The franchisor will give you a site checklist. The buyers who do best in this category bring their own commercial real estate broker into the search early and rule out sites that would force expensive HVAC retrofits or zoning variances. See [franchise real estate lease negotiation](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) for the broader framework — pet boarding deals frequently involve build-to-suit arrangements that need careful lease structuring. > **Want to compare 3 pet franchise FDDs side by side?** A 3-pack analysis pulls the buyer-relevant numbers — investment, Item 19, royalty, territory — for three brands in under 5 minutes per FDD. > > [Compare 3 pet franchise FDDs →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## The Staffing Reality Pet-care wages have risen 20-30% in most U.S. metros since 2021. The FDD’s historical labor disclosure (Item 7 and Item 19) reflects older labor cost structures. When you underwrite, model staff at: - 2026 metro minimum wage plus $2-4/hour for skilled handlers - Full benefit load (workers’ comp on pet-care employees is notably higher than retail) - 40-60% annualized turnover, which is realistic for the category - Multi-week training cost per new hire before they’re productive A 12-staff facility with $18/hour average loaded wages runs roughly $450K-$525K annual payroll. A 20-staff facility runs $750K-$875K. These numbers crowd the AUV ceiling fast if your store doesn’t hit volume. ## The Daycare-vs-Boarding Revenue Split Daycare and boarding behave like different businesses: **Daycare characteristics:** - Predictable, recurring revenue (membership-driven) - Capacity-limited by daytime square footage - Lower-margin per dog but higher utilization - Strong in dense suburban and urban markets **Boarding characteristics:** - Lumpy, holiday-driven revenue - Capacity-limited by overnight kennel count - Higher-margin per dog but lower utilization - Strong in suburban and exurban markets near travel hubs The strongest unit economics blend the two — daycare as base recurring revenue, boarding as holiday/travel upside. Pure-boarding sites in dense urban markets struggle; pure-daycare sites in exurban areas struggle. The franchisor’s site approval should be matched to format viability for that location. ## Who Should Skip Pet Boarding Franchises Entirely This category is not the right fit if you: - Have less than $200K liquid down payment available - Want a home-based or low-overhead business — see [best home-based franchises](https://vetmyfranchise.com/c/claude/blog/best-home-based-franchises) instead - Are looking for a 6-month-to-break-even business (most pet boarding franchises take 18-30 months to mature) - Can’t or won’t do the real estate work - Want pure absentee ownership If any of those apply, look at [dog grooming franchises](https://vetmyfranchise.com/c/claude/blog/best-dog-grooming-franchises) or other lower-overhead pet-adjacent businesses. ## The Bottom Line The five brands above are the actively-franchising pet boarding/daycare options worth comparing in 2026. Dogtopia is the daycare scale leader. [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) is the hybrid model with the longest disclosure history. K9 Resorts is the premium tier. [Hounds Town](https://vetmyfranchise.com/c/claude/franchise/hounds-town-usa-llc) is the mid-market operator-friendly brand. Best Friends Pet Care is the three-service hybrid. Choose between them based on: 1. Your real estate access in your target market 2. Your liquid capital and SBA capacity 3. Your operating profile (owner-operator vs semi-absentee) 4. Your market’s mix of daycare vs boarding demand 5. The specific franchisor’s recent litigation history and franchisee turnover Don’t choose based on the franchisor’s pitch deck. Don’t choose based on which one has the prettiest logo. Pull all five FDDs (or at least three) and run them through actual comparison underwriting. The brand with the lowest investment isn’t always the highest ROI. The brand with the highest AUV isn’t always the right fit for your market. > **The fastest way to compare three pet franchise FDDs?** Get a 3-pack analysis at $99 — pulls the buyer-relevant numbers out of three legal documents in under 5 minutes per brand. > > [Compare 3 pet franchise FDDs →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## Brands mentioned in this post - [Camp Bow Wow](https://vetmyfranchise.com/c/claude/franchise/camp-bow-wow-franchising-inc) - [Hounds Town](https://vetmyfranchise.com/c/claude/franchise/hounds-town-usa-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Psp Franchise Operations [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchise-operations-spv-llc) #### Psp [Learn more →](https://vetmyfranchise.com/c/claude/franchise/psp-franchising-llc) #### Woof Gang Bakery [Learn more →](https://vetmyfranchise.com/c/claude/franchise/woof-gang-bakery-inc) ### Keep reading #### Acai Bowl Franchise Opportunities 2026: Cost & 10 Brands [Learn more →](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) #### Best Auto Repair Franchises, Ranked by What They Actually Disclose [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises) #### Best B2B Service Franchises in 2026: Commercial Cleaning, IT Services, Signage, and Payroll [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-b2b-service-franchises) pet-boarding-franchisedog-daycare-franchisedogtopiacamp-bow-wowpet-services About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What's the difference between pet daycare and pet boarding franchises? Daycare is dog-only daytime care (8am-6pm typically), simpler staffing, smaller footprint (5,000-8,000 sq ft viable). Boarding requires overnight care, overnight staffing, larger footprint (often 8,000-15,000 sq ft), and more complex zoning. Some franchises are daycare-focused with overnight as an add-on (Dogtopia), others are full boarding-and-daycare hybrids (Camp Bow Wow, K9 Resorts, Best Friends). The format choice drives investment, real estate, and staffing. ### How much does a pet boarding franchise cost in 2026? Roughly $500K-$1.7M total initial investment depending on brand and format. Dogtopia runs roughly $700K-$1.6M. Camp Bow Wow runs $700K-$1.5M. K9 Resorts (premium tier) runs $1.1M-$2.3M+. Hounds Town runs $620K-$1.4M. Best Friends Pet Care runs roughly $700K-$1.5M. The dominant cost variables are real estate build-out (especially soundproofing and HVAC) and the size of the boarding capacity. ### Is pet boarding profitable? It can be, but unit economics depend heavily on occupancy rates. Daycare revenue is predictable and recurring (most clients are weekly or monthly members). Boarding revenue is lumpy and holiday-driven — peak weeks can offset slow months but underutilized boarding capacity is dead capital. The strongest operators model daycare as their base revenue and boarding as the upside, not the reverse. ### How many staff does a pet boarding franchise need? Most full-service boarding and daycare franchises need 12-25 staff at full operation. Pet-care wages have risen 20-30% since 2021 in most U.S. metros — current minimum wage plus turnover costs need to be modeled at 2026 rates, not at the FDD's historical disclosure rates. Staffing is the number-one operating constraint most new owners underestimate. ### Can you run a pet daycare franchise semi-absentee? Dogtopia is the most semi-absentee-friendly because its operating model is more standardized. Camp Bow Wow and the others typically expect owner-operator engagement, especially in the first 12-18 months. Pure absentee ownership is rarely successful in this category — the dog-care business is people-and-animal-management-intensive in a way that absentee structures don't handle well. --- title: "Franchise Attorney FDD Review Cost in 2026" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] author: VetMyFranchise Team datePublished: 2026-07-08 canonical: https://vetmyfranchise.com/c/claude/blog/franchise-attorney-fdd-review-cost category: blog wordCount: 1895 readingTime: 9 min crawledAt: 2026-08-20 11:02:19 lastVerified: 2026-08-20 11:02:19 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Attorney FDD Review Cost in 2026 ## Summary A franchise attorney FDD review costs $1,500–$3,000 flat in 2026, or $5,000+ with agreement negotiation. See what a lawyer covers vs. a data report. ## Key facts - An FDD review is a franchise attorney reading the [Franchise Disclosure Document](https://vetmyfranchise. - Most franchise attorneys price a focused review as a flat fee. - Given the choice, take the flat fee. - This is where the attorney fee earns itself — legal judgment that no dataset replaces: - Here’s the flip side — the part most buyers overpay for by routing everything through a lawyer. Quick answer A focused franchise attorney FDD review costs $1,500 to $3,000 as a flat fee in 2026, covering a read of the agreement, a written risk memo, and one debrief call. Adding negotiation pushes it to $3,500-$6,000+, multi-unit deals run $5,000-$10,000+, and hourly work bills at $350-$650. Turnaround is three to seven business days. Two buyers ask the same question — “should I pay a lawyer to look at this?” — and mean two different things. One wants someone to interpret a 200-page contract written to protect the other side; the other wants to know whether the numbers hold up. A franchise attorney is excellent at the first job and an expensive way to do the second. This is a pricing guide, not an argument for skipping legal help. The point is to show what an attorney review costs, what it covers, and where a cheaper, data-first report does the job better — so you spend on the right thing. ## What an FDD review actually is (and the 14-day rule that makes it time-boxed) An FDD review is a franchise attorney reading the [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) — all 23 items plus the exhibits, which include the franchise agreement — and telling you what the terms mean and where the risk sits. It’s your one structured chance to understand a legal offer before it becomes a binding contract. It’s time-boxed by federal law. The FTC Franchise Rule requires the franchisor to hand you the FDD at least 14 calendar days before you sign anything or pay any money. That window is a floor, not a target — [the 14-day rule](https://vetmyfranchise.com/c/claude/blog/the-14-day-fdd-rule-explained) exists so you can’t be steamrolled into a same-week signing, not because two weeks is enough to evaluate a franchise. A good attorney wants the document early so the memo lands with days to spare. A competent review produces a written summary of the terms most likely to hurt you, a read on how your state’s law modifies them, and a call to walk through the list. It does not produce a negotiated agreement — that’s a separate, pricier line item. ## What attorneys charge in 2026: the $1,500–$3,000 flat-fee range, and when it climbs to $5K+ Most franchise attorneys price a focused review as a flat fee. The 2026 range is **$1,500 to $3,000** — reading the FDD, summarizing the risk, and a debrief call — for a single-unit deal with a standard agreement and no unusual complications. The fee climbs when the work expands past reading. Here’s how the tiers stack up: | What you’re buying | Typical 2026 cost | What’s included | | --- | --- | --- | | Focused FDD review | $1,500–$3,000 flat | Read of the agreement + FDD, written risk memo, one debrief call | | Review + negotiation | $3,500–$6,000+ | The above, plus redlining the agreement and back-and-forth with franchisor’s counsel | | Multi-unit / area development | $5,000–$10,000+ | Development-schedule terms, territory carve-outs, multiple entity structures | | Hourly (open-ended) | $350–$650/hr | Billed by the hour with no cap — total depends entirely on scope | The jump from $3,000 to $5,000-plus is almost always negotiation — once the attorney sends redlines and the franchisor’s counsel responds, you’re paying for rounds of correspondence, not a one-time read. Multi-unit and area development deals cost more again, since the development schedule, territory language, and entity structure each add legal surface area. And if a broker steered you to the brand, their commission is baked in too; read how [broker commissions become a hidden cost](https://vetmyfranchise.com/c/claude/blog/franchise-broker-commission-hidden-cost) before assuming the attorney fee is your only outside spend. ## Flat fee vs. hourly — why flat is usually better for buyers Given the choice, take the flat fee. An FDD has no natural stopping point, so hourly billing at $350 to $650 an hour turns a thorough read, a memo, and two calls into eight or ten billable hours before you’ve negotiated a single clause. A flat fee caps your downside: they quoted the job, so finishing it efficiently is their problem, not yours. Hourly only makes sense for genuine negotiation, where the number of rounds is unknowable up front — for a straight review, flat is the buyer-friendly structure, and most franchise attorneys offer it if you ask. Confirm one thing before signing the engagement letter: is this a _franchise_ attorney? A general business lawyer reads the contract competently but misses the franchise-specific patterns — earnings-claim substantiation rules, registration-state quirks, how transfer and renewal clauses interact. Hire someone who reads FDDs for a living; our [guide to hiring a franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) covers what to look for. ## What a lawyer review covers that a data report can’t This is where the attorney fee earns itself — legal judgment that no dataset replaces: - **Agreement negotiation.** The agreement is more negotiable than the franchisor lets on — [transfer fee caps, cure periods, and personal-guarantee scope](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) all move at the table, and knowing which asks are realistic is legal experience. - **Riders and side letters.** Deal-specific riders can override the base agreement and quietly gut a protection you thought you had. Spotting the conflict is exactly what you’re paying for. - **State addenda.** Registration states — California, New York, Minnesota — bolt on addenda that change your rights, from termination “good cause” to disclosure timing. Which one applies depends on where you’ll operate. - **Personal-guarantee scope.** The [personal guarantee](https://vetmyfranchise.com/c/claude/blog/franchise-personal-guarantee-explained) follows you home. How broad is it, does your spouse have to sign, does it survive termination? A lawyer tells you what you’re on the hook for. None of these is a number you can benchmark. They’re judgment calls about enforceable-but-unfair language — the reason “just read it yourself” is bad advice at the signing stage. To prep before the call, [how to read the key clauses in a franchise agreement](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) makes the paid hour go further. ## What a data-driven report covers better Here’s the flip side — the part most buyers overpay for by routing everything through a lawyer. The financial and comparative analysis in an FDD is data work, and a report does it faster and cheaper than an attorney billing by the hour. - **Item 19 benchmarking.** [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) is the earnings claim, and its danger is being technically true but selectively framed — a system average that hides a brutal spread, or a top-quartile figure dressed up as typical. Benchmarking it against comparable brands is analysis, not legal interpretation. - **Item 20 closure math.** The franchisor reports opens and closes, but the [real closure rate](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation) has to be calculated — transfers and “ceased operations” get shuffled between categories in ways that flatter the brand. - **Peer comparison.** How does this brand’s investment, fees, and unit economics stack up against its five closest competitors? That’s a database question, and the fastest way to know whether a deal is average, strong, or a trap with a good pitch. A lawyer _can_ do this, but you’d pay $400 an hour for spreadsheet work — and legal training doesn’t make the benchmark more accurate. A structured report is built to score exactly the [23 items and their red flags](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items). **[See what a data-first FDD analysis costs →](https://vetmyfranchise.com/c/claude/pricing)** ## When you need both — and the order to do them in The two tools answer different questions, which is why serious buyers use both: | What you need | Franchise attorney | Data report | | --- | --- | --- | | Agreement negotiation and redlines | Core strength | No | | Riders, state addenda, personal-guarantee scope | Yes | No | | Item 19 earnings benchmarking | Slow and costly | Core strength | | Item 20 closure-rate math | Slow and costly | Yes | | Peer comparison vs. competitors | No | Yes | | Typical 2026 cost | $1,500–$3,000+ | ~$49 | Order matters. Run the data report first — it’s the cheaper input, and it does two things that make the legal spend more efficient: it tells you whether the deal is even worth a legal review, and it hands the attorney a sharper, shorter list of concerns. Think of it as triage before surgery. The report catches a weak Item 19, a closure rate that doesn’t add up, or fees above the category — signals that might kill the deal before you spend a dollar on legal. If the numbers survive, the attorney spends the expensive hours on contract terms instead of re-deriving figures you already have. Reverse the order and you pay premium rates for number-crunching, often skipping the benchmarking entirely. The one case for going straight to the lawyer: you already know the numbers are strong — an established brand with a clean Item 19 — and your only question is the contract. Even then, the report is cheap insurance against flattering framing. ## How to get the most out of a paid review If you’re spending $1,500 to $3,000 on an attorney, don’t waste the hour. A few moves that stretch the fee: - **Read the FDD yourself first, twice.** The call is worth ten times more when you arrive with specific questions instead of “so, what do you think?” - **Bring your data report.** A one-page summary of the numeric red flags lets the attorney skip the arithmetic and focus on the legal terms and negotiation. - **Ask for the risk memo in writing.** A verbal debrief evaporates; a written summary of the top terms is something you can act on during negotiation. - **Pin down scope in the engagement letter.** Confirm whether negotiation is included or billed separately, so the $2,500 review doesn’t quietly become a $6,000 one. - **Confirm the state addendum.** Ask which state’s addenda apply and what they change. It’s the detail most likely to get skimmed and most likely to matter. Treat a legal review as the last, sharpest step, not the whole process. The contract is what a lawyer is uniquely built for; the numbers underneath it you can handle faster and cheaper first, so the expensive hour goes toward the thing only a lawyer can do. **[See a sample FDD analysis report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example)** Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) franchise attorneyfdd reviewdue diligencefranchise legal costsfranchise agreement About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a franchise attorney cost to review an FDD? A focused franchise attorney FDD review costs $1,500–$3,000 as a flat fee in 2026. That buys a read of the franchise agreement against the disclosure document, a written summary of the riskiest terms, and a short call to walk through them. The number climbs to $5,000 or more once you add active negotiation — redlining the agreement and going back and forth with the franchisor's counsel is billed on top of the base review. ### Is a franchise attorney worth it? For most buyers, yes — but for the negotiation and legal-risk piece, not the number-crunching. A franchise attorney earns the fee by catching a lopsided personal guarantee, a hidden rider, or a state addendum that changes your rights, and by pushing back on terms you'd otherwise sign blind. Where they're less efficient is benchmarking Item 19 earnings claims or recalculating Item 20 closure rates, which a data-driven report does faster and cheaper. ### Can I review an FDD myself without a lawyer? You can read it yourself, and you should — read the whole thing twice before you spend a dollar on anyone. But signing the franchise agreement without a franchise attorney reading it is where buyers get hurt. The document is 200-plus pages of one-sided legal language, and the parts that matter most (personal guarantee, termination, transfer, non-compete) are written to protect the franchisor. Self-review plus a data report plus a targeted attorney read is the cost-efficient stack. ### What's the difference between a franchise attorney review and an FDD analysis report? A franchise attorney review is legal work: it interprets the franchise agreement, flags enforceable-but-unfair terms, checks state addenda, and supports negotiation. An FDD analysis report is data work: it benchmarks the Item 19 earnings claim against peers, recalculates the real Item 20 closure rate, and scores the investment against comparable brands. They answer different questions — 'is this contract fair?' versus 'do the numbers hold up?' — which is why serious buyers use both. ### How long does an FDD review take? A franchise attorney typically turns a focused FDD review around in three to seven business days, longer if negotiation is involved. The FTC's 14-day rule sets the outer clock: you cannot sign or pay for at least 14 calendar days after receiving the FDD, so plan to have the attorney's memo in hand well before that window closes. A data report runs in parallel and usually lands in about five business days. --- title: "Franchise Break-Even Analysis: Calculate It Before You Sign" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-07-10 keywords: franchise break even analysis, how long to break even franchise, franchise fixed vs variable costs, break even point franchise, franchise ramp up period, months to profitability canonical: https://vetmyfranchise.com/c/claude/blog/franchise-break-even-calculation-before-you-sign about: franchise break even analysis category: blog wordCount: 2088 readingTime: 10 min crawledAt: 2026-08-20 11:02:20 lastVerified: 2026-08-20 11:02:20 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Break-Even Analysis: Calculate It Before You Sign ## Summary A step-by-step franchise break-even analysis: fixed costs, contribution margin, the ramp-up gap, and a worked $350K example you can run before you sign. ## Key facts - These three get used interchangeably in franchise sales conversations, and the confusion is expensive. - Fixed costs are the bills that arrive whether you sell anything or not. - Contribution margin is what’s left from each dollar of sales _after_ the variable costs of producing it: food, materials, direct hourly labor, payment processing. - Here’s the part the formula alone won’t tell you: **you don’t open at break-even sales. - Let’s make it concrete. Quick answer A franchise's monthly break-even equals monthly fixed costs divided by contribution margin. A typical $350K service unit carrying $32,000 in monthly fixed costs at a 51% effective margin breaks even near $62,700 in monthly sales, usually 6-18 months after opening, and burns roughly $40K-$90K of runway getting there. Plenty of people can write the check for the franchise fee and the build-out. Far fewer survive the eight or twelve months of losses that come after the doors open. That stretch, the ramp from your first transaction to the month the unit pays for itself, is what break-even analysis measures. Skip it and “I can afford this franchise” quietly becomes “I ran out of cash in month seven.” This is the calculation that separates a deal that _looks_ affordable from one you can actually fund. It’s also the one franchisors are least eager to walk you through, because the honest version often points to a runway number twice the size of their working-capital estimate. ## Break-even vs payback vs ROI (don’t confuse them) These three get used interchangeably in franchise sales conversations, and the confusion is expensive. - **Break-even** is a _monthly_ question. At what level of sales does this unit stop bleeding cash each month? Below it, you’re writing checks to keep the lights on. Above it, the business funds itself. - **Payback** is a _cumulative_ question. How long until total profit returns the money you put in? A unit can hit monthly break-even in month eight and still take three or four years to pay back your initial investment. - **ROI** is a _quality_ question. Once the cash is back, what return does the unit throw off relative to what you sank in? You need all three, but they answer different things. Break-even tells you how much runway you must survive on. Payback and timing are a separate analysis. If you want to compare brands on how fast capital comes back, that’s the lens in our breakdown of [quick-payback franchises with sub-three-year ROI](https://vetmyfranchise.com/c/claude/blog/quick-payback-franchises-2026-sub-3-year-roi). Today’s question is narrower and more urgent: _how long until this thing stops costing me money every month, and how much cash do I burn getting there?_ ## Fixed costs you’ll owe on day one Fixed costs are the bills that arrive whether you sell anything or not. The day you open, several meters start running: - **Rent and CAM:** your single biggest fixed line for most brick-and-mortar concepts. - **Royalty:** pulled from Item 6, usually 5-9% of gross sales for most categories. Royalty is technically variable (it scales with sales), but you owe it from your first dollar, and some agreements carry a _minimum_ royalty regardless of volume, which makes the floor behave like a fixed cost. How heavy that load runs brand by brand is ranked in our [royalty burden index](https://vetmyfranchise.com/c/claude/reports/royalty-burden-index). - **Ad fund / brand fund:** another Item 6 line, commonly 1-4% of sales, sometimes with a local-marketing minimum on top. - **Base labor:** the manager and minimum crew you must staff even on a slow day. - **Insurance:** general liability, property, workers’ comp; a recurring monthly drag buyers routinely forget to model. - **Technology and software fees:** POS, scheduling, the franchisor’s required platforms. - **Debt service:** if you financed, the loan payment is fixed and unforgiving. You’ll assemble these from [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 7 (the line-by-line initial investment, where you separate recurring items from one-time build-out) and Item 6 (recurring fees). Item 7 won’t hand you a tidy monthly fixed-cost figure; you have to pull the recurring lines, add your own lease estimate, and layer in the base staffing you’ll actually run. That work is exactly where buyers underestimate, and it ties directly into why a thin reserve is dangerous. We get specific about that in [why a $50K cushion usually isn’t enough](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve). ## Contribution margin per category Contribution margin is what’s left from each dollar of sales _after_ the variable costs of producing it: food, materials, direct hourly labor, payment processing. It’s the fraction of every sale that goes toward covering your fixed costs. The break-even formula is simple once you have it: **Monthly break-even sales = Monthly fixed costs ÷ Contribution margin** The trap is that contribution margin swings enormously by category: | Category | Typical contribution margin | What eats the rest | | --- | --- | --- | | Home / service-based | 50-65% | Light COGS, mostly direct labor | | Personal services (salon, fitness studio) | 45-60% | Labor, supplies | | Retail / product | 35-50% | Cost of goods sold | | QSR / food | 20-35% | Food cost + direct hourly labor | A food unit with a 25% margin needs _four dollars_ of sales to cover every dollar of fixed cost. A service unit at 60% needs about $1.67. That difference is why a high-revenue food location can be harder to break even than a smaller service business pulling far less top line, and why disclosed top-line figures alone tell you almost nothing about cash survival. (For the deeper line-by-line on where revenue actually goes, see [what a franchise owner actually takes home](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make).) When you reach for category averages, anchor them to the brand’s own Item 19 if it discloses one (Item 19 is the earnings-claim disclosure defined by the [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)), and treat franchisor pro-formas skeptically, since the margin assumptions baked into them are where the optimism hides. ## The ramp-up gap most buyers ignore Here’s the part the formula alone won’t tell you: **you don’t open at break-even sales.** You open well below it. A new unit ramps. The first month might run at 30-50% of mature volume. Month six might reach 70-80%. Many concepts don’t hit steady-state sales until somewhere in year two. Every month you’re below your break-even sales line, the unit loses money, and _you_ fund that loss. The ramp gap is the area between your cost line and your slowly-climbing revenue line before they cross. That cumulative loss is the real runway requirement, and it’s almost always larger than the “additional funds / working capital” figure in Item 7. Franchisors estimate that line conservatively (it makes the total investment look smaller), and it rarely accounts for a slow ramp _plus_ your own living expenses while you draw nothing. For a structured way to size that reserve against your specific situation, work through [how much cash reserve you actually need](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve). This is where buyers get burned: they budget for the build-out and the franchise fee, treat working capital as a rounding error, and discover in month five that the runway tank is near empty while sales are still climbing. **Run your own break-even and ramp numbers before discovery day, not after the deposit clears.** Plug your fixed costs, contribution margin, and a realistic ramp into the [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) and watch where the lines cross. If the crossing point sits past month twelve, your reserve needs to be sized for it. ## Worked example: a $350K service franchise Let’s make it concrete. Assume a service-based franchise with a total Item 7 investment around $350K, financed partly with an SBA loan. **Monthly fixed costs:** | Fixed cost line | Monthly amount | | --- | --- | | Rent + CAM | $7,500 | | Base labor (manager + 2 crew) | $16,000 | | Insurance | $1,500 | | Technology / software fees | $1,200 | | SBA debt service | $4,200 | | Local marketing minimum | $1,600 | | Subtotal fixed | $32,000 | Royalty and ad fund scale with sales, so we fold them into the margin side. Say royalty is 7% and ad fund is 2%, so 9% off the top. If the unit’s pre-royalty contribution margin is 60%, then after the 9% in franchisor fees the _effective_ contribution margin is roughly 51%. **Monthly break-even sales = $32,000 ÷ 0.51 ≈ $62,700/month** (about $752K annualized). Now the ramp. Suppose mature volume is around $90K/month, and the unit ramps like this: | Month | Sales (% of mature) | Sales | Contribution (51%) | Fixed | Monthly cash | | --- | --- | --- | --- | --- | --- | | 1-2 (avg) | 40% | $36,000 | $18,360 | $32,000 | -$13,640 | | 3-4 (avg) | 55% | $49,500 | $25,245 | $32,000 | -$6,755 | | 5-6 (avg) | 68% | $61,200 | $31,212 | $32,000 | -$788 | | 7-8 (avg) | 78% | $70,200 | $35,802 | $32,000 | +$3,802 | The unit crosses monthly break-even around **month seven**, right where sales pass ~$62,700. But add up the losses before then: roughly $13.6K + $13.6K (months 1-2) + $6.8K + $6.8K (months 3-4) + ~$0.8K + ~$0.8K (months 5-6) ≈ **$42K of cumulative operating loss**, before counting a single dollar of owner draw for your own living expenses. Layer in, say, $7K/month of personal expenses across those seven lean months and you’re looking at **$80K-$90K of runway** on top of the $350K build-out and fees. Push the ramp slower (a tougher market, a soft opening), and that figure climbs past $120K-$150K fast. That’s the number that decides whether you make it to month seven. ## How much runway break-even implies The whole exercise collapses to one rule: **your runway must cover every month you’re below break-even, plus your own living costs, plus a buffer for a ramp that runs slower than planned.** To pressure-test a deal before you sign: - **Build the fixed-cost stack** from Item 7 (recurring lines) + Item 6 (royalty, ad fund) + your real lease and labor plan. - **Estimate effective contribution margin** for the category, then subtract the franchisor fee percentages. - **Divide to get monthly break-even sales**, and sanity-check it against the brand’s Item 19 if one exists. If break-even sits near the _median_ unit’s revenue, that’s a warning, not a comfort. - **Lay out a realistic ramp** and total the losses until the lines cross. Don’t forget the opening date isn’t always the day you signed; the build-out and licensing stretch matters too, which we cover in [the timeline from signing to launch](https://vetmyfranchise.com/c/claude/blog/franchise-opening-timeline-signing-to-launch). - **Add living expenses and a 20-30% buffer.** That’s your minimum reserve. Do this honestly and one of two things happens: the deal pencils with room to spare, or you find out _now_, while it’s still a spreadsheet, that the runway is bigger than your bank account. Both outcomes are better than discovering it in month seven. If you’d rather not assemble the FDD math by hand, the **[$49 Tier 2 report](https://vetmyfranchise.com/c/claude/fdd-analysis-example) rebuilds this break-even and ramp analysis for any brand** using its actual Item 6, Item 7, and Item 19 figures from VetMyFranchise’s database of 2,000+ parsed FDDs, so you’re working from disclosed numbers instead of guesses. It’s the most rigorous stress test you can run for $49 before committing six figures. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) franchise break even analysishow long to break even franchisefranchise fixed vs variable costsbreak even point franchisefranchise ramp up periodmonths to profitability About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How long does a franchise take to break even? Most franchises reach monthly break-even somewhere between 6 and 18 months, depending on category and ramp speed. Service and home-based models often cross sooner because fixed costs are lower; brick-and-mortar food units take longer because rent, labor, and a slow opening ramp delay the month where sales finally cover all costs. Treat any franchisor claim under six months as a number to validate with existing franchisees, not accept. ### What's the difference between break-even and payback? Break-even is the monthly sales level where the unit stops losing money; payback is how long until the cumulative profit returns your total upfront investment. A unit can hit monthly break-even in month 8 and still take three to four years to pay back the cash you put in. Both matter, but break-even tells you how much runway you need to survive, while payback tells you whether the deal is worth it. ### How do I find a franchise's fixed costs in the FDD? Start with Item 7, which lists the initial investment line by line, and separate the recurring monthly items (rent, insurance, some technology fees) from the one-time ones. Then add the royalty and ad fund from Item 6, which are usually a percentage of sales. Item 7 won't hand you a clean fixed-cost figure, so you'll combine it with your own lease estimate and labor plan to build the monthly number. ### How much cash do I need until break-even? Enough to cover your full fixed costs plus your personal living expenses for every month you're below break-even, plus a buffer. If a unit burns $30K/month for the first six months before turning positive, that's roughly $180K of operating runway on top of the build-out and franchise fee. Franchisors' working-capital estimates in Item 7 frequently understate this, which is why undercapitalization is a leading cause of early franchise failure. ### Does a higher-revenue franchise break even faster? Not necessarily. A high-revenue food unit with a 25% contribution margin can need far more sales to cover its larger fixed-cost base than a lower-revenue service unit running a 60% margin. Break-even speed is driven by the relationship between fixed costs and contribution margin, not by top-line revenue alone, which is why two units with identical sales can have very different cash-survival profiles. --- title: "Franchise Buying FAQ: 25 Questions Answered (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-24 dateModified: 2026-06-24 keywords: franchise-faq, buying-a-franchise, franchise-basics, fdd, franchise-financing canonical: https://vetmyfranchise.com/c/claude/blog/franchise-buying-faq about: franchise-faq category: blog wordCount: 1558 readingTime: 8 min crawledAt: 2026-08-20 11:02:19 lastVerified: 2026-08-20 11:02:19 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Buying FAQ: 25 Questions Answered (2026) ## Summary A plain-English franchise buying FAQ: costs, SBA loans, the FDD, royalties, failure rates, and how to choose. 25 questions answered for 2026 buyers. ## Key facts - This FAQ covers the fundamentals, but every brand and every buyer is different. - Not sure which franchise fits you yet? Quick answer Total franchise investment runs from under $100,000 to more than $1 million; the franchise fee is only $20,000 to $50,000 of that. Royalties take 4-8% of gross sales and total ongoing fees reach 8-12%. SBA 7(a) loans need 10-20% down and a 680 credit score. Opening takes 6 to 18 months. Buying a franchise comes with a steep learning curve and a lot of jargon that franchisors don’t rush to explain. This FAQ answers the questions first-time buyers actually ask — the ones about money, paperwork, and risk — in plain language. Use it as a map; each answer points to where you can dig deeper. ## Cost and money **What’s the difference between the franchise fee and the total investment?** The franchise fee (usually $20,000–$50,000) is a one-time payment for the right to operate under the brand. The total investment is everything it takes to open — fee plus real estate, build-out, equipment, signage, initial inventory, and working capital — and it’s often 10x to 30x the franchise fee. See [how much it costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise) for the full breakdown. **What are royalties?** Royalties are ongoing payments to the franchisor, typically 4–8% of gross sales, paid for as long as you operate. They fund brand support, systems, and the franchisor’s profit. Crucially, royalties are on _sales_, not profit — you pay them even in a tight month. **Are there other ongoing fees?** Usually yes. Most brands charge a marketing or advertising-fund contribution (often 1–4% of sales) on top of royalties, plus possible technology, software, or local-marketing minimums. Add them up — total ongoing fees commonly reach 8–12% of revenue. **How much working capital do I need?** Enough to cover operating losses until the business turns profitable, often 3–6 months of expenses or more. Underfunding working capital is one of the most common reasons new franchisees fail — the business is fine, but the owner runs out of cash before it ramps. **Are there hidden costs?** Not hidden, exactly, but easy to miss: build-out overruns, training travel, grand-opening marketing, and the working capital above. Item 7 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) lists the estimated ranges; pad the high end. ## Financing **Can I use an SBA loan?** Yes, and many franchise buyers do. SBA 7(a) loans offer longer terms and lower down payments (typically 10–20%). Brands listed on the SBA Franchise Directory get faster processing. Our guide to the [best SBA lenders for franchises](https://vetmyfranchise.com/c/claude/blog/best-franchise-sba-lenders-compared) compares your options. **Can I use my 401(k)?** Yes, through a ROBS (Rollover for Business Startups) arrangement, which lets you invest retirement funds into your franchise without early-withdrawal taxes or penalties. It’s powerful but comes with compliance requirements — set it up with a specialist. **How much down payment do I need?** For an SBA loan, plan on 10–30% of the project cost from your own funds. Lenders want to see you have skin in the game plus reserves. The exact figure depends on the lender, your credit, and the brand’s track record. **What credit score do I need?** Most SBA lenders look for a personal credit score around 680 or higher, though stronger scores get better terms. Lenders also weigh your net worth, liquidity, industry experience, and the brand’s performance — credit is one factor, not the only one. ## The FDD and legal **What’s actually in the FDD?** Twenty-three standardized sections, called Items. The ones that matter most to your wallet: 5 and 6 (fees), 7 (total investment), 12 (territory), 19 (financial performance), 20 (outlet counts, transfers, and closures), and 21 (the franchisor’s financials). **Do I need a franchise attorney?** Strongly recommended. A franchise attorney reads the agreement for traps — renewal terms, transfer restrictions, post-term non-competes, and personal guarantees — that you’ll be bound by for a decade. It’s a few hundred to a couple thousand dollars against a six- or seven-figure commitment. **Can I negotiate the franchise agreement?** Less than you’d hope. Franchisors keep terms uniform across franchisees, so core economics rarely move. But some peripheral terms — development schedules, certain fees, territory specifics — occasionally have room. Don’t count on it; assume the agreement is the deal. **What is a protected territory?** A defined area where the franchisor agrees not to open or license another unit of the same brand. Protection varies widely — some brands grant strong exclusivity, others almost none. Item 12 spells out exactly what you get; weak territory protection is a real risk to your sales. ## Choosing a franchise **How do I pick the right franchise?** Match the brand to your capital, your skills, and your lifestyle — not just to what’s trendy. Start with budget, then narrow by industry fit and owner involvement, then validate with the FDD and existing franchisees. Our [find-my-franchise quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) matches your profile against 2,000+ FDDs. **Should I trust the Item 19 earnings claims?** Read them skeptically. Item 19 is the only place a franchisor can legally state financial performance, but the framing can flatter — a system average hides the gap between top and bottom performers, and some brands report sales without the costs that determine take-home. Verify against franchisee calls. **How many existing franchisees should I call?** As many as you can, and don’t just call the references the franchisor hands you. Use the Item 20 list to reach a random sample, including former franchisees. Ask about real revenue, real costs, franchisor support, and whether they’d buy again. This is the highest-value step in due diligence. **Should I be an owner-operator or semi-absentee?** Be honest about your time and temperament. Owner-operator franchises require you on-site daily and generally cost less; semi-absentee models let you keep a job or run multiple units but demand strong management systems and higher capital. Mismatching this is a common regret. ## Ownership and operations **Can I own multiple units?** In most brands, yes — multi-unit and area-development deals are common and are how many franchisees build real wealth. Some brands ([Chick-fil-A](https://vetmyfranchise.com/c/claude/franchise/chick-fil-a-inc) being the famous exception) restrict you to one. If scaling is your goal, confirm multi-unit rights before signing. **Can I sell my franchise later?** Usually yes, but with conditions. Most agreements let you sell to an approved buyer, often with a transfer fee and the franchisor’s right of first refusal. A profitable franchise with a transferable agreement is a real, sellable asset — one of the biggest advantages of ownership over an operator role. **What support does the franchisor provide?** Typically training, an operations playbook, marketing systems, supplier relationships, and ongoing field support. Quality varies enormously between brands — this is exactly what to probe on validation calls. Strong support is much of what your royalty buys. ## Risk **How often do franchises actually fail?** It depends entirely on the brand. Ignore blanket “95% of franchises succeed” claims — they’re marketing. Look at the specific brand’s closures and transfers in Item 20 over the last three years, and read our [franchise failure-rate analysis](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics) for context on what the data does and doesn’t say. **What are the biggest red flags?** Heavy litigation in Item 3, a spike in closures or transfers in Item 20, weak or missing Item 19 disclosure, high franchisee turnover, and a franchisor that pressures you to sign fast or discourages you from calling existing owners. Any of these warrants a hard pause. Work through a structured [due-diligence checklist](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist) before you commit. ## Still have questions? This FAQ covers the fundamentals, but every brand and every buyer is different. A [VetMyFranchise FDD report](https://vetmyfranchise.com/c/claude/franchises) translates a specific franchise’s disclosure document into a plain-English, buyer-first verdict — the real costs, the obligations, and whether the numbers make sense for you. Or take the [free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) to see which brands fit your budget and goals before you go deeper. ## Brands mentioned in this post - [Chick-fil-A](https://vetmyfranchise.com/c/claude/franchise/chick-fil-a-inc) Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Buying a Franchise After a Career Change: What Corporate Professionals Need to Know [Learn more →](https://vetmyfranchise.com/c/claude/blog/buying-franchise-after-career-change) #### The First-Year Franchise Reality Check: What Actually Happens Month by Month [Learn more →](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-owner-reality-check) #### Franchise Attorney: What to Look For and Why You Need One [Learn more →](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) franchise-faqbuying-a-franchisefranchise-basicsfddfranchise-financing About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does it cost to buy a franchise? Total investment typically ranges from under $100,000 to more than $1 million, depending on the industry and format. The franchise fee itself is usually $20,000–$50,000, but that's a small part of the picture — real estate, build-out, equipment, inventory, and working capital make up most of the cost. Always look at the total investment range in Item 7 of the FDD, not just the franchise fee. ### Do franchises fail often? Franchises fail less often than independent startups on average, but the 'franchises have a 90% success rate' claim is a myth with no solid basis. Real failure rates vary enormously by brand. The best predictor isn't 'franchise vs. independent' — it's the specific brand's Item 20 (closures and transfers) and how well-capitalized and suited the owner is. Vet the brand, not the category. ### Can I get a loan to buy a franchise? Yes. Most established franchises qualify for SBA 7(a) loans, which are popular for franchise financing because of longer terms and lower down payments (often 10–20%). Many buyers also use a ROBS arrangement to invest 401(k) or IRA funds without early-withdrawal penalties, or combine financing sources. Lenders favor franchises on the SBA Franchise Directory, which speeds up approval. ### What is an FDD? The Franchise Disclosure Document (FDD) is a legally required document franchisors must give prospective buyers at least 14 days before signing. It has 23 standardized sections (Items) covering fees, investment, litigation, territory, obligations, financial performance, and a list of current and former franchisees. It is the single most important document in franchise due diligence — read it carefully, ideally with a franchise attorney. ### How long does it take to open a franchise? From signing to opening usually takes 6 to 18 months, depending on the concept. A home-based or mobile franchise can launch in a couple of months; a ground-up restaurant with real estate and construction can take a year or more. Add a few months before that for research, financing, and the discovery process. Plan for the full timeline so you don't run short on working capital. --- title: "F45 vs Orangetheory Franchise Comparison Guide 2026" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-26 dateModified: 2026-07-10 keywords: f45, orangetheory, boutique fitness, franchise comparison canonical: https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise about: f45 category: blog wordCount: 1399 readingTime: 7 min crawledAt: 2026-08-20 11:05:53 lastVerified: 2026-08-20 11:05:53 site: https://vetmyfranchise.com/c/claude/ --- # F45 vs Orangetheory Franchise Comparison Guide 2026 ## Summary F45 vs Orangetheory franchise comparison: investment, royalties, member economics, brand trajectory. ## Key facts - The roughly 2× capital difference between F45 and Orangetheory reflects equipment intensity and build-out complexity. - F45’s programming is varied: different workouts each session, drawing from circuit training, functional fitness, and HIIT methodologies. - F45 went through significant turbulence in 2022–2023: leadership change, public-to-private transition challenges, restructuring of franchise development. - Both brands target premium boutique pricing. - F45 and Orangetheory occupy the same fitness category but offer different operating models and risk profiles. Quick answer F45 is the cheaper, riskier bet: $362,300-$857,700 investment, $60,000 fee, 7% royalty, and $429,222 median studio revenue across 676 studios per the 2026 FDD, but 47 studios closed against 3 openings last year. Orangetheory costs roughly $700K-$1.6M as of 2026 with steadier operations. Stability favors Orangetheory; price favors F45. ## Two Boutique Fitness Models [F45 Training](https://vetmyfranchise.com/c/claude/franchise/f45-training-incorporated) and Orangetheory Fitness both compete for the same boutique-fitness consumer: typically a 25–55 year old willing to pay $130–$200/month for a structured group fitness experience with measurable progress. The brands differ meaningfully in studio format, programming structure, equipment requirements, and recent brand trajectory. This guide breaks down how the two compare for franchise buyers evaluating either in 2026. ## The Side-by-Side Snapshot | Metric | F45 Training | Orangetheory Fitness | | --- | --- | --- | | Concept | Group circuit / functional training | Heart-rate zone training | | Typical square footage | 2,000–3,500 sq ft | 2,500–4,000 sq ft | | Total initial investment | $362,300–$857,700 | $700,000–$1,600,000+ | | Franchise fee | $60,000 | ~$60,000 | | Royalty | 7% | 8% | | Advertising fund | Up to 2% (min $200/month) | 2% | | Typical member dues | $150–$200/month | $130–$200/month | | U.S. franchised studios | 708 | ~1,500+ | | Item 19 median revenue | $429,222 (676 studios) | Not in parsed dataset | | Programming | Varied 45-min circuit classes | Standardized 1-hour HR-zone classes | | Equipment intensity | Moderate (functional + free weights) | High (treadmills + rowers + weights) | (F45 figures come from the 2026 [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) as parsed in VetMyFranchise’s database of 2,000+ FDDs; Orangetheory figures are industry estimates as of 2026, since its FDD isn’t yet in the dataset.) ## Investment Comparison The roughly 2× capital difference between F45 and Orangetheory reflects equipment intensity and build-out complexity. Orangetheory’s treadmills, water rowers, and proprietary heart-rate monitor system require both higher equipment cost and a more substantial build-out (cardio-floor planning, tread layout, water system for rowers). F45’s circuit-style programming uses simpler equipment in a more flexible studio layout. For a buyer with $500K equity, F45 is within reach with SBA financing. Orangetheory typically requires $800K+ equity for a comfortable [SBA loan](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide) structure. ## Programming and Operational Models ### F45 F45’s programming is varied: different workouts each session, drawing from circuit training, functional fitness, and HIIT methodologies. The varied programming creates marketing differentiation but also operational complexity: trainers need to learn multiple workout templates, equipment layouts change frequently, and member experience can vary by trainer and time slot. ### Orangetheory Orangetheory’s programming is standardized: every studio in the system runs the same workout each day, designed by the corporate fitness team. Members can attend any Orangetheory and have the same experience. Trainers follow corporate-designed programming. The standardization is operationally easier and creates predictable member experience. For a franchise buyer, the operational simplicity of Orangetheory’s standardized model translates to faster trainer onboarding and more consistent member retention. F45’s varied programming requires more operator involvement in trainer development. For a standalone deep-dive on Orangetheory’s investment, royalties, and Item 19 numbers, see our [Orangetheory franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/orangetheory-franchise-cost). ## Brand Trajectories ### F45 F45 went through significant turbulence in 2022–2023: leadership change, public-to-private transition challenges, restructuring of franchise development. The brand stabilized under new leadership in 2024 and has refocused on operational support and franchisee profitability, but the system is still shrinking. The 2026 FDD reports just 3 U.S. openings against 47 closures in the most recent year, leaving 708 franchised studios. On the earnings side, the same FDD’s Item 19 shows median studio revenue of $429,222 across 676 reporting units. Franchise buyers should evaluate [F45](https://vetmyfranchise.com/c/claude/franchise/f45-training-incorporated) with awareness of the recent volatility and ask specific questions about current franchisor financial position and support investment. Buyers drawn to F45’s functional-training format sometimes also weigh [FS8](https://vetmyfranchise.com/c/claude/blog/fs8-franchise-cost), a lower-impact studio concept from an F45 co-founder. ### Orangetheory Orangetheory has had its own corporate ownership transitions but has maintained more consistent franchise-system operations through them. The brand’s operating model is more institutionalized and less dependent on specific leadership. For a buyer, Orangetheory’s stability is a feature; F45’s recent turbulence is a risk worth specifically diligencing. ## Member Economics and Retention Both brands target premium boutique pricing. Member retention depends heavily on: - Programming quality and consistency - Trainer quality and tenure - Studio cleanliness and equipment maintenance - Community / culture Orangetheory’s standardized programming gives slight retention advantage from consistency. F45’s varied programming gives slight retention advantage from novelty (members don’t get bored). Net effect is typically similar; boutique fitness retention runs roughly 60–75% annual at well-operated studios. ## Which Brand Fits Which Buyer? | Buyer Profile | Better Fit | | --- | --- | | First-time fitness operator wanting standardized model | Orangetheory | | Buyer with $400K–$850K capital | F45 | | Buyer with $1M+ capital seeking established brand | Orangetheory | | Buyer wanting varied programming for differentiation | F45 | | Buyer prioritizing franchisor stability | Orangetheory | | Buyer with strong fitness operations background | Either, depending on capital | - [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): Total investment by format - [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise): Financial performance representations - [Item 21](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-financial-statements): Franchisor financial statements (especially relevant given F45 history) - [Item 1](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background): Corporate structure and recent ownership changes > **Weighing F45 against Orangetheory?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. Or use our free [side-by-side comparison tool](https://vetmyfranchise.com/c/claude/compare). ## Which Studio Model Should You Buy? F45 and Orangetheory occupy the same fitness category but offer different operating models and risk profiles. F45 offers a lower investment and varied programming with the headwind of recent franchisor turbulence. Orangetheory offers standardized operations and a more stable brand with the headwind of substantially higher capital requirements. The right choice depends on your capital, your tolerance for operational complexity, and your appetite for brand-trajectory risk. Read both FDDs, with extra attention to F45’s recent corporate history (Item 1, Item 21), validate Item 19 with existing franchisees, and run the math on your specific real estate options before committing. The [FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) guarantees you each disclosure document at least 14 days before you sign; use that window. - **[Best Personal Training & Boot Camp Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-personal-training-bootcamp-franchises)**: F45, [9Round](https://vetmyfranchise.com/c/claude/franchise/9round-franchising-llc), Fitness Together, Alloy Personal Training, and [Gold’s Gym](https://vetmyfranchise.com/c/claude/franchise/golds-gym-franchise-llc) compared with brand-stability considerations for 2026. For a category-level overview and side-by-side comparisons, see [Best Fitness Franchises Under $200K (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k). For a women-focused boutique-fitness model that benchmarks against both brands but plays a different demand profile, see [Burn Boot Camp franchise cost 2026](https://vetmyfranchise.com/c/claude/blog/burn-boot-camp-franchise-cost). And if you are weighing the studio path against a big-box access gym, [what a Planet Fitness franchise costs](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) is the benchmark for the opposite end of the capital spectrum. ## Brands mentioned in this post - Alloy Personal Training - [Gold’s Gym](https://vetmyfranchise.com/c/claude/franchise/golds-gym-franchise-llc) - [9Round](https://vetmyfranchise.com/c/claude/franchise/9round-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) f45orangetheoryboutique fitnessfranchise comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the typical F45 franchise investment? F45 Training total initial investment runs $362,300–$857,700 per the 2026 FDD, depending on real estate, build-out, and equipment package. Studio square footage is typically 2,000–3,500 sq ft. Multi-unit development is common. The franchise fee is $60,000. ### What does Orangetheory cost to franchise? Orangetheory total initial investment typically runs $700,000–$1,600,000+ as of 2026, depending on real estate, build-out, and equipment. Studios are typically 2,500–4,000 sq ft and require treadmills, water rowers, weight floor equipment, and the proprietary heart-rate monitor system. The franchise fee is typically $60,000. ### Which boutique-fitness brand has been more financially stable? Orangetheory has been more operationally stable. F45 went through significant turbulence in 2022–2023 including a leadership change, a restructuring, and challenges to its previous public-listing strategy. The brand has stabilized under new leadership but franchise buyers should evaluate F45 with awareness of the recent volatility. Orangetheory has had its own corporate transitions but has maintained more consistent franchise-system operations. ### Is F45 or Orangetheory better for new franchise buyers? Orangetheory's more standardized programming and longer-running franchise system is generally easier for first-time fitness buyers. F45's lower investment is attractive but the brand's recent volatility means buyers should do extra diligence on franchisor financial stability. Both brands attract experienced multi-unit operators more than single-unit first-time buyers. --- title: "FDD Amended Before Signing: The 14-Day Rule Reset Explained" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action category: blog wordCount: 2284 readingTime: 11 min crawledAt: 2026-08-20 11:06:27 lastVerified: 2026-08-20 11:06:27 site: https://vetmyfranchise.com/c/claude/ --- # FDD Amended Before Signing: The 14-Day Rule Reset Explained ## Summary Franchisor sent an amended FDD before you sign? The FTC 14-day cooling-off resets. Here's what buyers must do — redline, attorney review, and the questions to ask before signing. ## Key facts - The FTC Franchise Rule (16 CFR Part 436) requires franchisors to: - The FTC does not publish an exhaustive list, but franchise attorneys and prudent practice converge on a clear set of always-material changes. - The federal 14-day rule is the floor. - When you receive an amended FDD before signing, follow this sequence: - Most amendments are routine. Quick answer The FTC Franchise Rule requires a complete FDD at least 14 calendar days before you sign or pay, and a material amendment resets that clock from the date you receive the new document. Material means any change to Items 5, 6, 7, 19, 20, 21, or new Item 3 litigation. Demand a redline, then wait the full 14 days. ## The Friday Email That Should Never Happen (But Often Does) It’s Wednesday. Your SBA loan is approved. Your franchise attorney has reviewed the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). You’ve completed validation calls. You’re scheduled to sign Friday morning. Then at 4:47 PM Wednesday, your franchise broker emails you a “minor update to the FDD” — typically as an attachment buried under three paragraphs of friendly encouragement — and asks you to confirm receipt so the franchisor can process the final paperwork. Stop. Do not confirm. Do not sign Friday. Do not transfer any money. The 14-day clock just reset, and what happens in the next 72 hours determines whether you walk into the deal informed or trapped. Most franchise buyers I’ve watched go through this don’t know the rule. They sign anyway because the broker pushed and the lender’s commitment letter has a closing deadline and they don’t want to look paranoid. They almost always regret it within 18 months. Here is the rule, the action plan, and the script. ## The Federal 14-Day Rule The FTC Franchise Rule (16 CFR Part 436) requires franchisors to: - Provide the FDD to a prospective franchisee at least 14 calendar days before the franchisee signs any binding agreement or pays any consideration to the franchisor. - Provide a complete and current FDD — meaning the franchisor must update the document annually within 120 days of fiscal year-end and disclose material changes as they arise. The text of the rule treats the 14-day waiting period as a floor — a minimum opportunity for the buyer to review the disclosure before being legally bound. When the disclosure changes materially during the buyer’s review, the underlying logic of the rule (informed consent) requires that the buyer have a fresh 14-day window to review the actual disclosure they’re being bound to. Federal regulators and franchise attorneys generally treat material amendments as triggering a clock reset. ## What’s Material — and What Isn’t The FTC does not publish an exhaustive list, but franchise attorneys and prudent practice converge on a clear set of always-material changes. Any movement in the fee structure counts: a change to Item 5 (initial fees), a change to Item 6 (new ongoing fees, royalty restructuring, marketing fund changes), or an expansion of Item 7’s estimated initial investment range. So does any change to the financial performance representation in Item 19, because that’s the number you underwrote the deal on. Add new litigation in Item 3, material movement in Item 20’s outlet counts and turnover, and updates to the audited financials in Item 21. The most consequential changes often hide in the franchise agreement attached as Exhibit A — territory boundaries, royalty calculation, transfer rights, renewal terms, dispute resolution venue. None of those are “amendments to the FDD” in the conversational sense, but they materially change what you’re signing. Treat them the same way. For deeper reading on each item, see our guides to [Item 5 initial fees](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure), [Item 6 other fees](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees), [Item 7 initial investment](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment), [Item 19 red flags](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data), [Item 3 litigation](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research), [Item 20 closure rates](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation), and [Item 21 audited financials](https://vetmyfranchise.com/c/claude/blog/franchise-audited-financial-statements-item-21). Some changes genuinely aren’t material — typos and clerical corrections, reformatted layouts, updated registration-state cover pages, refreshed officer biographies in Item 2 (unless the CEO actually changed). But the safe default is to treat any change as material until you and your attorney have determined otherwise. The cost of an unnecessary 14-day wait is small. The cost of signing without proper review is the deal itself. ## What State Law Adds The federal 14-day rule is the floor. Several states layer additional requirements: - **New York** — Detailed registration regime, with specific disclosure timing requirements administered by the NY Department of Law. See [our California franchise relationship law guide](https://vetmyfranchise.com/c/claude/blog/california-franchise-relationship-law-buyers-guide) for the parallel California framework concept. - **California** — Registration state with specific timing requirements and additional substantive franchise relationship law (CFRA). - **Maryland** — Registration state with specific filing and amendment timing rules. - **Rhode Island, Hawaii, Virginia, Washington, others** — Various registration and disclosure timing rules. If the franchisor is registered in a state with additional requirements, the longer of the federal or state waiting period applies. Your franchise attorney must confirm the specific state’s rule for your transaction. This is not the place to save legal fees. ## The 72-Hour Action Plan When you receive an amended FDD before signing, follow this sequence: ### Hour 0-1: Stop the close Reply to the broker and franchisor representative in writing (email): “Received the amended FDD on \[date\]. We will not sign or transfer any consideration before the 14-day federal review period expires on \[date + 14 calendar days\]. Please reschedule the closing accordingly.” This single email protects you. It establishes in writing that you understand the rule, that you intend to comply, and that you’re not being pressured into signing during the waiting period. Print and save the email. ### Hour 1-4: Request the redline Reply to the same thread: “Please send a redline comparison showing every change between the original FDD provided on \[date\] and the amended FDD provided on \[date\]. Per the FTC Franchise Rule we need to review the specific changes during the 14-day waiting period.” Most franchisors maintain a redline internally for their own counsel review and can produce it within 24-48 hours. If the franchisor refuses to produce a redline, that refusal is data — and your attorney can produce one independently from the two documents. ### Hour 4-24: Engage your franchise attorney Forward the original FDD, the amended FDD, and the redline (if received) to your franchise attorney. Schedule a same-week review call. If you don’t have a franchise attorney yet, this is the moment to engage one — [what to look for in a franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) covers the selection criteria, and [our franchise attorney guide](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) walks through the engagement. ### Hour 24-48: Identify the substantive change Once you have the redline, work with your attorney to identify exactly what changed and why. The categories matter: - **Investment range expanded upward?** Update your underwriting model. - **New fees in Item 6?** Update your operating-cost projection. - **Item 19 numbers changed?** Re-run the AUV underwriting. - **New litigation in Item 3?** Investigate the nature of the litigation. - **Item 20 closures higher than expected?** Pull the closure list and call closed franchisees. - **Franchise agreement terms changed?** Re-negotiate or re-evaluate. ### Hour 48-72: Decide whether to proceed, renegotiate, or walk After review, you have three rational options: 1. **Proceed at the new 14-day mark** — if the changes are immaterial or favorable, sign as scheduled after the new waiting period expires. 2. **Renegotiate** — if the changes shift the deal materially against you, use this moment as the leverage to negotiate concessions (lower fee, expanded territory, extended ramp-period reporting, etc.). 3. **Walk** — if the changes reveal something that materially undermines your underwriting, withdraw. Your earnest money should be refundable; the lender’s commitment letter can usually be extended; the territory will not actually disappear in two weeks despite what the broker is telling you. > **Don’t sign the amended FDD until a buyer-relevant analysis exists.** A $49 [VetMyFranchise FDD analysis](https://vetmyfranchise.com/c/claude/pricing) pulls the buyer-relevant numbers from the amended FDD into a one-hour read so you can underwrite the new disclosure before the 14-day window closes. ## Why Franchisors Amend Mid-Deal (The Real Reasons) Most amendments are routine. The single most common driver is the annual audit cycle — franchisors must update the FDD annually within 120 days of fiscal year-end, and if your review period overlaps that completion, you’ll often receive an updated document with new Item 19 and Item 21 data. The next most common reasons are new financial performance data being added to Item 19 mid-year, new litigation that must be disclosed under Item 3, or an investment-range expansion driven by rising build-out and equipment costs. Less often, the trigger is regulatory: a state regulator or the FTC required a disclosure change. Occasionally it’s a corporate transaction — change in ownership, parent company shift, or new senior executives. The amendment itself isn’t necessarily a red flag. The franchisor’s behavior around the amendment is. A franchisor who provides the redline, explains the change in writing, and agrees to the 14-day reset is doing it right. A franchisor who minimizes the change, pressures you to sign anyway, or refuses to produce a redline is telling you something about how they will treat you as a franchisee. ## The Pressure Patterns to Watch For The scripts are predictable. “It’s a minor update — the broker says you can sign as scheduled.” No: the 14-day clock resets when the disclosure materially changes, and minor-versus-material is your attorney’s call, not the broker’s. “Your territory will go to another buyer if you wait.” Territory commitments before signing are not legally enforceable in your favor — this is an empty threat. “Your SBA commitment letter expires next week.” Commitment letters can be extended; tell your lender what’s happening and they’ll usually accommodate. Two more lines come up constantly. “Other buyers signed last week with this same amendment” — irrelevant, because their decision is not your due-diligence answer. And “our attorney says the amendment isn’t material” — their attorney works for them, your attorney works for you, and you should listen to yours. Treat the pressure itself as additional data about the franchisor’s character. The discovery phase is when the franchisor is on their best behavior. If they’re pressuring you now, the operating relationship will be worse. ## The Scenario Where Amendments Are Common and Mostly Harmless If you’re receiving an FDD between January and April, you are likely to receive an updated FDD in April or May as the franchisor completes its annual audit cycle. This is a routine, calendar-driven update — not a red flag. The right response is still the 14-day reset and the redline review, but the underlying reason for the amendment is administrative. If you’re aware of this pattern in advance, you can plan for it: either start your review process in the second half of the year (when annual amendments are less likely) or build the calendar slip into your closing timeline. [Our 7-day FDD action plan](https://vetmyfranchise.com/c/claude/blog/received-fdd-7-day-action-plan) covers the first-week review process; [our 30-day FDD review plan](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan) covers the broader 30-day review framework. ## What to Save for Your Records Keep a clean file that contains the original FDD with its receipt timestamp, every amended FDD with the same, and all correspondence about the amendments — especially the broker’s transmittal email, which often contains the soft pressure language that becomes important later. Add the redline comparison, your attorney’s review notes, and your own written confirmation of the 14-day reset. If a dispute arises post-signing about what you were disclosed and when, this file is the contemporaneous record. Franchise disputes years later often hinge on what the buyer knew at the moment of signing. Document everything. ## The Decision Framework When you receive an amended FDD before signing, ask: 1. Do I understand exactly what changed? (Read the redline.) 2. Does the change affect my underwriting? (Re-run the model.) 3. Does the change reveal information I would have wanted before paying any earnest money? 4. Has the franchisor explained the change clearly and in writing? 5. Is the franchisor’s behavior around the amendment consistent with how I want to be treated as a franchisee? If the answers are clear and the change is favorable or neutral, proceed at the new 14-day mark. If the answers are unclear or the change is unfavorable, renegotiate or walk. The 14-day window is yours by law. Use it. > Get a $49 AI-powered [amended FDD analysis](https://vetmyfranchise.com/c/claude/pricing) — the buyer-relevant changes pulled out of the 200+ page legal document so you can decide confidently before the 14-day window closes. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) #### First-Year Franchise Turnover Rates: The Metric That Predicts Everything [Learn more →](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-turnover-rates-by-industry) fdd-amendment14-day-rulefranchise-disclosurefranchise-due-diligenceftc-franchise-rule About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What does the FTC 14-day rule actually require? The FTC Franchise Rule requires the franchisor to give you a complete, current FDD at least 14 calendar days before either signing any binding franchise agreement or paying any consideration to the franchisor (or its affiliate) in connection with the offer or sale. If the franchisor materially amends the FDD during your review period, you generally must wait another 14 calendar days from receipt of the amended FDD before signing or paying. The rule is federal; many registration states impose additional requirements. ### What counts as a 'material' change? There's no exhaustive FTC list, but franchise attorneys generally treat anything affecting Items 5 (initial fees), 6 (other fees), 7 (estimated initial investment), 8 (sourcing requirements), 19 (financial performance representations), 20 (outlet counts and turnover), or 21 (audited financial statements) as material. Changes to Item 3 (litigation) are material when new litigation is disclosed. Changes to territory provisions, royalty structure, or transfer rights in the franchise agreement attachment are material. When in doubt, treat it as material — the cost of a 14-day reset is small relative to signing a contract you haven't properly reviewed. ### What should I do the moment I receive an amended FDD? Three things, in order. First, do not sign anything and do not transfer any money for 14 calendar days from receipt. Second, request a redline showing exactly what changed between the original FDD and the amended version. Third, email your franchise attorney the amended FDD and the redline and schedule a same-week review. The redline is the single most important document — without it, you're being asked to re-read a 200-page document and identify changes yourself, which is unreasonable. ### Why would a franchisor amend the FDD mid-deal? Several legitimate reasons. The most common is an annual audit-cycle update that landed during your review — franchisors must update the FDD annually within 120 days of fiscal year-end. Other reasons include new Item 19 performance data, new litigation that must be disclosed, an investment-range update because build-out costs changed, regulatory action requiring disclosure, or a corporate change like a new CEO or ownership transfer. Most are routine. Some are urgent (litigation, major investment range increase). The franchisor should be willing to explain in writing exactly what changed and why. ### Is franchisor pressure to 'sign quickly anyway' ever appropriate? No. There is no legitimate reason for a franchisor to pressure a buyer to ignore the 14-day reset. If the franchisor's argument is 'the change is minor,' the answer is 'then a 14-day wait won't matter.' If the franchisor's argument is 'we'll lose the territory if you don't sign now,' that is exactly the kind of urgency-pressure tactic the 14-day rule exists to prevent. Any franchisor pushing this hard before signing will push harder during the franchise relationship — treat the pressure itself as data about who you're about to partner with. --- title: "Franchise Net Worth & Liquid Capital Requirements (2026)" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements category: blog wordCount: 1705 readingTime: 9 min crawledAt: 2026-08-20 11:06:40 lastVerified: 2026-08-20 11:06:40 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Net Worth & Liquid Capital Requirements (2026) ## Summary What franchise net worth and liquid capital requirements actually mean, typical thresholds by investment tier, what counts as liquid, and how franchisors verify. ## Key facts - Every franchise application asks for two numbers, and buyers routinely confuse them. - The requirements aren’t gatekeeping for its own sake. - Specific numbers vary brand to brand — always confirm against Item 7 of the [FDD](https://vetmyfranchise. - This is where applications go sideways. - Assume everything gets checked. Quick answer Net worth is total assets minus liabilities; liquid capital is only cash convertible within days, which excludes home equity and untapped HELOCs. Under-$100K franchises typically require $50K-$100K liquid and $150K-$300K net worth; $1M-plus builds require $500K+ liquid and $1M-$2M+ net worth. SBA lenders also want 10-20% of total investment in post-close reserves. ## Net Worth vs. Liquid Capital: The Definitions That Trip People Up Every franchise application asks for two numbers, and buyers routinely confuse them. **Net worth** is everything you own minus everything you owe. Add up your home value, retirement accounts, brokerage accounts, cash, vehicles, and business interests. Subtract your mortgage, car loans, credit cards, and student debt. What’s left is your net worth — a measure of total wealth, including wealth you can’t touch quickly. **Liquid capital** is narrower. It’s only the money you could convert to cash within a few days without borrowing and without penalty: checking and savings balances, money market funds, taxable brokerage holdings, CDs you’re willing to break. That’s the list. It is shorter than most applicants expect. Here’s the profile that gets rejected constantly. A buyer reports $850,000 in net worth: a $550,000 home with $200,000 left on the mortgage ($350K equity), $380,000 in a 401(k), two cars worth $60,000 combined, and $60,000 across checking and savings. Run the liquidity math and the picture changes. Home equity is locked behind a sale or a loan. The 401(k) carries taxes and a 10% penalty if touched before 59½. The cars aren’t getting sold. Actual liquid capital: $60,000. Now put that buyer in front of a franchise with a $400,000 total investment. The franchisor will commonly want $150,000-$200,000 liquid for a build that size. An SBA lender will want a 10-20% equity injection — $40,000 to $80,000 — _plus_ proof of working capital reserves after closing. Sixty thousand dollars doesn’t survive that math. The buyer is wealthy on paper and unfundable in practice, and the rejection letter won’t always explain why. (For fuller definitions, see our glossary entries on [net worth](https://vetmyfranchise.com/c/claude/glossary/net-worth) and [liquid capital](https://vetmyfranchise.com/c/claude/glossary/liquid-capital).) ## Why Franchisors Set These Bars The requirements aren’t gatekeeping for its own sake. Franchisors lose money on failed units — lost royalties, a closed location on the market map, a disgruntled ex-franchisee telling their story to every validation caller for the next five years. Three forces drive the thresholds: **Failure-rate protection.** Undercapitalized owners fail at dramatically higher rates than well-capitalized ones, and the failure mode is predictable: the business is viable, but the owner runs out of cash before it ramps. Franchisors with mature systems have watched this movie enough times to set minimums above where it happens. **SBA lender expectations.** Most franchise purchases between $150K and $1M run through SBA 7(a) loans. Lenders require an equity injection and post-close reserves, so a franchisor that approves buyers the banks won’t fund is just manufacturing dead deals. The liquidity bar usually tracks what lenders actually approve. **Working-capital depletion is the #1 young-unit killer.** Not bad locations, not weak demand — running out of operating cash in months four through eighteen, while revenue is still climbing toward break-even. The liquidity requirement is, bluntly, a forced savings test. Our [working capital guide](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) breaks down how much reserve each business type burns before turning the corner. ## Typical Requirements by Investment Tier Specific numbers vary brand to brand — always confirm against Item 7 of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) and the franchisor’s stated qualifications. But across the 2,000+ FDDs we track, the patterns cluster by total investment: | Investment Tier | Total Investment | Typical Liquid Capital | Typical Net Worth | | --- | --- | --- | --- | | Home-based / mobile service | Under $100K | ~$50K-$100K | ~$150K-$300K | | Mid-tier retail / food / studio | $250K-$500K | ~$100K-$200K | ~$300K-$750K | | Big-box QSR / full fitness build | $1M+ | $500K+ | $1M-$2M+ | Two things to read out of that table. First, liquid capital requirements commonly run 30-50% of total investment at the lower tiers, then settle toward 25-35% on the biggest builds — because lender financing carries more of the load on large projects. Second, net worth requirements typically run two to four times the liquid requirement. Franchisors want to see wealth behind the cash, since a personal guarantee is only as good as the balance sheet backing it. If you’re between tiers, qualify for the tier below the one you want. Stretching to barely clear the minimums leaves you with no margin when the buildout runs over — and buildouts run over. [Take the 2-minute readiness quiz to see which investment tier fits your finances →](https://vetmyfranchise.com/c/claude/franchise-readiness-quiz) ## What Counts as Liquid — and What Doesn’t This is where applications go sideways. The list of what lenders and franchisors actually count is short: cash, checking and savings balances, money market accounts, CDs, and taxable brokerage holdings — stocks, bonds, funds you could sell this week. Retirement accounts sit in an awkward middle. They count toward net worth, but they only count as _liquid_ if you’re committing to a ROBS rollover — the structure that converts 401(k) funds into business capital without early-withdrawal penalties. Our [ROBS 401(k) financing guide](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide) covers the mechanics and the real costs. A HELOC doesn’t make the cut. An untapped credit line is borrowing capacity, not money you have — and buyers who draw it into cash before applying just hand the lender new debt to find on the credit pull. Home equity follows the same logic: it strengthens the net worth side of your application and does nothing for the liquidity side. Gift funds are the one gray area documentation can rescue. Lenders generally accept them with a signed gift letter stating the money isn’t a loan, plus a paper trail showing the transfer. Undocumented deposits appearing two weeks before application invite questions. ## How Franchisors Verify Assume everything gets checked. The standard sequence: a personal financial statement with your initial application, then bank and brokerage statements (usually two to three months of them) before approval, often alongside a soft credit pull. Brands that pre-qualify buyers for SBA financing may run your numbers through a lender’s screen before you ever see a Discovery Day invitation. Then the lender re-verifies independently — tax returns, account statements, sourced-funds documentation for every large deposit. Inflating your numbers isn’t a negotiating tactic; it’s fraud on a document you signed. Franchise agreements routinely list material misrepresentation in the application as grounds for termination, which means a lie told at month zero can void your territory rights at year three. The downside is wildly asymmetric. Don’t. ## Falling Short: The Legitimate Paths If the table above says you’re a tier below your target brand, you have real options that don’t involve creative accounting: 1. **Partner equity.** Bring in a partner — spouse, family member, investor — whose finances combine with yours on the application. Most franchisors evaluate the ownership group’s combined position, though they’ll want the operating partner clearly identified. 2. **ROBS rollover.** That $380K 401(k) from our worked example converts to investable capital through a ROBS structure, instantly transforming the liquidity picture. Setup and compliance costs are real, so read the guide linked above before committing. 3. **Seller-financed resales.** Existing units sold by retiring franchisees often come with seller financing covering 10-30% of the price, shrinking the cash you need at closing — and you’re buying proven revenue instead of a projection. Some buyers combine this with strategies from our guide to [financing with no money down](https://vetmyfranchise.com/c/claude/blog/how-to-finance-franchise-no-money-down). 4. **Start a tier lower.** Plenty of multi-unit QSR owners started with a $90K mobile concept, built cash flow for three years, and traded up. The first franchise doesn’t have to be the forever franchise. ## Overqualifying Matters Too Clearing the minimum isn’t the finish line — it’s the floor. SBA lenders typically want 10-20% of the total investment sitting in reserves _after_ closing. On a $400K project, that’s $40,000-$80,000 you can’t spend on the buildout, the franchise fee, or opening inventory. It exists to cover payroll in month seven when revenue is still 60% of plan. So the honest qualification question isn’t “do I meet the requirement?” It’s “after the equity injection, the deposits, and the soft costs, do I still have a real cushion?” Buyers who can answer yes get funded faster, sleep better through the ramp, and survive the surprises that kill thinner operators. Ready to see which brands actually match your numbers? Use [Find My Franchise](https://vetmyfranchise.com/c/claude/find-my-franchise) to filter 2,000+ franchises by your capital range and surface only the brands where you genuinely qualify. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Automotive Franchise Opportunities: From Oil Changes to Collision Repair [Learn more →](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) #### Beauty and Salon Franchises in 2026: Costs, Revenue, and What the FDDs Show [Learn more →](https://vetmyfranchise.com/c/claude/blog/beauty-salon-franchise-guide) #### Best $1M+ Franchises With Strong Item 19 Data (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/best-1m-plus-franchises-with-strong-item-19) franchise net worth requirementliquid capital requirement franchisefranchise financial qualificationshow much money to buy a franchisefranchise buyer qualification About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is the difference between net worth and liquid capital for a franchise? Net worth is your total assets minus total liabilities, while liquid capital is only the portion you can convert to cash within days without penalty. Home equity, retirement accounts, and vehicles count toward net worth but not liquidity. Franchisors set separate minimums for each because a paper-wealthy buyer can still run out of cash mid-buildout. ### Does my 401(k) count as liquid capital for a franchise? No — not in its current form, because withdrawing it triggers taxes and penalties. Most franchisors will only count retirement funds toward liquidity if you commit to a ROBS (Rollover for Business Startups) structure, which converts the funds into investable capital without early-withdrawal penalties. A few brands count a stated percentage of retirement balances; ask before assuming. ### Does home equity count toward franchise net worth requirements? Yes, home equity counts toward net worth, but it does not count as liquid capital. Your equity is real wealth, which is why it belongs on the net worth side of the application. But you can't pay a contractor with it unless you borrow against it — and a HELOC draw is debt, not liquidity, so most franchisors exclude it from the liquid column. ### How do franchisors verify net worth and liquid capital? Franchisors verify through a personal financial statement at application, followed by recent bank and brokerage statements and usually a soft credit pull before approval. If you finance through an SBA lender, the lender independently re-verifies everything with tax returns and account statements. Misstating figures is fraud and gives the franchisor grounds to terminate your agreement later. ### What if I don't meet the franchise net worth requirement? You have four legitimate paths — bring in a partner whose finances combine with yours on the application, use a ROBS rollover to convert retirement funds into liquidity, buy an existing unit with seller financing, or start with a lower-investment brand and scale up. What you should not do is overstate your numbers, since verification catches most inflation and the rest becomes contract-termination risk. --- title: "Franchise vs Buying a Small Business: 2026 Comparison" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-25 dateModified: 2026-07-11 keywords: franchise vs business, sba financing, business acquisition, franchise vs buying existing business, acquisition vs franchise, buying a business 2026 canonical: https://vetmyfranchise.com/c/claude/blog/franchise-vs-buying-small-business about: franchise vs business category: blog wordCount: 2400 readingTime: 12 min crawledAt: 2026-08-20 11:06:43 lastVerified: 2026-08-20 11:06:43 site: https://vetmyfranchise.com/c/claude/ --- # Franchise vs Buying a Small Business: 2026 Comparison ## Summary Franchise vs buying a business in 2026 — cash flow timing, SBA 7(a) treatment, multiples, exit value, and the hybrid resale play, with real numbers. ## Key facts - Strip the financing and multiples away and the two deals differ at the root. - The first dollar of owner income arrives on completely different schedules. - Both paths run through the same SBA 7(a) program, but the underwriting tracks diverge once the lender hits the eligibility check. - The pricing logic diverges, and most buyers compare them wrong. - The risks are different categories, not different sizes. Quick answer An existing $1.2M-revenue business sells for about 2.5x SDE, roughly $300K to $450K, and pays you from closing day. A new franchise build runs 6-14 months to open and hits breakeven in months 14-24. The hybrid is a franchise resale at 3.0x-3.5x SDE plus a $5K-$25K transfer fee. An existing $1.2M-revenue independent business sells for around 2.5x SDE — call it $300K to $450K depending on margins. A new franchise build-out at the same investment level is a year out from cash flow, sometimes longer. Same money, two completely different timelines, two completely different risk profiles. If you have $200K-$500K in liquid capital and an SBA 7(a) application already in motion, you are standing at a fork most buyers do not consciously evaluate. Brokers push franchises because the commission rewards it. Business brokers push acquisitions because that is what they sell. This guide gives the comparison neither side will — across cash-flow timing, SBA treatment, multiples, risk, exit value, and a hybrid path most buyers miss. ## Buying Earnings Versus Buying the Right to Build Strip the financing and multiples away and the two deals differ at the root. When you buy an existing independent business, you are buying an asset that already produces money: customers in a database, trained staff, a negotiated lease, and a profit-and-loss statement showing what it earns. You inherit all of it on closing day. When you buy a franchise, you are buying the right to build that asset from someone else’s blueprint. The brand, the manuals, the training, and the supply contracts are real and valuable, but on signing day you own zero customers and zero revenue and an obligation to spend the rest of the Item 7 budget turning an empty space into a working unit. That difference shows up again in how alone you are. A franchise comes with rails: a field rep, a marketing engine, negotiated vendor pricing, and a manual for nearly every decision. An established independent business comes with freedom and a blank operating manual. Whatever the prior owner kept in their head walks out the door at closing unless you negotiate a real transition period. There is no brand standard forcing consistency and no parent company to call when something breaks, but there is also no royalty skimming 6-8% off the top and no franchisor approval gate on how you run the place. ## Cash-flow-day-one: who actually wins? The first dollar of owner income arrives on completely different schedules. Buy an existing business: closing day, you take over a payroll, a lease, a customer base, and a P&L. If the business runs at $160K of SDE on $1.2M revenue, you draw that income immediately, minus debt service. A $400K acquisition at 10% down on a 10-year SBA 7(a) carries debt service near $52K/year, leaving roughly $108K of pre-tax cash in year one — if you keep revenue flat and do not break anything. Open a new franchise: closing day, you sign a Franchise Agreement, write a franchise fee check, and start a build-out clock that runs 6-14 months for most categories. During that period you pay rent, deposits, contractors, and yourself zero. Most [Item 19](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) pro formas show breakeven in months 14-24 and meaningful owner income — comparable to that $108K — in years two to four. The math on year-one cash flow is not close. Franchises catch up later through brand power and (sometimes) higher exit multiples — but they do not win the cash-flow race in year one. ## SBA 7(a) treatment: franchise SOP vs. business acquisition Both paths run through the same SBA 7(a) program, but the underwriting tracks diverge once the lender hits the eligibility check. For a franchise, the lender pulls your target brand from the [SBA Franchise Directory](https://www.sba.gov/funding-programs/loans/lender-match/sba-franchise-directory). If the brand is listed and the FA matches the version on file, the SOP 50-10 eligibility step is essentially a checkbox. If the system is not listed, or if the FA has been amended, the lender requests a fresh review and your timeline grows by 30-60 days. We cover this in detail in our [SBA loans franchise financing guide](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide). For a business acquisition, there is no franchise directory step — but there is a quality of earnings review, an independent business valuation (required when the loan exceeds $250K), and a hard look at the seller’s tax returns and add-backs. The lender wants to see three years of clean financials, no commingling, and a defensible SDE calculation. Marginal businesses with messy books get declined or repriced. Default-rate data matters here too. Some franchise categories run materially worse than others — see our breakdown of [SBA franchise default rates by category](https://vetmyfranchise.com/c/claude/blog/sba-franchise-default-rates-by-category) before you assume the brand-name premium protects you. Lenders price risk based on category history, and you should too. One under-appreciated edge for the acquisition path: because the cash flow is already provable, a strong established business can sometimes support more debt with a smaller equity injection than a from-scratch franchise build, where the bank is funding a projection rather than a history. ## Multiples: 2.5x SDE vs. franchise total investment The pricing logic diverges, and most buyers compare them wrong. A small business sells on a multiple of seller’s discretionary earnings — net income plus owner salary, benefits, interest, depreciation, and one-time expenses. For Main Street businesses under $1M of SDE, multiples typically land here: - Service businesses (plumbing, HVAC, landscaping): 2.0x-3.0x SDE - Light manufacturing and B2B distribution: 3.0x-4.5x SDE - Restaurants and food service (independent): 1.5x-2.5x SDE - Professional services with recurring revenue: 3.5x-5.0x SDE A franchise does not sell on a multiple — it sells on total initial investment from [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) of the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document): franchise fee, build-out, equipment, opening inventory, and three to six months of working capital. Item 19 tells you what mature units earn. The implicit multiple — total investment divided by mature-unit SDE — is the only way to put franchise pricing on the same axis as acquisition pricing. Run that math honestly and many franchises price at 4x-7x mature SDE. That is a premium over independent acquisition multiples, and the premium has to be justified by brand, ramp speed, exit multiple, or system support. Sometimes it is. Sometimes it is not. ## Risk profile: known cash flow vs. brand support The risks are different categories, not different sizes. Acquisition risk concentrates in the specific business. The seller could be hiding a key-customer concentration, a departing key employee, a pending lease renegotiation, or an environmental liability. Add-backs may not survive transition. Customer churn after ownership change is the silent killer of business acquisitions, and it shows up in months three to nine. Franchise risk concentrates in the brand and category. The unit P&L might be fine, but the brand could be losing pricing power, the category could be saturating, the franchisor could sell to a PE firm that hikes royalties, or your territory could underperform Item 19 by 30%. You also carry build-out risk: cost overruns, opening delays, and weak ramp curves. Both paths demand independent diligence. For franchises: an FDD analysis scoring the brand against comparables, pulling red flags from Items 3, 7, 19, 20, and 21. For acquisitions: a quality of earnings engagement and a customer-concentration analysis before LOI. [**Get a $49 Research Report before you sign**](https://vetmyfranchise.com/c/claude/franchises) — if you are leaning toward the franchise path, our analysts pull every red flag from the FDD, score the brand against 60+ comparables, and tell you whether the unit economics in Item 19 actually support the total investment in Item 7. ## Exit value 5 years out Most buyers stop thinking too early about exit. A well-run independent business that grew SDE from $160K to $250K typically sells at the same 2.5x SDE multiple — call it $625K. You bought it for $400K, paid down $200K of the SBA note, and walk with $625K minus remaining debt and broker fees. Net to seller on a five-year hold often lands in the $400K-$500K range. Strong return, but the multiple did not expand. A franchise unit hitting Item 19 numbers and generating $200K of SDE typically sells at 3.0x-3.5x SDE — sometimes higher in branded fitness, automotive, or service categories with strong AUV stories. Call it $650K-$700K. [Multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) operators pay premiums for clean, system-compliant units in protected territories. Independent acquisitions usually win years one through three on cash flow; franchises usually win on exit if the brand is healthy. Ten-year hold favors franchise math. Three-to-five-year hold favors acquisition. ## The hybrid play: buying an existing franchise unit (resale) The third path most buyers ignore is the franchise resale — buying a 5-to-15-year-old franchise unit from an existing owner who is retiring, relocating, or rotating capital. You get day-one cash flow (acquisition advantage), brand support and SBA pre-approval (franchise advantage), and a known unit-level P&L instead of an Item 19 average (best of both). Pricing usually lands at 3.0x-3.5x SDE for a healthy unit, plus a transfer fee paid to the franchisor (typically $5K-$25K) and franchisor approval of you as the buyer. The catch is supply. Healthy resales rarely hit BizBuySell — franchisors have internal lists, area developers have right of first refusal, and existing multi-unit operators see listings first. To compete, contact the franchise development team directly and ask to join the resale watchlist for your geography. Our [guide to buying an existing franchise resale](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide) walks through the diligence checklist and transfer process. This is the path we recommend most often to buyers with $300K-$500K who want both cash flow and brand. It is not always available, but when it is, the math usually beats both new build-out and independent acquisition. ## Side-by-side framework with real numbers Numbers reflect a $400K total deal size across all three paths. | Dimension | New Franchise Build | Independent Acquisition | Franchise Resale | | --- | --- | --- | --- | | Total capital required | $300K-$500K (Item 7) | $300K-$450K (2.5x SDE) | $400K-$550K (3.0x-3.5x SDE) | | Cash flow month 1 | Negative (build-out) | $8K-$12K SDE | $10K-$15K SDE | | Months to breakeven | 14-24 | 1 (already there) | 1 (already there) | | SBA 7(a) timeline | 60-90 days (faster if pre-listed) | 60-120 days (QofE adds time) | 60-90 days | | Diligence cost | $49-$2,500 (FDD analysis + attorney) | $5K-$15K (QofE + valuation + attorney) | $49-$2,500 (FDD + unit P&L review) | | Brand and training | Yes — full system | None (build your own ops) | Yes — full system + existing playbooks | | Year-1 owner income | $0-$30K | $80K-$130K | $90K-$140K | | Exit multiple (year 5) | 3.0x-3.5x SDE | 2.0x-3.0x SDE | 3.0x-3.5x SDE | | Risk concentration | Brand + category + ramp | Specific business + transition | Specific unit + brand health | A few honest patterns from running this comparison hundreds of times: If your priority is replacing a W-2 income immediately, acquisition or franchise resale wins. New franchise builds put your household on a 12-24 month income freeze and that breaks more deals than buyers expect. When the priority is building a multi-unit empire over ten years, new franchise development with area development rights often wins because you can lock territory at today’s prices and scale into it. For the lowest-risk path to ownership, the franchise resale wins on most dimensions — known unit P&L, brand support, faster SBA, lower diligence cost, and tighter exit multiple. The trade-off is supply. For more on the underlying franchise-vs-independent question without the acquisition lens, our companion piece on [franchise vs independent business](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business) digs into the brand-versus-autonomy decision. ## Making the call Three questions usually settle it for buyers we talk to: **1\. How fast do you need owner income?** If the answer is “month one,” your shortlist is acquisition or resale, not new build. **2\. How much category expertise do you have?** If you can run a service business without a playbook, independent acquisition unlocks better multiples. If you need the system, franchise wins. **3\. What is your hold period?** Short hold (3-5 years) favors acquisition cash flow. Long hold (7-10+ years) favors franchise multiple expansion. Run those three honestly and the path usually picks itself. The mistake most buyers make is committing to “I want a franchise” or “I want a business” before pricing both paths against the same capital. Price them both. Pull the FDD on the franchise, pull the QofE on the acquisition, and let the math decide. [**Compare franchise opportunities side-by-side on /compare**](https://vetmyfranchise.com/c/claude/compare) — if you are leaning toward the franchise path, run your shortlist through our free comparison tool to see Item 19 ranges, total investment, royalty structure, and SBA listing status for 2,000+ brands before you commit to any single FDD. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) franchise vs businesssba financingbusiness acquisitionfranchise vs buying existing businessacquisition vs franchisebuying a business 2026 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is it cheaper to buy a franchise or an existing business? On a per-dollar-of-cash-flow basis, an existing independent business is almost always cheaper. A profitable Main Street business sells for roughly 2.5x SDE, so $400K of capital buys around $160K of seller's discretionary earnings on day one. The same $400K invested in a new franchise build-out typically buys zero SDE in year one and partial SDE in year two while the unit ramps. The franchise can catch up by year three to five, but only if the brand performs at unit economics shown in Item 19. ### Which gets approved for SBA faster — a franchise or a business acquisition? A franchise listed on the SBA Franchise Directory typically clears the franchise eligibility step in days, not weeks, because the SBA has already reviewed the franchise agreement against SOP 50-10 standards. A business acquisition can move faster overall in some cases because there is no franchise review at all, but it requires a quality of earnings review, business valuation, and seller-financing structure that adds its own timeline. Total time to fund is usually 60-90 days for either path, with franchise edging out when the brand is pre-approved. ### What is the failure rate of acquired businesses versus new franchise units? SBA 7(a) data shows business acquisition loans default at roughly 8-12% over ten years, with significant variance by industry. New franchise unit loans show similar overall default rates but heavy concentration in specific brands and categories — some franchise systems run 20%+ defaults while others sit under 3%. The acquired-business risk is more about the specific business; the franchise risk is more about the specific brand. Both demand category-level diligence before signing. ### Can you buy an existing franchise unit instead of opening a new one? Yes — and for many buyers it is the strongest play available. An existing franchise resale gives you day-one cash flow plus brand support, training, and SBA pre-approval. Pricing usually lands between an independent business and a new franchise build: roughly 3.0x-3.5x SDE for a healthy unit. The catch is supply — good resales sell quickly through brand-internal lists, often before they hit BizBuySell. ### Is it better to buy a franchise or an existing business? Neither is universally better; it depends on whether you value day-one cash flow or a proven system. An existing independent business pays you from closing day but hands you no playbook and no brand recognition. A franchise gives you operations, training, and a known name, but you fund the full build-out and grind through a 12-24 month ramp before the unit pays you a real wage. ### How do I value an existing business before buying it? Start with seller's discretionary earnings (SDE): net profit with the owner's salary, perks, interest, depreciation, and one-time costs added back. Apply a category multiple, typically 2-4x SDE for small Main Street businesses, then verify the SDE against filed tax returns and bank statements. Anything you cannot tie to a filed return is a number you should not pay for. --- title: "Dunkin' Item 19 2026: $1.3M Median Across 7,010 Units Explained" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-01 dateModified: 2026-06-01 keywords: dunkin donuts, item 19, coffee franchise, qsr franchise, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/dunkin-item-19-deep-dive about: dunkin donuts category: blog wordCount: 1434 readingTime: 7 min crawledAt: 2026-08-20 11:06:40 lastVerified: 2026-08-20 11:06:40 site: https://vetmyfranchise.com/c/claude/ --- # Dunkin' Item 19 2026: $1.3M Median Across 7,010 Units Explained ## Summary Dunkin' Donuts Item 19: 7,010 franchised units, $1.3M median, P25 $952K, P75 $1.7M. The 1.8× quartile spread, what it tells you about coffee franchise economics, and how to evaluate new builds. ## Key facts - Most Item 19 disclosures cover 50 to 500 units. - A few interpretations worth pulling out. - Across the 2,000+ FDDs in our database, large systems often show wider quartile spreads than smaller systems. - A new Dunkin’ unit doesn’t open at the median. - The publicly franchised coffee category: Quick answer Dunkin's Item 19 reports a $1,297,000 median annual gross sales across 7,010 franchised units, one of the largest disclosed samples in franchising. P25 is $952,000 and P75 is $1,703,000, a moderate 1.8× quartile spread. Year-one new builds run 70-80% of the P25, or $670K to $760K, ramping over 24-30 months. ## The Sample Size Is the Headline Most Item 19 disclosures cover 50 to 500 units. A franchisor disclosing on 1,000+ units is rare. A disclosure covering 7,010 franchised units is essentially unprecedented in modern franchise reporting. That sample size matters because it eliminates most of the methodological tricks that distort Item 19 figures in smaller systems. Survivorship bias becomes negligible at this scale — closed units don’t materially shift the median when 7,000+ operating units are in the denominator. Top-quartile distortion is mathematically constrained — pulling the median up by selecting only top performers requires moving thousands of underperformers out of the calculation, which would be visible. Cohort effects average out — newer and older units, growth markets and mature markets, all contribute to the central tendency. When Dunkin’ reports a $1.3M median across 7,010 franchised units, the number is structurally hard to manipulate. The brand can choose how to present the distribution, but the underlying central tendency is what the operating system produces. ## The Numbers | Metric | Value | | --- | --- | | Sample size | 7,010 franchised units | | Median annual gross sales | $1,297,000 | | P25 (bottom quartile) | $952,000 | | P75 (top quartile) | $1,703,000 | | P75 to P25 spread | 1.8× | | Total system units | 8,465 | | Franchised units in disclosure | 7,010 (83% of total system) | A few interpretations worth pulling out. The 1.8× quartile spread is moderate — narrower than typical QSR (often 2-3×) but wider than category-tightest brands like [Freddy’s](https://vetmyfranchise.com/c/claude/franchise/freddys-llc) at 1.5×. The narrower spread at Dunkin’ compared to typical QSR reflects the brand’s operational maturity: standardized menu execution, tight site selection criteria, and decades of operating-system refinement compress operator-driven variance. The P25 at $952K is meaningful. In most franchise systems, the bottom quartile is where uncomfortable operators live — near break-even, low free cash flow. At Dunkin’, the bottom quartile generates nearly $1M of annual revenue. At Dunkin’s royalty structure and operating cost profile, that’s a profitable unit, not a marginal one. The system’s bottom quartile is a healthier operating reality than most franchise categories’ median. ## Why the Spread Is Tight for a System This Large Across the 2,000+ FDDs in our database, large systems often show wider quartile spreads than smaller systems. The reasoning is intuitive: more units means more geographic variance, more operator diversity, more market conditions, all contributing to a wider distribution. A 7,010-unit system should arithmetically produce a wider spread than a 500-unit system. Dunkin’s spread is narrower. The reasons are structural: **Tight site selection.** Dunkin’ has been operating its real estate playbook for decades. The franchisor’s site criteria are demanding, and the system has refined its understanding of which trade-area characteristics produce reliable revenue. New locations approved by Dunkin’s real estate team are in broadly similar trade-area quality, which compresses the location-driven variance. **Operational standardization.** Coffee-and-donut operations are highly standardized — recipes, equipment, menu mix, and service protocols are tightly controlled. Operator skill variance has less impact on revenue than in less-standardized categories. **Multi-unit operator concentration.** A significant share of Dunkin’s franchised units are owned by multi-unit operators with 10+ stores. Multi-unit operators bring operational discipline, capital reserves, and management infrastructure that single-unit first-timers often lack. The system’s operator-skill distribution is tighter than newer systems with more first-time operators. **Brand maturity.** Dunkin’ has been a franchised system for 70+ years. The brand awareness in core markets is essentially fully built — new units in core markets benefit from existing awareness rather than building it from scratch. The combination of these factors produces a quartile spread that’s narrower than the system size would predict, which is the brand’s actual story. Dunkin’ is a mature, operationally tight franchise system where the brand and the model carry most of the revenue. ## What the Numbers Mean for New Operators A new Dunkin’ unit doesn’t open at the median. Year-one new-build revenue typically runs 70-80% of the P25 — $670K to $760K — depending on market and prior brand awareness. The ramp curve to the P25 is 12-18 months. Reaching the median requires another 12-18 months after that. A defensible underwriting model: - Year 1: $670K-$760K (below P25, building customer base) - Year 2: $850K-$1.0M (approaching or at P25, operations tuned) - Year 3: $1.0M-$1.3M (at or approaching median) - Year 4+: $1.2M-$1.5M (steady-state, depending on market position) A new operator who underwrites to the $1.3M median in year one is being shown a chart that ignores ramp dynamics. A new operator who underwrites to $700K of year-one revenue and ramps toward the median over 24-30 months is operating from realistic expectations. The Item 19 disclosure describes mature operating reality; year one always sits below the disclosure. The working capital implication is meaningful. Year-one revenue of ~$700K against typical Dunkin’ cost structure (food, labor, rent, royalty, ad fund) produces tight operating margins. New operators need working capital reserves to bridge the ramp — see our [franchise working capital math](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) for the bottom-up calculation. ## How Dunkin’ Compares to Other Coffee Brands The publicly franchised coffee category: | Brand | Sample | Median AUV | Investment | | --- | --- | --- | --- | | Dunkin’ | 7,010 | $1.30M | varies by format | | Tim Hortons (US) | smaller | ~$1.0M-$1.3M | $1M-$2M | | Scooter’s Coffee | growing | ~$900K-$1.1M | $700K-$1.3M | | Dutch Bros | not franchised | n/a | n/a | | Starbucks | not franchised | n/a | n/a | | Caribou Coffee | mixed model | n/a public | n/a | Dunkin’ leads the publicly franchised coffee category on both sample size and AUV. [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) and Tim Hortons are competitive at lower AUVs and varying investment profiles. Dutch Bros and Starbucks operate company-store models that don’t compare directly. For buyers focused on franchised coffee, Dunkin’ is the established category leader by every meaningful Item 19 metric. For category context, see our [Dunkin’ vs Tim Hortons comparison](https://vetmyfranchise.com/c/claude/blog/dunkin-vs-tim-hortons-franchise) and our [Dunkin’ vs Scooter’s Coffee comparison](https://vetmyfranchise.com/c/claude/compare/dunkin-donuts-franchising-llc-vs-scooters-coffee-llc). ## What This Means for Buyers - **The disclosure is the strongest signal you’ll find.** A 7,010-unit sample is essentially unprecedented in franchise reporting. The median is genuinely representative of the operating system. - **The P25 at $952K is a meaningful baseline.** Underwriting to the bottom quartile produces a more defensible model than underwriting to the median. Dunkin’s P25 is a healthy operating reality, not a marginal one. - **Year-one revenue will be materially below the P25.** Plan for $700K of year-one revenue and ramp over 24-30 months. The Item 19 numbers describe steady-state, not opening-year. - **Multi-unit operators dominate the development pipeline.** Single-unit territory in attractive markets is constrained; the brand’s development strategy favors operators with multi-unit capacity. - **Brand awareness is the year-one tailwind.** Opening in markets with existing Dunkin’ density ramps faster than opening in new markets where customer awareness has to be built from scratch. For broader Item 19 methodology, see [how to verify Item 19 earnings claims](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims). For brands with less defensible disclosures, [Item 19 trap brands 2026](https://vetmyfranchise.com/c/claude/blog/item-19-trap-brands-2026-when-average-lies) covers the methodological tells. ## Brands mentioned in this post - [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) dunkin donutsitem 19coffee franchiseqsr franchisefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Dunkin's Item 19 median revenue? Dunkin' Donuts' most recent Item 19 reports a $1,297,000 median annual gross sales across 7,010 franchised units. This is one of the largest sample sizes ever disclosed in franchise Item 19 reporting. ### What's the Dunkin' Item 19 quartile spread? P25 is $952,000 and P75 is $1,703,000 — a 1.8× ratio from bottom to top of the middle half. This is moderate for QSR, reflecting Dunkin's mature operating system, broad geographic distribution, and tight operational standards. ### How can Dunkin' have 8,465 system units but only 7,010 in Item 19? The 7,010 figure represents franchised units that met the disclosure's inclusion criteria for the reporting period. The 8,465 total system count includes some company-operated units, units that opened mid-year, and units undergoing transitions. Item 19 typically reports the cleanest possible operating set, and the 7,010 figure is still extraordinarily large by any franchise-disclosure standard. ### Is Dunkin's $1.3M median a reliable target for new operators? The median is reliable as a description of mature franchised units. New Dunkin' units typically reach steady-state revenue over 18-24 months, with year-one revenue running 70-80% of the P25 ($670K-$760K). Underwriting a new build at the median is optimistic; underwriting at the P25 with a ramp curve is the conservative baseline. ### How does Dunkin' compare to Starbucks economics? Starbucks is overwhelmingly company-operated (less than 1% franchised), so a direct AUV comparison isn't meaningful — Starbucks' published unit economics describe company stores, not franchised stores. Dunkin's $1.3M median reflects franchised operating reality. Among publicly franchised coffee brands, Dunkin's AUV leads the category, with Scooter's Coffee and Tim Hortons running materially lower. ## Content not visible to non-JS crawlers - $1.70 --- title: "Great Clips Item 19 2026: $382K Median Across 4,147 Salons" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-02 dateModified: 2026-06-02 keywords: great clips, item 19, hair franchise, franchise revenue, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/great-clips-item-19-deep-dive about: great clips category: blog wordCount: 1216 readingTime: 6 min crawledAt: 2026-08-20 11:07:54 lastVerified: 2026-08-20 11:07:54 site: https://vetmyfranchise.com/c/claude/ --- # Great Clips Item 19 2026: $382K Median Across 4,147 Salons ## Summary Great Clips Item 19: $382K median across 4,147 franchised salons in fiscal 2024. Why the modest median produces strong unit economics, year-one ramp, and how it compares to Sport Clips and Supercuts. ## Key facts - The “eligible to be open during entire 2024” criteria is a soft tenure filter — it includes salons that existed throughout 2024 (most of the system) while excluding units that opened mid-year. - Buyers coming from QSR research instinctively look at AUV numbers in QSR context. - Great Clips and [Sport Clips](https://vetmyfranchise. - A new Great Clips salon in year one typically generates 70-80% of system median — $270K-$305K. - For brand-specific cost detail, see the live [Great Clips franchise page](https://vetmyfranchise. Quick answer Great Clips reports a $382,316 median annual gross sales across 4,147 franchised salons in fiscal 2024. Item 7 puts total investment at $187,800 to $419,900 with a $20,000-$25,000 franchise fee and 6% royalty on biweekly gross sales. New salons run 70-80% of median in year one. ## The Disclosure | Metric | Value | | --- | --- | | Sample size | 4,147 franchised salons | | Sample criteria | All franchised units eligible to be open during entire 2024 period | | Reporting period | Fiscal year 2024 | | Median annual gross sales | $382,316 | | Total system units | 4,439 | | Total investment (Item 7) | $187,800 - $419,900 | | Royalty rate | 6% of biweekly gross sales | The “eligible to be open during entire 2024” criteria is a soft tenure filter — it includes salons that existed throughout 2024 (most of the system) while excluding units that opened mid-year. That methodology produces a representative central tendency without inflating the median by stripping out ramp-stage units. The 4,147-salon sample is among the largest hair-services Item 19 disclosures available. The royalty structure is unusual: 6% on biweekly gross sales rather than monthly or annual basis. The biweekly basis aligns with the operating rhythm of a hair salon and the franchisor’s reporting infrastructure. For buyers, the practical effect is the same as a 6% monthly royalty — the structure is administrative. ## Why $382K Is Not a “Small” Number Buyers coming from QSR research instinctively look at AUV numbers in QSR context. A $382K QSR would be a money-losing unit. A $382K [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) is a healthy operating business. The category economics are fundamentally different. | Cost category | QSR | Hair services (Great Clips) | | --- | --- | --- | | Cost of goods | 28-32% | <5% (shampoo, color, supplies) | | Labor cost | 25-30% | 40-50% (stylist commission/wages) | | Rent | 6-9% | 7-10% | | Other operating | 8-12% | 5-8% | | Operating margin | 12-18% mature | 15-25% mature | The cost structures look superficially similar but the absolute dollar amounts at $382K of revenue produce a survivable, profitable business in hair services that wouldn’t work in QSR. A mature [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) salon at $382K typically produces $60K-$95K of operating cash flow before debt service and owner draw. For a multi-unit operator running 5 salons at the median, that’s $300K-$475K of system-level operating cash flow against $1M-$1.5M of total invested capital. The model favors operators who can scale to multiple units — the math works at scale where management overhead is amortized. ## Multi-Unit Dominance [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc)’ franchise base is overwhelmingly multi-unit. The franchise system has favored multi-unit operators for over two decades, and most attractive territories are now owned by operators with 5-15+ salons. New single-unit applications face structural friction. The reasons: **Operating efficiency at scale.** A single salon needs the same minimum management attention as a five-salon group. Multi-unit operators amortize management costs and produce better unit-level margins than single-unit owners. **Capital efficiency.** Single-unit Great Clips investments are $200K-$400K — too small to support full-time management overhead but large enough to require operator attention. Five salons at $1M-$2M total investment is a more workable equity-deployment profile for the typical buyer. **Brand development priorities.** The franchisor’s development team allocates time and territory toward operators committing to multi-unit growth. Single-unit candidates are typically directed toward less-attractive territories or required to commit to development agreements. For buyers, the implication is straightforward: Great Clips works as a multi-unit play, not a single-unit play. If your capital base and operating bandwidth supports 3-5+ salons under management, the brand is investable. If you’re a single-unit first-time buyer, the deal economics will be thin and the territory options will be limited. ## How Great Clips Compares to Hair-Services Peers | Brand | Sample | Median AUV | Investment | AUV/Investment | | --- | --- | --- | --- | --- | | Great Clips | 4,147 | $382K | $188K-$420K | 1.0× | | Sport Clips | 1,669 (mature) | $409K | $289K-$475K | 1.0× | | Supercuts | varies | $300K-$400K | $150K-$350K | 1.5× | | Fantastic Sams | smaller | $250K-$350K | $130K-$300K | 1.5× | | SmartStyle | n/a public Item 19 | n/a | varies | n/a | Great Clips and [Sport Clips](https://vetmyfranchise.com/c/claude/franchise/sport-clips-inc) lead the category by absolute sample size and AUV. Smaller-investment brands ([Supercuts](https://vetmyfranchise.com/c/claude/franchise/supercuts-inc), [Fantastic Sams](https://vetmyfranchise.com/c/claude/franchise/fantastic-sams-franchise-corporation)) produce slightly stronger AUV-to-investment ratios but at lower absolute revenue. The category overall produces reasonable franchise economics — none of the brands run the dazzling ratios of senior care (10×) or service businesses, but all produce viable unit economics for disciplined operators. For broader category context, see our [best hair salon barbershop franchises](https://vetmyfranchise.com/c/claude/blog/best-hair-salon-barbershop-franchises) roundup. ## Year-One Ramp A new Great Clips salon in year one typically generates 70-80% of system median — $270K-$305K. Month-by-month: - Months 1-3: $20K-$28K monthly revenue - Months 4-6: $22K-$30K monthly revenue - Months 7-9: $24K-$32K monthly revenue - Months 10-12: $25K-$35K monthly revenue - Annualized year-one: $270K-$330K Year two typically lands at $320K-$370K as clientele builds. Year three approaches or exceeds the median. The ramp is faster than membership-driven businesses but slower than QSR — clientele building in hair services depends on repeat customer development, which takes time. ## What This Means for Buyers - **The Item 19 is methodologically clean.** Large sample, soft tenure filter, full fiscal year. The $382K median is a defensible operating baseline. - **Category context matters.** Don’t compare absolute AUV to QSR. Hair-services economics work at this revenue level; QSR doesn’t. - **Multi-unit is the realistic path.** Single-unit deals work but face structural friction. Plan for 3-5+ salon development to capture the model’s scale benefits. - **Year one will be 70-80% of median.** Plan accordingly. - **The brand is mature.** Territory is constrained; growth in attractive markets comes from existing operators expanding rather than new operators entering. For brand-specific cost detail, see the live [Great Clips franchise page](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc). For the broader category competitive set, see our [Great Clips vs Supercuts comparison](https://vetmyfranchise.com/c/claude/compare/great-clips-inc-vs-supercuts-inc). ## Brands mentioned in this post - [Great Clips](https://vetmyfranchise.com/c/claude/franchise/great-clips-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) great clipsitem 19hair franchisefranchise revenuefdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Great Clips' Item 19 median revenue? Great Clips' most recent Item 19 reports a $382,316 median annual gross sales across 4,147 franchised salons that were eligible to be open for the entire 2024 fiscal year. ### Why is Great Clips' median lower than QSR brands? Hair-services franchises have fundamentally different unit economics than QSR. The transaction value is lower ($20-$30 per haircut vs $8-$15 per QSR ticket), but the operating cost is also dramatically lower (no kitchen equipment, no food cost, simpler labor structure, smaller footprint). A $382K AUV salon can produce strong operating margins (15-25%) where a $382K QSR could not. ### Is Great Clips a good investment at $382K AUV? For multi-unit operators, yes. The AUV-to-investment ratio at the median (roughly 1×) is decent, and the operating margin profile is favorable. Single-unit operators face thin operating cash flow relative to debt service. The franchise system has structurally favored multi-unit operators for over two decades — most attractive territories are owned by operators with 5-15+ salons. ### How does Great Clips compare to Sport Clips? Sport Clips' Item 19 reports a $409K median across 1,669 mature salons (2+ years operating). The absolute medians are comparable. The differentiator is positioning — Sport Clips targets men with sports-bar-style decor and TV programming during cuts; Great Clips serves a broader family demographic. Operator profile and market dynamics drive brand choice more than AUV alone. ### What's the typical Great Clips investment? Item 7 reports a total initial investment range of $187,800 to $419,900 depending on market and buildout specifics. The franchise fee is $20,000-$25,000. Royalty is 6% of biweekly gross sales. The investment is among the lowest in publicly franchised hair services. --- title: "Hand and Stone Item 19 2026: $1.3M Median, P25/P75 Breakdown" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-01 dateModified: 2026-06-01 keywords: hand and stone, item 19, massage franchise, boutique services, fdd analysis canonical: https://vetmyfranchise.com/c/claude/blog/hand-and-stone-item-19-deep-dive about: hand and stone category: blog wordCount: 1317 readingTime: 7 min crawledAt: 2026-08-20 11:07:54 lastVerified: 2026-08-20 11:07:54 site: https://vetmyfranchise.com/c/claude/ --- # Hand and Stone Item 19 2026: $1.3M Median, P25/P75 Breakdown ## Summary Hand and Stone Item 19: 502 studios open 12+ months, median $1.31M revenue, P25 $627K, P75 $1.47M. The 2.3× quartile spread, year-one ramp, and category comparison. ## Key facts - The 12+ month filter in the disclosure means Item 19 says nothing about what a brand-new studio earns in months 1-12. - The boutique massage/wellness category includes Hand and Stone, Massage Envy, Elements Massage, and Massage Heights as the largest franchised brands. - For brand-specific cost and Item 7 details, see the live [Hand and Stone franchise page](https://vetmyfranchise. - Get the full 12-section FDD analysis — $49 Quick answer Hand and Stone's Item 19 reports a $1,311,889 median annual gross sales across 502 studios open 12 months or more in calendar 2024, with a P25 of $627,439 and P75 of $1,469,435, a tight 2.3× spread. Total investment runs $320,891 to $864,729 at a 6% royalty. Year-one revenue lands at $400K-$550K. ## What the Disclosure Reports [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc)’s most recent [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) Item 19 covers 502 franchised studios that have been open for at least 12 months, based on calendar year 2024 data. The structure of the disclosure is typical for a membership-model boutique service franchise: | Metric | Value | | --- | --- | | Sample size | 502 studios | | Sample criteria | Open 12 months or more | | Reporting period | Calendar year 2024 | | Median annual gross sales | $1,311,889 | | P25 (bottom quartile) | $627,439 | | P75 (top quartile) | $1,469,435 | | P75 to P25 spread | 2.3× | | Total system units | 580 | | Total investment (Item 7) | $320,891 - $864,729 | | Royalty rate | 6% of gross sales | The 12+ month tenure filter excludes new studios in their first year. That’s a deliberate methodology — including ramp-stage studios would drag the median down significantly because membership in a [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc) studio takes 18-24 months to fully ramp. The filter keeps the disclosure focused on the operating reality of mature studios while requiring buyers to layer their own ramp assumptions for year one. ## Why the Quartile Spread Is Unusually Tight A 2.3× ratio from P25 to P75 is narrow for a service franchise. Across the 2,000+ FDDs in our database, service franchises commonly show quartile spreads of 3-5×, and home-service categories often show spreads above 6× (operator-driven businesses widen the distribution; see our [Item 19 trap brands analysis](https://vetmyfranchise.com/c/claude/blog/item-19-trap-brands-2026-when-average-lies)). [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc)’s narrower spread reflects three structural features of the business model. **Membership revenue is recurring.** [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc)’s revenue is dominated by membership dues — monthly recurring charges that create a stable revenue floor. Once a studio acquires its membership base over the first 18-24 months, revenue becomes predictable. Compare this to walk-in retail or restaurant categories where revenue varies with daily foot traffic; recurring revenue compresses the variance. **Services are standardized.** A 60-minute massage at one [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc) studio is essentially identical to a 60-minute massage at another. The brand’s training, protocols, and service menu enforce consistency. Operator variance in service quality is bounded by the standardization, which compresses revenue variance across studios. **Site selection filters for similar quality.** The franchisor’s real estate team evaluates new locations against demographic, traffic, and competitive criteria. Studios that get approved are in roughly similar trade-area conditions. That removes one of the biggest variance drivers (location quality) before franchisees even open. The combination produces a system where the bottom quartile and top quartile are closer together than in operator-driven categories. For a buyer, the practical implication is that the brand and the model carry more of the revenue weight — a competent operator in a brand-approved location tends to land closer to the median than they would in a more variance-prone category. ## The Year-One Ramp Is the Hidden Story The 12+ month filter in the disclosure means Item 19 says nothing about what a brand-new studio earns in months 1-12. Membership-model businesses have a structurally slow ramp: a new studio typically opens with zero members, builds to 200-400 members by month 6, and reaches 500-800 members by month 12. Mature studios run 800-1,500+ members. A new [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc) in months 1-12 typically generates: - Month 1-3: $20K-$40K monthly revenue - Month 4-6: $40K-$70K monthly revenue - Month 7-9: $70K-$95K monthly revenue - Month 10-12: $90K-$110K monthly revenue - Annualized year-one revenue: $400K-$550K That’s materially below the $627K P25 in the Item 19 disclosure. The reason isn’t underperformance — it’s that the disclosure intentionally excludes the ramp period. A buyer who underwrites year one against the median will run short on cash by month 4 and panic; a buyer who plans for a 24-month ramp to the P25 and 36 months to the median is operating from realistic assumptions. The working capital implication is significant. See our [franchise working capital math](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve) for the bottom-up calculation, but a new Hand and Stone needs $200K-$300K of working capital reserves on top of the Item 7 buildout to bridge to the membership-driven cash flow that the system median describes. ## How Hand and Stone Compares to Category Peers The boutique massage/wellness category includes Hand and Stone, Massage Envy, Elements Massage, and Massage Heights as the largest franchised brands. A category snapshot: | Brand | Sample | Median AUV | Total investment | Quartile spread | | --- | --- | --- | --- | --- | | Hand and Stone | 502 | $1.31M | $321K-$865K | 2.3× | | Massage Envy | 800+ historical | ~$1.5M-$2M | $500K-$1M+ | similar | | Elements Massage | smaller | ~$700K-$1M | $300K-$600K | wider | | Massage Heights | smaller | ~$800K-$1.1M | $400K-$700K | wider | Hand and Stone sits in the middle of the category by both AUV and investment. Massage Envy historically led on absolute AUV but at higher capital. Elements Massage and Massage Heights run lower AUVs at lower capital. The comparison comes down to demographic fit (premium vs. mid-tier positioning) and territory availability in your target market. For broader category context, see our roundup of [best massage franchises](https://vetmyfranchise.com/c/claude/blog/best-massage-franchises) and the [Massage Envy vs Hand and Stone comparison](https://vetmyfranchise.com/c/claude/blog/massage-envy-vs-hand-and-stone-franchise) for the head-to-head. ## What This Means for Buyers - **The tight quartile spread is a feature, not a flaw.** It tells you the brand and model carry the revenue, which reduces operator-skill risk. Competent operators in approved locations cluster around the median rather than landing at extreme ends. - **Underwrite to the P25 ($627K) as your year-three downside.** If the deal works at the P25 with full insurance, royalty, and debt service, it’s investable. If you need the median to make the math work, you’re underwriting tightly. - **Year-one cash is the dominant operational variable.** Plan for $400K-$550K of revenue against ~$1M of total investment plus working capital — the gap is real and predictable. The brand’s published economics describe year 2+, not year 1. - **Membership ramp drives everything.** The single most important early-stage metric is monthly member additions, not revenue. If your studio is adding 30-50 members per month consistently, you’ll hit the P25 by month 18-24. For brand-specific cost and Item 7 details, see the live [Hand and Stone franchise page](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc). For the boutique-fitness and wellness category fit, [best franchises for women entrepreneurs](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-women-entrepreneurs). ## Brands mentioned in this post - [Hand and Stone](https://vetmyfranchise.com/c/claude/franchise/hand-and-stone-franchise-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) hand and stoneitem 19massage franchiseboutique servicesfdd analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is Hand and Stone's Item 19 median revenue? Hand and Stone's most recent Item 19 reports a $1,311,889 median annual gross sales figure across 502 franchised outlets that have been open 12 months or more, based on calendar year 2024 data. ### What's the Hand and Stone Item 19 quartile spread? The P25 is $627,439 and the P75 is $1,469,435 — a 2.3× ratio from bottom to top of the middle half. That's tight compared to most service franchises, where quartile spreads of 3-5× are common. The tightness reflects the membership-model business structure. ### Why is Hand and Stone's quartile spread so tight? Three structural reasons. First, membership revenue is recurring and predictable — once members are acquired, monthly dues create a stable base. Second, services are standardized across all studios, so operator effort variance has less impact on quality. Third, location and demographics drive most variance — and the franchisor's site selection process filters for similar quality across new openings. ### Can a new Hand and Stone hit the median in year one? Year-one new-studio revenue typically lands materially below the P25 ($627K) — often $400K-$550K depending on market — as membership builds. The Item 19 filter (12+ months open) explicitly strips out the ramp period, so the median describes mature studios, not new ones. Plan for a 24-month ramp to the P25 and 36 months to the median. ### How does Hand and Stone compare to Massage Envy? Massage Envy historically reported higher AUVs (typically $1.5M-$2M median) at higher investment ranges, but with similar membership-model dynamics. Hand and Stone has been the faster-growing brand in recent years with slightly lower median AUVs but lower entry capital. The comparison comes down to territory availability and demographic fit for each brand's positioning. --- title: "Crunch Fitness Franchise Cost 2026: Investment + Item 19" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-05-19 dateModified: 2026-07-10 keywords: crunch-fitness, crunch-fitness-franchise-cost, big-box-gym-franchise, high-volume-low-price-gym, franchise-investment, item-19 canonical: https://vetmyfranchise.com/c/claude/blog/crunch-fitness-franchise-cost about: crunch-fitness category: blog wordCount: 1461 readingTime: 7 min crawledAt: 2026-08-20 11:03:48 lastVerified: 2026-08-20 11:03:48 site: https://vetmyfranchise.com/c/claude/ --- # Crunch Fitness Franchise Cost 2026: Investment + Item 19 ## Summary Crunch Fitness franchise cost in 2026: $2.15M-$5.37M investment, $35K franchise fee, 5% royalty + 2% ad fund. The two-format reality and what serious gym buyers need to know. ## Key facts - Most franchise-cost articles treat [Crunch](https://vetmyfranchise. - These figures come from the 2026 FDD parsed in VetMyFranchise’s database of 2,000+ FDDs. - The high-volume-low-price gym model is fundamentally different from boutique fitness. - The Standard format is structurally a fit for: - The Signature format is structurally a fit for: Quick answer A Crunch Fitness franchise costs $2,147,500 to $5,367,000 in total investment per the 2026 FDD Item 7, including a $35,000 franchise fee; the royalty is 5% of gross sales plus a 2% ad fund. Item 19 reports median revenue of $2,848,462 across 331 franchised clubs open 12-59 months. ## The Two-Format Reality Most franchise-cost articles treat [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) Fitness as a single brand and report the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document)’s investment range as if it represents a normal distribution. That’s misleading. [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) operates two structurally different gym formats (Standard and Signature) that are essentially different businesses sharing a brand. **Standard format** is the smaller, more accessible [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) concept. Footprint runs 12,000-25,000 sq ft. Equipment package focuses on cardio and strength essentials, group fitness studios, and basic amenities. Total investment lands toward the bottom of the disclosed range. **Signature format** is the larger flagship-style concept. Footprint runs 25,000-45,000+ sq ft. Amenity packages include pools, saunas, basketball courts, expanded studio offerings, sometimes day spa or kids’ programs. Total investment pushes toward the top of the range, up to $5.37M. These two formats have: - Different real estate requirements - Different operating teams (Signature requires significantly more staff) - Different member counts to break even (Standard ~2,500-4,000; Signature ~8,000-12,000) - Different competitive positioning - Different return profiles When buyers ask “how much does a [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) franchise cost,” the honest answer requires knowing which format they’re considering. The $2,147,500-$5,367,000 FDD range isn’t a normal distribution. It’s a bimodal distribution with two distinct clusters. ## The 2026 FDD Snapshot | Item | 2026 FDD Number | | --- | --- | | Initial investment range | $2,147,500 – $5,367,000 | | Franchise fee | $35,000 | | Royalty | 5.0% of gross sales | | Ad fund | 2.0% of gross sales | | Combined royalty + ad fund | 7.0% | | Franchised clubs | 481 (82 opened, 95 closed in the year) | | Item 19 median revenue | $2,848,462 across 331 clubs open 12-59 months | | Agreement term | 10 years ($15,000 renewal fee) | | Standard format footprint | 12,000 – 25,000 sq ft | | Signature format footprint | 25,000 – 45,000+ sq ft | | FDD year | 2026 | These figures come from the 2026 FDD parsed in VetMyFranchise’s database of 2,000+ FDDs. The 7% combined fee load is notably below the boutique fitness average (typically 10-12%) and well below restoration or QSR fee loads. The lower royalty reflects [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc)’s HVLP economics: high member counts multiplied by lower per-member revenue produce gross sales where the lower royalty percentage still creates material franchisor income at scale. The $35K franchise fee is also lower than category averages. [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) hasn’t priced premium on either franchise fee or royalty. The brand’s value-capture model is volume-driven, not fee-driven. ## How the HVLP Model Actually Works The high-volume-low-price gym model is fundamentally different from boutique fitness. Understanding the model is essential before underwriting any [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) deal. **Member acquisition is the priority.** The model targets very high member counts, multiples of what a boutique studio carries. Membership pricing is intentionally accessible ($9.95-$24.99/month typical) to drive volume. **Member usage is intentionally moderate.** The model assumes a percentage of members never visit regularly. This isn’t a bug; it’s the structural assumption that makes the price point work. If 100% of members visited 4+ times per week, the operations couldn’t support the volume at the price point. **Operating leverage is real.** Once a location reaches breakeven member count, each incremental member adds nearly pure margin (limited variable cost). This creates strong unit economics once scale is achieved, but punishing unit economics during the ramp. **Retention is the long-game.** HVLP gyms have higher churn than boutique fitness (5-8% monthly typical), but compensate through high volume. Operators who can drive retention even marginally above category benchmarks see disproportionate profit improvement. For [a comparison of fitness category economics](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise), the Anytime vs Planet comparison covers the broader HVLP landscape. [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) sits in a similar category as [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc) operationally, with different brand positioning and member experience; the [Planet Fitness franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide) shows how the other HVLP giant’s Item 7 and Item 19 numbers compare. [Get the full Crunch Fitness FDD analysis, $49 single report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ## Who Standard Format Fits The Standard format is structurally a fit for: - **First-time franchise buyers** with substantial liquid capital and access to $2M+ total project financing - **Suburban markets** with 30,000-80,000 residents within typical 5-mile draw radius - **Operators with prior gym or fitness operating experience** - **Buyers wanting to enter the gym category at the lower end of capital intensity** Where Standard format struggles: - Rural markets without sufficient population density - Hyper-competitive metros with multiple existing HVLP operators - Capital-constrained buyers who can’t carry the working capital cushion through ramp ## Who Signature Format Fits The Signature format is structurally a fit for: - **Capital-stocked multi-unit operators** with $1M+ liquid capital - **Dense urban and major-suburban markets** with 75,000+ residents in trade area - **Operators with prior multi-unit experience** in any fitness or retail category - **Buyers building toward 3-5+ location portfolios** Where Signature format struggles: - Markets without sufficient population density or affluence - First-time buyers without multi-unit experience - Operators expecting fast cash flow (the larger format has longer ramp and bigger working capital needs) ## Pre-Signing Diligence Diligence specific to Crunch in 2026: 1. **Decide format first.** Choose Standard or Signature based on market and capital, then build the deal. Don’t try to “stretch” between formats; they’re different operationally. 2. **Read Item 19 carefully by format.** Item 19 is the only place the FTC’s [Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) permits earnings claims. Compare Standard performance to Standard performance; Signature to Signature. Don’t blend, and note that the disclosed $2,848,462 median covers clubs open 12-59 months, not fully mature locations. 3. **Run 8-12 validation calls** with operators in your target format (Standard or Signature) and in markets with similar population density to yours. 4. **Map local HVLP gym density.** [Planet Fitness](https://vetmyfranchise.com/c/claude/franchise/planet-fitness-franchising-llc), Crunch, and other HVLP competitors compete for similar member profiles. Saturated markets have slower ramps and lower stabilized member counts. 5. **Pre-qualify with gym-experienced SBA lenders.** Several lenders have deep history financing Crunch deals. The [best SBA franchise lenders compared](https://vetmyfranchise.com/c/claude/blog/best-franchise-sba-lenders-compared) covers the lender ecosystem. 6. **Read the franchise agreement** with attention to format-conversion provisions, territory protection, and Signature amenity-package requirements that may add costs over time. [Compare Crunch against 2 other gym franchises, 3-pack $99 →](https://vetmyfranchise.com/c/claude/buy/3-pack) ## The Final Take Crunch Fitness is a credible high-volume-low-price gym franchise with proven unit economics for the right buyer. The two-format structure is the most important thing to understand: pick the format honestly based on your market and capital, then evaluate the deal against the format’s actual economics. For Standard format buyers in growing suburban markets with roughly $2.15M+ capital deployable, Crunch is a competitive option in the HVLP category. The 7% combined fee load is below most competitors, and the brand’s operational maturity supports new operators. For Signature format buyers in major markets with $3M+ capital and multi-unit aspirations, the higher capital requirement comes with larger payoff potential, but also larger working capital needs and slower ramp curves. Match your capital and market to the right format. Don’t try to make a wrong-format deal work. The math punishes that mismatch consistently. ## Brands mentioned in this post - [Crunch](https://vetmyfranchise.com/c/claude/franchise/crunch-franchising-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Crunch Fitness numbers with you. We'll email you the **Crunch Fitness FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Crunch Fitness data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) crunch-fitnesscrunch-fitness-franchise-costbig-box-gym-franchisehigh-volume-low-price-gymfranchise-investmentitem-19 About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Crunch Fitness franchise cost in 2026? Crunch Fitness' 2026 FDD reports total initial investment ranging from $2,147,500 to $5,367,000. The franchise fee is $35,000, included in the range. The wide spread reflects Crunch's two distinct formats: Standard (smaller footprint, lower investment) and Signature (larger footprint with full amenity package, higher investment). Standard builds cluster toward the bottom of the disclosed range; Signature deals push toward the top. Real estate and build-out are the dominant capital lines for both formats. ### What's the difference between Crunch Standard and Crunch Signature? Standard format is the smaller, more affordable Crunch concept — typically 12,000-25,000 sq ft with core gym equipment, group fitness studios, and basic amenities. Signature format is the larger flagship-style concept — 25,000-45,000+ sq ft with full amenity packages (pools, saunas, basketball courts, expanded studios). Investment requirements differ dramatically: Standard builds sit toward the bottom of the 2026 FDD's $2,147,500-$5,367,000 disclosed range, Signature builds toward the top. Buyers should pick the format that matches their market and capital, not pick a format and then look for a market. ### How profitable is a Crunch Fitness franchise? Stabilized Crunch operations generate $200K-$1M+ in annual operating profit depending on format, location, and operating efficiency. The HVLP model relies on scale: a Standard location with 3,000-5,000 active members at $14-$24/month generates $40K-$120K monthly gross revenue. Signature locations targeting 10,000-15,000+ members can generate $150K-$300K+ monthly gross revenue. The 2026 Item 19 reports median annual revenue of $2,848,462 across 331 franchised clubs open 12-59 months, with a 25th percentile of $1,516,085. ### Is the Crunch royalty really only 5%? Yes. Crunch's 2026 FDD shows a 5% royalty plus 2% ad fund — a combined 7% fee load that's significantly below the 10-12% combined load common in boutique fitness brands like Club Pilates or StretchLab. The lower royalty structure reflects Crunch's HVLP model: lower revenue per member multiplied by very high member counts produces gross sales that the lower royalty percentage still translates to material franchisor revenue at scale. ### Is Crunch Fitness a good franchise to buy in 2026? Crunch is a good franchise for capital-stocked operators in dense urban or suburban markets who can support the HVLP model's scale requirements. The Standard format starts around the $2.15M bottom of the 2026 Item 7 range; Signature builds push toward $5.4M. Lower royalty rates than competitors and a proven big-box model make the unit economics workable. The model is the wrong fit for capital-constrained buyers and operators in markets without the population density to support the member counts the model requires. --- title: "FDD Item 12 Territory Rights: What to Check Before Signing" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained category: blog wordCount: 1925 readingTime: 10 min crawledAt: 2026-08-20 11:03:52 lastVerified: 2026-08-20 11:03:52 site: https://vetmyfranchise.com/c/claude/ --- # FDD Item 12 Territory Rights: What to Check Before Signing ## Summary FDD Item 12 defines your franchise territory — and the carve-outs that gut it. Learn protected vs exclusive, encroachment risk, and what to verify before signing. ## Key facts - FDD Item 12 is the territory disclosure: the section of the [franchise disclosure document](https://vetmyfranchise. - The definition method shapes your risk as much as the protection language does. - Territories you negotiate today are guaranteed for the _initial term_ — usually 10 years — and often not a day longer. - Five checks, all doable in a week: - Territory is one of the more negotiable parts of a franchise agreement, especially with younger systems still hungry for units. Quick answer Item 12 discloses your territory boundaries, whether the grant is exclusive, the conditions that shrink it, and every channel the franchisor reserves. A protected territory usually blocks only new same-brand physical outlets. Four carve-outs gut it: e-commerce, national accounts, captive venues like airports and stadiums, and sister brands. Protection lasts the initial term, typically 10 years. ## What Item 12 Has to Tell You — and What It Usually Buries FDD Item 12 is the territory disclosure: the section of the [franchise disclosure document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) where the franchisor must describe the geographic area you’ll operate in, whether anyone else can sell under the same marks inside it, and — this is the part buyers skim past — every right the franchisor reserves to compete with you anyway. The FTC Franchise Rule requires Item 12 to state, at minimum: the territory’s boundaries and how they’re set, whether the grant is exclusive, the conditions under which the franchisor can modify or revoke it, any minimum-performance requirements tied to keeping it, and the reserved rights that let the franchisor sell through alternate channels or sister brands. If the territory isn’t exclusive, the FDD must include a specific warning sentence — something close to: _“You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.”_ That sentence appears in a large share of the FDDs we’ve reviewed across 2,000+ systems. When you see it, everything that follows is a list of the ways that competition can arrive. ## ”Protected” vs. “Exclusive”: One Word, Two Very Different Contracts Here’s the trap. Sales reps say “protected territory” constantly. The contract almost never says “exclusive.” Those are not the same promise. A [protected territory](https://vetmyfranchise.com/c/claude/glossary/protected-territory) typically means one thing: the franchisor won’t open — or license someone else to open — another _physical outlet of the same brand_ inside your boundary. That’s it. It says nothing about online sales into your zone, nothing about the franchisor’s other brands, nothing about wholesale or institutional channels. For the practical side — how this competition actually shows up and what to do about it — see [how franchisors compete with their own owners](https://vetmyfranchise.com/c/claude/blog/franchisor-encroachment-competing-with-own-owners). An [exclusive territory](https://vetmyfranchise.com/c/claude/glossary/exclusive-territory), in the strict sense, would bar the franchisor from making _any_ sales under the marks inside your boundary, through any channel. Genuinely exclusive grants are rare, and they’ve gotten rarer as e-commerce became a revenue line franchisors refuse to give up. There is a third outcome the sales conversation rarely leads with: no territory at all. Some systems grant only the right to operate at an approved location and reserve the right to place another unit across the street or in the same shopping center. Open-territory structures show up most in coffee and beverage concepts, convenience retail, service brands chasing maximum coverage, and newer systems that have not settled a territory policy. If Item 12 grants no protected area, your only downside protection is the strength of your location and your customer loyalty. Nothing in the contract stops the franchisor from saturating your market. The drafting tell is the word “outlet.” Read a clause like this one, which is representative of what you’ll find: > “We will not establish or license another Franchised Business or company-owned outlet physically located within the Protected Territory. We retain all other rights, including the right to sell products and services under the Marks through any other channel of distribution.” The first sentence is the protection. The second sentence is the business model. If your revenue depends on being the only place customers can buy the brand’s products, sentence two just told you that you aren’t. For a broader primer, see our guide to territory protection basics ## How Territories Get Defined — and What Each Method Costs You The definition method shapes your risk as much as the protection language does. | Method | How it works | Where it fails | | --- | --- | --- | | Radius | Fixed distance from your site (e.g., 3 miles) | Ignores geography and density; tiny in suburbs, enormous on paper in cities where a river or freeway cuts off half the circle | | ZIP codes | Named list of ZIP codes | Stable and mappable, but USPS redraws ZIPs; boundary customers get contested | | Population | Zone holding a set count (e.g., 25,000–50,000 people) | Growth invites re-measurement and splitting; census data lags reality by years | | Drive-time | Polygon reachable within N minutes | Closest to how customers behave, but the polygon shifts with road changes and whoever runs the mapping software controls the answer | Two practical notes. First, whatever the method, insist the final territory be attached as a _map exhibit_, not just a description — “a three-mile radius of the Approved Location” leaves the center point ambiguous if you relocate. Second, ask which dataset governs population or drive-time calculations. The party that controls the measurement controls the boundary. ## Relocation and Renewal Resets Territories you negotiate today are guaranteed for the _initial term_ — usually 10 years — and often not a day longer. Watch for two reset mechanisms. Relocation: many agreements state that if you move your outlet, even within the territory, the franchisor may redraw the boundary around the new site “based on then-current criteria.” If the system’s standard territory shrank from 3 miles to 1.5 over the past decade (common in maturing systems pushing density), your relocation imports the smaller standard. Renewal is the bigger one. The typical clause requires signing “our then-current form of franchise agreement,” and the then-current form may define territories differently, reserve more channels, or — in population-based systems — trigger a re-measurement that splits any zone that grew past its threshold. Cross-check Item 12 against Item 17 (the renewal table) and read both with your attorney; our [franchise attorney guide](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) covers what a specialist should flag here that a generalist will miss. ## How to Pressure-Test a Territory Before Signing Five checks, all doable in a week: Map the existing system. Plot every current outlet — franchised and company-owned — within 10 miles of your proposed boundary, using Item 20’s outlet list and addresses. Then plot the _closed_ outlets from the past three years. A territory ringed by recent closures is telling you something the sales deck didn’t. Call the neighbors. Item 20 includes franchisee contact information for a reason. Ask the three nearest operators one question: “Has anything the franchisor sells through other channels taken revenue you expected to be yours?” Their pause will be informative. Stress the math. If the territory holds 30,000 people and the brand’s mature units need roughly 40,000 to hit median revenue, the boundary is a problem no protection language fixes. Read Item 12 against [Item 13’s trademark grant](https://vetmyfranchise.com/c/claude/blog/fdd-item-13-trademarks). Your territory rights are only as strong as the marks behind them — a brand with contested or narrow trademark rights can’t fully deliver even the protection it promises. Get amendments in writing, in the agreement. Verbal assurances from development reps about “we’d never put a unit there” are worth exactly nothing under the standard integration clause. ## What to Negotiate Before You Sign Territory is one of the more negotiable parts of a franchise agreement, especially with younger systems still hungry for units. Concentrate your leverage on a few high-value terms. **Tie any territory reduction to objective metrics.** The most dangerous condition is a subjective one, such as keeping your area only so long as you “adequately serve” it. Push to replace vague language with hard numbers, a defined minimum revenue or unit count, so the franchisor cannot reclaim your zone on judgment alone. **Get a right of first refusal on adjacent territory.** If the franchisor later decides your market can support another unit, you want the first option to open it rather than watch a stranger set up next door. **Pin down reserved-channel allocation.** If e-commerce or national-account sales into your zone are unavoidable, negotiate a rebate or commission on them and get the rate written into the agreement. **On multi-unit deals, protect the development area.** A development agreement should reserve the territory for your future units through the build-out period and tie the schedule to benchmarks you can realistically hit, because missing them can forfeit the undeveloped rights. The payoff is not only operational. Territory strength follows you to the exit: a strong, protected area in a growing market commands a premium at resale, while a weak or open territory gets discounted by the next buyer, who runs the same analysis you are running now. ## Questions for the Franchisor Put these in an email so the answers are on the record: 1. Is the territory exclusive, or protected only against same-brand physical outlets? Quote the clause. 2. What percentage of system revenue currently flows through channels reserved in Item 12 — e-commerce, national accounts, captive venues? 3. Do franchisees receive any rebate or commission on reserved-channel sales delivered inside their territories? At what rate? 4. Under what specific conditions can my zone be reduced, re-measured, or revoked during the initial term? 5. What happens to the territory at renewal — same boundary, or re-measured under then-current standards? 6. Has the company or its parent acquired or launched any competing brand in the past five years, and does Item 12 permit operating it inside my territory? 7. How many encroachment complaints or disputes has the system had in the past three years? (Check their answer against Item 3’s litigation disclosure.) A franchisor with a fair territory program answers all seven quickly. Hedging on question 2 or 3 is itself an answer. Before you get to that email, see what the FDD already says: our $49 [FDD research report](https://vetmyfranchise.com/c/claude/pricing) pulls Item 12 territory language, reserved rights, and Item 20 outlet data for any of 2,000+ franchise systems into one readable brief. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Find Your Perfect Franchise Match Answer a few questions about your budget, experience, and goals. We match against 2,000+ franchise FDDs to find your best fits. [✦ Take the Free Quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) Free · No credit card · Results in 30 seconds ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### FDD Item 1 Explained: Franchisor Background and the Red Flags Buyers Miss [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background) #### FDD Item 11 Decoded: What Support the Franchisor Legally Owes You [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations) #### FDD Item 15: The Clause That Decides Whether You Can Really Be Semi-Absentee [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee) fdd item 12franchise protected territoryfranchise territory rightsfranchise encroachmentfdd reviewfranchise agreement About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What counts as encroachment in a franchise agreement? Encroachment is the franchisor (or another franchisee) placing a competing outlet or sales channel close enough to your location to divert your revenue. It includes obvious moves like opening a new unit a mile outside your boundary, but also subtler ones: shipping e-commerce orders to customers inside your territory, servicing a national account at addresses you'd otherwise serve, or launching a sister brand that sells the same products nearby. Courts generally enforce only what the written territory grant prohibits, so anything Item 12 reserves to the franchisor is usually not legally encroachment — no matter how much it hurts. ### Can I negotiate the size of my franchise territory? Often yes — territory size is one of the more negotiable terms in a franchise agreement, especially with younger systems hungry for units. Franchisors with fewer than a few hundred outlets routinely flex on radius, ZIP lists, or population thresholds; mature national brands rarely do. Negotiate before signing, get the final boundary as a map exhibit (not just a description), and ask for a right of first refusal on adjacent territory. After signing, your leverage is close to zero. ### What happens to my territory when I renew my franchise agreement? At renewal, most agreements require you to sign the franchisor's then-current contract — which can carry a smaller territory, weaker protections, or none at all. Some agreements also re-measure population- or account-based territories at renewal and split any zone that has grown past its threshold. Check Item 12 and Item 17 together: if renewal language says "on the terms of our then-current franchise agreement," your year-one territory is only guaranteed for the initial term. ### Is a population-based territory better than a radius-based territory? Neither is inherently better — they fail in different ways. A radius is simple and permanent but ignores geography (rivers, highways, where customers actually shop) and can become meaningless in dense urban growth. A population-based zone scales with the market but invites re-measurement: if your area booms from 30,000 to 60,000 residents, the franchisor may have the right to carve out a second territory inside what used to be yours. Match the method to your market's trajectory, and demand a map exhibit either way. ### How do online and delivery sales affect my franchise territory? They are the most common way a 'protected' territory leaks. Most Item 12 clauses reserve e-commerce, catalog, and app-based sales to the franchisor, so an order placed by a customer inside your boundary can ship from the franchisor with no revenue to you. Modern agreements sometimes credit a rebate on online orders delivered into your zone, but many are silent on the question. Ask how digital and third-party-delivery orders are allocated, and get the answer written into the agreement, not left to a verbal assurance. --- title: "Franchise Build-Out Costs in 2026: The Real Numbers" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-06-14 keywords: franchise build out cost, franchise construction costs, leasehold improvements franchise, franchise equipment cost, build out cost overruns, turnkey vs build to suit franchise canonical: https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay about: franchise build out cost category: blog wordCount: 1798 readingTime: 9 min crawledAt: 2026-08-20 11:03:54 lastVerified: 2026-08-20 11:03:54 site: https://vetmyfranchise.com/c/claude/ --- # Franchise Build-Out Costs in 2026: The Real Numbers ## Summary Franchise build-out cost broken down by line item — leaseholds, equipment, signage, permits — plus why 2026 projects overrun and how to budget the buffer. ## Key facts - There is no single “build-out” line in a [Franchise Disclosure Document](https://vetmyfranchise. - Here’s how a build-out actually breaks down, and what each piece tends to run depending on the concept. - Two forces are pushing build-out numbers above what older FDDs disclose. - How you acquire the space changes the build-out math more than almost any other decision. - A 15-30% build-out overrun is the base case, not the disaster case. Quick answer Franchise build-out runs $15K-$100K for service and home-based concepts, $150K-$400K for retail and fitness, and $275K-$700K+ for full-service food. It is spread across Item 7's leasehold, FF&E, signage, A&E, and permit lines. A 15-30% overrun is the norm, so budget a 20-25% buffer above the high-end estimate. Conversions cut costs 30-50%. ## Where build-out actually lives in Item 7 There is no single “build-out” line in a [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). That’s the first trap. Buyers scan Item 7, find the total estimated initial investment range, and assume the construction number is in there somewhere as a clean figure. It isn’t. Build-out is smeared across half a dozen rows. Open any FDD’s Item 7 table and you’ll typically see separate entries for _leasehold improvements_, _furniture, fixtures and equipment (FF&E)_, _signage_, _architectural and engineering fees_, _permits and licenses_, and sometimes _construction management_. Add those together and you’ve got your real build-out exposure. The franchise fee, opening inventory, training travel, and the “additional funds” working-capital line are separate — don’t let them blur the picture. The other thing to internalize: every number in Item 7 is a _range as of the FDD’s issue date_. A document filed in early 2025 reflects what units cost to build in 2024. By the time you sign in late 2026, the low end of that range may not exist anymore. Treat the high end of the disclosed range as your starting point, not the midpoint. ## The line items, decoded Here’s how a build-out actually breaks down, and what each piece tends to run depending on the concept. These are general ranges drawn from how Item 7 tables tend to read across categories — your specific brand’s FDD is the source of truth. | Build-out line item | Service / home-based | Retail / fitness | Full-service food | | --- | --- | --- | --- | | Leasehold improvements | $0–$40K | $80K–$250K | $150K–$450K | | Equipment & FF&E | $10K–$50K | $40K–$150K | $80K–$250K | | Signage | $2K–$15K | $10K–$40K | $15K–$60K | | A&E / design fees | $0–$10K | $10K–$35K | $20K–$60K | | Permits & licenses | $1K–$8K | $5K–$25K | $10K–$50K | | Typical build-out subtotal | $15K–$100K | $150K–$400K | $275K–$700K+ | A few notes on reading this. **Leasehold improvements** are the permanent work — plumbing, electrical, HVAC, flooring, walls, restrooms. This is the line that swings most with the condition of the space. A “vanilla shell” with no HVAC and a single demising wall costs far more to fit out than a former unit in your category. **Equipment and FF&E** is where food concepts get expensive fast; a single hood-and-suppression system, walk-in cooler, and line equipment can run six figures before you’ve bought a chair. **Signage** sounds trivial until you hit a landlord’s sign criteria and a city’s variance process. And **A&E fees** — architectural and engineering drawings — are mandatory for any meaningful construction and easy to forget. What’s missing from build-out but adjacent to it: opening inventory, initial marketing, and the rent you’ll owe during the construction period before you can sell anything. That last one is brutal and routinely under-modeled. If your space takes five months to build out and your lease’s rent clock started at delivery, you’re paying rent on a closed store. That belongs in your [working-capital reserve calculation](https://vetmyfranchise.com/c/claude/blog/franchise-working-capital-how-much-cash-reserve), and it’s why build-out and runway have to be planned together. ## Why 2026 build-out runs hot Two forces are pushing build-out numbers above what older FDDs disclose. The first is straightforward construction inflation — skilled trades remain tight in most metros, and commercial general contractors are quoting longer lead times and higher labor rates than they did when most current FDDs were filed. The second is materials and equipment cost pressure, including the 2026 tariff environment, which has touched a lot of the imported steel, aluminum, refrigeration, and kitchen equipment that food and retail build-outs depend on. We break the supply-chain piece down in detail in [how 2026 tariffs are reshaping franchise startup costs](https://vetmyfranchise.com/c/claude/blog/how-2026-tariffs-franchise-startup-costs) — the short version is that the equipment and FF&E lines are the most exposed, and a quote that’s 90 days old may already be stale. This is where buyers get burned: they take a franchisor’s Item 7 high-end estimate at face value, treat it as a worst case, and build their financing around it. Then the actual contractor bids come in 20% above the FDD’s high end because the document is two years old. Now the loan is undersized before the first wall goes up. A cleaner approach is to get a real contractor estimate for a comparable space in your market _before_ you finalize financing, and to use the franchisor’s high-end Item 7 number plus a buffer as your floor. If you want to see how a higher build-out cascades into payback and monthly debt service, run your numbers through the [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) — a $90K build-out overrun at 2026 SBA rates changes the deal more than most buyers expect. ## Turnkey vs build-to-suit vs conversion How you acquire the space changes the build-out math more than almost any other decision. **Build-to-suit (or vanilla-shell fit-out)** is the most common and the most expensive. You take raw or near-raw space and build the entire unit to brand spec. This is where the full Item 7 range applies, and where overruns concentrate, because you’re managing a ground-up construction project. **Turnkey** means the franchisor or a developer delivers a finished, ready-to-operate unit and rolls the cost into your investment. It removes construction risk and the headache of managing a GC — but read the fine print. “Turnkey” sometimes excludes signage, technology, or final FF&E, and the convenience usually carries a premium. You’re trading dollars for certainty and speed. **Conversion** — taking over an existing space that already fits your category — is frequently the cheapest path, often 30-50% below ground-up. A former pizza shop converting to a different pizza brand keeps most of the kitchen, hood, and gas service. The risk is what you can’t see: outdated electrical, a failed grease trap, or code upgrades that trigger the instant you pull a permit. Budget a real contingency for hidden conditions and have a contractor walk the space before you commit. The lease structure interacts with all of this. A landlord tenant-improvement allowance can offset a chunk of your leasehold cost, and negotiating that allowance is one of the highest-impact moves you can make — see our [franchise real estate and lease negotiation guide](https://vetmyfranchise.com/c/claude/blog/franchise-real-estate-lease-negotiation-guide) for how the TI allowance, free-rent period, and delivery condition all bend the effective build-out number. ## Budgeting the overrun (because there will be one) A 15-30% build-out overrun is the base case, not the disaster case. The recurring culprits: - **Change orders.** Mid-project specification changes, brand updates, or “while we’re in here” fixes. Each one resets the budget upward. - **Permit and inspection delays.** Every week of delay is a week of rent on a non-earning space, plus idle-crew costs. - **Price drift between estimate and order.** Equipment quoted in Q1 and ordered in Q3 may cost more — particularly true under current tariff and lead-time conditions. - **Landlord delivery delays.** If the landlord hands over the space late or in worse condition than promised, your timeline and cost both slip. - **Hidden conditions.** Especially in conversions — what’s behind the wall is rarely what the drawings show. The fix is unglamorous: budget the buffer as an explicit line item, not a vague hope. A defensible floor is 20-25% on top of the franchisor’s _high-end_ Item 7 build-out estimate, funded with committed capital — not the credit card you’re planning to “only use if needed.” Undercapitalization during construction is one of the quiet ways early franchisees fail, and it directly drags on what you eventually [take home as an owner](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make), because debt taken on to finish a blown build-out follows you for years. ## Questions to ask the franchisor’s construction team Before you sign, get the construction or real-estate team on a call and pin down the specifics. The honest answers tell you as much about the brand as the FDD does. - **What did the last five units actually cost to build out, not what’s in the FDD range?** A brand that tracks this and shares it is being straight with you. - **What’s the typical timeline from lease signing to opening?** Longer than disclosed means more pre-revenue rent. Our [opening timeline guide](https://vetmyfranchise.com/c/claude/blog/franchise-opening-timeline-signing-to-launch) covers the full signing-to-launch sequence. - **Do you have approved vendors or national equipment pricing?** Volume pricing can meaningfully cut the FF&E line. - **What’s included if there’s a turnkey or conversion program — and what’s explicitly excluded?** - **How are change orders and contingencies handled, and who eats the overrun?** Ask for the actual recent-unit numbers in writing. Vague reassurance (“most owners come in around the middle of the range”) is a flag; precise, documented figures are a green light. Build-out is where the gap between the brochure and the bank statement is widest. Read it line by line out of Item 7, get a real local contractor estimate, add a 20-25% buffer, and plan the pre-revenue rent alongside it. If you want to compare how build-out-heavy different concepts are before you ever talk to a salesperson, [browse franchises by category](https://vetmyfranchise.com/c/claude/franchises) and look at the spread between the low and high ends of their disclosed investment — the brands with the widest spread are usually the ones where build-out, and the risk of overrunning it, is doing the talking. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### Item 19 Shows Revenue, Not Profit: Build a Pro-Forma [Learn more →](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19) #### Crumbl Item 19 Cohort Analysis: What New-Unit AUV Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis) #### The Fastest-Growing Franchises in 2026: What the FDD Data Actually Shows [Learn more →](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises) franchise build out costfranchise construction costsleasehold improvements franchisefranchise equipment costbuild out cost overrunsturnkey vs build to suit franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does franchise build-out cost? It ranges from under $50,000 for a home-based or mobile concept to $600,000 or more for a full-service restaurant. Build-out is the construction, leasehold improvements, equipment, signage, and fixtures needed to open — it's spread across several Item 7 line items rather than shown as a single figure. The biggest drivers are square footage, kitchen or specialized equipment, and how raw the space is when you take it. ### What's included in leasehold improvements? Leasehold improvements are the permanent changes you make to a leased space to fit the brand's specs — flooring, walls, plumbing, electrical, HVAC, lighting, restrooms, and built-in millwork. They're distinct from movable equipment and furniture (FF&E), which you could in theory take with you. Leaseholds are also where landlord tenant-improvement (TI) allowances apply, so the gross cost and your net cost can differ significantly. ### Why do build-out budgets get exceeded? Most overruns trace to four things: change orders mid-project, permit and inspection delays, material or equipment price increases between estimate and order, and landlord delivery delays that push your timeline (and your rent clock) out. Item 7 estimates are also dated — they reflect costs as of the FDD's issue date, not what a contractor will quote you this quarter. ### Is a conversion cheaper than a ground-up build-out? Usually, yes. Converting an existing space that already has a comparable layout — say a former restaurant with a working kitchen — can cut build-out 30-50% versus building to suit from a vanilla shell. The catch is hidden conditions: outdated electrical, failed grease traps, or code upgrades triggered the moment you pull a permit. Always budget a contingency for what the walls are hiding. ### Does the franchisor pay for any of the build-out? Rarely directly, but it varies. Some brands offer construction management, approved-vendor pricing, or a small build-out incentive for early or conversion franchisees; a few run true turnkey programs where they deliver a finished unit and roll the cost into your investment. The landlord, not the franchisor, is the more common source of help via a tenant-improvement allowance. Read Item 7 footnotes and ask the franchisor's construction team directly. --- title: "Franchise CPA Review Before Buying: Checklist & Costs" type: [TechArticle, Person, BreadcrumbList, FAQPage, Organization, WebSite, Article] canonical: https://vetmyfranchise.com/c/claude/blog/franchise-cpa-review-before-buying category: blog wordCount: 1964 readingTime: 10 min crawledAt: 2026-08-20 11:03:55 lastVerified: 2026-08-20 11:03:55 site: https://vetmyfranchise.com/c/claude/ --- # Franchise CPA Review Before Buying: Checklist & Costs ## Summary What a franchise CPA reviews before you buy — Item 21 distress signals, Item 19 stress tests, entity structure, opening budget, and typical review costs. ## Key facts - Most buyers hire one advisor before signing. - Item 21 contains the franchisor’s audited financial statements — usually three years of balance sheets, income statements, and cash flows. - Item 19 is the franchisor’s financial performance representation — and it’s a marketing document wearing an audit’s clothes. - The franchise agreement should be signed by your entity, not by you personally (your personal guarantee will exist regardless — that’s the attorney’s territory). - Item 5 discloses the initial franchise fee. Quick answer A pre-purchase franchise CPA review runs $500 to $2,500 against a $150,000-$500,000 investment. The CPA scans Item 21 for four distress signals (going-concern language, revenue mix, debt load, negative working capital), recasts Item 19 with medians and your real labor and rent costs, and sizes six months of working capital. ## Attorney vs CPA: Who Reviews What Most buyers hire one advisor before signing. The problem is they usually hire the wrong half of the team — or assume one professional covers both jobs. A [franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) reviews contract risk: termination rights, territory protection, renewal terms, personal guarantee scope, what happens when you want out. A CPA reviews financial viability: whether the franchisor’s own finances are sound, whether the earnings representations survive contact with your market, and whether the investment estimate actually funds you to breakeven. These are different skill sets applied to different documents, and neither professional will catch the other’s findings. The failure pattern is consistent. A buyer hires an attorney, negotiates a slightly better cure period, signs — and discovers eight months in that the franchisor’s Item 21 showed three straight years of losses funded by new franchise fee sales, a fact any CPA would have flagged in the first hour. Or the reverse: the CPA blesses the numbers, nobody reads the franchise agreement closely, and the buyer learns at renewal that the franchisor can relocate their territory. If your budget forces a choice, it shouldn’t. Both reviews together typically cost less than 2% of the initial franchise fee alone. ## What Your CPA Does With Item 21 Item 21 contains the franchisor’s audited financial statements — usually three years of balance sheets, income statements, and cash flows. We’ve covered how to analyze these in depth elsewhere; this is the summary of what your CPA actually does with them in a pre-purchase review. They’re hunting for four distress signals: - **Going-concern language.** If the auditor’s notes question the company’s ability to continue operating, that’s not a yellow flag. It’s the whole review. - **Revenue mix.** Where does the franchisor’s money come from? A mature, healthy system earns most of its revenue from ongoing royalties — meaning franchisees are succeeding and paying. One living off initial fees from new unit sales, or off markups on products franchisees are required to buy, has incentives misaligned with yours. - **Debt load.** Heavy borrowing relative to equity means lenders get paid before the support infrastructure does. A CPA reads the debt maturities, not just the totals. - **Negative working capital.** Current liabilities exceeding current assets suggests the franchisor may struggle to fund the training, marketing, and field support you’re paying royalties for. A CPA can run this scan in under two hours because they know exactly where to look. If you want to understand the mechanics yourself, our guides to [Item 21 audited financials](https://vetmyfranchise.com/c/claude/blog/franchise-audited-financial-statements-item-21) and [how to read franchise financial statements](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-financial-statements) walk through each statement line by line. Your CPA’s job is the verdict, not the tutorial. ## The Item 19 Stress Test Item 19 is the franchisor’s financial performance representation — and it’s a marketing document wearing an audit’s clothes. Everything disclosed may be technically accurate while still painting the best legally permissible picture. The single most valuable thing a CPA does before you sign is recast it. The recast has four moves: **Medians, not averages.** If the Item 19 leads with average unit revenue, ask for the median and the quartile breakdown. A handful of ten-year-old flagship units can drag an average far above what a typical first-year operator earns. Some FDDs disclose the distribution; many bury it; some omit it. A CPA knows which silence is meaningful. **Your labor market, not the system’s.** The Item 19 cost structure reflects systemwide blends. If the representative P&L assumes labor at 28% of revenue and you’re opening in a metro where entry wages run 20% above the national figure, your CPA reprices that line before anything else. **Your rent, not theirs.** Same logic. Get a real quote from a commercial broker in your target trade area and substitute it for the disclosed occupancy percentage. **Ramp time.** Item 19 tables usually show mature units. Your first year won’t look like year three, and the gap between them is exactly the working capital question that sinks new franchisees. Our analysis of [how long until profitable](https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable) shows ramps of 12-24 months are normal in most categories — your CPA should model the trough, not just the destination. The output is a conservative pro forma you can take to a lender and, more importantly, take seriously yourself. One way to make this meeting dramatically cheaper: walk in with the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) numbers already extracted. Our [$49 research report](https://vetmyfranchise.com/c/claude/pricing) pulls the fees, investment ranges, Item 19 data, and franchisor financials into one document — which saves your CPA billable hours they’d otherwise spend transcribing tables out of a 300-page PDF. ## Entity and Tax Structure Before Signing The franchise agreement should be signed by your entity, not by you personally (your personal guarantee will exist regardless — that’s the attorney’s territory). Which means the entity decision has to happen before signature day, and it’s more consequential than most buyers realize. The practical default is an LLC. The real question your CPA answers is whether and when to elect S Corp taxation. Two reasons the timing matters: **SBA mechanics.** Your SBA loan application, personal guarantee, and equity injection documentation all reference the borrowing entity. Changing the structure mid-underwriting restarts paperwork; changing it after closing can trigger lender consent requirements. Lock the structure before the loan file opens. **The QBI deduction.** The qualified business income deduction can shave 20% off your taxable franchise income — but the math differs between a default LLC and an S Corp, because S Corp owners must pay themselves a reasonable W-2 salary that doesn’t count as QBI. In early years, when the business is at a loss or thin profit, the election often costs more in payroll administration than it saves. Most franchise CPAs recommend starting as a default-taxed LLC and making the switch once net income clears a threshold, commonly around $60,000-$80,000. Yours will run your actual numbers. This is a one-hour conversation that prevents a multi-year cleanup. ## Building the Opening-Day Budget From Items 5-7 Item 5 discloses the initial franchise fee. Item 6 lists ongoing fees. Item 7 is the estimated initial investment table — and it’s where first-time buyers get hurt, because the franchisor’s low-to-high ranges are estimates with wide error bars and predictable blind spots. A CPA building your real opening budget adds the line items Item 7 tends to understate or skip: - **Soft costs.** Architect and engineering fees, permit expediting, utility deposits, signage variances, and the legal and accounting fees for the deal itself. These routinely add $15,000-$40,000 that the table’s “miscellaneous” line doesn’t cover. - **Pre-opening labor.** You’ll hire and train a crew two to four weeks before revenue exists. Payroll for a ten-person team during training is real money that many Item 7 tables fold into a thin “additional funds” estimate. - **Six months of working capital.** This is the big one. Item 7’s “additional funds” line commonly covers a single quarter. If your realistic ramp to breakeven is 12-18 months, that’s a plan to run out of cash. Your CPA sizes this line off the recast Item 19, not off the franchisor’s table. For a detailed walkthrough of what each Item 7 category actually contains — and where the ranges come from — see our [Item 7 investment breakdown](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment). The CPA’s version of that exercise produces a single number: total cash required to reach self-sustaining operations. If that number exceeds what you can raise, better to know now. ## What a CPA Costs vs What They Catch A pre-purchase FDD review typically runs $500 to $2,500. The low end buys a focused read of Items 5-7, 19, and 21 with a written summary of concerns. The high end buys the full recast: market-adjusted pro forma, opening budget, entity recommendation, and a sit-down to walk through it. Against a $150,000-$500,000 total investment, that’s rounding error. And one caught problem covers the fee many times over. Two real patterns CPAs catch regularly: A buyer evaluating a fitness concept brought the FDD to a CPA who noticed Item 21 showed the franchisor earning 61% of revenue from required equipment package sales to new franchisees — at markups the buyer could verify by pricing the same equipment independently. The system’s economics depended on selling units, not on units succeeding. The buyer walked, and the brand’s unit count peaked the following year. A buyer who’d already budgeted off Item 7’s midpoint had a CPA rebuild the working capital line against a recast Item 19 ramp. The gap was $85,000 — the difference between the franchisor’s three-month cushion and a realistic fourteen-month path to breakeven. The buyer didn’t walk; they raised the additional capital before opening instead of discovering the shortfall in month seven with no lender willing to refill an underwater loan. Neither catch required exotic analysis. Both required someone who knew where to look. ## Finding a Franchise-Literate CPA A generalist CPA who does your taxes is not automatically qualified to review an FDD. The document has its own conventions, its own places where problems hide, and its own vocabulary. Screen for the specialty directly: - **“How many FDDs have you reviewed in the past two years?”** The honest answers range from zero to dozens. You want dozens — or at least a confident handful with specifics. - **“Do you have franchise clients in this vertical?”** A CPA with three restaurant franchisee clients knows what real food-cost and labor percentages look like in your category. That benchmark knowledge is what makes the Item 19 recast meaningful instead of mechanical. - **“What’s your fee structure for a pre-purchase review?”** A flat fee with a defined scope signals they’ve done this before. Open-ended hourly billing for an undefined “look at the documents” engagement signals they’re figuring it out on your dime. Good referral sources: your franchise attorney (the two specialties refer to each other constantly), existing franchisees in the system you’re evaluating, and franchisee association directories. Ask the franchisor’s sales rep last, if at all — you want an advisor with no stake in the deal closing. Assemble the team a few weeks before you expect to sign, not a few days. The CPA’s findings frequently change the negotiation, the financing, or the decision itself — and all three need time to absorb. [Estimate your full project cost first →](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### How to Evaluate Whether Your Local Market Can Support a Franchise [Learn more →](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit) #### Material FDD Change Before Signing: 14-Day Buyer Action Plan [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action) #### How Much Does an FDD Review Cost? Attorney Fees and Service Tiers (2026) [Learn more →](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost) franchise cpa reviewaccountant review franchise fddfranchise due diligencefdd reviewfranchise advisory team About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Do I really need a CPA to review the FDD if I already have a franchise attorney? Yes — they review entirely different risks. Your attorney evaluates the franchise agreement's legal terms: termination clauses, territory rights, non-competes, dispute resolution. Your CPA evaluates whether the business underneath those terms can actually support you: franchisor financial health in Item 21, the realism of Item 19 earnings claims, and whether the Item 7 investment estimate funds you to breakeven. Buyers who skip the CPA often sign a legally sound agreement to buy an economically unsound business. ### How much does a franchise CPA review cost? Most pre-purchase FDD reviews run $500 to $2,500 depending on depth. A focused read of Items 5-7, 19, and 21 with a written memo sits at the low end; a full engagement that includes recasting Item 19 projections for your market, building an opening budget, and advising on entity structure lands at the high end. Compare that to the typical all-in franchise investment of $150,000-$500,000 — the review is a fraction of one percent of what's at stake. ### What does a CPA look for in Item 21 financial statements? Four things, quickly: going-concern qualifications in the auditor's notes, the franchisor's revenue mix (a healthy system earns most of its money from royalties, not from selling new franchises or marking up required products), the debt load relative to equity, and negative working capital. Any one of these signals warrants deeper investigation before you wire an initial fee to that franchisor. ### Should I form my LLC before or after signing the franchise agreement? Form the entity before signing, so the franchise agreement and lease are executed in the entity's name rather than yours personally. Your CPA will also advise on whether and when to make an S Corp election — typically not in year one, when losses are common and pass through more cleanly through a default LLC, but the timing interacts with your SBA loan paperwork and your eventual QBI deduction, so decide it deliberately rather than by default. ### How do I find a CPA who actually understands franchising? Ask three screening questions: how many FDDs have you reviewed in the last two years, do you have franchise clients in my industry, and do you charge a flat fee for a pre-purchase review? A CPA who has read dozens of FDDs will spot in an hour what a generalist misses entirely — like a working capital estimate that assumes you reach breakeven in month three. Franchisee associations, your franchise attorney, and existing franchisees in the system are the best referral sources. --- title: "Circle K Franchise Cost 2026: Fees, Profit & 7-Eleven Alt" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-07-18 dateModified: 2026-07-18 keywords: circle k, franchise cost, convenience store franchise, franchise fees, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/circle-k-franchise-cost about: circle k category: blog wordCount: 1874 readingTime: 9 min crawledAt: 2026-08-20 11:02:02 lastVerified: 2026-08-20 11:02:02 site: https://vetmyfranchise.com/c/claude/ --- # Circle K Franchise Cost 2026: Fees, Profit & 7-Eleven Alt ## Summary Circle K franchise cost: $268K-$3M to convert an existing store, $1.4M-$4.8M new build, $25K fee, 3.5% royalty. What owners really make vs 7-Eleven. ## Key facts - Converting an existing convenience store to a Circle K requires **$268,500 to $3,029,500**, and building a new store from the ground up runs **$1,383,500 to $4,846,500**, according to [Circle K’s franchise FAQ](https://www. - The single-store franchise fee is **$25,000**. - Per the 2025 FDD, the royalty is the greater of 3. - Read the second and third rows together and the trade becomes obvious. - Circle K’s 2025 FDD Item 19 discloses sales for both cohorts: 4,006 company-operated stores averaged **$2,060,193** in merchandise sales and roughly 1. Quick answer A Circle K conversion costs $268,500 to $3,029,500, and new construction runs $1,383,500 to $4,846,500, per Circle K's franchise disclosures. The franchise fee is $25,000, and ongoing fees are a 3.5% royalty plus $0.0075 per gallon of fuel. Unlike 7-Eleven, you supply the real estate. ## How Much Does a Circle K Franchise Cost? (Quick Answer) Converting an existing convenience store to a Circle K requires **$268,500 to $3,029,500**, and building a new store from the ground up runs **$1,383,500 to $4,846,500**, according to [Circle K’s franchise FAQ](https://www.franchise-circlek.com/faq). The full [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) table in the company’s 2025 FDD puts the range for a new or rebuilt store at $3,079,500 to $8,301,500 at the extremes. The initial franchise fee is a modest **$25,000**. The spread between those ranges comes down to real estate. Circle K’s model is the mirror image of [7-Eleven’s franchise structure](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost): you bring or develop the site, carry the rent or mortgage, and keep the equity. Whether you already control a corner lot or need to buy dirt and build changes the check size by millions. For where convenience stores sit against every other industry’s entry price, see our guide to [how much it costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise). One more thing to know before you get attached: this is a small program. Just over 650 US stores are franchised across the Circle K, On the Run, and Kangaroo Express banners, against roughly 7,300 company-operated locations. Circle K is not yet one of the 2,000+ FDDs parsed in VetMyFranchise’s database, so every figure in this post comes from the company’s public 2025 disclosure, its own franchise site, and named industry sources. Start with [what a Franchise Disclosure Document contains](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) and the FTC’s [consumer guide to buying a franchise](https://consumer.ftc.gov/articles/buying-franchise-consumer-guide) if FDDs are new to you. ## Full Circle K Startup Cost Breakdown ### Initial Franchise Fee The single-store franchise fee is **$25,000**. The 2025 FDD discounts it for scale and for conversions: $15,000 per store for units two through five, $10,000 for units six through nine, $7,500 for units ten through nineteen, and $5,000 per store at twenty or more, with a 25% discount when you convert an existing store. Franchisees converting one independent c-store pay less upfront in fees than almost any other retail brand charges. ### Conversion vs. New Construction | Path | Investment range | Source | | --- | --- | --- | | Convert an existing convenience store | $268,500 - $3,029,500 | Circle K franchise FAQ | | New construction | $1,383,500 - $4,846,500 | Circle K franchise FAQ | | New or rebuilt store, full Item 7 range | $3,079,500 - $8,301,500 | 2025 FDD Item 7 | The conversion path is where the “cheap Circle K franchise” idea comes from, and it’s real if you already own or lease a functioning store. The low end assumes your building, fuel canopy, and tanks are in decent shape and you’re mostly paying for rebranding, image standards, and technology. The high end of the new-build range covers land acquisition, sitework, fuel infrastructure, and a full store build, which is why it dwarfs the entry price of most food and retail franchises. ### Net Worth and Liquidity Requirements Circle K requires a **net worth of $1,000,000 including $100,000 in liquid assets** for a single store, and the company notes that liquidity is measured excluding the costs of the project itself. That last clause matters: you need the $100,000 on top of your build or conversion budget, not counting it. Our guide to [franchise net worth and liquidity requirements](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements) explains how franchisors verify these numbers. ## Royalty, Advertising & Fuel Fees | Fee | Rate | Basis | | --- | --- | --- | | Royalty | 3.5% | Monthly gross sales | | Fuel royalty | $0.0075 per gallon | Monthly motor fuel gallons | | Minimum royalty | $1,500/month | Floor if the percentages fall short | | Advertising funds (three combined) | Up to ~1.75% | Gross sales, with monthly caps | Per the 2025 FDD, the royalty is the greater of 3.5% of monthly gross sales plus three-quarters of a cent per gallon of fuel sold, or a $1,500 monthly minimum. Advertising runs through three separate promotional funds (a general fund at 0.25% of gross sales, local/regional programs up to 1.25%, and a national fund up to 0.25%), each with monthly caps. That is a genuinely light fee load. A typical franchise royalty runs 5-6% of sales, and [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc) takes 45-56% of gross profit outright. Circle K can charge less because it makes money on you in other ways: fuel supply, buying programs, and brand-standard equipment. For how royalty structures compare across systems, see [franchise royalty fees explained](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained). ## Circle K vs 7-Eleven: The Comparison That Actually Matters | Factor | Circle K | 7-Eleven | | --- | --- | --- | | Franchise fee | $25,000 | $0 | | Total investment | $268,500 - $4,846,500 | $162,900 - $1,656,800 (2025 FDD) | | Ongoing fees | 3.5% of sales + $0.0075/gallon | 45-56% of gross profit + 1% ad fund | | Real estate | Franchisee brings or develops the site | Franchisor owns or leases most stores | | Franchised US stores | 650+ across three banners | 7,229 per the 2025 FDD | | Program posture | Narrow, conversion-driven | Wide open, turnkey grants | Read the second and third rows together and the trade becomes obvious. 7-Eleven gets you into a running store for less cash because the franchisor keeps the building and takes roughly half your gross profit forever. Circle K asks for more capital and hands you a conventional royalty, real estate equity, and a P&L you actually control. If your shortlist includes Wawa or QuikTrip, cross them off now; neither company franchises at all. The full head-to-head, including a worked 10-year equity comparison, is in our [7-Eleven vs Circle K franchise breakdown](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise). ## How Much Do Circle K Franchise Owners Make? Circle K’s 2025 FDD Item 19 discloses sales for both cohorts: 4,006 company-operated stores averaged **$2,060,193** in merchandise sales and roughly 1.5 million fuel gallons, while the 41 reporting franchised businesses averaged **$1,694,457** in merchandise sales (median $1,458,338). The FDD does not disclose franchisee profit, so the P&L below is our model, built on that Item 19 average and convenience-industry benchmarks. | Line item (modeled) | Amount | Notes | | --- | --- | --- | | Merchandise sales | $1,694,000 | 2025 FDD Item 19 franchised average | | In-store gross profit | $542,000 | ~32% margin assumption | | Fuel gross profit | $360,000 | 1.2M gallons at ~$0.30/gal retained | | Total store gross profit | $902,000 | | | Labor | -$310,000 | ~20 employees per store industry average | | Occupancy (rent or debt service) | -$150,000 | You control this line | | Royalty + fuel royalty | -$68,000 | 3.5% + $0.0075/gallon | | Advertising funds | -$18,000 | | | Card fees, utilities, insurance, shrink, other | -$210,000 | | | Estimated pre-tax owner earnings | $146,000 | | Call it **$100,000 to $200,000** for a store performing near the franchised average, with two levers dominating the outcome. The first is fuel: US fuel margins averaged just over 40 cents per gallon in 2025 according to [NACS State of the Industry data](https://www.nacsmagazine.com/issues/june-2026/5-key-metrics-defining-the-convenience-industrys-health), but that figure swings hard year to year, and payment-card fees (more than $21 billion industry-wide in 2025, per NACS) come off the top. The second is occupancy. An owner who controls a paid-down site keeps what a leasing operator hands to a landlord, and a mortgage holder is building equity 7-Eleven operators never see. > **Running the numbers on a c-store?** A $49 VetMyFranchise FDD analysis covers Item 19 earnings, fee footnotes, litigation history, and a buyer verdict for any brand we’ve parsed: [see a full example report](https://vetmyfranchise.com/c/claude/fdd-analysis-example). **Fuel infrastructure is its own underwriting problem.** Tanks, lines, and canopies carry environmental compliance obligations and six-figure replacement costs. On a conversion, the age of the tanks can matter more than the age of the building. **The fuel supply agreement shapes your margin.** Branded fuel programs set how much of that 40-cent industry margin you actually keep. Model your fuel P&L from the agreement’s terms, not from national averages. **The minimum royalty bites in slow months.** The $1,500 monthly floor is trivial for a healthy store but real for a low-volume rural site in its first winter. **The pipeline itself is a cost.** With a conversion-heavy program this selective, expect a longer courtship than at franchisors who grant hundreds of units a year. Parent company Couche-Tard grows mainly by acquiring chains, not by franchising, and the program’s 650-store size after decades reflects that. ## Who a Circle K Franchise Fits The profile is specific: an operator who already owns or can secure convenience-store real estate, wants national brand recognition and fuel-buying power, and prefers a light royalty with full P&L control. Independent c-store owners tired of competing against the majors are the core conversion candidate, and prior store operating experience is close to a requirement. If you want turnkey access with training wheels and no real estate to develop, [7-Eleven’s model](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) exists for exactly that buyer, at the price of the gross-profit split. Comparing the two disclosure documents side by side is the single highest-value hour of diligence in this category, and a [$49 FDD analysis](https://vetmyfranchise.com/c/claude/fdd-analysis-example) is the fastest way to structure it. - **[7-Eleven Franchise Cost: The $0 Fee Explained](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost)** — Why the cheapest-looking c-store franchise takes 45-56% of gross profit, and what operators keep. - **[7-Eleven vs Circle K Franchise](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise)** — The structural showdown: profit split vs royalty, turnkey vs owned real estate, and a 10-year equity model. ## Brands mentioned in this post - [7-Eleven](https://vetmyfranchise.com/c/claude/franchise/7-eleven-inc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Get this comparison as a spreadsheet. We'll email you the full **comparison spreadsheet**: every brand in this category with its Item 7 investment range and royalty, side by side. No spam, unsubscribe anytime. ✓ Check your inbox The comparison spreadsheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) circle kfranchise costconvenience store franchisefranchise feesbrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Circle K franchise cost? Converting an existing convenience store to a Circle K costs $268,500 to $3,029,500, and building new runs $1,383,500 to $4,846,500, according to Circle K's franchise disclosures. The 2025 FDD Item 7 range for a new or rebuilt store reaches $8,301,500 at the top end, largely because the franchisee supplies the real estate. The initial franchise fee itself is only $25,000. ### How much profit does a Circle K franchise make? Roughly $100,000 to $200,000 in pre-tax owner earnings for a store performing near the 2025 FDD Item 19 franchised average of $1,694,457 in merchandise sales, based on our modeled P&L using convenience-industry margin benchmarks. Circle K does not disclose franchisee profit directly. Fuel margin swings and your occupancy cost are the two biggest variables, because you control the real estate. ### What are Circle K's royalty and advertising fees? The royalty is 3.5% of monthly gross sales plus $0.0075 per gallon of motor fuel sold, with a $1,500 monthly minimum, per the 2025 FDD. Advertising contributions run through three separate promotional funds (general, local/regional, and national) that together total up to roughly 1.75% of gross sales, with monthly caps. That is a far lighter fee load than 7-Eleven's 45-56% gross-profit split. ### Is Circle K a franchise or company-owned? Mostly company-owned. Parent company Alimentation Couche-Tard operates roughly 7,300 US locations, and just over 650 are franchised across the Circle K, On the Run, and Kangaroo Express banners per the company's franchise site. The franchise program exists mainly for converting independent convenience stores and select new builds, not as the primary growth engine. ### Which is cheaper to open, a Circle K or a 7-Eleven? 7-Eleven, in upfront cash terms: $162,900 to $1,656,800 per its 2025 FDD, against $268,500 to $4,846,500 for Circle K. The difference is the real estate model. 7-Eleven typically owns the store and licenses it to you; Circle K expects you to bring or develop the site. Circle K's ongoing fees are much lower, and you keep the real estate equity. --- title: "Coffee Franchise vs. Independent Coffee Shop (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-24 dateModified: 2026-06-24 keywords: coffee-franchise, independent-coffee-shop, franchise-vs-independent, coffee-business, franchise-comparison canonical: https://vetmyfranchise.com/c/claude/blog/coffee-franchise-vs-independent-coffee-shop about: coffee-franchise category: blog wordCount: 1213 readingTime: 6 min crawledAt: 2026-08-20 11:02:03 lastVerified: 2026-08-20 11:02:03 site: https://vetmyfranchise.com/c/claude/ --- # Coffee Franchise vs. Independent Coffee Shop (2026) ## Summary Coffee franchise vs. independent coffee shop: startup costs, what a franchise provides, where independents win, and which path fits your goals in 2026. ## Key facts - An **independent coffee shop** can open for roughly **$80,000 to $300,000**, depending on size, equipment, and whether you’re doing a tiny espresso bar or a full sit-down café. - Coffee looks simple and runs complicated. - Going independent isn’t the lesser choice — for the right owner it’s the better one: - The pattern mirrors most franchise-vs-independent decisions: the franchise trades fees and rules for a lower chance of failure and a faster ramp; the independent trades a harder, riskier build for total control and a bigger slice of every dollar. - Before you choose a path, learn the handful of metrics that determine whether a coffee shop makes money. Quick answer An independent coffee shop opens for roughly $80,000 to $300,000. A coffee franchise runs $250,000 to $700,000 for a drive-thru or walk-up kiosk and $500,000 to over $1.7 million for a full store with food. The premium buys a supply chain, drive-thru playbook, brand recognition, and app; coffee cost of goods runs 25-35% of sales. Almost everyone who loves coffee has, at some point, fantasized about owning a café — the smell, the regulars, the little kingdom behind the counter. Then reality arrives in the form of a question with real financial stakes: do you build your own shop, or buy into a coffee franchise? One path is cheaper and more personal. The other hands you a machine that’s already been debugged. Here’s how to think it through. ## What it costs to open each An **independent coffee shop** can open for roughly **$80,000 to $300,000**, depending on size, equipment, and whether you’re doing a tiny espresso bar or a full sit-down café. A **coffee franchise** runs higher — about **$250,000 to $700,000** for a drive-thru or walk-up kiosk, and **$500,000 to well over $1.7 million** for a full store with a food program. The independent clearly costs less to start. But in coffee, the startup number is only half the story. The other half is whether your shop actually fills with cars and customers — and that’s where the two paths really diverge. ## What a coffee franchise provides Coffee looks simple and runs complicated. A franchise sells you the solutions to the hard parts: - **A supply chain.** Beans, roasting, syrups, cups, and consistent product — negotiated and delivered, not sourced by you one vendor at a time. - **A drive-thru and operations playbook.** The modern coffee winner is built on throughput: cars per hour, order accuracy, speed of service. Franchises have turned that into a science. - **Brand recognition.** People pull into a name they know on instinct. A new independent has to earn every first visit. - **Technology.** Loyalty apps, mobile ordering, and POS systems that independents have to assemble and pay for separately. That’s why a franchise’s higher cost isn’t just overhead — it’s buying down your risk. We cover the bigger principle in [franchise vs. independent business](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business), and the real franchise numbers in the [Dunkin franchise cost breakdown](https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-good-franchise). ## Where the independent wins Going independent isn’t the lesser choice — for the right owner it’s the better one: - **All the profit is yours.** No franchise fee, no royalty, no marketing-fund cut. - **Total creative control.** Your beans, your menu, your aesthetic, your community events. You can be the quirky neighborhood spot a franchise can never be. - **Flexibility.** Change your hours, your pricing, your concept whenever you want. The cost of that freedom is that you’re on your own for everything that goes wrong — and food service is unforgiving. The independents that thrive usually have a standout location, a genuine point of difference, and an owner who knows the operational details cold. ## Failure odds and ramp time, compared | Factor | Coffee franchise | Independent shop | | --- | --- | --- | | Startup cost | $250K–$1.7M+ | $80K–$300K | | Ongoing fees | Royalty + marketing | None | | Supply chain | Built-in | You build it | | Brand draw | Immediate | Earned slowly | | Drive-thru know-how | Systematized | DIY | | Control & profit share | Within the system | All yours | The pattern mirrors most franchise-vs-independent decisions: the franchise trades fees and rules for a lower chance of failure and a faster ramp; the independent trades a harder, riskier build for total control and a bigger slice of every dollar. ## The numbers that decide a coffee business Before you choose a path, learn the handful of metrics that determine whether a coffee shop makes money. Transactions per day and average ticket set your revenue ceiling — a drive-thru doing 400 cars a day at a $6 ticket is a different business entirely from a café doing 150 tickets at $5. For drive-thru concepts, cars per hour at peak is the single most important operating number; for cafés, it’s transactions plus dwell-time spend on food, pastries, and second drinks. On the cost side, watch three ratios: cost of goods (often 25–35% of sales for coffee), labor (frequently your largest line), and rent as a share of sales — a great location at a brutal rent can still sink you. Then find your break-even: how many drinks a day must you sell to cover fixed costs? Pull those figures from a franchise’s Item 19 and from real owners, or build them honestly for your independent pro forma. The café daydream skips this math; the profitable owner lives by it. ## Which path fits you - **Lean franchise if:** you want proven systems and a name that pulls traffic, you’re drawn to the drive-thru model, and you can fund the buy-in. Brands like [Scooter’s Coffee](https://vetmyfranchise.com/c/claude/franchise/scooters-coffee-llc) and [Dunkin](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) sit at different points on the cost-and-format spectrum. - **Lean independent if:** you have a distinctive concept, a great location locked down, and the experience to run operations without a playbook. A useful middle note: if you love a brand that _doesn’t_ franchise — Dutch Bros being the obvious example — going independent might be your only way into that style of business. We list the franchised drive-thru options in [alternatives to a Dutch Bros franchise](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-dutch-bros-franchise), and compared two leaders in [Dutch Bros vs. Scooter’s Coffee](https://vetmyfranchise.com/c/claude/blog/dutch-bros-vs-scooters-coffee-franchise). ## Decide on numbers, not romance The café daydream is powerful, and it’s exactly what leads people to skip the math. Don’t. For the franchise route, read the [FDD](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) — Item 7 for cost, Item 19 for what shops actually earn, Item 20 for closures. For the independent route, build a real pro forma around your specific location’s traffic, your rent, and a believable ramp. A [VetMyFranchise report](https://vetmyfranchise.com/c/claude/franchises) does the franchise-side analysis for you in plain English, and the [free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) can match you to coffee brands that fit your budget before you decide whether to franchise at all. Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) #### Dunkin Donuts [Learn more →](https://vetmyfranchise.com/c/claude/franchise/dunkin-donuts-franchising-llc) ### Keep reading #### 7-Eleven vs Circle K Franchise: What the 45-56% Split Actually Nets an Operator [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) #### Anytime Fitness vs Orangetheory Franchise: 2026 Comparison [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) #### Anytime Fitness vs Planet Fitness Franchise: Cost, ROI, and Which Model Wins in 2026 [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise) coffee-franchiseindependent-coffee-shopfranchise-vs-independentcoffee-businessfranchise-comparison About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### Is a coffee franchise worth it? It can be, if you value a proven supply chain, drive-thru operations, and a recognized name that drives traffic from day one. The trade is the buy-in and ongoing royalties. Coffee has strong daily-habit demand and high per-cup margins, but the category is crowded — a franchise's site-selection science and brand pull can be the difference between a busy drive-thru and an empty one. Vet the brand's Item 19 before deciding. ### Do independent coffee shops make money? Many do, but margins are thin and failure rates in food service are high. Successful independents usually win on a strong location, a distinct product or atmosphere, and tight cost control. The upside is you keep all the profit and own your brand. The risk is you're building the supply chain, the operations, and the customer base from scratch — without a franchise's safety net. ### How much does it cost to open a coffee franchise? Drive-thru and walk-up kiosks commonly run $250,000 to $700,000, while full-size coffee-and-food stores can cost $500,000 to over $1.7 million. The biggest variables are real estate, drive-thru construction, and equipment. An independent shop can start lower — roughly $80,000 to $300,000 — but without the franchise's systems and brand. Confirm franchise figures in Item 7 of the FDD. ### Should I franchise or open my own coffee shop? Franchise if you want a proven model, supply-chain support, and faster brand traction, and you can fund the higher cost. Go independent if you have a unique concept, a great location, and the experience to build operations yourself — and you want full control and all the profit. Your experience and your location often matter more than the brand decision itself. --- title: "How Much Is a Five Guys Franchise? Full Cost Breakdown (2026)" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-04-19 dateModified: 2026-07-10 keywords: five guys, franchise cost, burger franchise, franchise fees, brand analysis canonical: https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost about: five guys category: blog wordCount: 1979 readingTime: 10 min crawledAt: 2026-08-20 11:02:18 lastVerified: 2026-08-20 11:02:18 site: https://vetmyfranchise.com/c/claude/ --- # How Much Is a Five Guys Franchise? Full Cost Breakdown (2026) ## Summary Five Guys franchise cost ranges from $978K to $1.38M per unit. Full breakdown of franchise fees, build-out costs, royalties, Item 19 earnings. ## Key facts - Opening a single [Five Guys](https://vetmyfranchise. - The per-unit franchise fee is **$25,000**. - A critical distinction: Shake Shack and In-N-Out are entirely company-owned. - Five Guys charges three recurring fees that come directly off your top-line revenue: - Five Guys’ Item 19 financial performance representation shows **average unit volumes (AUV) around $1. Quick answer A Five Guys franchise costs $977,850 to $1,375,750 per restaurant per the 2025 FDD Item 7, including a $25,000 franchise fee; the royalty is 6% of gross sales plus a 2-4% ad fund. Most buyers sign multi-unit development deals of five or more locations, pushing total commitment near $5 million or beyond. ## How Much Does a Five Guys Franchise Cost? (Quick Answer) Opening a single [Five Guys](https://vetmyfranchise.com/c/claude/franchise/five-guys-franchisor-llc) restaurant requires a total investment between **$977,850 and $1,375,750**, according to [Item 7](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment) of the 2025 Franchise Disclosure Document parsed in VetMyFranchise’s database. The initial franchise fee is $25,000 per unit. But here’s the catch most prospective franchisees miss: Five Guys almost exclusively awards [multi-unit](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide) area development agreements, meaning you’re committing to open 5 or more locations within a defined territory over a set timeline. For where that puts Five Guys against every other industry’s entry price, see our breakdown of [how much it costs to open a franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise). That changes the real financial picture dramatically. A five-unit development agreement means you’re looking at roughly $4.9 million to $6.9 million in total capital deployment over several years, plus the area development fee paid upfront. Before diving deeper into the numbers, make sure you understand [what a Franchise Disclosure Document contains](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document) and how to read one critically. The FTC’s [consumer guide to buying a franchise](https://consumer.ftc.gov/articles/buying-franchise-consumer-guide) is a good companion read on what the disclosure is legally required to tell you. ## Full Five Guys Startup Cost Breakdown ### Initial Franchise Fee The per-unit franchise fee is **$25,000**. For area development agreements, Five Guys charges an additional development fee based on the number of committed units. If you’re signing a 5-unit agreement, expect to pay $25,000 for the first unit plus reduced fees for subsequent units, typically totaling $100,000-$125,000 upfront. This fee grants you the right to use the Five Guys brand, operating system, recipes, and supplier network. It does not cover build-out, equipment, or any physical assets. For context on the ongoing fees that come after the initial fee, see our [FDD Item 6 guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees). ### Real Estate, Build-Out & Equipment This is the largest single cost category, ranging from **$250,000 to $600,000** depending on your market. | Cost Component | Low Estimate | High Estimate | | --- | --- | --- | | Leasehold improvements | $150,000 | $375,000 | | Kitchen equipment & smallwares | $65,000 | $130,000 | | Furniture, fixtures & decor | $20,000 | $50,000 | | POS system & technology | $15,000 | $45,000 | Five Guys locations typically occupy 1,500-2,500 square feet in inline retail or endcap positions. The brand’s open kitchen design means a significant portion of the build-out budget goes toward the cooking line, exhaust systems, and grease management infrastructure. Markets like Manhattan, San Francisco, or Chicago suburbs push costs toward the high end. Secondary and tertiary markets can come in closer to the low estimate. ### Inventory, Signage & Pre-Opening Costs | Cost Component | Low Estimate | High Estimate | | --- | --- | --- | | Initial food inventory | $8,000 | $15,000 | | Exterior and interior signage | $15,000 | $40,000 | | Pre-opening labor and training | $25,000 | $50,000 | | Grand opening marketing | $10,000 | $25,000 | Five Guys uses fresh ingredients (never-frozen beef, hand-cut fries, peanut oil), which means your opening inventory costs are higher than frozen-product burger concepts. Pre-opening training requires you and your management team to spend several weeks at Five Guys’ headquarters and an existing location, with travel and lodging on your dime. ### Working Capital Reserves Five Guys recommends **$50,000 to $100,000** in working capital to cover the first 3-6 months of operations before the restaurant reaches steady-state revenue. This covers payroll, utilities, rent, and food costs during the ramp-up period. Experienced franchise consultants, including our team, generally recommend budgeting closer to 6 months of operating expenses, which can push this figure higher in expensive markets. ## Cost Comparison Table: Five Guys vs. Shake Shack vs. In-N-Out vs. Smashburger | Factor | Five Guys | Shake Shack | In-N-Out | Smashburger | | --- | --- | --- | --- | --- | | Franchise fee | $25,000 | Not franchised | Not franchised | $30,000 | | Total investment | $978K-$1.38M | N/A (company-owned) | N/A (company-owned) | $575K-$1.1M | | Multi-unit required? | Yes (5+ units) | N/A | N/A | Preferred | | Liquid capital required | $250,000+ | N/A | N/A | $300,000+ | | Net worth required | $1,000,000+ | N/A | N/A | $1,000,000+ | | Royalty rate | 6% | N/A | N/A | 5.5% | A critical distinction: Shake Shack and In-N-Out are entirely company-owned. You cannot franchise either brand. This leaves Five Guys and Smashburger as the primary “better burger” franchise options, with Five Guys commanding stronger brand recognition and higher average unit volumes. Browse other franchise opportunities in our [franchise directory](https://vetmyfranchise.com/c/claude/franchises) or use the [AI franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) to find brands that fit your investment range. ## Ongoing Royalty, Marketing & Tech Fees Five Guys charges three recurring fees that come directly off your top-line revenue: | Fee Type | Rate | Basis | | --- | --- | --- | | Royalty fee | 6% | Gross sales | | Advertising/marketing fund | 2%-4% | Gross sales | | Technology fee | ~$1,500/month | Flat fee | The 6% royalty is right at the industry median for QSR burger franchises. The marketing contribution, set at 2% to 4% of gross sales per the 2025 FDD, funds national and regional advertising campaigns. The technology fee covers the POS system, online ordering platform, and back-office reporting tools. Combined, you’re paying roughly **8% to 10% of gross sales** in ongoing fees before you account for rent, labor, food costs, or any local marketing beyond the required fund contributions. For a deeper look at how royalties work, read our guide on [franchise royalty fees explained](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained). ## Item 19 Snapshot: What Five Guys Locations Actually Earn ### Average Unit Volume from the Latest FDD Five Guys’ Item 19 financial performance representation shows **average unit volumes (AUV) around $1.1 million to $1.3 million** for franchised locations as of 2026. Top-quartile locations exceed $1.5 million, while bottom-quartile units fall below $900,000. These figures represent gross revenue before any deductions. Understanding [Item 19 financial performance representations](https://vetmyfranchise.com/c/claude/blog/what-is-item-19-franchise) is essential before drawing any income conclusions from these numbers, and the [Five Guys FDD profile](https://vetmyfranchise.com/c/claude/franchise/five-guys-franchisor-llc) shows what the brand’s disclosure does and does not report. ### Estimated Cash Flow After All Fees Working backward from a $1.2 million AUV location: | Line Item | Amount | % of Revenue | | --- | --- | --- | | Gross revenue | $1,200,000 | 100% | | Food costs (30-33%) | -$384,000 | 32% | | Labor costs (25-28%) | -$312,000 | 26% | | Occupancy/rent (8-12%) | -$120,000 | 10% | | Royalty (6%) | -$72,000 | 6% | | Marketing fund (3%) | -$36,000 | 3% | | Technology fee | -$18,000 | 1.5% | | Other operating expenses | -$96,000 | 8% | | Estimated pre-tax cash flow | $162,000 | 13.5% | This back-of-envelope math suggests a mid-performing Five Guys generates roughly $130,000-$180,000 in pre-tax owner earnings. Top performers do considerably better. Bottom-quartile locations may struggle to clear $60,000, which barely justifies the capital at risk. Use our [franchise investment calculator](https://vetmyfranchise.com/c/claude/franchise-investment-calculator) to model these numbers against your own financial situation. > **Considering Five Guys?** The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: [$49 per brand](https://vetmyfranchise.com/c/claude/fdd-analysis-example), or [three brands for $99](https://vetmyfranchise.com/c/claude/buy/3-pack) if you’re comparing finalists. **Multi-unit timeline pressure.** Your area development agreement includes a strict opening schedule. Miss a deadline, and Five Guys can terminate your rights to remaining units, or even the entire agreement. Delays from permitting, construction, or landlord negotiations don’t necessarily buy you extensions. **Remodel requirements.** Five Guys mandates periodic remodels, typically every 7-10 years. These can run $100,000-$250,000 per location and are not optional. The cost is not included in the initial Item 7 investment estimate. **Fresh food waste.** The “never frozen” commitment that makes Five Guys popular also creates higher spoilage rates than frozen-product competitors. Daily food cost management requires discipline and experienced kitchen managers. **General manager compensation.** In tight labor markets, a qualified GM for a Five Guys location commands $55,000-$75,000 in salary plus benefits. If you’re running multiple units (which you will be), you need a GM at every location, making labor costs your biggest ongoing challenge. A [franchise attorney](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-what-to-look-for) can help you identify risks buried in the franchise agreement that go beyond what the FDD discloses. ## Why Five Guys Costs More Than Most Burger Franchises (And When It’s Worth It) Five Guys is not the cheapest entry point into burger franchising. Brands like Rally’s/Checkers ($300K-$600K) or Sonic ($1.2M but with drive-in format revenues) offer lower per-unit costs. So why pay more? **Brand strength.** Five Guys consistently ranks among the top 3 burger brands in consumer preference surveys. That translates to opening-day traffic and sustained customer loyalty that newer or weaker brands can’t match. **Simplicity of operations.** The menu is deliberately limited: burgers, fries, hot dogs, milkshakes. No breakfast daypart, no complicated LTOs, no drive-through (in most locations). This operational simplicity reduces training time, lowers error rates, and keeps labor costs more predictable. **Proven AUV.** A $1.2 million average unit volume in a 2,000 square foot footprint produces strong revenue per square foot. Many cheaper franchise concepts generate $600,000-$800,000 AUV, meaning the absolute dollar return on Five Guys’ higher investment can still be superior. The investment makes the most sense for operators who can commit to the multi-unit model, have experience managing restaurant teams, and target markets where Five Guys has limited existing penetration. If you’re evaluating whether [franchising or starting your own business](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business) is the right path, Five Guys represents the high end of the franchise investment spectrum with correspondingly strong brand support. - **[Best Burger Franchises in 2026](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises)** — Five Guys, Smashburger, [BurgerFi](https://vetmyfranchise.com/c/claude/franchise/burgerfi-franchise-llc), [Wahlburgers](https://vetmyfranchise.com/c/claude/franchise/wahlburgers-franchising-llc), [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc), and Culver’s compared on capital, royalty, and AUV. - **[Five Guys vs Wingstop: which franchise wins on unit economics?](https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise)** — Burger AUV vs wing-segment margins, real estate footprint, and what each system actually expects from a multi-unit operator. ## Brands mentioned in this post - [Burger King](https://vetmyfranchise.com/c/claude/franchise/burger-king-company-llc) - [Wahlburgers](https://vetmyfranchise.com/c/claude/franchise/wahlburgers-franchising-llc) - [BurgerFi](https://vetmyfranchise.com/c/claude/franchise/burgerfi-franchise-llc) Get the full 12-section FDD analysis — $49 Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99. [Browse franchises · pick your brand](https://vetmyfranchise.com/c/claude/franchises) [Or see a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Take the Five Guys numbers with you. We'll email you the **Five Guys FDD data sheet**: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime. ✓ Check your inbox The Five Guys data sheet is on its way. ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### 7 Brew Franchise Cost: $940K In, $2.55M Out, 578 Stands [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost) #### 7-Eleven Franchise Cost: What the 2026 FDD Actually Charges [Learn more →](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost) #### Urgent Care Franchise Cost: What AFC Really Takes [Learn more →](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost) five guysfranchise costburger franchisefranchise feesbrand analysis About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### How much does a Five Guys franchise cost in total? The total investment for a single Five Guys location ranges from $977,850 to $1,375,750 according to the 2025 FDD. However, Five Guys almost exclusively awards multi-unit area development agreements requiring 5+ locations, which means the total capital commitment is roughly $4.9 million to $6.9 million over the development timeline. ### Can you buy a single Five Guys franchise? Five Guys very rarely awards single-unit franchise agreements. The brand strongly prefers multi-unit area development deals, typically requiring franchisees to commit to opening 5 or more locations within a defined territory over a specified timeline. If you only want one restaurant, Five Guys may not be the right fit. ### What is the Five Guys franchise royalty fee? Five Guys charges a 6% royalty on gross sales, plus a 2-4% advertising/marketing fund contribution per the 2025 FDD and a monthly technology fee of approximately $1,500. Combined ongoing fees total roughly 8-10% of gross revenue before any local marketing spend. ### How much do Five Guys franchise owners make? Based on Item 19 data and industry cost benchmarks, a mid-performing Five Guys location generating $1.2 million in annual revenue may produce approximately $130,000-$180,000 in pre-tax owner earnings. Top-quartile locations earning $1.5 million+ can produce significantly higher returns, while bottom-quartile units may generate less than $60,000. ### What are the net worth and liquid capital requirements for a Five Guys franchise? As of 2026, Five Guys requires franchisees to have a minimum net worth of $1 million and liquid capital of at least $250,000. For multi-unit area development agreements, the financial requirements scale with the number of committed locations. --- title: "Conversion Franchising: Convert Your Business to a Franchise" type: [Article, Person, BreadcrumbList, FAQPage, Organization, WebSite] author: VetMyFranchise Team publisher: VetMyFranchise datePublished: 2026-06-14 dateModified: 2026-06-14 keywords: conversion franchise, convert independent business to franchise, franchise conversion program, join a franchise existing business, conversion franchisee incentives, rebrand to franchise canonical: https://vetmyfranchise.com/c/claude/blog/conversion-franchising-convert-your-business about: conversion franchise category: blog wordCount: 1722 readingTime: 9 min crawledAt: 2026-08-20 11:06:33 lastVerified: 2026-08-20 11:06:33 site: https://vetmyfranchise.com/c/claude/ --- # Conversion Franchising: Convert Your Business to a Franchise ## Summary Conversion franchising lets independent owners join a brand. Real economics on conversion franchise fees, royalties, rebrand costs, and incentives before you sign. ## Key facts - You already own the business. - A new ground-up franchisee is a liability for a year or two: no revenue, ramp risk, build-out that can run over budget. - The pitch is brand recognition, national marketing, a referral or lead-gen engine, group purchasing discounts, proven systems, and software you didn’t have to build. - Conversion deals are sold on the headline (“we’ll waive your franchise fee”), but the headline is the small number. - Standard FDD diligence applies, but conversions carry a few extra checks: Quick answer Conversion franchising lets an established independent business adopt a franchisor's brand. Franchisors often waive the $40K-$60K initial fee, but you take on a permanent royalty of 4-8% of gross plus an ad fund, and a rebrand bill of $25,000 to $150,000. At $850,000 of post-conversion revenue that is about $68,000 in new annual fees. ## What conversion franchising actually is You already own the business. You have a lease, equipment, staff, and customers who know your name. Conversion franchising means you keep all of that and bolt on a franchisor’s brand, playbook, and back office instead of opening a fresh unit from zero. It shows up most in categories that are highly fragmented and full of competent independents: residential real estate, restoration and remediation, home services (HVAC, plumbing, painting), commercial cleaning, auto repair, and hospitality. In those spaces a franchisor’s fastest growth lever isn’t recruiting a first-time owner who needs 18 months to find a site and open. It’s converting a proven operator who can fly the brand’s flag next quarter. The distinction that trips people up: this is not “franchising my own concept” so I can sell units to others. In a conversion you’re the franchisee. You’re adopting someone else’s standards and writing them a royalty check, not collecting one. ## Why brands chase independents (and what they’ll offer) A new ground-up franchisee is a liability for a year or two: no revenue, ramp risk, build-out that can run over budget. You, by contrast, arrive with day-one cash flow and a location the franchisor didn’t have to scout or finance. That’s worth real money to them, and they price it accordingly. The incentives you’ll commonly see in a conversion program: - **Reduced or zero initial franchise fee.** The single most common sweetener. A fee that’s $40K-$60K for a fresh unit may drop to a token amount or vanish for a conversion. - **Royalty ramp.** A reduced royalty rate for the first 6-24 months that steps up to the standard rate, easing the transition while you absorb the new cost. - **Rebrand-cost contribution.** A signage or re-image credit, sometimes a few thousand dollars toward exterior signs or a marketing kit. - **Faster onboarding.** Compressed training and a dedicated transition manager, since you already know how to run the operation. Every one of these has to appear in the [Franchise Disclosure Document](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document). Initial and ongoing fees live in **Item 5 and Item 6**; the full estimated investment, including build-out and re-image, sits in **Item 7**. If a recruiter promises a fee waiver the FDD doesn’t reflect, that gap is your first red flag. The numbers that matter are the disclosed ones. ## What you gain versus what you give up The pitch is brand recognition, national marketing, a referral or lead-gen engine, group purchasing discounts, proven systems, and software you didn’t have to build. For a solid-but-anonymous independent in a category where customers shop on trust, that brand halo can genuinely lift close rates and average ticket. Here’s what you hand over in exchange. Independence first: you’ll run the brand’s playbook on pricing structure, marketing, vendors, and customer experience, and “but my way works” stops being a valid answer. Money second: a royalty and ad fund forever. And optionality third, because once you sign the franchise agreement, you’re bound by its transfer, renewal, and termination terms. That last one is where conversion owners get burned. As an independent you could sell, pivot, or close on your own timeline. After conversion, **Item 17** governs whether you can transfer the business, what the franchisor’s right of first refusal looks like, and what happens at renewal. Read it before you sign, not after the brand underperforms. The same posture you’d bring to evaluating [a franchise versus buying an independent business outright](https://vetmyfranchise.com/c/claude/blog/franchise-vs-buying-small-business) applies here, except you already own the independent and are deciding whether to give up that freedom. This is also the moment to be honest about your numbers as they stand today. Run your current independent P&L the way a franchise buyer would, line by line, so you know exactly [what you take home now](https://vetmyfranchise.com/c/claude/blog/how-much-do-franchise-owners-make) before a royalty and ad fund enter the picture. If your business already nets you a comfortable owner draw on a strong local reputation, the brand has to clear a high bar to be worth the cut. If you’re an independent owner weighing whether any brand is even a fit for your category and market, the [find-my-franchise matcher](https://vetmyfranchise.com/c/claude/find-my-franchise) is a fast way to see which systems run conversion programs in your space before you start fielding recruiter calls. ## The economics: model the royalty drag, not just the fee Conversion deals are sold on the headline (“we’ll waive your franchise fee”), but the headline is the small number. The recurring royalty is the one that compounds for the life of the agreement. Here’s a simplified worked example for an independent doing $800K in annual revenue, comparing standalone versus converted. Figures are illustrative ranges, not a quote for any brand. | Line item | Independent (today) | After conversion | | --- | --- | --- | | Annual revenue | $800,000 | $850,000 | | Royalty (6% of gross) | $0 | $51,000 | | Ad fund (2% of gross) | $0 | $17,000 | | One-time franchise fee | $0 | $0 (waived) | | One-time rebrand / re-image | $0 | $25,000-$150,000 | | Net new annual fee load | — | ~$68,000 | The assumption baked in is that the brand lifts revenue (here, $50K, from better lead flow or pricing power). If it does, $50K of lift against $68K of new annual fees still leaves you behind in year one before the rebrand spend, so the brand has to deliver more lift than the example shows to make the math work. That’s the whole decision in one row: **does the brand grow your top line and margin by more than the royalty plus ad fund take out?** Rebrand and re-image cost is the line conversion buyers most underestimate. New exterior and interior signage, decor brought to brand standard, uniforms, vehicle wraps, and a forced POS or CRM migration add up fast. Because it’s physical work on an existing site, it shares every overrun risk of a fresh build, and the same forces driving [franchise build-out costs higher](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay) (materials, labor, permitting) hit conversions too. Budget a 15-30% buffer. ## Diligence specific to conversions Standard FDD diligence applies, but conversions carry a few extra checks: - **Pin down the incentive in writing.** Confirm the fee waiver, royalty ramp, and any re-image credit appear in the FDD or a signed addendum, not just an email. Verbal sweeteners evaporate. - **Get the true rebrand scope.** Ask for the brand standards manual and a line-item re-image estimate for your specific location. “About $40K” is not a budget. - **Stress the post-conversion P&L.** Layer the full royalty and ad fund onto your real numbers and confirm you still clear an acceptable owner income. - **Validate with other converts.** The franchisor’s Item 20 lists current franchisees. Find ones who converted (not ground-up openers) and ask whether the promised lead flow and brand lift actually materialized. - **Audit the exit.** Item 17 transfer and termination terms decide how trapped you are if it doesn’t work. - **Negotiate while you have the upper hand.** You’re the asset they want. Conversion terms, ramp length, territory, and re-image scope are more negotiable than a first-timer’s deal, so treat the franchise agreement as something to negotiate, not accept. See our [guide to key franchise agreement clauses](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses) for where the room to move actually is. ## Is converting right for your business? Conversion tends to win when you’re a capable independent in a fragmented, trust-driven category where customers reward a recognized name, your lead generation is your weakest link, and the brand’s referral engine or buying power would move real revenue. It tends to lose when you’re already the dominant, well-known local name, your margins are thin enough that 6-8% of gross is the difference between healthy and stressed, or you value autonomy more than systems. The cleanest test: ask whether the brand solves a problem you actually have. If your bottleneck is demand and the franchisor’s machine generates leads you can’t, conversion can be transformative. If your business runs well and you’d mainly be paying for a logo, you’re funding their growth, not yours. Before you commit, look at which brands in your category run conversion programs and what their disclosed terms and unit counts look like side by side. [Browse the franchise directory](https://vetmyfranchise.com/c/claude/franchises) to compare the systems courting independents like you, then take the shortlist of two or three to a franchise attorney before you sign anything. Not sure which franchise fits you yet? Take our free 2-minute quiz. Tell us your capital, experience, and goals; we surface the brands worth researching. When you've narrowed your list, our full FDD reports are $49. [Take the free quiz](https://vetmyfranchise.com/c/claude/find-my-franchise) [Curious what you get? See a sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) Not ready to decide? Take the checklist with you. Get the free **Franchise Red-Flags Checklist**: the things to verify in any FDD before you sign. We'll email it now, plus occasional buyer research from our team. No spam, unsubscribe anytime. ✓ Check your inbox The Franchise Red-Flags Checklist is on its way. While you wait, [see a real $49 sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) ### Get a Professional FDD Analysis — $49 The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation. [Browse Franchise Library](https://vetmyfranchise.com/c/claude/franchises) [See a real sample report →](https://vetmyfranchise.com/c/claude/fdd-analysis-example) $49 per brand · $99 for a 3-brand pack ### Franchises you might be evaluating #### Jani-King of California [Learn more →](https://vetmyfranchise.com/c/claude/franchise/jani-king-of-california-inc) #### Doctor's Associates [Learn more →](https://vetmyfranchise.com/c/claude/franchise/doctors-associates-llc) #### McDonald's USA [Learn more →](https://vetmyfranchise.com/c/claude/franchise/mcdonalds-usa-llc) ### Keep reading #### After Discovery Day: A 7-Day Decision Framework Before Signing [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework) #### After Signing the Personal Guarantee: Living With It [Learn more →](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality) #### Anytime Fitness: Single Unit vs Multi-Unit Area Development [Learn more →](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development) conversion franchiseconvert independent business to franchisefranchise conversion programjoin a franchise existing businessconversion franchisee incentivesrebrand to franchise About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our [data & methodology](https://vetmyfranchise.com/c/claude/reports/franchise-industry-statistics). ## Frequently Asked Questions ### What is a conversion franchise? A conversion franchise is an existing independent business that joins a franchise system, adopting the brand's name, standards, and operating model rather than opening a brand-new unit. Many service and retail franchisors (think real estate, restoration, home services, hospitality) run formal conversion programs aimed specifically at established independents who already have a book of business. ### Can I turn my business into a franchise? Yes, if a franchisor in your category accepts conversions and your business meets their location, revenue, and brand-fit criteria. This is different from franchising your own brand to sell to others; here you are joining someone else's system. The franchisor will run its own diligence on your books, your lease, and your reputation before approving you. ### Do conversion franchisees get discounts? Often, yes. Because you bring an operating location and existing revenue, franchisors frequently waive or discount the initial franchise fee, offer a reduced-royalty ramp for the first year or two, or contribute to rebrand costs. Every incentive must be disclosed in the FDD (fees in Item 5, investment in Item 7), so verify the offer against the document rather than the recruiter's pitch. ### What does it cost to convert to a franchise? The franchise fee may be reduced or waived, but you still face rebrand and re-image costs, typically $25,000 to $150,000 depending on signage, interior standards, uniforms, and technology, plus ongoing royalties (commonly 4-8% of gross) and an ad fund contribution you never paid as an independent. Model the recurring royalty drag, not just the one-time conversion spend. ### Is conversion franchising worth it for an established business? It depends on whether the brand's lead flow, buying power, and systems add more revenue and margin than the royalty and ad fund subtract. A strong independent in a fragmented category often gains the most; a healthy, well-known local business with loyal customers may give up more in fees than it gains in brand lift. ## Frequently asked questions ### How is this different from hiring a franchise attorney? Franchise attorneys typically charge $2,000–$5,000+ for an FDD review that takes days or weeks. VetMyFranchise gives you a structured 12-section FDD analysis in minutes for $49 — a research starting point, not a substitute for legal review. We recommend using our report alongside professional legal advice for major investment decisions. ### What do I get for free? Every franchise includes a free executive summary with key stats, red and green flags, and questions to ask the franchisor. You also get free access to our franchise comparison tool (up to 4 side by side) and industry benchmarks showing how each franchise ranks against peers. No account needed. ### What is a Franchise Disclosure Document (FDD)? An FDD is a legal document that franchisors must provide to prospective buyers. It contains 23 items covering everything from fees and litigation history to financial performance. We extract and structure the disclosures from these documents to surface the insights that matter most. ### What does the $49 Research Report include? A comprehensive 12-section analysis personalized to your situation — including financial fit analysis based on your capital, location-specific insights, competitive positioning with industry benchmarks, risk assessment, and red flags. ### How fast do I get my report? Most reports are generated and delivered to your email within minutes of purchase. You also get a secure download link that you can access anytime. ### How do industry benchmarks work? We analyze FDDs across 2,000+ franchises to build industry averages and percentile rankings. When you view a franchise, you see how its investment costs, fees, and system size compare to other franchises in the same industry. ### How much does it cost to buy a franchise? Initial franchise fees typically range from $10,000 for low-cost service brands to $75,000+ for established national chains, with total startup investment commonly between $75,000 and $500,000 once you add real estate, equipment, inventory, training, and working capital. Each FDD discloses the full investment range in Item 7. VetMyFranchise lets you compare the total investment range across 2,000+ franchises side by side. ### What is the difference between the franchise fee and the total investment? The franchise fee (disclosed in Item 5) is the one-time payment for the right to use the brand and system — typically $20,000 to $75,000. The total investment (Item 7) includes the franchise fee PLUS real estate, build-out, equipment, signage, inventory, training, insurance, and 3-6 months of working capital. A $40,000 franchise fee can easily mean $300,000+ in total cash needed to open the doors. ### Which franchises have the lowest startup cost? Home-services, cleaning, mobile, and online-based franchises typically have the lowest startup costs — many under $50,000 total investment when you skip retail real estate. VetMyFranchise lets you filter the 2,000+ franchise library by investment range to find concepts that fit your available capital. ### What is Item 19 in a Franchise Disclosure Document? Item 19 is the Financial Performance Representation — the only place in an FDD where the franchisor can disclose actual revenue or earnings figures from existing units. Disclosure is OPTIONAL: only about half of franchisors include an Item 19. When present, it usually shows average or median revenue per unit, sometimes broken down by location size or tenure. A missing Item 19 is a yellow flag — not necessarily disqualifying, but you should ask the franchisor why. ### What is a royalty rate in franchising? The royalty rate (disclosed in Item 6) is the ongoing percentage of gross revenue you pay to the franchisor for the duration of your agreement. Typical royalties range from 4% to 8% of gross sales, paid weekly or monthly. There may also be a separate ad fund contribution (often 1% to 3%) on top of the royalty. Higher royalties demand higher unit economics to make sense for the franchisee. ### Do I need a lawyer to buy a franchise? Yes — you should always have a franchise attorney review the FDD and Franchise Agreement before signing. VetMyFranchise gives you a structured breakdown of every FDD section so you can identify the issues to discuss with your attorney, but it does not replace legal review. Most franchise attorneys charge $2,000 to $5,000 for a full FDD review. ### Can veterans get discounts on franchise fees? Many franchisors offer veteran discounts on the initial franchise fee — commonly 10% to 25% off, sometimes higher. Programs vary widely; the discount is disclosed in Item 5 of the FDD. The International Franchise Association maintains a VetFran directory of participating brands. VetMyFranchise reports surface fee discounts where they appear in the FDD. ### How do I evaluate whether a franchise is a good investment? Look at the full picture: total investment vs. your available capital, royalty and ad-fund rates against industry medians, system size and growth trend (Item 20), litigation history (Item 3), and any financial performance disclosed in Item 19. Talk to existing franchisees from the Item 20 contact list — they will tell you what really happens after you sign. VetMyFranchise structures all of this into a single 12-section deep-dive report. ### Is $49 enough to make a $200K franchise decision? No — and we do not pretend it is. The report is research, not a final decision. It compresses the 40 hours of FDD reading and benchmarking that every serious buyer should do before they spend money on an attorney or CPA review. You bring the report to your validation calls (we include the questions to ask), to your franchise attorney (we surface the contract risks they should focus on), and to your own decision. We are the first 80% of due diligence, not the last 20%. ### When should I buy the 3-pack instead of a single report? The 3-pack is $99 — $33 per report — and is built for buyers actively comparing 2–3 brands they are seriously considering. If you have already narrowed to one brand and just want diligence on it, the $49 single report is enough. If you are still torn between several finalists, the 3-pack saves you $48 versus buying three singles — and it pays for itself many times over if it filters out one bad-fit franchise. ### What does "free brokers" actually mean? Franchise brokers (FranNet, FranChoice, IFPG, others) charge buyers nothing because they are paid by the franchisor — typically 40–50% of the franchise fee per closed sale. That money still comes out of your deal; it is bundled into the franchise fee the franchisor charges you. More importantly, brokers are paid only when you sign, which gives them a structural incentive to sell rather than advise. Our report is paid by you, which means we work for you. ### Can I use this report instead of an attorney? No. The report covers the analytical work — understanding the FDD, benchmarking against the industry, surfacing red flags, modeling unit economics. A franchise attorney is still the right call for contract negotiation and state-specific legal advice (especially in registration states or relationship-statute states). The report makes your attorney engagement faster and cheaper because you arrive prepared with the right questions. ### How is this different from FDD filing databases? Filing databases (California DFPI, Wisconsin DFI, others) give you the raw 200–400 page legal document. That is the input. Our report is the output — structured analysis, industry benchmarks, financial-performance modeling, and buyer-focused red flags. You can do the analysis yourself; most buyers underestimate how long it takes (40+ hours per FDD) and miss the cohort comparison that makes individual numbers meaningful. ### What if my franchise is not in your library? We cover 2,000+ active franchise systems with FDD data already extracted. If a brand you are evaluating is not in the library, contact us — we can typically add a system within 7–14 days for an active buyer. The price stays the same. ### How fast do I get the report? Most reports are generated and delivered to your email within minutes of purchase. The franchise data is already extracted; we assemble your personalized analysis on demand. You also receive a secure download link you can revisit anytime. ### How much does it cost to open an Anytime Fitness franchise? Anytime Fitness reports a total initial investment of $539,329 to $905,482 in its 2026 FDD Item 7. The most common build is an inline strip-mall club around 4,000-6,000 square feet, which typically lands between the $539,329 floor and the roughly $722,000 midpoint of the range. The franchise fee is $42,500. The wide range reflects market-specific build-out costs, landlord allowances, and the size of the equipment package selected. ### What is the average revenue of an Anytime Fitness club? Item 19 of the 2026 FDD reports a median total revenue of $398,982 across 1,656 reporting US franchised clubs for the 12-month period ended February 28, 2026. The 75th percentile is $746,996 and the 25th percentile is $233,169. The spread between them (a 3.2x gap) is what most cost guides don't make clear. ### Is Anytime Fitness profitable for new franchisees in 2026? Top-quartile clubs running at the brand's typical 15-16% net margin generate roughly $112,000-$120,000 of pre-debt-service cash flow. Median clubs at the same margin produce about $60,000-$64,000, which is below the threshold where most owner-operators feel the investment was worth their time. The brand works financially when you cluster multiple clubs in adjacent territories, not as a single-unit play. ### How long until an Anytime Fitness franchise breaks even? Plan on 18-30 months to break even on a single-club Anytime Fitness build, depending on opening-month membership ramp, local competition, and the size of the SBA loan stack. Total franchisor cost falls from about 12.6% of sales at the 25th percentile to about 10.7% at the median, because the $900 monthly brand fund is flat while only the 8% royalty scales. Clubs that stall under $250K in year one often struggle for years. ### What is the failure rate of Anytime Fitness franchises? Anytime Fitness does not publish a unit closure rate as a standalone statistic. Item 20 of the current FDD discloses the number of franchised clubs that were terminated, transferred, or ceased operations during each of the prior three fiscal years. Net unit growth in the US is approximately 1% annually, which signals that closures and openings are roughly balanced, a sign of market maturity rather than rapid expansion or contraction. Closure rates concentrate in over-saturated metros and bottom-quartile-performing clubs. ### What is the difference between Anytime Fitness and Planet Fitness as franchises? Anytime Fitness is a 24/7 key-fob-access neighborhood gym in 4,000-6,000 sq ft of strip-mall space, $539K-$905K total investment, and $398,982 median revenue. Planet Fitness is a 22,000+ sq ft high-traffic retail box at $1.5M-$5.1M total investment and ~$2.5M average revenue. They aren't competing for the same buyer: Anytime Fitness fits a first-franchise operator with $250K-$450K liquid; Planet Fitness is a multi-unit retail-real-estate play for buyers with $1M+ liquid. ### Anytime Fitness vs Orangetheory: which is the better franchise? Orangetheory earns more per unit; Anytime Fitness costs less and scales further. Per the 2026 FDDs, Orangetheory runs $764,577 to $1,104,920 with a $750,643 median revenue across 1,189 franchised studios. Anytime Fitness runs $539,329 to $905,482 with a $398,982 median across 1,656 reporting clubs. Choose on operating model, not headline capital. ### Orangetheory franchise cost vs Anytime Fitness: what is the real gap? About $225,000 at the floor. Orangetheory's 2026 Item 7 starts at $764,577 against Anytime Fitness's $539,329, and tops out at $1,104,920 against $905,482. Franchise fees are $59,950 versus $42,500. The gap is far narrower than the three-to-five-times figure still quoted across the web. ### Which fitness franchise is more profitable? Neither FDD discloses profit. On revenue against capital, Orangetheory looks stronger: a $750,643 median on a $934,749 investment midpoint, versus Anytime Fitness's $398,982 median on a $722,406 midpoint. But Orangetheory's franchisor take runs 11% to 13% of sales against roughly 10.7% at Anytime Fitness, and coach labor is heavier. ## Complete page index ### Homepage (1) - [Franchise Due Diligence | Compare 2,000+ Franchise Opportunities & FDDs](https://vetmyfranchise.com/c/claude/): Professional FDD analysis for 2,000+ franchise opportunities. Free key facts and side-by-side comparisons. $49 deep-dive reports — delivered in minutes. ### Pricing (1) - [Pricing — $49 Research Report · $99 for 3-pack comparison](https://vetmyfranchise.com/c/claude/pricing): $49 per franchise research report. $99 to compare 3. Professional FDD analysis you bring to validation calls and your franchise attorney. ### Blog & Articles (504) - [Anytime Fitness Franchise Cost 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost): Anytime Fitness franchise cost 2026: investment $539K-$905K, fee $42,500, median revenue $398,982 with 75th-percentile clubs at $746,996. - [Anytime Fitness vs Orangetheory Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise): Anytime Fitness vs Orangetheory franchise: verified 2026 FDD investment, franchise fees, Item 19 revenue medians, unit counts, and which fitness brand fits… - [Automotive Franchise Guide: Costs & Data (2026 FDD Analysis)](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities): Compare automotive franchise costs and growth data from 37 FDDs. See investment ranges for Grease Monkey, Christian Brothers, Big O Tires, and more in 2026. - [7-Eleven vs Circle K Franchise: Cost & Real Operator Take](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise): 7-Eleven vs Circle K: the franchise fee is not $0 (Item 7 says $0-$1,100,000) and the 45-56% split is an 11-band formula peaking at 59% marginal. Full math. - [Acai Bowl Franchise Cost 2026: 10 Brands Compared](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities): Acai bowl franchise cost 2026: Playa Bowls, Everbowl, SoBol, Nautical Bowls, Oakberry compared on verified Item 7 investment, fees, royalty, and Item 19… - [7-Eleven Franchise Cost 2026: The Full Line-Item Stack](https://vetmyfranchise.com/c/claude/blog/7-eleven-franchise-cost): 7-Eleven franchise cost per the 2026 FDD: $162,900-$1,656,800 investment, a $0-$1,100,000 franchise fee priced per store, and the real fee stack. - [7 Brew Franchise Cost 2026: Item 7 and Item 19 Data](https://vetmyfranchise.com/c/claude/blog/7-brew-franchise-cost): 7 Brew franchise cost in 2026: $940,500 to $2,283,500 to open, a $35,000 fee, a ten-store minimum, and a $2,550,624 median across 297 stands. - [Anytime Fitness vs Planet Fitness: Franchise Comparison Guide](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-planet-fitness-franchise): Anytime Fitness vs Planet Fitness franchise comparison: investment range, royalties, unit count, member economics, and which model fits which buyer profile. - [Best Coffee Franchises 2026: Real Item 19 Revenue Data](https://vetmyfranchise.com/c/claude/blog/best-coffee-franchises): Best coffee franchises ranked on real Item 19 data: 7 Brew $2,550,624 on 297 stands, Dunkin $1,297,694 on 7,010 units, Scooter's $966,739 on 761. - [Best Daycare & Preschool Franchises 2026: Real Costs](https://vetmyfranchise.com/c/claude/blog/best-daycare-preschool-franchises): Best daycare franchises on 2026 FDD data: Item 7 lease vs. build costs, disclosed revenue, and whose units each Item 19 sample actually describes. - [Best Franchises for Veterans 2026: Real VetFran Discounts](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-veterans): 238 franchisors disclose a veteran discount in FDD Item 5. The real amounts by capital tier, from Cruise Planners to Midas, and where it stops mattering. - [Best Auto Repair Franchises 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-auto-repair-franchises): Seven auto repair franchises compared on disclosed Item 19 revenue and on the sample definition sitting behind each number, taken from FDD text. - [Best Outdoor Living Franchises 2026: Fence, Deck, Light](https://vetmyfranchise.com/c/claude/blog/best-outdoor-living-franchises): Fence, deck, lighting and irrigation franchises ranked on FDD Item 19 data: Superior Fence's $2.6M median, Archadeck's $1.4M, and the seasonality catch. - [Best Chicken Franchises 2026: Cost + Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-chicken-franchises): Compare the best chicken franchises for 2026 — Wingstop, Popeyes, KFC, Zaxby's, Slim Chickens, Bojangles, Dave's Hot Chicken — on FDD investment, fees,… - [Best Recession-Proof Franchises to Buy in 2026](https://vetmyfranchise.com/c/claude/blog/best-recession-proof-franchises): Which franchise categories survived 2008 and 2020? Verified FDD investment ranges, Item 19 medians, and how to evaluate economic durability before you buy. - [Best Vending & ATM Franchise Opportunities 2026](https://vetmyfranchise.com/c/claude/blog/best-vending-atm-franchise-opportunities): Best vending and ATM franchise opportunities 2026: zero of 2,364 parsed FDDs are vending or ATM brands. Distributorship warnings plus verified alternatives. - [Best Kitchen & Bath Remodeling Franchises 2026: Costs](https://vetmyfranchise.com/c/claude/blog/best-kitchen-bath-remodeling-franchises): The best remodeling franchises compared on FDD data: Floor Coverings International, Miracle Method, Cabinet IQ, Kitchen Refresh, and their sample sizes. - [Best Pilates Franchises 2026: Yoga and Barre Brands](https://vetmyfranchise.com/c/claude/blog/best-yoga-pilates-barre-franchises): Compare the best yoga, Pilates, and barre franchises for 2026 — Club Pilates, YogaSix, StretchLab, Pilates Republic — by capital, royalty, and membership… - [Best Franchises for Multi-Unit Ownership | 2026 Picks](https://vetmyfranchise.com/c/claude/blog/best-franchises-multi-unit-ownership): The best franchises for multi-unit ownership in 2026, ranked by industry with per-unit investment, adoption rates, and the FDD markers that matter. - [Best Sandwich & Sub Franchises 2026: 23 Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-sandwich-franchises): Best sandwich and sub franchises for 2026 on real FDD data: Jersey Mike's $1.31M median AUV vs Jimmy John's $955,639, plus Item 7 costs and closure rates. - [Best Italian Food Franchises 2026: Pizza, Pasta, & More](https://vetmyfranchise.com/c/claude/blog/best-italian-food-franchises): Best Italian food franchises 2026: Sbarro $211,900-$931,000, Villa Italian Kitchen $373,750-$990,500, Noodles & Co $1.06M-$1.71M. Verified Item 7 and Item 19. - [Best Home Care Franchises 2026: Revenue per Dollar In](https://vetmyfranchise.com/c/claude/blog/best-home-care-franchises): The best home care franchises ranked by Item 19 median revenue divided by Item 7 midpoint, using 2026 FDD data from 14 non-medical brands. - [Best HVAC Franchises 2026: Cost, Revenue, Real Data](https://vetmyfranchise.com/c/claude/blog/best-hvac-franchises): Best HVAC franchises compared on real Item 19 data: Aire Serv $944,801 median on 172 units, One Hour $884,016 on 364 territories, plus fee traps. - [Best Garage & Concrete Coating Franchises 2026: Costs](https://vetmyfranchise.com/c/claude/blog/best-garage-concrete-coating-franchises): Garage floor coating franchise costs and real Item 19 medians from the 2026 FDDs of Garage Living, GarageExperts, Granite Garage Floors and Hello Garage. - [Best Staffing Franchises 2026: Revenue and Cost Data](https://vetmyfranchise.com/c/claude/blog/best-staffing-franchises): Best staffing franchises compared on gross billings vs. gross profit: Express, Spherion, PrideStaff, and AtWork Item 19 and Item 7 data from 2026 FDDs. - [Best Youth Sports Franchises 2026: Cost and Revenue Data](https://vetmyfranchise.com/c/claude/blog/best-youth-sports-franchises): The best youth sports franchises by disclosed FDD data: i9 Sports at $59,900 with a $359,546 median across 213 units, and D1 Training at $507,699. - [Crumbl vs Insomnia vs Toll House: $848K Cost, $1.09M AUV (2026)](https://vetmyfranchise.com/c/claude/blog/crumbl-vs-insomnia-vs-nestle-toll-house-franchise): Crumbl vs Insomnia Cookies vs Nestlé Toll House franchise comparison: investment, royalties, AUV, brand momentum, and which cookie concept fits which buyer. - [Best E-2 Visa Franchises 2026: Investment and Job Data](https://vetmyfranchise.com/c/claude/blog/best-franchises-e2-visa-investors): The best franchises for E-2 visa investors, ranked on Item 7 investment, Item 19 disclosed revenue, and the Item 15 owner-participation language that changes… - [Best Juice & Smoothie Franchises 2026: Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-juice-smoothie-franchises): Item 19 data on six juice and smoothie franchises: Smoothie King's $627,210 median on 1,087 units, Playa Bowls' $1,094,086, and what each sample omits. - [Best Window Cleaning Franchises 2026: Cost + Item 19](https://vetmyfranchise.com/c/claude/blog/best-window-cleaning-franchises): Compare the top window cleaning franchises for 2026 — Window Genie, Fish Window Cleaning, Shine, Window Gang, Shack Shine — on FDD investment, fees, royalty,… - [Franchise Insurance & Workers' Comp: Real Annual Cost](https://vetmyfranchise.com/c/claude/blog/franchise-insurance-workers-comp-real-annual-cost): What does franchise insurance cost per year? Real annual premium ranges for general liability, workers' comp, property and EPLI, plus how to control them. - [Best Lawn Care Franchises 2026: Cost + Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-lawn-care-landscaping-franchises): Compare the top lawn care and landscaping franchises for 2026 — Lawn Doctor, SpringGreen, Weed Man, NaturaLawn, U.S. - [Franchise Due Diligence Checklist: 10 Steps + FDD Data](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist): A 10-step franchise due diligence checklist with real FDD benchmarks — median investment, royalty spread, Item 19 disclosure rates — from 2,364 filings. - [Five Guys vs Wingstop Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/five-guys-vs-wingstop-franchise): Five Guys vs Wingstop franchise comparison covering investment, AUV, operating model, multi-unit reality, and which QSR brand fits which buyer profile. - [FDD Review Process and Timeline: 30-Day Plan (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-fdd-review-30-day-plan): How long does an FDD review take? The 14-day FTC rule is a floor. A week-by-week 30-day process: attorney review, validation calls, modeling, decision. - [FDD Review Cost 2026: Attorney Fees and Service Tiers](https://vetmyfranchise.com/c/claude/blog/fdd-review-cost): An FDD review costs $1,500–$3,000 in attorney fees or $49 for an analysis service as of 2026. Every tier priced, what drives the spread, and the order to buy. - [Laundromat Franchise Opportunities 2026: Cost & Profit](https://vetmyfranchise.com/c/claude/blog/laundromat-franchise-opportunities): Laundromat franchise cost 2026: WaveMAX from $359K, Speed Queen and LaundroLab $1.0M-$2.2M. Verified Item 7 and Item 19 figures from parsed FDDs. - [Is Five Guys a Franchise? Franchise Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-five-guys-a-franchise): Yes, Five Guys is a franchise. Learn how the Five Guys franchise model works, why multi-unit commitments are required, current franchisee requirements. - [Franchise Costs 2026: How Much It Costs to Open a Franchise](https://vetmyfranchise.com/c/claude/blog/how-much-does-it-cost-to-open-a-franchise): Median franchise cost: $204,046 to $494,000 total investment and a $40,000 franchise fee, from 2,185 real Item 7 filings. Costs by industry and brand. - [How to Research a Competitor Franchise Brand (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-research-competitor-franchise): A franchise competitor analysis workflow for franchisors: mine a rival's FDD for fees, Item 19 economics, Item 20 churn, and Item 21 financial health. - [Is Insomnia Cookies a Franchise? No — What to Buy Instead](https://vetmyfranchise.com/c/claude/blog/is-insomnia-cookies-a-franchise): No, Insomnia Cookies is not a franchise. All 200+ stores are corporate-owned. Here's why it doesn't franchise, plus the cookie franchises you can actually buy. - [Jeff's Bagel Run Franchise Cost 2026: What's Disclosed](https://vetmyfranchise.com/c/claude/blog/jeffs-bagel-run-franchise-cost): Jeff's Bagel Run franchise cost in 2026: $575,722 to $997,972, a $30,000 fee, 6% royalty, 14 franchised stores, and an Item 19 covering affiliate stores. - [Mathnasium vs Kumon Franchise: 2026 Tutoring Comparison](https://vetmyfranchise.com/c/claude/blog/mathnasium-vs-kumon-franchise): Mathnasium vs Kumon franchise comparison: 2026 FDD investment, franchise fee, royalty, unit counts, per-student revenue, and which tutoring brand fits which… - [How to Research a Franchise Before You Buy (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-research-a-franchise): Where to find a franchise's FDD free, which items to read first, how to check litigation and talk to franchisees. A research workflow built on 2,364 FDDs. - [Is Crumbl a Franchise? Yes: $849K–$1.5M to Open (2026 FDD)](https://vetmyfranchise.com/c/claude/blog/is-crumbl-a-franchise): Yes, Crumbl Cookies is a franchise. Learn how the Crumbl franchise model works, qualification requirements ($250K liquid, $500K net worth), franchise fees. - [How Long Until a Franchise Is Profitable? 455 FDDs, by Category](https://vetmyfranchise.com/c/claude/blog/how-long-until-franchise-profitable): 12-24 months is an average that hides everything. Item 7 vs Item 19 median revenue across 455 franchise brands: senior care 6.9x, fitness 0.93x. See the math. - [Most Profitable Franchises 2026: 660 Item 19 Medians](https://vetmyfranchise.com/c/claude/blog/most-profitable-franchises-to-own): Median Item 19 revenue per invested dollar across 660 franchise systems' 2024-2026 FDDs. Senior care leads at 4.36x, food and beverage trails at 1.25x. - [FDD Item 6 Other Fees: Recurring Franchise Costs Explained](https://vetmyfranchise.com/c/claude/blog/fdd-item-6-other-fees): How to read FDD Item 6 — recurring franchise fees, technology fees, training fees, transfer fees, and the line items most buyers overlook. - [Franchise Failure Rates 2026: Closure Data From 858 FDDs](https://vetmyfranchise.com/c/claude/blog/franchise-failure-rate-statistics): Franchise failure rates by brand, from Item 20 of 858 current FDDs: median 4.7% of units close per year, 35% of systems above 7%, plus SBA default data. - [Franchise Red Flags in All 23 FDD Items | Warning Guide](https://vetmyfranchise.com/c/claude/blog/franchise-red-flags-all-23-fdd-items): Identify franchise red flags across all 23 FDD items. Learn which warning signs are deal-breakers vs. worth investigating with severity ratings and examples. - [Planet Fitness Franchise Cost 2026: $1.28M-$5.39M, Owner Pay](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-cost-guide): Planet Fitness franchise cost is $1,282,500-$5,386,000 per the 2026 FDD Item 7. Item 19 club revenue by third, real annual operating costs, owner earnings. - [SBA Franchise Loans 2026: Worked Example + Rate Table](https://vetmyfranchise.com/c/claude/blog/sba-loans-franchise-financing-guide): 2026 SBA franchise loan guide with a worked loan-sizing example from real Item 7 data, monthly payments by investment tier, and current 7(a) rate assumptions. - [Semi-Absentee Franchise vs Owner-Operator](https://vetmyfranchise.com/c/claude/blog/semi-absentee-vs-owner-operator-franchise): Semi-absentee vs owner-operator franchise ownership: compare time commitment, investment, income, and which industries work for each model. Realistic guide. - [Kiddie Academy vs The Learning Experience Franchise 2026](https://vetmyfranchise.com/c/claude/blog/kiddie-academy-vs-the-learning-experience-franchise): Kiddie Academy vs The Learning Experience: 2026 FDD franchise fees, Item 7 investment, Item 19 revenue, and expense disclosure for both childcare systems. - [Franchise Validation Process: How to Talk to Franchisees](https://vetmyfranchise.com/c/claude/blog/franchise-validation-process-guide): Learn the franchise validation process: how to contact existing franchisees, what questions to ask, red flags to watch for, and how to organize your findings. - [Scooter's Coffee Franchise Cost 2026: Investment + Buyer Reality](https://vetmyfranchise.com/c/claude/blog/scooters-coffee-franchise-cost): Scooter's Coffee franchise cost 2026: $1.16M-$1.35M kiosk investment, $40K fee, 6% royalty. Item 19 discloses a $966,739 median across 761 participating kiosks. - [How to Sell a Franchise: Transfer Process, Maximizing Value](https://vetmyfranchise.com/c/claude/blog/selling-franchise-maximize-value-transfer): How to sell your franchise unit. Covers preparing financials, finding buyers, the franchisor transfer approval process, deal structures, tax implications. - [Take 5 vs Valvoline Franchise 2026: Cost and Revenue](https://vetmyfranchise.com/c/claude/blog/take-5-vs-valvoline-franchise): Take 5 vs Valvoline franchise: $1.33M and $1.89M Item 19 medians both come from corporate stores. Real costs, royalty math, and the franchisee numbers. - [Franchise Disclosure Document (FDD): All 23 Items Explained](https://vetmyfranchise.com/c/claude/blog/what-is-a-franchise-disclosure-document): A Franchise Disclosure Document (FDD) is the 23-item disclosure a franchisor must give you 14 days before you sign. All 23 items explained, plus how to get one. - [Wingstop Item 19 Deep Dive 2026: AUV Distribution Explained](https://vetmyfranchise.com/c/claude/blog/wingstop-item-19-deep-dive): Wingstop Item 19: $1.89M median AUV across 2,116 units in the 2025 fiscal period. What the median means for new operators, ramp expectations, and how it… - [How to Read a Franchise Agreement: 12 Key Clauses to Know](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchise-agreement-key-clauses): Learn how to read a franchise agreement with this breakdown of 12 key clauses covering territory, renewal, termination, non-compete, and more. - [Mosquito Control Franchise Cost 2026: 7 Brands Compared](https://vetmyfranchise.com/c/claude/blog/mosquito-control-franchise-buyers-guide): Mosquito control franchise cost 2026: Mosquito Joe, Shield, Squad, Hunters, Sheriff compared on verified Item 7 investment, fees, royalty, and Item 19 medians. - [Wingstop Franchise Cost 2026: Investment & Profit Guide](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-cost): Wingstop franchise cost 2026: investment $310K-$1.01M, fee $25,000, royalty 6%, brand fund 5.5%. Why Wingstop only awards multi-unit ADA agreements. - [Valvoline Item 19 2026: $1.7M Franchisee Median Decoded](https://vetmyfranchise.com/c/claude/blog/valvoline-item-19-deep-dive): Valvoline Instant Oil Change Item 19: franchisee-operated centers post a $1,704,870 median net sales across 891 units, above the 785 company-operated centers… - [VetFran & Diversity Franchise Financing: Discounts & Capital](https://vetmyfranchise.com/c/claude/blog/vetfran-diversity-financing-veteran-minority-women-buyers): How VetFran discounts, minority franchise grants, women-owned business financing, and SBA programs work for franchise buyers — and how to actually claim them. - [Top Sports Bar Franchises 2026: Cost and Revenue Compared](https://vetmyfranchise.com/c/claude/blog/sports-bar-franchise-comparison): Top sports bar franchise opportunities compared: verified FDD cost, fees, and Item 19 revenue for 10 sports bar and grill franchises, $373,650 to $7.63M. - [Wingstop vs Popeyes Franchise 2026: Chicken Category Comparison](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-popeyes-franchise): Wingstop vs Popeyes franchise 2026: $1.89M vs $1.79M median AUV, 2.9× vs 0.8× AUV-to-investment ratio, focused wing menu vs broad chicken QSR — which fits your… - [Is Discount Tire a Franchise? Tire Shop Options (2026)](https://vetmyfranchise.com/c/claude/blog/is-discount-tire-a-franchise): Discount Tire does not franchise. All ~1,249 US stores are corporate. Big O Tires is the franchised tire route: $17,500 fee, 461 stores, real Item 19 data. - [Is Ace Hardware a Franchise? It's a Co-op (2026)](https://vetmyfranchise.com/c/claude/blog/is-ace-hardware-a-franchise): Is Ace Hardware a franchise? It is a retailer-owned co-op with 5,250 US locations that files an FDD, and some states deem member stores franchises. - [Is FedEx Office a Franchise? vs The UPS Store (2026)](https://vetmyfranchise.com/c/claude/blog/is-fedex-office-a-franchise): No. FedEx Office is a corporate FedEx subsidiary with no FDD. The UPS Store is the franchised one: $39,950 fee, $222,368 to $606,081, 5,487 franchised centers. - [Is Life Time a Franchise? The Corporate Tier (2026)](https://vetmyfranchise.com/c/claude/blog/is-life-time-fitness-a-franchise): No. Life Time Group Holdings owns every athletic club it operates and sells no franchises. The gym brands you can buy: Crunch, Planet Fitness, Club Pilates. - [Is Dunkin' a Franchise? 9,963 of 9,999 Are (2026)](https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-franchise): Yes, Dunkin' is a franchise. The 2026 FDD shows 9,963 franchised and 36 company-owned US restaurants, a $40,000 to $90,000 fee, and no territory. - [Is Petco a Franchise? Ownership Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-petco-a-franchise): Petco does not franchise its roughly 1,394 US stores. CVC and CPP control the company. Pet Supplies Plus franchises: $540,520 to $1,975,005 per the 2025 FDD. - [Is KFC a Franchise? 99% Franchised, Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-kfc-a-franchise): Yes, KFC is a franchise: 99% of the division is franchisee-run. Who the franchisor actually is, the $45,000 fee structure, and what Item 19 hides. - [Is Cracker Barrel a Franchise? Ownership (2026)](https://vetmyfranchise.com/c/claude/blog/is-cracker-barrel-a-franchise): No. Cracker Barrel operates all 656 of its stores and has never franchised. Huddle House and Another Broken Egg are the franchised breakfast alternatives. - [Is Dairy Queen a Franchise? Berkshire's Chain (2026)](https://vetmyfranchise.com/c/claude/blog/is-dairy-queen-a-franchise): Yes, Dairy Queen is a franchise. Berkshire Hathaway owns the franchisor. 2026 FDD: $45,000 fee, $1.51M–$2.55M investment, $1,413,799 median sales. - [Is 24 Hour Fitness a Franchise? New Owner (2026)](https://vetmyfranchise.com/c/claude/blog/is-24-hour-fitness-a-franchise): No. 24 Hour Fitness is corporate, bought by LongRange Capital with founder Mark Mastrov in January 2026. The franchised 24/7 gym is Anytime Fitness. - [Is PetSmart a Franchise? Pet Franchise Options (2026)](https://vetmyfranchise.com/c/claude/blog/is-petsmart-a-franchise): PetSmart does not franchise its 1,694 stores. The only PetSmart franchise is an in-store vet hospital at $160,650 to $497,500 per the 2026 FDD. - [Is Enterprise a Franchise? Not in the US (2026)](https://vetmyfranchise.com/c/claude/blog/is-enterprise-a-franchise): No, Enterprise does not franchise in the US. It runs company operations in 7 countries. Avis and Budget do franchise: $625,500 to $1,588,400 per the 2026 FDDs. - [Is Häagen-Dazs a Franchise? Shop Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-haagen-dazs-a-franchise): Yes, Häagen-Dazs shops are franchised. The 2026 FDD: $30,000 fee, 4% royalty, $213,329 to $591,579 investment, and a $630,527 median across 179 shops. - [Is Jiffy Lube a Franchise? Cost and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-jiffy-lube-a-franchise): Yes. Shell subsidiary Jiffy Lube International franchises 1,765 of 2,083 US centers. The 2026 FDD: $35,000 fee, 4% royalty, $211K to $510K to open. - [Is Keller Williams a Franchise? Costs and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-keller-williams-a-franchise): Yes, Keller Williams is a franchise. The 2026 FDD: $35,000 fee, $183,647 to $336,495 investment, 6% royalty capped per agent, 735 market centers, no Item 19. - [Is H&R Block a Franchise? The $2,500 Question (2026)](https://vetmyfranchise.com/c/claude/blog/is-hr-block-a-franchise): Yes. H&R Block franchises tax offices: 1,987 franchised vs 6,701 company-owned, a $2,500 fee, a 30% to 60% royalty, and an Item 19 that discloses nothing. - [Is Compass a Franchise? No, but It Owns Four (2026)](https://vetmyfranchise.com/c/claude/blog/is-compass-a-franchise): No, Compass does not franchise its own brand. It owns four real estate franchisors as of January 9, 2026, and none of them discloses office earnings. - [Is Domino's a Franchise? The Operator Path (2026)](https://vetmyfranchise.com/c/claude/blog/is-dominos-a-franchise): Yes, Domino's is a franchise: about 96% of US stores are franchisee-owned. The 2026 FDD fee is $0 to $10,000, and Item 1 requires 12 months as a GM. - [Is Goodyear a Franchise? Dealers vs Franchises (2026)](https://vetmyfranchise.com/c/claude/blog/is-goodyear-a-franchise): Is Goodyear a franchise? Mostly no. It runs company stores, franchised outlets, and a dealer network. Big O Tires and Midas are the franchised routes. - [Is Chipotle a Franchise? 100% Company-Owned (2026)](https://vetmyfranchise.com/c/claude/blog/is-chipotle-a-franchise): No. Chipotle runs 4,186 company-operated restaurants and franchises none of them. Qdoba's 2025 FDD is the franchised alternative at $548,100 to $1,294,000. - [Is Hertz a Franchise? Yes, in Smaller Markets (2026)](https://vetmyfranchise.com/c/claude/blog/is-hertz-a-franchise): Is Hertz a franchise? Partly. 390 of 2,946 US outlets were franchised at the end of 2025. The 2026 FDD asks $879,300 to $16,249,000 and has no Item 19. - [Is Olive Garden a Franchise? Darden Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-olive-garden-a-franchise): No. Darden owns and operates all 906 US Olive Garden restaurants. Marco's Pizza is the Italian franchise you can buy, at $286,477 to $811,186. - [Is Panda Express a Franchise? Only in Airports (2026)](https://vetmyfranchise.com/c/claude/blog/is-panda-express-a-franchise): Mostly no. Panda Express keeps 2,423 restaurants company-owned and licenses 184 in captive venues. Item 19 shows a $4,157,008 airport average. - [Is Red Lobster a Franchise? Post-Bankruptcy Owner (2026)](https://vetmyfranchise.com/c/claude/blog/is-red-lobster-a-franchise): No. Red Lobster's US restaurants are company-operated under Fortress-backed RL Investor Holdings. Captain D's and Angry Crab Shack are the franchised options. - [Is Terminix a Franchise? Rentokil's Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-terminix-a-franchise): Is Terminix a franchise? Mostly no. Rentokil bought it in 2022 and runs company branches plus 100+ legacy franchises. Orkin and Pestmaster do file. - [Is Century 21 a Franchise? Under Compass Now (2026)](https://vetmyfranchise.com/c/claude/blog/is-century-21-a-franchise): Yes, Century 21 is a franchise. The 2026 FDD: $25,000 fee currently waived, $35,770 to $473,400 investment, 6% royalty, 1,685 US offices, no Item 19. - [Is Planet Fitness a Franchise? 90% Franchised (2026)](https://vetmyfranchise.com/c/claude/blog/is-planet-fitness-a-franchise): Yes, Planet Fitness is a franchise. About 90% of clubs are franchisee-owned. Fee, royalty, Item 7 range, and Item 19 club revenue from the FDD. - [Is PODS a Franchise? Corporate vs Franchise Markets (2026)](https://vetmyfranchise.com/c/claude/blog/is-pods-a-franchise): Is PODS a franchise? Partly. PODS runs corporate and franchised markets across 150+ locations. Here is what UNITS and Go Mini's disclose that PODS does not. - [Is U-Haul a Franchise? How the Dealer Program Works (2026)](https://vetmyfranchise.com/c/claude/blog/is-uhaul-a-franchise): Is U-Haul a franchise? No. Dealers pay $0 to join and earn about 21% commission, but get no FDD, no territory, and no resale value. Here is the tradeoff. - [Is Subway a Franchise? Yes: Here's How It Works (2026)](https://vetmyfranchise.com/c/claude/blog/is-subway-a-franchise): Yes, Subway is a franchise: 18,773 US restaurants and zero company-owned. The 2026 FDD shows a $15,000 fee, 8% royalty, 4.5% ad fund, and no Item 19. - [Is In-N-Out a Franchise? Family-Owned Since 1948 (2026)](https://vetmyfranchise.com/c/claude/blog/is-in-n-out-burger-a-franchise): No. In-N-Out has never franchised since 1948. Every location is company-owned. Franchised burger alternatives: Freddy's $1,820,745 median, Five Guys. - [Is Taco Bell a Franchise? 92% of US Locations Are (2026)](https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-franchise): Yes, Taco Bell is a franchise: about 92% of US locations are franchisee-run. Fees, the $22,500 question, the 10% royalty, and the missing Item 19. - [Is Waffle House a Franchise? The Real Answer (2026)](https://vetmyfranchise.com/c/claude/blog/is-waffle-house-a-franchise): Is Waffle House a franchise? Mostly no. About 250 of roughly 1,900 units are legacy franchises and none are sold to the public. Huddle House is the comparison. - [Is RE/MAX a Franchise? Office Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-remax-a-franchise): Yes, RE/MAX is a franchise. The 2026 FDD: $8,750 to $35,000 fee, $37,100 to $336,500 investment, 1% Broker Fee, 2,994 US offices, no Item 19. - [Is Whataburger a Franchise? Requirements (2026)](https://vetmyfranchise.com/c/claude/blog/is-whataburger-a-franchise): Yes, Whataburger franchises, but selectively: $1.5M net worth, $500K liquid, and about five locations in five years. What the brand does and does not disclose. - [Is Texas Roadhouse a Franchise? The Numbers (2026)](https://vetmyfranchise.com/c/claude/blog/is-texas-roadhouse-a-franchise): Texas Roadhouse runs 714 of its 816 restaurants itself. Only 102 are franchised, domestic applications are closed, and 36 can be bought back. - [Is The UPS Store a Franchise? Cost and Model (2026)](https://vetmyfranchise.com/c/claude/blog/is-the-ups-store-a-franchise): Yes. The UPS Store is a franchise: 5,487 franchised centers vs 16 company-owned, a $39,950 fee, 8.5% in ongoing fees, and an Item 19 built on gross sales. - [Is The Cheesecake Factory a Franchise? (2026)](https://vetmyfranchise.com/c/claude/blog/is-the-cheesecake-factory-a-franchise): No, The Cheesecake Factory does not franchise in the US. Every US restaurant is company-operated and international growth runs on exclusive licenses. - [Urgent Care Franchise Cost in 2026 (AFC Breakdown)](https://vetmyfranchise.com/c/claude/blog/afc-urgent-care-franchise-cost): Urgent care franchise cost in 2026: recent FDD reporting puts AFC total investment at $800K–$1.9M, with $550K liquid and $1.2M net worth required. - [After Signing a Franchise Personal Guarantee: What Changes](https://vetmyfranchise.com/c/claude/blog/after-signing-personal-guarantee-franchise-reality): What changes for franchise owners after signing the personal guarantee — credit impact, spousal exposure, bankruptcy survival, and post-signing risk reduction. - [Best Franchises for Engineers Leaving Tech 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-engineers-leaving-tech): Best franchises for engineers leaving tech — how engineering skills translate, top categories. - [After SBA Approval: 23 Franchise Closing Tasks Most Buyers Miss](https://vetmyfranchise.com/c/claude/blog/after-sba-approval-23-franchise-closing-tasks): 23 tasks between SBA approval and franchise opening — LLC formation, lease attorney review, insurance, payroll, hiring, training. - [Applebee's Item 19 2026: Casual Dining AUV Reality](https://vetmyfranchise.com/c/claude/blog/applebees-item-19-deep-dive): Applebee's Item 19: $1.83M median across 1,178 franchised restaurants in fiscal 2025. Casual-dining AUV reality, year-one ramp, and how it compares to TGI… - [Best EV Charging Franchises 2026: Brands, Costs, Buyer Reality](https://vetmyfranchise.com/c/claude/blog/best-ev-charging-franchise-opportunities): Best EV charging franchise opportunities in 2026: 4EverCharge, E-Fill Electric, EV Express, ThunderPlus. - [Best Franchises for Former Federal Workers (2026)](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-laid-off-federal-workers): Franchises for former federal employees: how RIF and buyout skills transfer, top categories, and funding a franchise with a VSIP payout or SBA loan. - [Baskin-Robbins Item 19 2026: $521K Median Decoded](https://vetmyfranchise.com/c/claude/blog/baskin-robbins-item-19-deep-dive): Baskin-Robbins Item 19: $521K median ($441K P25, $776K P75) across 844 franchised shops. Why the low absolute revenue still works at the low end of the… - [Single-Unit vs Area Developer vs Master Franchise — Which Structure Fits Your Capital?](https://vetmyfranchise.com/c/claude/blog/area-development-agreement-vs-single-unit-franchise): Compare single-unit, area development, master franchise, and subfranchising structures. Covers capital, royalty math, territory rights, and which path fits… - [Aspen Dental vs Heartland Dental: Ownership Models Compared (2026)](https://vetmyfranchise.com/c/claude/blog/aspen-dental-vs-heartland-dental-franchise): Aspen Dental vs Heartland Dental compared: neither is a franchise. DSO/PSO investment, doctor-owner economics, exit liquidity, and which model fits in 2026. - [Best Chiropractic Franchises 2026: The Joint vs 3 Rivals](https://vetmyfranchise.com/c/claude/blog/best-chiropractic-franchises): Best chiropractic franchises 2026, compared on FDD data. The Joint, HealthSource, ChiroWay, and 100% Chiropractic on cost, royalties, and unit revenue. - [FDD Item 15 Explained: Owner Participation Rules (2026)](https://vetmyfranchise.com/c/claude/blog/fdd-item-15-owner-participation-semi-absentee): FDD Item 15 sets the franchise owner participation requirement. Read designated-manager clauses and catch semi-absentee pitches the contract contradicts. - [FDD Item 23 Receipts: Final Checklist Before You Sign](https://vetmyfranchise.com/c/claude/blog/fdd-item-23-receipts-buyer-final-checklist): FDD Item 23 receipts explained — how to sign correctly, protect the 14-day cooling-off clock, and avoid the franchisor receipt errors that hurt buyers later. - [Best Stretching Franchises 2026: StretchLab vs Stretch Zone](https://vetmyfranchise.com/c/claude/blog/best-stretching-franchises): Best stretching franchises compared on 2026 FDD data: StretchLab vs Stretch Zone vs StretchMed vs The Vital Stretch on cost, fees, and Item 19 revenue. - [Best Franchises Under $5,000 Investment 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-under-5k-investment): Best franchises under $5K investment 2026: Jazzercise leads the category. What sub-$5K franchise opportunities actually exist, structural models, and buyer… - [Best Mobile Car Wash & Detail Franchises 2026 (Real Economics)](https://vetmyfranchise.com/c/claude/blog/best-mobile-car-wash-detail-franchises): Compare the best mobile car wash and auto detail franchises for 2026 — Spiffy, DetailXPerts, MD Auto Spa, and more. - [Best Food Franchises Under $250K: 12 Picks (2026)](https://vetmyfranchise.com/c/claude/blog/best-food-franchises-under-250k): Best food franchises under $250K total investment in 2026 — 12 picks with AUV, royalty, Item 19 disclosure, and SBA financing reality for buyers with a hard… - [Best Franchises to Own for $500K-$1M in 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-500k-to-1m-investment): The best franchises for a $500K to $1 million investment in 2026: fee, total investment, royalty, and how to stress-test whether your budget can cash-flow. - [Best Low-Cost Franchises Under $100K in 2026](https://vetmyfranchise.com/c/claude/blog/best-low-cost-franchises-under-100k): Discover the best low-cost franchises under $100K for 2026. Compare investment ranges by category, learn what to expect, and find the right opportunity. - [Best Painting Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-painting-franchises): Compare the best painting franchises for 2026 — CertaPro Painters, Five Star Painting, 360 Painting, EmeraldPro, and more — by cost, royalty, and crew model. - [Best Restoration Franchises 2026: Disaster Recovery Brands](https://vetmyfranchise.com/c/claude/blog/best-restoration-disaster-recovery-franchises): Compare the top restoration and disaster recovery franchises for 2026 — ServPro, ServiceMaster Restore, Restoration 1, 1-800 Water Damage, BluSky — by capital,… - [Big O Tires After Mavis: Who Owns It in 2026](https://vetmyfranchise.com/c/claude/blog/big-o-tires-after-mavis-acquisition-what-franchisees-should-know): Mavis bought Midas, not Big O Tires. Big O remains a TBC subsidiary with a 3.5% to 5.0% royalty matrix and a two-part Item 19 averaging $2.82M per store. - [BrightStar Care vs Senior Helpers vs Always Best Care 2026](https://vetmyfranchise.com/c/claude/blog/brightstar-care-vs-senior-helpers-vs-always-best-care-franchise): Side-by-side: BrightStar Care vs Senior Helpers vs Always Best Care franchise — investment, AUV, training, territory, and which fits which buyer in 2026. - [Big O Tires vs Midas 2026: Owners, Cost, Item 19](https://vetmyfranchise.com/c/claude/blog/big-o-tires-vs-midas-franchise): Big O Tires vs Midas in 2026: TBC still owns Big O, Mavis now owns Midas. Compare fees, royalties, unit counts, and both Item 19 disclosures. - [Burger King Item 19 2026: $1.64M Median in Traditional Format](https://vetmyfranchise.com/c/claude/blog/burger-king-item-19-deep-dive): Burger King Item 19: $1.64M median across 4,774 franchisee-owned Traditional Restaurants in calendar 2024. - [Cheapest Franchises to Start Under $10k (2026)](https://vetmyfranchise.com/c/claude/blog/cheapest-franchises-under-10k): Cheapest franchises to start under $10k in 2026: which home-based and mobile categories fit the budget, what the fee really covers, and how to vet one. - [Can You Staff a Franchise in 2026? The Labor Reality](https://vetmyfranchise.com/c/claude/blog/can-you-staff-it-franchise-labor-reality): Franchise staffing challenges are a real pre-purchase blocker. How to test labor feasibility in your market before you sign — by category, turnover, and model. - [Express Car Wash Franchise Cost in 2026](https://vetmyfranchise.com/c/claude/blog/express-car-wash-franchise-cost): Express car wash franchise cost broken down — Tommy's Express runs $2.3M-$4.8M all-in. Where the money goes, the membership model, PE exits, and SBA 504… - [Cleaning Franchise vs. Independent Cleaning Business](https://vetmyfranchise.com/c/claude/blog/cleaning-franchise-vs-independent-cleaning-business): Cleaning franchise vs. independent: real startup costs, royalties, commercial vs. residential economics, and where each path actually wins in 2026. - [F45 Training Item 19 2026: $407K Median Reality Check](https://vetmyfranchise.com/c/claude/blog/f45-item-19-deep-dive): F45 Training Item 19: $407K median across 699 franchised studios for March 2024-Feb 2025. Why the median is lower than expected, year-one ramp, and what the… - [F45 Training Franchise Cost 2026: After the Collapse](https://vetmyfranchise.com/c/claude/blog/f45-training-franchise-cost): F45 Training franchise cost 2026: $362K-$858K investment, $60K fee, 7% royalty. The 2022 public collapse, going-private deal, post-2023 closure rate, and who… - [FDD Item 17: Renewal, Termination, and Exit Provisions Decoded](https://vetmyfranchise.com/c/claude/blog/fdd-item-17-renewal-termination): How to read FDD Item 17 — franchise renewal terms, termination triggers, post-term non-competes, transfer rights. - [Dutch Bros vs Scooter's Coffee Franchise: Real 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/dutch-bros-vs-scooters-coffee-franchise): Dutch Bros vs Scooter's Coffee franchise compared: why Dutch Bros isn't really franchising anymore and what to look for in Scooter's, 7 Brew, and Black Rock. - [Club Pilates Item 19 2026: $969K Median Decoded](https://vetmyfranchise.com/c/claude/blog/club-pilates-item-19-deep-dive): Club Pilates Item 19: $969K median ($814K P25, $1.14M P75) across 849 Qualified Studios. What 'Qualified' means, how it differs from raw Item 19, and how Club… - [Crumbl Item 19 Decoded: Cohort AUV Reality 2026](https://vetmyfranchise.com/c/claude/blog/crumbl-item-19-cohort-analysis): Crumbl Item 19 cohort analysis — new-unit AUV decline, market saturation reality, geographic variance, and what buyers should model. - [Build a Franchise Pro-Forma From Item 19 (Template)](https://vetmyfranchise.com/c/claude/blog/build-pro-forma-from-item-19): Turn an Item 19 revenue average into a real franchise profit estimate. Step-by-step pro-forma: haircut the top-line, model expenses, subtract fees and debt. - [Buy a Franchise With a Spouse or Partner: Structure & Risk](https://vetmyfranchise.com/c/claude/blog/buying-franchise-with-spouse-or-partner): Buying a franchise with a partner or spouse? How to handle equity splits, personal guarantees with two owners, and the buy-sell clause that protects both of… - [Buying a Refranchised Corporate Franchise Location (2026)](https://vetmyfranchise.com/c/claude/blog/buying-refranchised-corporate-franchise-location): Refranchising explained for buyers: why franchisors sell corporate stores, how to read Item 20, price these deals, and 10 questions to ask first. - [Best Midwest Franchises 2026: Data From 2,000+ FDDs](https://vetmyfranchise.com/c/claude/blog/best-franchises-midwest): Best franchises to own in the Midwest for 2026: verified FDD costs for Great Clips, Culver's, and Anytime Fitness, plus registration-state rules. - [Best Pet Boarding & Daycare Franchises 2026: Top 5 Compared](https://vetmyfranchise.com/c/claude/blog/best-pet-boarding-daycare-franchises): Best pet boarding and dog daycare franchises in 2026: Dogtopia, Camp Bow Wow, Hounds Town, K9 Resorts, Best Friends Pet Care — investment, AUV, fit. - [Franchise Attorney FDD Review Cost in 2026](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-fdd-review-cost): A franchise attorney FDD review costs $1,500–$3,000 flat in 2026, or $5,000+ with agreement negotiation. See what a lawyer covers vs. a data report. - [Franchise Break-Even Analysis: Calculate It Before You Sign](https://vetmyfranchise.com/c/claude/blog/franchise-break-even-calculation-before-you-sign): A step-by-step franchise break-even analysis: fixed costs, contribution margin, the ramp-up gap, and a worked $350K example you can run before you sign. - [Franchise Buying FAQ: 25 Questions Answered (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-buying-faq): A plain-English franchise buying FAQ: costs, SBA loans, the FDD, royalties, failure rates, and how to choose. 25 questions answered for 2026 buyers. - [F45 vs Orangetheory Franchise Comparison Guide 2026](https://vetmyfranchise.com/c/claude/blog/f45-vs-orangetheory-fitness-franchise): F45 vs Orangetheory franchise comparison: investment, royalties, member economics, brand trajectory. - [FDD Amended Before Signing: The 14-Day Rule Reset Explained](https://vetmyfranchise.com/c/claude/blog/fdd-material-change-before-signing-franchise-buyer-action): Franchisor sent an amended FDD before you sign? The FTC 14-day cooling-off resets. Here's what buyers must do — redline, attorney review, and the questions to… - [Franchise Net Worth & Liquid Capital Requirements (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-net-worth-liquidity-requirements): What franchise net worth and liquid capital requirements actually mean, typical thresholds by investment tier, what counts as liquid, and how franchisors… - [Franchise vs Buying a Small Business: 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/franchise-vs-buying-small-business): Franchise vs buying a business in 2026 — cash flow timing, SBA 7(a) treatment, multiples, exit value, and the hybrid resale play, with real numbers. - [Dunkin' Item 19 2026: $1.3M Median Across 7,010 Units Explained](https://vetmyfranchise.com/c/claude/blog/dunkin-item-19-deep-dive): Dunkin' Donuts Item 19: 7,010 franchised units, $1.3M median, P25 $952K, P75 $1.7M. The 1.8× quartile spread, what it tells you about coffee franchise… - [Great Clips Item 19 2026: $382K Median Across 4,147 Salons](https://vetmyfranchise.com/c/claude/blog/great-clips-item-19-deep-dive): Great Clips Item 19: $382K median across 4,147 franchised salons in fiscal 2024. Why the modest median produces strong unit economics, year-one ramp, and how… - [Hand and Stone Item 19 2026: $1.3M Median, P25/P75 Breakdown](https://vetmyfranchise.com/c/claude/blog/hand-and-stone-item-19-deep-dive): Hand and Stone Item 19: 502 studios open 12+ months, median $1.31M revenue, P25 $627K, P75 $1.47M. - [Crunch Fitness Franchise Cost 2026: Investment + Item 19](https://vetmyfranchise.com/c/claude/blog/crunch-fitness-franchise-cost): Crunch Fitness franchise cost in 2026: $2.15M-$5.37M investment, $35K franchise fee, 5% royalty + 2% ad fund. - [FDD Item 12 Territory Rights: What to Check Before Signing](https://vetmyfranchise.com/c/claude/blog/fdd-item-12-territory-rights-explained): FDD Item 12 defines your franchise territory — and the carve-outs that gut it. Learn protected vs exclusive, encroachment risk, and what to verify before… - [Franchise Build-Out Costs in 2026: The Real Numbers](https://vetmyfranchise.com/c/claude/blog/franchise-build-out-costs-what-youll-really-pay): Franchise build-out cost broken down by line item — leaseholds, equipment, signage, permits — plus why 2026 projects overrun and how to budget the buffer. - [Franchise CPA Review Before Buying: Checklist & Costs](https://vetmyfranchise.com/c/claude/blog/franchise-cpa-review-before-buying): What a franchise CPA reviews before you buy — Item 21 distress signals, Item 19 stress tests, entity structure, opening budget, and typical review costs. - [Circle K Franchise Cost 2026: Fees, Profit & 7-Eleven Alt](https://vetmyfranchise.com/c/claude/blog/circle-k-franchise-cost): Circle K franchise cost: $268K-$3M to convert an existing store, $1.4M-$4.8M new build, $25K fee, 3.5% royalty. What owners really make vs 7-Eleven. - [Coffee Franchise vs. Independent Coffee Shop (2026)](https://vetmyfranchise.com/c/claude/blog/coffee-franchise-vs-independent-coffee-shop): Coffee franchise vs. independent coffee shop: startup costs, what a franchise provides, where independents win, and which path fits your goals in 2026. - [How Much Is a Five Guys Franchise? Full Cost Breakdown (2026)](https://vetmyfranchise.com/c/claude/blog/five-guys-franchise-cost): Five Guys franchise cost ranges from $978K to $1.38M per unit. Full breakdown of franchise fees, build-out costs, royalties, Item 19 earnings. - [Conversion Franchising: Convert Your Business to a Franchise](https://vetmyfranchise.com/c/claude/blog/conversion-franchising-convert-your-business): Conversion franchising lets independent owners join a brand. Real economics on conversion franchise fees, royalties, rebrand costs, and incentives before you… - [Diesel Barbershop Franchise Cost 2026: $361K–$503K](https://vetmyfranchise.com/c/claude/blog/diesel-barbershop-franchise-cost): Diesel Barbershop franchise cost is $360,550 to $503,050 per the 2025 FDD, with a $45,000 fee and 7.5% royalty. Full Item 19 revenue tiers and owner math. - [Dumpster Dudez Franchise Cost 2026: $358K Dumpster Rental](https://vetmyfranchise.com/c/claude/blog/dumpster-dudez-franchise-cost): Dumpster Dudez franchise cost: $358K-$439K per the 2026 FDD with a $40K-$50K fee and 7% royalty. Item 7 breakdown, 2025 outlet revenue, and hidden costs. - [Franchise Investment Tiers 2026: Under $100K to $2M+](https://vetmyfranchise.com/c/claude/blog/franchise-cost-breakdown-by-investment-tier): Franchise investment tiers explained: what fits under $100K, $100-250K, $250K-750K, and $750K+, with real Item 7 ranges and what changes at each level. - [Franchise Due Diligence Services Compared (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-service): Franchise due diligence services compared for 2026: brokers vs attorneys vs CPAs vs FDD analysts. Real costs, who pays them, and what each one catches. - [Franchise Gag Clauses: Why Validation Calls Can Mislead (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-gag-clauses-validation-calls): How franchise gag clauses and NDAs skew validation calls, what the FTC's 2024 policy statement changed, and how to detect a muzzled system before signing. - [Franchise Liquidated Damages Clause Explained: What Buyers Pay](https://vetmyfranchise.com/c/claude/blog/franchise-liquidated-damages-clause-explained): How franchise liquidated damages clauses work — the lost-royalty formula, when they're enforceable, personal guarantee interaction, and what to negotiate. - [Firehouse Subs Item 19 2026: $966K Median Decoded](https://vetmyfranchise.com/c/claude/blog/firehouse-subs-item-19-deep-dive): Firehouse Subs Item 19: $966K median across 665 franchised restaurants for fiscal 2024. How the brand compares to Jersey Mike's and Subway on unit economics,… - [We Checked the Franchise 500 Against 2,000+ FDDs](https://vetmyfranchise.com/c/claude/blog/franchise-500-rankings-vs-fdd-data): We checked the 2026 Franchise 500 top 10 against their FDDs: opening costs from $101,630 to $22.2M, who discloses Item 19 earnings, and what Item 20 shows. - [Goldfish vs British Swim School 2026: Capital, Item 19, Model](https://vetmyfranchise.com/c/claude/blog/goldfish-vs-british-swim-school-franchise): Goldfish vs British Swim School 2026: $1.66M-$3.75M build vs $95K-$176K operator model. Item 19, capital, scalability, and which fits which buyer. - [Maryland Franchise Registration Verification Guide for Buyers](https://vetmyfranchise.com/c/claude/blog/maryland-franchise-registration-buyer-verification-guide): How to verify Maryland franchise registration before signing — Securities Division lookup, the 14-day rule, impound escrow protection, and exemption traps. - [Jazzercise $2K Investment: Why It's So Cheap When Fitness Costs $400K](https://vetmyfranchise.com/c/claude/blog/jazzercise-2k-investment-paradox-why-so-cheap): Why Jazzercise costs $2,170 vs $400K+ for boutique fitness franchises. The structural reasons (instructor model, no real estate, IP licensing). - [Is a Franchise a Good Investment? (2026 Pros & Cons)](https://vetmyfranchise.com/c/claude/blog/is-a-franchise-a-good-investment): Is a franchise a good investment in 2026? The real pros and cons, what the survival data actually says, and how to tell if a specific franchise is worth it. - [Item 19 Trap Brands 2026: 14 Franchises Where the Average Lies](https://vetmyfranchise.com/c/claude/blog/item-19-trap-brands-2026-when-average-lies): 14 franchise brands where Item 19's average masks a brutal top-quartile-vs-bottom-quartile spread. Real P25/P50/P75 numbers from the 2026 FDD set. - [Kumon Franchise Cost 2026: Center & Home-Based Economics](https://vetmyfranchise.com/c/claude/blog/kumon-franchise-cost): Kumon franchise cost 2026: investment $102K-$234K, fee $2,000, royalty per-student. Per-student-month economics, home-based vs center paths, and who succeeds… - [Orangetheory Franchise Cost 2026: $560K–$1.5M + Item 19](https://vetmyfranchise.com/c/claude/blog/orangetheory-franchise-cost): Orangetheory franchise cost 2026: investment $560K-$1.5M, fee $59,950, royalty 8%, brand fund 2%. Item 19 studio revenue and multi-unit reality. - [Master Franchise & Area Representative: The Deal Math](https://vetmyfranchise.com/c/claude/blog/master-franchise-area-representative-deal-math): How master franchise and area-rep deals make money: royalty splits, capital required, where they break, and the diligence high-dollar deals demand. - [SBA Franchise Loan Closing Costs Breakdown 2026 (Real Numbers)](https://vetmyfranchise.com/c/claude/blog/sba-franchise-loan-closing-costs-breakdown): SBA franchise loan closing costs explained: SBA guaranty fee, packaging fee, lender fees, attorney costs, Phase I, appraisal, and the franchise initial fee. - [Restore Hyper Wellness Franchise Cost (2026)](https://vetmyfranchise.com/c/claude/blog/restore-hyper-wellness-franchise-cost): Restore Hyper Wellness franchise cost 2026: recent FDD reporting puts total investment at $777K-$1.32M, 7.5% royalty. The membership-vs-one-off margin math. - [Panera Bread Item 19 2026: $2.93M Median Decoded](https://vetmyfranchise.com/c/claude/blog/panera-item-19-deep-dive): Panera Bread Item 19: $2.93M median across 1,084 franchisee-owned Bakery-Cafes for fiscal year 2024. - [Popeyes Franchise Cost 2026: Investment Guide](https://vetmyfranchise.com/c/claude/blog/popeyes-franchise-cost): Popeyes franchise cost 2026 — $1.4M–$3.5M per store, franchise fee, build-out, royalty stack, RBI development requirements, and net worth filters. - [Spaulding Decon Franchise Cost 2026: Crime Scene Cleanup](https://vetmyfranchise.com/c/claude/blog/spaulding-decon-franchise-cost): Spaulding Decon franchise cost: $162,510-$204,550 with a $49,500 fee and 8% royalty. What crime scene cleanup franchising requires, OSHA rules included. - [Should I Buy a K-9 Franchising Franchise? 2026 Framework](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-k-9-franchising-franchise): Should I buy a K-9 Franchising? Decision framework for the mobile vs facility models, with go/no-go criteria for trainers, investors, and pet-services… - [Subway Franchise Pros and Cons 2026: Worth It in a Smaller System?](https://vetmyfranchise.com/c/claude/blog/subway-franchise-pros-and-cons): Subway franchise pros and cons 2026: lowest entry cost in national franchising ($227K-$630K), vs. - [Dutch Bros Franchise Alternatives You Can Own (2026)](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-dutch-bros-franchise): Can't franchise a Dutch Bros? Compare drive-thru coffee franchise alternatives you can own — Scooter's, Dunkin, Ziggi's, Peet's — cost and fit. - [Taco Bell Franchise Cost 2026: Investment Guide](https://vetmyfranchise.com/c/claude/blog/taco-bell-franchise-cost): Taco Bell franchise cost in 2026 — $575K–$3M+ per store, franchise fee, build-out, royalty stack, net worth requirements, and multi-unit commitment reality. - [Wingstop Franchise Pros and Cons 2026: What Buyers Need to Know](https://vetmyfranchise.com/c/claude/blog/wingstop-franchise-pros-and-cons): Wingstop franchise pros and cons 2026: unmatched 3× AUV-to-investment ratio, $2.1M average AUV, simple operations (vs. - [Franchise Transfer & Assignment Restrictions Explained](https://vetmyfranchise.com/c/claude/blog/franchise-transfer-assignment-restrictions-explained): Franchise transfer and assignment restrictions — ROFR, transfer fees, buyer pre-approval, and family-transfer carve-outs. - [Franchise vs Independent Business: Pros, Cons & Success Rates](https://vetmyfranchise.com/c/claude/blog/franchise-vs-independent-business): Compare franchise vs independent business ownership: success rates, costs, financing, and creative freedom. Data-driven guide to help you choose the right path. - [Franchise With No Item 19: Red Flag or Normal? (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-no-item-19-what-it-means): 29.6% of FDDs have no Item 19. Learn why franchisors skip it, which omissions are red flags, and how to estimate earnings from Items 5-7, 20, and 21. - [How Long to Open a Franchise? Timeline by Type](https://vetmyfranchise.com/c/claude/blog/franchise-opening-timeline-signing-to-launch): Learn how long it takes to open a franchise by type. Covers training, site selection, buildout, hiring, and launch timelines with delay prevention tips. - [HomeVestors (We Buy Ugly Houses) Item 19 2026: $287K Median Decoded](https://vetmyfranchise.com/c/claude/blog/homevestors-item-19-deep-dive): HomeVestors (We Buy Ugly Houses) Item 19: $287K median across 898 franchised territories in 2024. - [Fastest Growing Franchises 2026: Real FDD Unit Growth Data](https://vetmyfranchise.com/c/claude/blog/fastest-growing-franchises): See which franchises are actually growing based on real FDD unit data. Compare openings, closures, and net growth for Jersey Mike's, Club Pilates, 7-Eleven. - [Franchise vs. Job: Will It Replace a $150k Salary?](https://vetmyfranchise.com/c/claude/blog/franchise-vs-job-replace-salary): Franchise vs. job: will a franchise replace your salary? The replacement-income math on owner pay, the 2-year income gap, and opportunity cost before you quit. - [Is Goldfish Swim School a Good Franchise? 2026 AI-Verdict](https://vetmyfranchise.com/c/claude/blog/is-goldfish-swim-school-a-good-franchise): Goldfish Swim School verdict: $1.98M median AUV across 155 units (2026 FDD), $1.66M-$3.75M build. Strong economics if you can fund the build. - [How to Read a Franchisor Pro Forma: 9 Inflation Tricks to Spot](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchisor-pro-forma-inflation-tricks): A franchisor pro forma is a sales document, not a disclosure. Nine inflation tricks on the revenue side, four deflation tricks on the expense side, and how to… - [Franchise Brands in Financial Trouble in 2026](https://vetmyfranchise.com/c/claude/blog/franchise-brands-in-financial-trouble): Franchise bankruptcies 2026: which brands filed, why most are franchisee-level not franchisor collapse, and how to screen Item 4, 20 and 21 before you sign. - [Franchise Financial Health Scorecard: 12 Buyer Checks](https://vetmyfranchise.com/c/claude/blog/franchise-system-financial-health-scorecard): A 12-criterion franchise financial health scorecard buyers can run on any FDD. Audited financials, net unit growth, litigation, PE ownership, and more. - [Franchisor Encroachment: How Brands Compete With Owners](https://vetmyfranchise.com/c/claude/blog/franchisor-encroachment-competing-with-own-owners): Franchise encroachment isn't just a new unit nearby. How online sales, delivery, and company stores divert your revenue — and how to read FDD Item 12. - [2026 Tariffs & Franchise Costs: What Buyers Should Know](https://vetmyfranchise.com/c/claude/blog/how-2026-tariffs-franchise-startup-costs): How 2026 tariffs raise franchise startup and food costs — equipment, build-out, and COGS exposure by category, plus how to stress-test your pro-forma. - [Is Aspen Dental a Good Franchise in 2026? DSO Reality](https://vetmyfranchise.com/c/claude/blog/is-aspen-dental-a-good-franchise): Is Aspen Dental a good franchise in 2026? DSO operator model decoded, dentist-ownership requirements, support fee structure, and which buyers fit. - [Is StretchLab a Good Franchise? The Xponential Risk](https://vetmyfranchise.com/c/claude/blog/is-stretchlab-a-good-franchise): Is StretchLab a good franchise in 2026? Assisted-stretch model with $271K-$814K investment, recurring membership revenue — and major Xponential Fitness… - [Is Crunch Fitness a Good Franchise to Buy in 2026?](https://vetmyfranchise.com/c/claude/blog/is-crunch-fitness-a-good-franchise): Is Crunch Fitness a good franchise in 2026? Top-quartile AUV $1.5-2M vs bottom $700K-$900K, $1.2-3.5M investment, PE ownership under TPG — who succeeds, who… - [Is Jazzercise a Good Franchise? 2026 Verdict + Economics](https://vetmyfranchise.com/c/claude/blog/is-jazzercise-a-good-franchise): Jazzercise verdict: $2,170 entry, 5,251 units, 10-20% royalty. The cheapest fitness franchise is real but not boutique. Who should and shouldn't buy in 2026. - [Is Redbox a Franchise? No — It's Gone. What to Buy Instead](https://vetmyfranchise.com/c/claude/blog/is-redbox-a-franchise): No, Redbox was never a franchise. All 24,000 kiosks were corporate-owned, and the company shut down in 2024. Here's what kiosk buyers should buy instead. - [Low vs. High-Investment Franchises: Cash-on-Cash Truth](https://vetmyfranchise.com/c/claude/blog/low-vs-high-investment-franchise-returns): Low vs high investment franchise returns: cheaper concepts post higher cash-on-cash percentages, but pricier deals can pay more dollars. How they compare. - [Is Dunkin' a Good Franchise in 2026? Honest Multi-Unit Reality](https://vetmyfranchise.com/c/claude/blog/is-dunkin-a-good-franchise): Is Dunkin' a good franchise in 2026? Full cost breakdown (fee, royalty, investment), pros and cons, Item 19 decoded, and the Inspire Brands era impact. - [Great Clips Franchise Pros and Cons 2026: Hair Salon Franchise Deep Dive](https://vetmyfranchise.com/c/claude/blog/great-clips-franchise-pros-and-cons): Great Clips franchise pros and cons 2026: largest hair-services franchise, low entry capital ($144K-$307K), semi-passive-friendly — vs. - [Jersey Mike's vs Firehouse Subs Franchise 2026](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-vs-firehouse-subs-franchise): Jersey Mike's vs Firehouse Subs franchise 2026: $1.29M vs $966K median AUV, different brand positioning (cold subs vs hot subs), different ownership… - [Jersey Mike's Item 19 2026: $1.29M Median Decoded](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-item-19-deep-dive): Jersey Mike's Item 19: $1.29M median across 2,255 franchised shops. Why the AUV-to-investment ratio of ~1.6× at the midpoint outperforms most fast-casual peers… - [Franchise Lawsuits Ranked: Item 3 Data From 2,000+ FDDs](https://vetmyfranchise.com/c/claude/blog/franchises-with-most-litigation): Item 3 litigation data from 985 parsed FDDs: Subway leads with 93 disclosed actions, 61.2% of brands disclose zero, and per-unit rates flip the ranking. - [Is Window Genie a Good Franchise? 2026 Neighborly Verdict](https://vetmyfranchise.com/c/claude/blog/is-window-genie-a-good-franchise): Window Genie verdict: $387K median AUV, $128K-$828K IQR, 103 units. Neighborly portfolio brand. Wide distribution means operator quality drives the outcome… - [Is Taco Bell a Good Franchise in 2026? Honest Review](https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-good-franchise): Is Taco Bell a good franchise in 2026? Yum Brands operator economics, multi-unit-only reality, AUV decoded, and which buyers fit. - [Is Marco's Pizza a Good Franchise to Buy in 2026?](https://vetmyfranchise.com/c/claude/blog/is-marcos-pizza-a-good-franchise): Is Marco's Pizza a good franchise in 2026? AUV $800K-$1.1M, total investment $250-$650K, delivery margin pressure — who succeeds, who struggles vs Domino's and… - [Good Franchise ROI? Cash-on-Cash Benchmarks (2026)](https://vetmyfranchise.com/c/claude/blog/good-franchise-cash-on-cash-return): What's a good cash-on-cash return for a franchise? About 15%+ is strong, 5-12% typical — how to calculate it, the payback period, and the wage adjustment. - [Is Chick-fil-A a Good Franchise? $10K Fee, 1% Odds (2026)](https://vetmyfranchise.com/c/claude/blog/is-chick-fil-a-a-good-franchise): Is Chick-fil-A a good franchise in 2026? Operator earnings, the $10K-fee reality, the 1% acceptance rate, and 3 buyer profiles it actually fits. - [Is Big O Tires a Good Franchise in 2026? FDD Verdict](https://vetmyfranchise.com/c/claude/blog/is-big-o-tires-a-good-franchise): Is Big O Tires a good franchise? The FDD issued June 30, 2025 shows 461 franchised units, a 3.5% to 5.0% royalty matrix, a 4.5% ad load, and a two-part Item 19… - [Mobile vs Facility Dog Training Franchise Economics 2026](https://vetmyfranchise.com/c/claude/blog/mobile-vs-facility-dog-training-franchise-economics): Mobile vs facility dog training franchise economics: capital, revenue ceiling, operating complexity. Which model fits which operator. - [McAlister's Deli Item 19 2026: $1.79M Median Decoded](https://vetmyfranchise.com/c/claude/blog/mcalisters-item-19-deep-dive): McAlister's Deli Item 19: $1.79M median ($543K P25, $5.03M P75) across 464 franchised restaurants. - [Moe's Southwest Grill Item 19 2026: $1.17M Median Decoded](https://vetmyfranchise.com/c/claude/blog/moes-southwest-grill-item-19-deep-dive): Moe's Southwest Grill Item 19: $1.17M median ($908K P25, $1.46M P75) across 485 franchised Traditional restaurants for fiscal 2024. - [Home Instead Item 19 2026: $2.26M Median Senior Care Economics](https://vetmyfranchise.com/c/claude/blog/home-instead-item-19-deep-dive): Home Instead Item 19: $2.26M median across 603 franchised territories in calendar 2024. The AUV-to-investment ratio, year-one ramp, and how it compares to… - [Is Massage Envy a Good Franchise in 2026? Membership Reality](https://vetmyfranchise.com/c/claude/blog/is-massage-envy-a-good-franchise): Is Massage Envy a good franchise in 2026? Membership-model math, therapist labor reality, Item 19 mature-vs-new gap, and Roark Capital era impact. - [Is Scooter's Coffee a Good Franchise to Buy in 2026?](https://vetmyfranchise.com/c/claude/blog/is-scooters-coffee-a-good-franchise): Is Scooter's Coffee a good franchise in 2026? Drive-thru kiosk model with $1M-$1.4M AUV, $720K-$1.4M investment, 18-24% margins — and rising competitive… - [SBA Approval to Franchise Closing: The 30-60 Day Reality](https://vetmyfranchise.com/c/claude/blog/sba-approval-to-franchise-closing-timeline): What happens between SBA loan approval and franchise closing: SBA Form 2237 conditions, environmental Phase I, franchisor estoppel, SNDA, equipment UCC… - [Franchise Technology Fees Explained: Costs by Brand (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-technology-fees-explained): Franchise technology fees compared across 15 brands — from $45/mo at Jazzercise to $15,000/yr at Wendy's. How to find them in Item 6 and model the real cost. - [How to Read a Franchisor 10-K: SEC Filings for Franchise Buyers](https://vetmyfranchise.com/c/claude/blog/how-to-read-franchisor-10-k-for-franchise-buyers): How franchise buyers should read a publicly-traded franchisor's 10-K — segment revenue, SSS trends, unit count, litigation, risk factors, and what to… - [McDonald's Franchise Cost: Full Investment Breakdown & Earnings](https://vetmyfranchise.com/c/claude/blog/mcdonalds-franchise-cost-breakdown): How much does a McDonald's franchise cost? Full breakdown of the $1.3M-$2.3M investment, $45K fee, financial requirements, royalties, and real earnings data. - [Should I Buy a Home Instead Franchise? 2026 Decision Guide](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-home-instead-franchise): Should I buy a Home Instead franchise in 2026? Honest decision guide: 10×+ AUV-to-investment ratio is exceptional, but caregiver labor model, 24-month ramp,… - [SBA Franchise Loan Default Rates: Brand-by-Brand Data](https://vetmyfranchise.com/c/claude/blog/sba-loan-default-rates-by-franchise): Brand-level SBA 7(a) default rates from 36,904 franchise loans (FY2020-2026): UNITS 23.8%, Dickey's 21%, Jersey Mike's 0%. Full data tables inside. - [Sugaring NYC Franchise Cost 2026 (+ SugaringLA Compared)](https://vetmyfranchise.com/c/claude/blog/sugaring-nyc-franchise-cost): Sugaring NYC franchise cost: $138,750-$293,200 per the 2025 FDD, with a $45,000 fee and 5% royalty. Full breakdown plus how SugaringLA compares. - [Sport Clips vs Great Clips vs Supercuts Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/sport-clips-vs-great-clips-vs-supercuts-franchise): Sport Clips vs Great Clips vs Supercuts franchise comparison — investment, royalties, U.S. - [Miracle-Ear Item 19 2026: $393K Median Decoded](https://vetmyfranchise.com/c/claude/blog/miracle-ear-item-19-deep-dive): Miracle-Ear Item 19: $393K median across 1,010 franchised hearing-aid locations in calendar 2024. - [Planet Fitness Multi-Unit Ownership Reality 2026](https://vetmyfranchise.com/c/claude/blog/planet-fitness-multi-unit-ownership-reality): Planet Fitness multi-unit ownership reality — area development commitments, capital requirements, per-club economics, and what scaling actually looks like. - [Popeyes Louisiana Kitchen Item 19 2026: $1.88M Median Explained](https://vetmyfranchise.com/c/claude/blog/popeyes-item-19-deep-dive): Popeyes Louisiana Kitchen Item 19: $1.88M median across 2,186 franchised free-standing restaurants, fiscal 2024. - [Raising Cane's Franchise Cost 2026: Why It's Not a Franchise](https://vetmyfranchise.com/c/claude/blog/raising-canes-franchise-cost-and-why-you-cant-own-one): Raising Cane's is not a franchise. Why Todd Graves won't sell franchise rights, what a Cane's location would cost if it franchised, and the chicken franchises… - [Jackson Hewitt Item 19 2026: $87K Median Decoded](https://vetmyfranchise.com/c/claude/blog/jackson-hewitt-item-19-deep-dive): Jackson Hewitt Item 19: $87K median across 2,663 franchised territories for tax season ending April 2025. - [Quick Payback Franchises 2026: 12 Brands With Sub-3-Year ROI](https://vetmyfranchise.com/c/claude/blog/quick-payback-franchises-2026-sub-3-year-roi): 12 franchise brands with estimated payback under 3 years based on investment range, judge-verified Item 19 median revenue, and an 18% operating margin model. - [Pizza Hut Franchise Pros and Cons 2026: Legacy Brand in Transition](https://vetmyfranchise.com/c/claude/blog/pizza-hut-franchise-pros-and-cons): Pizza Hut franchise pros and cons 2026: large legacy system under Yum Brands — vs. Domino's-led category, contracting US footprint, and transition from dine-in… - [Pink Zebra Moving Franchise Cost 2026: $128K & $793K AUV](https://vetmyfranchise.com/c/claude/blog/pink-zebra-moving-franchise-cost): Pink Zebra Moving franchise cost: $128,368 to $260,679 per the 2026 FDD with a $30,000 fee. Six full-year units posted $792,705 median revenue in 2025. - [Ghost Kitchen & Virtual Brand Franchises: Real Economics 2026](https://vetmyfranchise.com/c/claude/blog/ghost-kitchen-virtual-brand-franchise-economics): Ghost kitchen franchise economics in 2026: real costs, the 15-30% delivery-fee bite, the discoverability problem, and who should actually buy one. - [Freddy's Frozen Custard Item 19 2026: $1.83M Median, 1.5× Spread](https://vetmyfranchise.com/c/claude/blog/freddys-frozen-custard-item-19-deep-dive): Freddy's Frozen Custard Item 19: 463 franchised units, $1.83M median, P25 $1.47M, P75 $2.21M. The 1.5× quartile spread, what it signals, and how Freddy's… - [Gym Franchise vs. Independent Gym: Which Wins? (2026)](https://vetmyfranchise.com/c/claude/blog/gym-franchise-vs-independent-gym): Gym franchise vs. independent gym compared: real startup costs, what a franchise actually buys, where independents win, and which fits your capital. - [FS8 Franchise Cost 2026: $349K+ & What Owners Make](https://vetmyfranchise.com/c/claude/blog/fs8-franchise-cost): FS8 franchise cost is $349,300-$840,700 per the 2026 FDD with a $60K fee and 7% royalty. What FS8 owners make: Item 19 median revenue of $388,541 explained. - [Hidden Franchise Costs Not in FDD Item 7 (2026 Guide)](https://vetmyfranchise.com/c/claude/blog/hidden-franchise-costs-not-in-fdd): Hidden franchise costs the FDD Item 7 table leaves out: the 3-month working-capital trap, pre-opening soft costs, and how to build your real startup budget. - [Should I Buy a Buffalo Wild Wings Franchise? 2026 Decision Guide](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-buffalo-wild-wings-franchise): Should I buy a Buffalo Wild Wings franchise in 2026? Honest decision guide: high $3.44M median AUV but heavy $2.5M-$4.9M investment, 2× P75/P25 cohort spread… - [Should I Buy a Goldfish Swim School Franchise? 2026 Framework](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-goldfish-swim-school-franchise): Should I buy a Goldfish Swim School? Decision framework for the $1.66M-$3.75M build: capital test, ramp test, real-estate test, exit-path test. - [How Do Franchises Work? Franchising Explained (2026)](https://vetmyfranchise.com/c/claude/blog/how-do-franchises-work): How do franchises work? A plain-English guide to franchisor vs. franchisee, the FDD and franchise agreement, the fees you pay, and how each side earns. - [How Much Does a Massage Envy Owner Make? (2026)](https://vetmyfranchise.com/c/claude/blog/how-much-does-a-massage-envy-owner-make): How much does a Massage Envy owner make? Clinic revenue (~$1.2M) isn't take-home. Membership waterfall, 6% royalty, therapist labor, and real owner ranges. - [Supercuts Item 19 2026: $297K Median Decoded](https://vetmyfranchise.com/c/claude/blog/supercuts-item-19-deep-dive): Supercuts Item 19: $297K median across 1,661 franchised salons in fiscal 2024-2025. Why the modest revenue still works at low investment, and how Supercuts… - [Should I Buy a Papa John's Franchise? 2026 Decision Guide](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-papa-johns-franchise): Should I buy a Papa John's franchise in 2026? Honest decision guide weighing the strengths (brand recognition, established system) vs. - [Chick-fil-A Franchise Alternatives: 6 You Can Own](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-chick-fil-a-franchise): You can't really own a Chick-fil-A. Compare 6 chicken franchise alternatives you can own outright — investment, model, and which fits which buyer. - [Raising Cane's Franchise Alternatives You Can Own](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-raising-canes-franchise): Can't franchise a Raising Cane's? Compare 5 chicken-tender franchise alternatives you can own — investment, menu focus, and which fits your budget. - [Window Genie + Neighborly: Portfolio Effects on Franchisees 2026](https://vetmyfranchise.com/c/claude/blog/window-genie-neighborly-portfolio-effect-on-franchisees): How Neighborly's portfolio (KKR-owned, 30+ brands) affects Window Genie franchisee economics. Cross-brand referrals, multi-brand leverage, capital allocation… - [Servpro Franchise Cost 2026: Investment, Royalty, Item 19](https://vetmyfranchise.com/c/claude/blog/servpro-franchise-cost): Servpro franchise cost in 2026: $263K-$386K investment, $100K franchise fee, 10% royalty, 2.5% ad fund. - [Should I Buy a Club Pilates Franchise? 2026 Decision Guide](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-club-pilates-franchise): Should I buy a Club Pilates franchise in 2026? Honest decision guide: strongest boutique-fitness unit economics, tight cohort spread, $250K+ liquid capital —… - [The Joint Chiropractic Franchise Cost 2026: Real Item 19](https://vetmyfranchise.com/c/claude/blog/the-joint-chiropractic-franchise-cost): The Joint Chiropractic franchise cost 2026: investment $200K-$478K, fee $39,900, royalty 7% + 2% ad. - [Am I Cut Out to Own a Franchise? Fit Self-Assessment](https://vetmyfranchise.com/c/claude/blog/ideal-franchisee-fit-self-assessment): A franchise fit self-assessment: score your capital, owner-operator style, risk tolerance, and discipline to see if franchise ownership suits you. - [Goosehead Insurance Item 19 2026: $99K to $672K Spread Decoded](https://vetmyfranchise.com/c/claude/blog/goosehead-insurance-item-19-deep-dive): Goosehead Insurance Item 19: median $249K, P25 $100K, P75 $672K across 1,525 tenured producers. The 6.7× quartile spread, what it means for new operators, and… - [Papa Murphy's Item 19 2026: $616K Median Decoded](https://vetmyfranchise.com/c/claude/blog/papa-murphys-item-19-deep-dive): Papa Murphy's Item 19: $616K median across 947 franchised take-and-bake stores. Why the take-and-bake model produces different unit economics than delivery… - [Primrose Schools Franchise Cost 2026: The $3M-$7M Real Math](https://vetmyfranchise.com/c/claude/blog/primrose-schools-franchise-cost): Primrose Schools franchise cost in 2026: $3M-$7M total investment, build-to-suit real estate, stabilized AUV $2.5M-$4.5M, and what the 12-24 month ramp… - [Sport Clips Item 19 2026: $409K Median (Mature 2+ Year Units)](https://vetmyfranchise.com/c/claude/blog/sport-clips-item-19-deep-dive): Sport Clips Item 19: $409K median across 1,669 mature salons (2+ years operating). The tenure filter explained, year-one ramp, and how Sport Clips compares to… - [Should I Buy a McDonald's Franchise? 2026 Decision Guide](https://vetmyfranchise.com/c/claude/blog/should-i-buy-a-mcdonalds-franchise): Should I buy a McDonald's franchise in 2026? Honest answer based on McDonald's actual approval criteria: $500K+ unencumbered cash, 25%+ down payment,… - [The Maids vs Merry Maids vs Molly Maid: 2026 Compared](https://vetmyfranchise.com/c/claude/blog/the-maids-vs-merry-maids-vs-molly-maid-franchise): The Maids vs Merry Maids vs Molly Maid 2026 comparison: investment, royalty, Item 19, parent ownership, operating model. - [Smoothie King Franchise Cost 2026: Item 7 & Item 19](https://vetmyfranchise.com/c/claude/blog/smoothie-king-franchise-cost): Smoothie King franchise cost 2026: fee $30K ($15K non-traditional), total investment $330K-$1.28M, royalty 6%, ad fund 3%. - [Tropical Smoothie Item 19 2026: $954K Median Explained](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-cafe-item-19-deep-dive): Tropical Smoothie Cafe Item 19: $954K median revenue across 1,268 franchised cafes in calendar 2024. - [Washington Franchise Investment Protection Act: Your Rights](https://vetmyfranchise.com/c/claude/blog/washington-franchise-investment-protection-act-buyers-guide): Washington Franchise Investment Protection Act (RCW 19.100) explained for 2026 buyers: registration, disclosure, good-cause termination, anti-encroachment, and… - [Tide Cleaners Franchise Cost 2026: Investment + 12-Year Payback](https://vetmyfranchise.com/c/claude/blog/tide-cleaners-franchise-cost): Tide Cleaners franchise cost in 2026: $698K-$2.5M investment, 6.5% royalty + 4% ad fund, 12-14 year payback. Honest analysis for serious drycleaning buyers. - [Servpro Franchise Alternatives: 5 Restoration Brands](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-servpro-franchise): Looking past Servpro? Compare 5 water/fire damage restoration franchise alternatives — cost, territory, and insurance-channel model — for 2026 buyers. - [Subway Item 19 Explained: Closure Survivorship Bias](https://vetmyfranchise.com/c/claude/blog/subway-item-19-survivorship-bias-explained): Subway Item 19 explained — how 6,000+ closures distort the average AUV, new-build vs mature-store reality, and how to stress-test before buying. - [Buying an Emerging Franchise: Risk vs Reward Under 100 Units](https://vetmyfranchise.com/c/claude/blog/should-you-buy-emerging-franchise-under-100-units): Is an emerging franchise under 100 units worth the risk? How to read a young system's Item 19 and Item 20, plus a go/no-go diligence checklist. - [Is F45 a Good Franchise? $429K Median Revenue, 47 Closures](https://vetmyfranchise.com/c/claude/blog/is-f45-a-good-franchise): Is F45 a good franchise in 2026? Post-IPO operator reality, AUV disputes, Orangetheory competition, and which buyers should consider F45 today. - [SBA Equity Injection: Franchise Down Payment Rules (2026)](https://vetmyfranchise.com/c/claude/blog/sba-equity-injection-franchise-down-payment): SBA equity injection rules for franchise buyers: the 10% minimum, allowed sources (gifts, ROBS, HELOC), banned sources, and the sourced-and-seasoned check. - [Is K-9 Franchising a Good Franchise? 2026 Verdict](https://vetmyfranchise.com/c/claude/blog/is-k-9-franchising-a-good-franchise): K-9 Franchising verdict: 37 units, Item 19 n=17, $1.5K-$3.95M investment range. Two structurally different businesses inside one franchise. - [IV Therapy & Wellness Franchise Opportunities 2026](https://vetmyfranchise.com/c/claude/blog/iv-therapy-wellness-franchise-opportunities): IV therapy and wellness franchise opportunities 2026 — top brands, investment ranges, regulatory considerations. - [Is KFC a Good Franchise in 2026? Honest Review](https://vetmyfranchise.com/c/claude/blog/is-kfc-a-good-franchise): Is KFC a good franchise in 2026? US AUV decoded, multi-unit-only reality, Yum Brands era, and which buyers fit the operator profile. - [Kona Ice Franchise Cost 2026: Investment + Item 19](https://vetmyfranchise.com/c/claude/blog/kona-ice-franchise-cost): Kona Ice franchise cost in 2026: $115K-$229K investment, $15K franchise fee, 15% royalty (highest in mobile food). Truck math and seasonal economics explained. - [Mr. Rooter vs Roto-Rooter: $25K-$42.5K Fees, $1.26M AUV (2026)](https://vetmyfranchise.com/c/claude/blog/mr-rooter-vs-roto-rooter-franchise): Mr. Rooter vs Roto-Rooter franchise comparison: investment, AUV, royalty, territory, and which plumbing franchise fits which buyer in 2026. - [Panera Bread Franchise Pros and Cons 2026: Worth the Capital?](https://vetmyfranchise.com/c/claude/blog/panera-franchise-pros-and-cons): Panera Bread franchise pros and cons 2026: $2.93M median AUV, three-layer revenue model — vs. heavy build-out ($1.2M-$4.6M), tight ratio, and selective… - [PuroClean Franchise Cost 2026: Fees vs SERVPRO](https://vetmyfranchise.com/c/claude/blog/puroclean-franchise-cost): PuroClean franchise cost runs $101,280-$262,145 per the 2025 FDD with a $59,000 fee. Royalty structure, Item 19 revenue, and how it compares to Servpro. - [Minimum Wage & Franchise Profitability: Which Survive](https://vetmyfranchise.com/c/claude/blog/minimum-wage-hikes-franchise-profitability): How minimum-wage hikes affect franchise profitability in 2026: labor % by category, which models survive rising wages, and how to underwrite a deal. - [Popeyes Louisiana Kitchen Franchise Pros and Cons 2026](https://vetmyfranchise.com/c/claude/blog/popeyes-franchise-pros-and-cons): Popeyes franchise pros and cons 2026: $1.88M median AUV, chicken-category momentum, RBI platform — vs. - [Qdoba Item 19 2026: $1.6M Median, $1M-$2.45M Quartile Range](https://vetmyfranchise.com/c/claude/blog/qdoba-item-19-deep-dive): Qdoba Item 19: 464 franchised restaurants open 1+ year, median $1.6M, P25 $1.0M, P75 $2.45M. Quartile breakdown, year-one ramp, and how the AUV compares to… - [SDIRA vs. ROBS for a Franchise: Can You Run It?](https://vetmyfranchise.com/c/claude/blog/sdira-vs-robs-franchise-funding): SDIRA vs. ROBS to fund a franchise: ROBS lets you run it (C-corp, no penalty); an SDIRA can't be operated by you without a prohibited transaction. Compared. - [Stemtree Franchise Cost 2026: $91K-$195K STEM Education](https://vetmyfranchise.com/c/claude/blog/stemtree-franchise-cost): Stemtree franchise cost 2026: $90,700-$195,300 investment, $44,500 fee, 8% royalty. Item 19 median revenue plus how it compares to Kumon and Mathnasium. - [StretchLab Franchise Cost 2026: Investment + Buyer Reality](https://vetmyfranchise.com/c/claude/blog/stretchlab-franchise-cost): StretchLab franchise cost in 2026: $271K-$814K investment, $60K franchise fee, 8% royalty. The Xponential boutique stretch studio model explained for buyers. - [QSR Franchise Startup Costs 2026: Real FDD Numbers](https://vetmyfranchise.com/c/claude/blog/qsr-franchise-startup-costs-compared): QSR franchise startup costs run $125K to $2.5M+. Real Item 7 data from 607 food FDDs: segment averages, cheapest entries, and what the $1M+ tier buys. - [14-Day FDD Rule Explained: No Signing, No Paying, No Waivers](https://vetmyfranchise.com/c/claude/blog/the-14-day-fdd-rule-explained): The 14-day FDD rule (16 CFR 436.2) bars signing or paying until 14 calendar days after you receive the FDD. It can't be waived — here's how it works. - [Crumbl Franchise Alternatives: 4 Dessert Brands](https://vetmyfranchise.com/c/claude/blog/top-alternatives-to-crumbl-franchise): Worried about Crumbl saturation? Compare dessert franchise alternatives — Duck Donuts, Kona Ice, Dippin' Dots, Cinnabon — cost, model, and fad risk. - [After Discovery Day: 7-Day Franchise Decision Framework](https://vetmyfranchise.com/c/claude/blog/after-discovery-day-decision-framework): A 7-day post-discovery-day decision framework — how to evaluate the franchise opportunity, run final validation, and decide to sign or walk away. - [Using 401(k) to Buy a Franchise (ROBS): How It Works, Risks](https://vetmyfranchise.com/c/claude/blog/401k-robs-franchise-financing-guide): Complete guide to using your 401(k) to buy a franchise through ROBS (Rollover for Business Startups). - [Aspen Dental Franchise Cost 2026: PSO Model & Buyer Reality](https://vetmyfranchise.com/c/claude/blog/aspen-dental-franchise-cost): Aspen Dental franchise cost in 2026: $250K-$1M+ investment, ~$37,500 franchise fee, ~5% royalty. Why state dental laws make this a PSO model, not a typical… - [Best Franchises for Nurses & Healthcare Professionals 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-nurses-healthcare): Best franchises for nurses — clinical-fit categories, licensure considerations, and how nursing experience translates to franchise ownership in 2026. - [Anytime Fitness Single vs Multi-Unit Franchise: Which Is Smarter](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-single-unit-vs-multi-unit-area-development): Anytime Fitness single unit vs multi-unit area development — investment, ROI, financing, territory, and which path actually works for fitness franchise buyers… - [Best Burger Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-burger-franchises): Compare the best burger franchises for 2026 — Five Guys, Smashburger, BurgerFi, Wahlburgers, Burger King, Culver's — by capital, royalty, and unit economics. - [Best Fitness Franchises Under $200K: 8 Picks (2026)](https://vetmyfranchise.com/c/claude/blog/best-fitness-franchises-under-200k): Best fitness franchises under $200K total investment in 2026 — 8 picks with AUV, royalty, lease economics, and membership math for boutique fitness buyers… - [Best Residential Cleaning Franchises 2026: Maids, Molly Maid & More](https://vetmyfranchise.com/c/claude/blog/best-residential-cleaning-franchises): Best residential cleaning franchises in 2026: Maid Brigade, Molly Maid, The Maids, Merry Maids, Two Maids. - [FDD Item 10: Franchisor Financing Pros, Cons, and Risks](https://vetmyfranchise.com/c/claude/blog/fdd-item-10-financing): How to read FDD Item 10 — franchisor-offered financing, the convenience-versus-cost tradeoff, and when to take or skip in-house financing. - [Best Mobile Franchises 2026: Van-Based Business Ideas](https://vetmyfranchise.com/c/claude/blog/best-mobile-van-based-franchises): Compare the top mobile and van-based franchises for 2026 — pet grooming, mobile drug testing, screen repair, and more — by cost, route economics, and scaling… - [Best Pizza Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-pizza-franchises): Compare the best pizza franchises for 2026 — Domino's, Marco's, Jet's, Mountain Mike's, Hungry Howie's, Papa John's, Little Caesars — by capital, royalty, and… - [Best Personal Training Franchises 2026: Top Brands](https://vetmyfranchise.com/c/claude/blog/best-personal-training-bootcamp-franchises): Compare the best personal training and boot camp franchises for 2026 — F45 Training, 9Round, Fitness Together, Alloy Personal Training, Gold's Gym — by capital… - [Best Kids Entertainment Franchises 2026: Top Brands](https://vetmyfranchise.com/c/claude/blog/best-children-entertainment-trampoline-franchises): Compare the best children's entertainment franchises for 2026 — Sky Zone, Pump It Up, KidStrong, Drama Kids, Engineering for Kids — by capital and unit… - [Best Mexican Food Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-mexican-food-franchises): Compare the best Mexican food franchises for 2026 — Moe's Southwest Grill, Qdoba, Del Taco, Taco Bell, Fuzzy's Taco Shop — by capital, royalty, and unit… - [Best Franchises for Women: Funding & Top Brands 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-for-women-entrepreneurs): Best franchises for women entrepreneurs — top brands, women-focused SBA programs, mentor networks. - [Best Garage Door Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-garage-door-franchises): Compare the best garage door franchises for 2026 — Precision Door, Hello Garage, Garage Living, Granite Garage Floors, Garage Experts — by capital, royalty,… - [Best Security & Alarm Franchises 2026: Brands and Buyer Reality](https://vetmyfranchise.com/c/claude/blog/best-security-alarm-franchises): Best security and alarm franchises in 2026: investment ranges, recurring monitoring revenue economics, and the buyer profile that makes the category work. - [California Franchise Relationship Law 2026: Buyer Protections Explained](https://vetmyfranchise.com/c/claude/blog/california-franchise-relationship-law-buyers-guide): California Franchise Relations Act explained for buyers in 2026: good-cause termination, non-renewal protections, transfer rights, encroachment claims, and… - [Child & Education Franchise Guide: Costs & Growth Data (2026)](https://vetmyfranchise.com/c/claude/blog/child-education-franchise-guide): Explore child services and education franchise opportunities with real FDD data. Compare Club Z!, Code Ninjas, Celebree, and more on costs, royalties. - [Club Pilates Franchise Cost 2026: Investment + Item 19](https://vetmyfranchise.com/c/claude/blog/club-pilates-franchise-cost): Club Pilates franchise cost in 2026: $403K-$1.0M investment, $65K franchise fee, 8% royalty. Unit economics + Xponential parent-company considerations for… - [Chick-fil-A vs McDonald's Franchise (2026): Cost, Profit, Verdict](https://vetmyfranchise.com/c/claude/blog/chick-fil-a-vs-mcdonalds-franchise): Chick-fil-A vs McDonald's franchise comparison — investment, AUV, selection process, royalty, and which model fits which buyer in 2026. - [Buying a Franchise While Still Employed: Transition Plan 2026](https://vetmyfranchise.com/c/claude/blog/buying-franchise-while-still-employed): How to buy a franchise while still employed — transition timelines, owner-involvement requirements, financial planning, and common pitfalls. - [Buying a Resale Franchise: Due Diligence Checklist](https://vetmyfranchise.com/c/claude/blog/buying-resale-franchise-due-diligence-guide): Step-by-step guide to buying a resale franchise. Learn how to evaluate financials, review the FDD, interview the seller, negotiate price. - [Best Roofing Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-roofing-franchises): Compare the best roofing franchises for 2026 — Honest Abe Roofing, Bumble Roofing, Red Roof, and others — by capital, royalty, and roofing project economics. - [Dunkin' vs Tim Hortons Franchise Comparison Guide 2026](https://vetmyfranchise.com/c/claude/blog/dunkin-vs-tim-hortons-franchise): Dunkin' vs Tim Hortons franchise comparison — investment range, royalties, U.S. footprint, and which coffee-donut concept fits which buyer profile in 2026. - [FDD Item 1 Explained: Franchisor Background Red Flags](https://vetmyfranchise.com/c/claude/blog/fdd-item-1-franchisor-background): How to read FDD Item 1 — franchisor background, corporate structure, predecessor entities, and the red flags most buyers skip past on their first read. - [FDD Item 22: Franchise Sample Contracts Review Guide](https://vetmyfranchise.com/c/claude/blog/fdd-item-22-sample-contracts): How to read FDD Item 22 — sample franchise agreements, related contracts, and the specific clauses every buyer should review with a franchise attorney. - [Cleaning & Janitorial Franchise Guide 2026](https://vetmyfranchise.com/c/claude/blog/cleaning-janitorial-franchise-guide): Cleaning and janitorial franchise guide for 2026: investment costs ($10K-$150K), revenue models, commercial vs residential, margins, labor challenges. - [Domino's vs Papa John's vs Marco's Pizza Franchise Comparison](https://vetmyfranchise.com/c/claude/blog/dominos-vs-papa-johns-vs-marcos-pizza-franchise): Domino's vs Papa John's vs Marco's Pizza franchise comparison — investment, royalties, AUV, growth trajectory, and which pizza brand fits which buyer in 2026. - [Best Tutoring Franchises 2026: STEM, Math, Coding](https://vetmyfranchise.com/c/claude/blog/best-tutoring-stem-education-franchises): Compare the top tutoring and STEM education franchises for 2026 — Mathnasium, Kumon, Sylvan, Code Ninjas — by cost, royalty, Item 19, and operational fit. - [Best Franchises for Corporate Executives in Career Transition](https://vetmyfranchise.com/c/claude/blog/best-franchises-corporate-executives-career-transition): Best franchises for corporate executives — translating P&L and management skills into franchise ownership, top categories, and what to know before signing. - [Best Real Estate Franchises 2026: Top Brokerage Brands](https://vetmyfranchise.com/c/claude/blog/best-real-estate-brokerage-franchises): Compare the best real estate brokerage franchises for 2026 — RE/MAX, Keller Williams, Coldwell Banker, Century 21, Sotheby's, Weichert — by capital, royalty,… - [Crumbl vs Cinnabon Franchise (2026): Cost, Profit, Verdict](https://vetmyfranchise.com/c/claude/blog/crumbl-vs-cinnabon-franchise): Crumbl vs Cinnabon franchise comparison — investment, AUV, royalty, real estate, and which sweets franchise model fits which buyer in 2026. - [Day in the Life of a Franchise Owner: Daily Reality](https://vetmyfranchise.com/c/claude/blog/day-in-life-franchise-owner-daily-operations): What franchise owners actually do daily: real schedules, time commitments, and operational tasks for food, service, and semi-absentee franchise models. - [E-2 Visa Franchise Buying Guide for Foreign Nationals 2026](https://vetmyfranchise.com/c/claude/blog/e2-visa-franchise-buying-guide): E-2 visa franchise buying guide — investment requirements, treaty-country qualification, franchise selection, and the process for foreign-national buyers. - [Equipment Leasing vs SBA Loan for Franchise: Cost & Strategy](https://vetmyfranchise.com/c/claude/blog/equipment-leasing-vs-sba-loan-franchise): Equipment leasing vs SBA loan for franchise buildout in 2026: total cost comparison, balance sheet implications, and which structure works for which franchise… - [FDD Item 5 Explained: Initial Fees, Refunds, Tiers](https://vetmyfranchise.com/c/claude/blog/fdd-item-5-initial-fees-structure): FDD Item 5 explained: initial fees, uniform vs non-uniform tiers, what's bundled, refund terms, veteran and multi-unit discounts, and how to negotiate. - [Franchise Business Plan: How to Write One That Gets Funded (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-business-plan-that-gets-funded): Learn how to write a franchise business plan that gets approved by SBA lenders and banks. - [Franchise Non-Compete Clause: Negotiating Radius & Term (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-non-compete-clause-negotiation): How to negotiate a franchise non-compete clause in 2026 — radius, duration, carve-outs, enforceability, and the NASAA + FTC context every buyer should… - [Own a Franchise While Working Full-Time | Part-Time Guide](https://vetmyfranchise.com/c/claude/blog/franchise-ownership-with-day-job-part-time): Can you run a franchise while keeping your day job? Learn which models work part-time, time requirements, and how to evaluate semi-absentee opportunities. - [Franchise Resale vs New Franchise: Cost, Risk & ROI Comparison](https://vetmyfranchise.com/c/claude/blog/franchise-resale-vs-new-franchise-comparison): Franchise resale vs new franchise: compare costs, risks, revenue timelines, territory, and financing. - [Franchise Tax Guide 2026: Deductions, Entity Structure & CPA Tips](https://vetmyfranchise.com/c/claude/blog/franchise-tax-guide): Complete franchise tax guide covering LLC vs S-corp structure, deductible expenses, Section 179, QBI deductions, quarterly estimated taxes. - [Franchise Territory Analysis: Evaluate Your Market](https://vetmyfranchise.com/c/claude/blog/franchise-territory-analysis-market-evaluation): How to evaluate franchise territory viability using demographics, competition mapping, drive-time analysis, and independent market research tools. - [Coffee Shop Franchise Industry Guide 2026](https://vetmyfranchise.com/c/claude/blog/coffee-shop-franchise-industry): Coffee shop franchise industry guide 2026 — investment ranges, top brands (Dunkin', Tim Hortons, Dutch Bros, 7 Brew, Scooter's), drive-thru economics. - [Franchise Loan Denied: What to Do After SBA Denial](https://vetmyfranchise.com/c/claude/blog/franchise-loan-denied-what-next): What to do when an SBA franchise loan is denied — common denial reasons, alternative financing paths, deal restructuring, and timeline for re-application. - [Illinois Franchise Disclosure Act 2026: Exemptions & Buyer Reality](https://vetmyfranchise.com/c/claude/blog/illinois-franchise-disclosure-act-exemptions): Illinois Franchise Disclosure Act in 2026: exemptions, registration requirements, ongoing relationship protections, and what Illinois franchise buyers need to… - [How to Finance a Franchise With No Money Down (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-finance-franchise-no-money-down): Can you buy a franchise with no money down? Honest breakdown of ROBS, SBA loans, franchisor financing, seller financing. - [Emerging Franchise Risk: Under 50 Units (2026)](https://vetmyfranchise.com/c/claude/blog/emerging-franchise-under-50-units-risk): Emerging franchise risk under 50 units: how to spot franchisors selling franchises to make payroll, what Item 21 reveals about solvency. - [Franchise Local Market Evaluation: Does Your Area Fit?](https://vetmyfranchise.com/c/claude/blog/evaluate-local-market-franchise-fit): Learn how to evaluate your local market for franchise fit using population data, income thresholds, competitor analysis, and drive-time mapping. - [Food & Beverage Franchise Costs: Investment Guide (2026 FDD Data)](https://vetmyfranchise.com/c/claude/blog/food-franchise-investment-guide): Compare food franchise investments from QSR to fast casual to full service. Real FDD data on costs, royalties, and growth for Subway, Chick-fil-A. - [Franchise Earnings Claims vs Reality: Verify Franchisor Claims](https://vetmyfranchise.com/c/claude/blog/franchise-earnings-claims-vs-reality): Learn how to verify franchise earnings claims against reality. Understand Item 19 financial representations, red flags, and franchisee validation techniques. - [Franchise Discovery Day Guide: Questions, Red Flags](https://vetmyfranchise.com/c/claude/blog/franchise-discovery-day-guide): Complete guide to Franchise Discovery Day: what to expect, 17 questions to ask, red flags to watch for. - [Fitness Franchise Costs Compared: Gyms vs Studios (2026 FDD Data)](https://vetmyfranchise.com/c/claude/blog/fitness-franchise-cost-comparison): Compare fitness franchise costs from Anytime Fitness to Crunch to Club Pilates. Real FDD data on investment ranges, royalty rates, and unit growth in 2026. - [Dunkin' vs Scooter's Coffee Franchise (2026): Investment & Verdict](https://vetmyfranchise.com/c/claude/blog/dunkin-vs-scooters-coffee-franchise): Dunkin' vs Scooter's Coffee franchise comparison — investment, AUV, real estate, royalty, and which drive-thru coffee franchise fits which buyer in 2026. - [Franchise Letter of Intent: What to Negotiate (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-letter-of-intent-what-to-negotiate): A franchise letter of intent locks in deposits, exclusivity, and timelines. Learn the seven clauses to redline and when your LOI deposit is refundable. - [Buying a Franchise After 50: Late-Career Investor Guide](https://vetmyfranchise.com/c/claude/blog/franchise-ownership-after-50-guide): A guide to buying a franchise after 50 covering financing, exit planning, health insurance, physical demands, and leveraging career experience. - [FDD Item 8: Supply Chain & Vendor Requirements](https://vetmyfranchise.com/c/claude/blog/fdd-item-8-supply-chain-vendor-requirements): Decode FDD Item 8 supply chain requirements. Learn about required suppliers, franchisor rebates, vendor markups. - [Franchise Employee Hiring & Management Guide](https://vetmyfranchise.com/c/claude/blog/franchise-employee-hiring-management-guide): Complete guide to hiring and managing franchise employees: staffing timelines, training, scheduling, retention strategies, employment law, payroll. - [FDD Item 3 Litigation Research 2026: Reading & Researching Lawsuits](https://vetmyfranchise.com/c/claude/blog/fdd-item-3-litigation-research): FDD Item 3 litigation research guide: how to pull franchisor lawsuit history, use PACER and state court databases, and weight different types of claims for… - [First Year as a Franchise Owner: Month-by-Month Reality](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-owner-reality-check): First year franchise owner reality: month-by-month timeline covering training, grand opening, the revenue valley, and path to breakeven. - [First-Year Franchise Turnover Rates by Industry 2026 | FDD Data](https://vetmyfranchise.com/c/claude/blog/first-year-franchise-turnover-rates-by-industry): First-year franchise turnover rates across 21 industries from 1,842 FDDs. Learn which categories lose new franchisees fastest and how to use this data. - [Franchise Market Saturation: Signs of Oversaturated Industries](https://vetmyfranchise.com/c/claude/blog/franchise-market-saturation-competition): Learn to identify franchise market saturation before investing. Compare saturation levels across industries and spot warning signs of oversaturated markets. - [Franchise Agreement Legal Scores 2026 | Fairness Ratings](https://vetmyfranchise.com/c/claude/blog/franchise-legal-agreement-scoring-guide): See how 1,836 franchise agreements score on fairness across termination, transfer, disputes, renewal, and operational control. - [Is Smoothie King a Good Franchise to Buy 2026? Honest Take](https://vetmyfranchise.com/c/claude/blog/is-smoothie-king-a-good-franchise): Is Smoothie King a good franchise to buy in 2026? Direct decision frame: $200K-$700K investment, multi-unit model, suburban-focused operations. - [Is Sport Clips a Good Franchise to Buy in 2026? Honest Analysis](https://vetmyfranchise.com/c/claude/blog/is-sport-clips-a-good-franchise): Is Sport Clips a good franchise to buy in 2026? Direct decision frame: $1M+ capital required, 3-license minimum, manager-led model — who it's right for and who… - [Is McDonald's a Franchise? Business Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/is-mcdonalds-a-franchise): Yes, McDonald's is a franchise — 95% of its 40,000+ locations are franchisee-operated. - [Seller Financing Franchise Resale 2026: Note Structure & Terms](https://vetmyfranchise.com/c/claude/blog/seller-financing-franchise-resale-note-structure): Seller financing for franchise resale in 2026: typical note structures, interest rates, security provisions, and how to negotiate terms that work for both… - [SBA 7(a) vs 504 for Franchise Loans 2026: Which Program Wins](https://vetmyfranchise.com/c/claude/blog/sba-7a-vs-504-franchise-loan): SBA 7(a) vs 504 for franchise loans in 2026: when to use each program, real interest rate and term comparisons, and the franchise-specific deal patterns that… - [Tropical Smoothie Franchise Cost: 2026 Full Breakdown](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-franchise-cost): Tropical Smoothie franchise cost 2026: fee $30K-$45K, investment $290K-$700K, royalty 6%, marketing 3%. Real Item 19 revenue and ADA requirements. - [Tropical Smoothie vs Smoothie King Franchise: Cost & Verdict](https://vetmyfranchise.com/c/claude/blog/tropical-smoothie-vs-smoothie-king-franchise): Tropical Smoothie Cafe vs Smoothie King franchise comparison — investment, AUV, royalty, real estate, and which smoothie franchise fits which buyer in 2026. - [After Signing a Franchise Agreement: First-Year Timeline](https://vetmyfranchise.com/c/claude/blog/what-happens-after-signing-franchise-agreement): Month-by-month guide to your first year as a franchise owner. From signing through training, build-out, grand opening, and beyond — realistic expectations. - [Servpro vs ServiceMaster Restore Franchise: Restoration Verdict](https://vetmyfranchise.com/c/claude/blog/servpro-vs-servicemaster-restore-franchise): Servpro vs ServiceMaster Restore franchise comparison — investment, AUV, insurance network, royalty, and which restoration franchise fits which buyer in 2026. - [Franchise Royalty Fees Explained: Rates, Structures & Costs](https://vetmyfranchise.com/c/claude/blog/franchise-royalty-fees-explained): Understand franchise royalty fees: flat rates, tiered structures, minimums, and profit-based models. - [Franchise Technology & Operations Systems Evaluation Guide](https://vetmyfranchise.com/c/claude/blog/franchise-technology-operations-systems-guide): Evaluate franchise technology systems: POS, CRM, scheduling, reporting, and more. Learn what to ask about tech fees, data ownership, and system quality. - [Franchise Termination Rates by Industry 2026 | FDD Data Analysis](https://vetmyfranchise.com/c/claude/blog/franchise-termination-rates-by-industry): Franchise termination rates by industry from 1,842 FDDs. Learn the difference between closures and terminations and what high termination rates mean for your. - [Franchise Year 1: Track Performance Against Item 19 Benchmarks](https://vetmyfranchise.com/c/claude/blog/franchise-year-one-item-19-benchmarks): Learn how to track franchise performance against Item 19 benchmarks during year one, including KPI setup, ramp curves, and when to raise red flags. - [Franchise Area Development Agreements: Pros & Cons 2026](https://vetmyfranchise.com/c/claude/blog/franchise-area-development-agreement-explained): A franchise area development agreement locks in territory and pricing, but missed milestones forfeit deposits. - [Item 19 Red Flags: Misleading Franchise Financial Data](https://vetmyfranchise.com/c/claude/blog/franchise-item-19-red-flags-misleading-data): Spot misleading financial data in franchise Item 19 disclosures. Learn the red flags franchisors use to inflate performance numbers. - [Franchise Local Marketing Costs Beyond the Ad Fund](https://vetmyfranchise.com/c/claude/blog/franchise-local-marketing-beyond-ad-fund): Franchise local marketing costs beyond the ad fund: what you actually pay for GBP, local SEO, events, grand opening, social media, and direct mail. - [FDD Item 13: Franchise Trademarks Explained](https://vetmyfranchise.com/c/claude/blog/fdd-item-13-trademarks): How to read FDD Item 13 — franchise trademarks, registration status, infringement risks, and the brand-protection questions every buyer should ask. - [FDD Item 2: Business Experience and Executive Red Flags](https://vetmyfranchise.com/c/claude/blog/fdd-item-2-business-experience): How to read FDD Item 2 — executive and officer biographies, prior-employment patterns, and the experience red flags that predict franchise system trouble. - [FDD Item 20 Closure Rate Calculation 2026: True Failure Math](https://vetmyfranchise.com/c/claude/blog/fdd-item-20-true-closure-rate-calculation): FDD Item 20 closure rate calculation: how to use the four tables to calculate true franchise closure rates with cohort analysis, transfer/termination… - [Home Services Franchise Guide: Costs & Data (2026)](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide): Compare home services franchise costs, royalty rates, and growth data from real FDDs. - [After Signing the Franchise LOI: The Silent Period (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-silent-period-after-loi): Three weeks after the LOI and no word from the franchisor? Here's what underwriting, FDD customization, and the FTC 14-day waiting period look like — week by… - [Franchise vs Real Estate Investment: Which Wins? (2026)](https://vetmyfranchise.com/c/claude/blog/franchise-vs-real-estate-investment): Franchise vs real estate investment compared side by side — capital requirements, cash-on-cash returns, time commitment, tax treatment, scalability. - [HELOC vs SBA vs ROBS for Franchise Financing 2026: Which Wins](https://vetmyfranchise.com/c/claude/blog/heloc-vs-sba-vs-robs-franchise-financing): HELOC vs SBA vs ROBS for franchise financing in 2026: real cost-of-capital math, personal risk comparison, tax implications, and which path works for which… - [Franchise Resale Value: Valuation Methods, Multiples](https://vetmyfranchise.com/c/claude/blog/franchise-resale-value-valuation-guide): How to determine franchise resale value. Covers SDE multiples, DCF analysis, asset-based valuation. - [Franchise Earnest Money & Deposits: Refund Rules Explained](https://vetmyfranchise.com/c/claude/blog/franchise-earnest-money-deposits): Franchise earnest money and deposit rules — when deposits are refundable, when they're forfeit, how to read deposit terms in the FDD, and what to negotiate. - [Franchise Brokers: Do You Need One? Pros, Cons & Costs](https://vetmyfranchise.com/c/claude/blog/franchise-brokers-pros-cons): Learn how franchise brokers work, who pays them, their conflicts of interest, and whether you need one. Comprehensive pros, cons, and alternatives. - [Franchise Ownership for Couples: A Guide to Buying Together](https://vetmyfranchise.com/c/claude/blog/franchise-ownership-for-couples-guide): A complete guide to buying and running a franchise as a couple. Covers financial planning, legal structures, role division. - [Franchise Seasonality: How Seasonal Demand Impacts Profitability](https://vetmyfranchise.com/c/claude/blog/franchise-seasonality-revenue-planning): Learn how franchise seasonality impacts profitability and cash flow. Plan smarter with data on seasonal revenue swings by industry. - [Franchise Training & Support: How to Evaluate Before Buying](https://vetmyfranchise.com/c/claude/blog/franchise-training-support-evaluation-guide): Learn how to evaluate franchise training and support using FDD Item 11, franchisee validation calls, and key questions. Spot strong systems vs. - [Franchises Under $50K: Best Low-Cost Franchise Opportunities](https://vetmyfranchise.com/c/claude/blog/low-cost-franchises-under-50k): Best franchise opportunities under $50K. Compare cleaning, tutoring, consulting, and mobile franchises with realistic costs and income. - [Franchise Labor Costs: Assess Staffing Before You Buy](https://vetmyfranchise.com/c/claude/blog/franchise-labor-market-assessment): Learn how to evaluate franchise labor costs, staffing availability, and local wage data before buying. Covers BLS data, turnover rates, and hiring strategy. - [Massage Envy vs Hand and Stone Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/massage-envy-vs-hand-and-stone-franchise): Massage Envy vs Hand and Stone franchise comparison — investment, royalties, U.S. footprint, member economics, and which spa concept fits which buyer profile. - [FDD Item 20 Explained: Franchise Unit Data Guide (2026)](https://vetmyfranchise.com/c/claude/blog/item-20-franchise-unit-data-guide): Learn how to read FDD Item 20 franchise unit data. Calculate retention rates, spot red flags in closures, and use the franchisee contact list for validation. - [New McDonald's Franchise vs Existing Resale: Which to Buy](https://vetmyfranchise.com/c/claude/blog/mcdonalds-franchise-new-vs-existing-resale): New McDonald's franchise vs existing resale — investment, approval odds, financing, and which path actually works for prospective McDonald's operators in 2026. - [Home Service Franchise Costs Compared: Full Investment Guide](https://vetmyfranchise.com/c/claude/blog/home-service-franchise-costs-compared): Compare home service franchise costs: plumbing, cleaning, restoration, lawn care, HVAC, and handyman. Investment ranges, royalties, and economics. - [Minnesota Franchise Act 2026: Good Cause Termination & Buyer Protections](https://vetmyfranchise.com/c/claude/blog/minnesota-franchise-act-good-cause-termination): Minnesota Franchise Act explained for buyers in 2026: good cause termination, 90-day notice requirements, and the strongest franchisee protections in the U.S. - [FDD Item 4: Franchisor Bankruptcy History Explained](https://vetmyfranchise.com/c/claude/blog/fdd-item-4-bankruptcy-history): How to read FDD Item 4 — franchisor bankruptcy disclosures, what they actually mean, and when a disclosed bankruptcy should make you walk away. - [FDD Item 9 Explained: Franchisee Obligations You'll Miss](https://vetmyfranchise.com/c/claude/blog/fdd-item-9-franchisee-obligations): FDD Item 9 explained: how to read the 24-category franchisee obligations table, the 4 obligations buyers consistently miss, and how to use Item 9 to build your… - [FDD Item 7 Explained: Franchise Startup Cost Breakdown](https://vetmyfranchise.com/c/claude/blog/fdd-item-7-estimated-initial-investment): Learn how to read FDD Item 7, the estimated initial investment table. Line-by-line breakdown of franchise startup costs and budgeting tips. - [Franchise Performance Benchmarks by Industry (2026 Data)](https://vetmyfranchise.com/c/claude/blog/franchise-performance-benchmarks-by-industry): Compare franchise performance benchmarks by industry: revenue, margins, break-even timelines, and owner earnings for food, fitness, home services, and more. - [Food Franchise vs Service Franchise: Investment, Margins](https://vetmyfranchise.com/c/claude/blog/food-franchise-vs-service-franchise): Food franchise vs service franchise: compare investment costs, profit margins, operating hours, staffing, and ROI timelines. Find which model fits your goals. - [Franchise Financial Requirements: Qualify to Buy](https://vetmyfranchise.com/c/claude/blog/franchise-financial-qualifications-requirements): Franchise financial requirements by investment tier: minimum net worth, liquid capital, credit score, and how franchisors verify buyer qualifications. - [Is The Joint Chiropractic a Good Franchise to Buy 2026? Honest Take](https://vetmyfranchise.com/c/claude/blog/is-the-joint-chiropractic-a-good-franchise): Is The Joint Chiropractic a good franchise to buy in 2026? Direct decision frame: membership model, $250K-$500K investment, ramp curve realities. - [Item 19 Average vs Median: Spot the Survivorship Bias](https://vetmyfranchise.com/c/claude/blog/item-19-average-vs-median-survivorship-bias): Item 19 averages are inflated by outliers and survivorship bias. Learn the average vs median math, NASAA's disclosure rule, and how to reverse-engineer the… - [Private Equity Franchisor Risk: Read Item 1 First](https://vetmyfranchise.com/c/claude/blog/private-equity-vs-founder-led-franchisor-risk): Private equity owned franchisor risk vs founder-led: how to read Item 1, the 4 PE playbooks, and what the Xponential FTC settlement means for buyers. - [How to Verify Item 19 Earnings Claims (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-verify-item-19-earnings-claims): Learn how to verify franchise Item 19 earnings claims with a 6-step buyer workflow — substantiation requests, red flags, validation questions. - [H&R Block vs Jackson Hewitt vs Liberty Tax Franchise (2026)](https://vetmyfranchise.com/c/claude/blog/hr-block-vs-jackson-hewitt-vs-liberty-tax-franchise): H&R Block vs Jackson Hewitt vs Liberty Tax franchise comparison — investment, AUV, seasonal economics, royalty, and which tax-prep franchise fits which buyer… - [Multi-Unit Franchise Ownership Guide: Scaling Strategy (2026)](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-ownership-guide): Learn how to scale from one franchise unit to a multi-unit portfolio. Understand area development agreements, management structures. - [Senior Care Franchises 2026: Costs, Growth & FDD Analysis](https://vetmyfranchise.com/c/claude/blog/senior-care-franchise-opportunities): Explore senior care franchise opportunities with real FDD data. Compare Comfort Keepers, BrightStar Care, and Always Best Care on investment costs. - [SBA Franchise Loan Timeline: Week-by-Week Guide](https://vetmyfranchise.com/c/claude/blog/sba-franchise-loan-timeline-week-by-week): SBA franchise loan timeline by week. What underwriting, commitment, closing, and funding actually involve, plus 9 reasons most files run 60-90 days instead of… - [The Joint vs Massage Envy Franchise: Wellness Comparison](https://vetmyfranchise.com/c/claude/blog/joint-chiropractic-vs-massage-envy-franchise): The Joint Chiropractic vs Massage Envy franchise comparison — investment, AUV, recurring revenue, licensing burden, and which wellness model fits which buyer… - [SBA Lender Franchise Brand Rejection: How to Know Before Applying](https://vetmyfranchise.com/c/claude/blog/sba-lender-franchise-brand-rejection): Why SBA lenders reject specific franchise brands: SBA Franchise Directory rules, lender-level restrictions, and how to verify brand SBA eligibility before… - [Jersey Mike's Franchise Cost 2026: Full Investment Guide](https://vetmyfranchise.com/c/claude/blog/jersey-mikes-franchise-cost): Jersey Mike's franchise cost 2026: investment $200K-$1M, fee $18,500, royalty 6.5%, marketing 5%. Item 19 revenue and the post-Blackstone landscape. - [Pet Franchise Opportunities 2026: Costs, Data & Market Analysis](https://vetmyfranchise.com/c/claude/blog/pet-franchise-industry-analysis): Analyze pet franchise opportunities with real FDD data. Compare Camp Bow Wow, Pet Supplies Plus, Bark Busters, and more on costs, royalties, and unit growth. - [LLC vs S-Corp for Franchise: 2026 Tax Decision Guide](https://vetmyfranchise.com/c/claude/blog/llc-vs-s-corp-franchise): LLC vs S-Corp for your franchise: tax, liability, admin burden, and the self-employment tax math that determines which one actually saves more money. - [Franchise Unit Economics Analysis: Build a Unit-Level P&L](https://vetmyfranchise.com/c/claude/blog/franchise-unit-economics-analysis): Learn how to analyze franchise unit economics by building a unit-level P&L, understanding cost structures, and stress-testing financial assumptions. - [What To Do After Receiving an FDD: 7-Day Plan](https://vetmyfranchise.com/c/claude/blog/received-fdd-7-day-action-plan): Just received the franchise FDD? A daily 7-day action plan to read it, validate franchisees, and reach a confident go/no-go before the 14-day window ends. - [Multi-Unit Franchise Ownership: Single vs Multi-Unit Strategy](https://vetmyfranchise.com/c/claude/blog/single-unit-vs-multi-unit-franchise): Single-unit vs multi-unit franchise ownership: compare strategy, costs, management needs, and timing. Learn when and how to expand your franchise portfolio. - [SBA Franchise Default Rates by Industry 2026 | Loan Performance](https://vetmyfranchise.com/c/claude/blog/sba-franchise-default-rates-by-category): SBA franchise loan default rates by industry from 27,652 loans across 764 brands. See which franchise categories have the highest and lowest default rates. - [International Franchise Brands in the US: Opportunity or Risk?](https://vetmyfranchise.com/c/claude/blog/international-franchise-brands-us-expansion): Evaluate international franchise brands expanding into the US. Learn master franchisee vs direct models, due diligence steps, and risk factors. - [Wingstop vs Buffalo Wild Wings Franchise Comparison Guide 2026](https://vetmyfranchise.com/c/claude/blog/wingstop-vs-buffalo-wild-wings-franchise): Wingstop vs Buffalo Wild Wings franchise comparison — investment, royalties, AUV, growth trajectory, and which wing concept fits which buyer profile in 2026. - [PE Buys Your Franchisor: Survival Guide for Franchisees](https://vetmyfranchise.com/c/claude/blog/private-equity-buys-your-franchisor-survival-guide): When private equity buys your franchisor: what changes for franchisees, the 5 typical playbook moves, the assignment clause to check immediately, and when to… - [Two Men and a Truck vs College Hunks Franchise: Moving Verdict](https://vetmyfranchise.com/c/claude/blog/two-men-and-a-truck-vs-college-hunks-franchise): Two Men and a Truck vs College Hunks franchise comparison — investment, AUV, royalty, fleet economics, and which moving franchise fits which buyer in 2026. - [Total Ongoing Franchise Fees by Industry 2026 | Royalty + Ad Fund](https://vetmyfranchise.com/c/claude/blog/total-ongoing-franchise-fees-true-cost): Compare total ongoing franchise fees across 22 industries. See how royalties, ad funds, and tech fees combine to impact your bottom line — data from 1,842 FDDs. - [Tim Hortons US Franchise Cost 2026: FDD Breakdown](https://vetmyfranchise.com/c/claude/blog/tim-hortons-us-franchise-cost): Tim Hortons US franchise cost 2026: $978K-$1.77M Standard Shop, 4.5% royalty, 4% ad fund. RBI-owned, US-only FDD, closures, and the buyer math. - [Should I Buy This Franchise? 12-Point Checklist 2026](https://vetmyfranchise.com/c/claude/blog/should-i-buy-this-franchise-decision-checklist): A 12-point franchise go/no-go decision checklist for late-stage buyers. Stress test, unit economics, legal red lines, and a yes/no scorecard before you sign. - [Sport Clips Franchise vs Independent Barbershop: Cost & Verdict](https://vetmyfranchise.com/c/claude/blog/sport-clips-franchise-vs-independent-barbershop): Sport Clips franchise vs starting an independent barbershop — investment, marketing, staffing, royalty, and which path actually works for hair franchise buyers… - [Top Franchise Industries 2026: Best Sectors to Invest In](https://vetmyfranchise.com/c/claude/blog/top-franchise-industries): Discover the top franchise industries for 2026 ranked by growth, investment range, and unit economics. Data-driven analysis of where the best opportunities are. - [Tax Preparation Franchise Industry Guide 2026](https://vetmyfranchise.com/c/claude/blog/tax-preparation-franchise-industry): Tax preparation franchise industry 2026 — H&R Block, Liberty Tax, Jackson Hewitt, ATAX comparison, investment ranges, seasonality, and unit economics. - [What to Franchise: Best Franchise Opportunities in 2026](https://vetmyfranchise.com/c/claude/blog/what-to-franchise-best-opportunities): Discover what to franchise. Framework for choosing the right franchise by capital, skills, and lifestyle. - [Sport Clips Franchise Cost 2026: The 3-License Buy-In](https://vetmyfranchise.com/c/claude/blog/sport-clips-franchise-cost): Sport Clips franchise cost 2026 — 3-license requirement, $69,500 franchise fee, $864K–$1.425M total investment, 2024 Item 19 median sales of $409K. - [Is Orangetheory a Good Franchise to Buy 2026? Honest Take](https://vetmyfranchise.com/c/claude/blog/is-orangetheory-a-good-franchise): Is Orangetheory a good franchise to buy in 2026? Direct decision frame: $1M+ investment, multi-unit operator model, membership-driven economics. - [Mathnasium Franchise Cost 2026: Center Revenue Math](https://vetmyfranchise.com/c/claude/blog/mathnasium-franchise-cost): Mathnasium franchise cost 2026: investment $113K-$149K, fee $49,000, royalty 10%. Storefront center economics, per-student-month math, and how it compares to… - [Marco's Pizza Franchise Cost 2026: Investment + Item 19](https://vetmyfranchise.com/c/claude/blog/marcos-pizza-franchise-cost): Marco's Pizza franchise cost in 2026: $287K-$807K investment, $25K franchise fee, 5.5-6.0% royalty. Mid-tier pizza positioning and unit economics analyzed. - [Is Jersey Mike's a Good Franchise to Buy in 2026? Honest Take](https://vetmyfranchise.com/c/claude/blog/is-jersey-mikes-a-good-franchise): Is Jersey Mike's a good franchise to buy in 2026? Direct decision frame: $1.28M median AUV, $182K-$1.4M investment, 5-7 year payback — who it's right for and… - [Med Spa Franchise Industry Guide: Cost & Top Brands 2026](https://vetmyfranchise.com/c/claude/blog/med-spa-franchise-industry): Med spa franchise industry 2026 — investment ranges ($400K-$1.5M+), top brands (LaserAway, Milan Laser, Ideal Image, others), regulatory considerations. - [Multi-Unit Franchise Financing: SBA Loans & Funding Strategies](https://vetmyfranchise.com/c/claude/blog/multi-unit-franchise-financing-sba-loans-guide): Multi-unit franchise financing guide covering SBA 7(a) and 504 loans, area development agreements, ROBS, and portfolio lending strategies. - [Personal Guarantee Negotiation Guide for Franchise Loans](https://vetmyfranchise.com/c/claude/blog/personal-guarantee-negotiation-franchise-loan): How to negotiate personal guarantees on franchise SBA loans — what's negotiable, what isn't, scope and duration limits, and protecting personal assets. - [NY Franchise Sales Act vs FTC Rule 2026: Buyer's Guide](https://vetmyfranchise.com/c/claude/blog/new-york-franchise-sales-act-vs-ftc-rule): New York Franchise Sales Act vs FTC Rule in 2026: state registration requirements, anti-fraud provisions, and what NY franchise buyers get beyond federal… - [Subway vs Jersey Mike's vs Jimmy John's Franchise (2026)](https://vetmyfranchise.com/c/claude/blog/subway-vs-jersey-mikes-vs-jimmy-johns-franchise): Subway vs Jersey Mike's vs Jimmy John's franchise comparison — investment, AUV, royalty, unit growth, and which sandwich franchise fits which buyer in 2026. - [Walking Away From a Franchise Deal: Exit Guide Before Signing](https://vetmyfranchise.com/c/claude/blog/walking-away-from-franchise-deal): How to walk away from a franchise deal before signing — refund rights, withdrawal documentation, and avoiding common buyer mistakes during exit. - [Franchise Research Blog: FDD Guides, Costs & Item 19 Data | VetMyFranchise](https://vetmyfranchise.com/c/claude/blog): Expert guides on evaluating franchise opportunities, reading FDD documents, comparing investment costs, analyzing Item 19 data, and avoiding franchise red… - [Best Tax Preparation Franchises 2026: Cost and Revenue](https://vetmyfranchise.com/c/claude/blog/best-tax-preparation-franchises): Jackson Hewitt discloses $86,880 on 2,663 offices, Liberty Tax $139,486 on 1,411. What the best tax preparation franchises really cost and earn. - [Servpro vs PuroClean vs Restoration 1: 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/servpro-vs-puroclean-vs-restoration-1-franchise): Servpro vs PuroClean vs Restoration 1 compared: investment, royalties, unit counts, and insurance-claim economics, plus which brand fits which buyer. - [Best Self-Storage Franchises 2026: Portable vs Fixed, Compared](https://vetmyfranchise.com/c/claude/blog/best-self-storage-franchises): Compare the best self-storage franchises in 2026: UNITS, Go Mini's, PODS and Storage Authority. Investment ranges, portable vs fixed-facility models, and how… - [FDD Item 11: Franchisor Support and Obligations Explained](https://vetmyfranchise.com/c/claude/blog/fdd-item-11-franchisor-obligations): How to read FDD Item 11 — franchisor obligations, training, technology systems, advertising. - [Best Massage Franchises 2026: Top Brands Compared](https://vetmyfranchise.com/c/claude/blog/best-massage-franchises): Compare the top massage franchises for 2026 — Hand & Stone, Elements Therapeutic Massage, Massage Luxe — by capital, royalty, membership economics, and unit… - [Massage Envy Franchise Cost 2026: Membership Economics](https://vetmyfranchise.com/c/claude/blog/massage-envy-franchise-cost): Massage Envy franchise cost 2026: total investment $430K-$1.2M, royalty 6%, ad fund 2%. The membership-model economics, member-count math, and… - [Best Plumbing Franchises 2026: Cost + Item 19 Data](https://vetmyfranchise.com/c/claude/blog/best-plumbing-franchises): Compare the top plumbing franchises for 2026 — Mr. Rooter, Roto-Rooter, Benjamin Franklin, RooterMan, Zoom Drain, bluefrog — on FDD investment, fees, royalty,… - [Best IT/MSP Franchises 2026: CMIT, TeamLogic, and the Real Picks](https://vetmyfranchise.com/c/claude/blog/best-it-msp-franchises): Best IT and MSP franchises 2026, compared with real FDD data. CMIT Solutions and TeamLogic IT both near $1M Item 19 revenue; NerdsToGo and Cinch I.T. - [Is Dunkin' a Good Franchise in 2026? Honest Multi-Unit Reality](https://vetmyfranchise.com/c/claude/blog/dunkin-franchise-pros-and-cons): Is Dunkin' a good franchise in 2026? Full cost breakdown (fee, royalty, investment), pros and cons, Item 19 decoded, and the Inspire Brands era impact. - [FDD Item 6 Other Fees: Recurring Franchise Costs Explained](https://vetmyfranchise.com/c/claude/blog/franchise-advertising-fees-marketing-funds): How to read FDD Item 6 — recurring franchise fees, technology fees, training fees, transfer fees, and the line items most buyers overlook. - [Subway Franchise Pros and Cons 2026: Worth It in a Smaller System?](https://vetmyfranchise.com/c/claude/blog/is-subway-a-good-franchise): Subway franchise pros and cons 2026: lowest entry cost in national franchising ($227K-$630K), vs. - [Subway Franchise Pros and Cons 2026: Worth It in a Smaller System?](https://vetmyfranchise.com/c/claude/blog/is-subway-a-good-franchise-2026): Subway franchise pros and cons 2026: lowest entry cost in national franchising ($227K-$630K), vs. - [Is Chick-fil-A a Good Franchise? $10K Fee, 1% Odds (2026)](https://vetmyfranchise.com/c/claude/blog/chick-fil-a-franchise-cost-and-process): Is Chick-fil-A a good franchise in 2026? Operator earnings, the $10K-fee reality, the 1% acceptance rate, and 3 buyer profiles it actually fits. - [Best New York Franchise Opportunities 2026: NYC Costs](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-new-york-guide): Franchise opportunities in New York for 2026: Department of Law registration, NYC, Buffalo, Rochester and Syracuse metros, NYC labor cost adjustments, and… - [Best Colorado Franchise Opportunities 2026: Denver Wages](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-colorado-guide): Ranked franchise opportunities in Colorado for 2026: Denver, Boulder, Colorado Springs and Fort Collins metros, Denver-versus-statewide wage zones, and… - [Franchise vs Independent Business: Pros, Cons & Success Rates](https://vetmyfranchise.com/c/claude/blog/franchise-vs-starting-your-own-business): Compare franchise vs independent business ownership: success rates, costs, financing, and creative freedom. Data-driven guide to help you choose the right path. - [Best Oklahoma Franchise Opportunities 2026: Energy Cycle](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-oklahoma-guide): Franchise opportunities in Oklahoma for 2026: energy-sector volatility, Oklahoma City, Tulsa and Norman metros, tornado insurance modeling, costs, and ranked… - [Popeyes Franchise Cost 2026: Investment Guide](https://vetmyfranchise.com/c/claude/blog/popeyes-franchise-cost-2026): Popeyes franchise cost 2026 — $1.4M–$3.5M per store, franchise fee, build-out, royalty stack, RBI development requirements, and net worth filters. - [Best South Carolina Franchise Opportunities: BMW Corridor](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-south-carolina-guide): Franchise opportunities in South Carolina for 2026: the BMW manufacturing corridor, Charleston, Greenville, Columbia and Myrtle Beach metros, hurricane… - [Is Crumbl a Franchise? Yes: $849K–$1.5M to Open (2026 FDD)](https://vetmyfranchise.com/c/claude/blog/how-to-open-crumbl-cookie-franchise): Yes, Crumbl Cookies is a franchise. Learn how the Crumbl franchise model works, qualification requirements ($250K liquid, $500K net worth), franchise fees. - [Best Nebraska Franchise Opportunities 2026: SAMP Filing](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-nebraska-guide): Franchise opportunities in Nebraska for 2026: Seller-Assisted Marketing Plan filing, Omaha and Lincoln metros, the insurance and ag-finance economy, costs, and… - [Best Georgia Franchise Opportunities 2026: Atlanta Metro](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-georgia-guide): Franchise opportunities in Georgia for 2026: Atlanta, Augusta, Savannah and Columbus metros, category demand, a no-registration regulatory environment, and… - [Best Illinois Franchise Opportunities 2026: Cook County](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-illinois-guide): Ranked franchise opportunities in Illinois for 2026: Chicago, Aurora, Joliet and Rockford metros, Cook County labor cost adjustments, IFDA registration, and… - [FDD Item 17: Renewal, Termination, and Exit Provisions Decoded](https://vetmyfranchise.com/c/claude/blog/franchise-renewal-termination-clauses): How to read FDD Item 17 — franchise renewal terms, termination triggers, post-term non-competes, transfer rights. - [Is Taco Bell a Good Franchise in 2026? Honest Review](https://vetmyfranchise.com/c/claude/blog/is-taco-bell-a-good-franchise-2026): Is Taco Bell a good franchise in 2026? Yum Brands operator economics, multi-unit-only reality, AUV decoded, and which buyers fit. - [Wingstop Franchise Pros and Cons 2026: What Buyers Need to Know](https://vetmyfranchise.com/c/claude/blog/is-wingstop-a-good-franchise): Wingstop franchise pros and cons 2026: unmatched 3× AUV-to-investment ratio, $2.1M average AUV, simple operations (vs. - [Wingstop Franchise Pros and Cons 2026: What Buyers Need to Know](https://vetmyfranchise.com/c/claude/blog/is-wingstop-a-good-franchise-2026): Wingstop franchise pros and cons 2026: unmatched 3× AUV-to-investment ratio, $2.1M average AUV, simple operations (vs. - [Best New Hampshire Franchise Opportunities: MA Spillover](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-new-hampshire-guide): Franchise opportunities in New Hampshire for 2026: the no-sales-tax advantage and Massachusetts cross-border traffic, Manchester, Nashua and Concord metros,… - [Franchise vs Buying a Small Business: 2026 Comparison](https://vetmyfranchise.com/c/claude/blog/franchise-vs-buying-existing-business): Franchise vs buying a business in 2026 — cash flow timing, SBA 7(a) treatment, multiples, exit value, and the hybrid resale play, with real numbers. - [Best Arizona Franchise Opportunities 2026: Snowbird Season](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-arizona-guide): Ranked franchise opportunities in Arizona for 2026: investment ranges across Phoenix, Tucson, Mesa and Scottsdale, snowbird seasonality, and category demand. - [Best Louisiana Franchise Opportunities 2026: Civil Law](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-louisiana-guide): Franchise opportunities in Louisiana for 2026: civil-law jurisdiction diligence, New Orleans, Baton Rouge and Shreveport metros, hurricane insurance loads, and… - [Best Virginia Franchise Opportunities 2026: NoVA Corridor](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-virginia-guide): Franchise opportunities in Virginia for 2026: the Northern Virginia federal corridor, Richmond, Virginia Beach, Norfolk, Arlington and Alexandria metros, and… - [Best Missouri Franchise Opportunities: MO Franchise Act](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-missouri-guide): Franchise opportunities in Missouri for 2026: Missouri Franchise Act good-cause protection, St. Louis, Kansas City and Springfield metros, KC bi-state… - [Best Alaska Franchise Opportunities 2026: Freight & PFD](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-alaska-guide): What franchise opportunities in Alaska really cost in 2026: freight-adjusted investment ranges, Anchorage and Mat-Su Valley demand, PFD-driven seasonality, and… - [Best Low-Cost Franchises Under $100K in 2026](https://vetmyfranchise.com/c/claude/blog/best-franchises-under-100k-investment): Discover the best low-cost franchises under $100K for 2026. Compare investment ranges by category, learn what to expect, and find the right opportunity. - [Best Minnesota Franchise Opportunities: MN Franchise Act](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-minnesota-guide): Franchise opportunities in Minnesota for 2026: MN Franchise Act protections, Twin Cities, Rochester and Duluth metros, Minneapolis wage rules, and the best… - [Best Pennsylvania Franchise Opportunities: Health Corridor](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-pennsylvania-guide): Franchise opportunities in Pennsylvania for 2026: the healthcare-corridor opportunity, Philadelphia, Pittsburgh and Allentown metros, category demand, and… - [Best Maine Franchise Opportunities 2026: Tourism Season](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-maine-guide): Franchise opportunities in Maine for 2026: the four-month coastal tourism peak, Portland, Lewiston and Bangor metros, senior-care leadership, and the best… - [Best Delaware Franchise Opportunities: Wilmington, No Tax](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-delaware-guide): Franchise opportunities in Delaware for 2026: the Wilmington financial-services corridor, no-sales-tax pricing strategy, multi-state expansion math, and ranked… - [Best New Mexico Franchise Opportunities: Lab Economy](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-new-mexico-guide): Franchise opportunities in New Mexico for 2026: the Albuquerque federal-lab economy, Santa Fe tourism, multi-unit growth strategy, and ranked picks for New… - [Best Arkansas Franchise Opportunities: Good-Cause Law](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-arkansas-guide): Franchise opportunities in Arkansas for 2026: the Franchise Practices Act good-cause rule, Little Rock and Northwest Arkansas metros, Walmart-Tyson corridor… - [How Much Do Franchise Owners Make? 660 FDD Medians](https://vetmyfranchise.com/c/claude/blog/what-franchise-owners-actually-take-home): Median disclosed unit revenue is $755,100 across 660 franchise systems' 2024-2026 FDDs. Here is the honest walk from that top line down to owner take-home. - [Franchise Tax Guide 2026: Deductions, Entity Structure & CPA Tips](https://vetmyfranchise.com/c/claude/blog/franchise-tax-guide-2026): Complete franchise tax guide covering LLC vs S-corp structure, deductible expenses, Section 179, QBI deductions, quarterly estimated taxes. - [Is Five Guys a Franchise? Franchise Model Explained (2026)](https://vetmyfranchise.com/c/claude/blog/how-to-open-five-guys-franchise): Yes, Five Guys is a franchise. Learn how the Five Guys franchise model works, why multi-unit commitments are required, current franchisee requirements. - [Franchise Due Diligence Checklist: 10 Steps + FDD Data](https://vetmyfranchise.com/c/claude/blog/franchise-due-diligence-checklist-complete): A 10-step franchise due diligence checklist with real FDD benchmarks — median investment, royalty spread, Item 19 disclosure rates — from 2,364 filings. - [Best Nevada Franchise Opportunities 2026: Vegas Exposure](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-nevada-guide): Franchise opportunities in Nevada for 2026: Las Vegas concentration risk, Henderson and Reno metros, no state income tax, investment ranges, and ranked picks… - [Home Services Franchise Guide: Costs & Data (2026)](https://vetmyfranchise.com/c/claude/blog/home-services-franchise-guide-2026): Compare home services franchise costs, royalty rates, and growth data from real FDDs. - [Best Rhode Island Franchise Opportunities: RI Act Filing](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-rhode-island-guide): Franchise opportunities in Rhode Island for 2026: RI Franchise Investment Act registration, the Providence-Warwick metro, multi-state expansion, and ranked… - [Franchise Insurance & Workers' Comp: Real Annual Cost](https://vetmyfranchise.com/c/claude/blog/franchise-insurance-requirements-guide): What does franchise insurance cost per year? Real annual premium ranges for general liability, workers' comp, property and EPLI, plus how to control them. - [Best Kansas Franchise Opportunities 2026: KC State Line](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-kansas-guide): Franchise opportunities in Kansas for 2026: Wichita, Overland Park and Kansas City KS metros, bi-state territory definition, operating costs, and ranked picks… - [Best Franchises for Multi-Unit Ownership | 2026 Picks](https://vetmyfranchise.com/c/claude/blog/scaling-multi-unit-franchise-growth-guide): The best franchises for multi-unit ownership in 2026, ranked by industry with per-unit investment, adoption rates, and the FDD markers that matter. - [Best Michigan Franchise Opportunities 2026: MFIL Notice](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-michigan-guide): Franchise opportunities in Michigan for 2026: MFIL notice filing and its private right of action, Detroit, Grand Rapids and Warren metros, category demand, and… - [Franchise Red Flags in All 23 FDD Items | Warning Guide](https://vetmyfranchise.com/c/claude/blog/franchise-scams-fraud-warning-signs): Identify franchise red flags across all 23 FDD items. Learn which warning signs are deal-breakers vs. worth investigating with severity ratings and examples. - [Buying a Resale Franchise: Due Diligence Checklist](https://vetmyfranchise.com/c/claude/blog/franchise-resale-buying-existing-unit): Step-by-step guide to buying a resale franchise. Learn how to evaluate financials, review the FDD, interview the seller, negotiate price. - [Best Maryland Franchise Opportunities 2026: MFRDL Filing](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-maryland-guide): Franchise opportunities in Maryland for 2026: MFRDL registration mechanics, Baltimore, Bethesda, Frederick and Annapolis metros, DC-corridor labor costs, and… - [Franchise Attorney: What to Look For Before Signing Any FDD](https://vetmyfranchise.com/c/claude/blog/questions-franchise-attorney-wish-asked): How to choose a franchise attorney, what they review in an FDD, typical costs ($2K-$5K), when to hire one, and red flags to watch for before signing. - [Franchise Due Diligence Checklist: 10 Steps + FDD Data](https://vetmyfranchise.com/c/claude/blog/pre-signing-franchise-checklist): A 10-step franchise due diligence checklist with real FDD benchmarks — median investment, royalty spread, Item 19 disclosure rates — from 2,364 filings. - [Best Kentucky Franchise Opportunities 2026: SBOA Rules](https://vetmyfranchise.com/c/claude/blog/buying-franchise-in-kentucky-guide): Franchise opportunities in Kentucky for 2026: the Sale of Business Opportunities Act, Louisville, Lexington and Bowling Green metros, right-to-work labor… - [Franchise Attorney: What to Look For Before Signing Any FDD](https://vetmyfranchise.com/c/claude/blog/franchise-attorney-guide): How to choose a franchise attorney, what they review in an FDD, typical costs ($2K-$5K), when to hire one, and red flags to watch for before signing. - [Subway Franchise Pros and Cons 2026: Worth It in a Smaller System?](https://vetmyfranchise.com/c/claude/blog/subway-franchise-pros-and-cons-2026): Subway franchise pros and cons 2026: lowest entry cost in national franchising ($227K-$630K), vs. - [Planet Fitness Franchise Cost 2026: $1.28M-$5.39M, Owner Pay](https://vetmyfranchise.com/c/claude/blog/planet-fitness-franchise-pros-and-cons): Planet Fitness franchise cost is $1,282,500-$5,386,000 per the 2026 FDD Item 7. Item 19 club revenue by third, real annual operating costs, owner earnings. - [How to Sell a Franchise: Transfer Process, Maximizing Value](https://vetmyfranchise.com/c/claude/blog/franchise-exit-strategy-selling-guide): How to sell your franchise unit. Covers preparing financials, finding buyers, the franchisor transfer approval process, deal structures, tax implications. - [FDD Item 12 Territory Rights: What to Check Before Signing](https://vetmyfranchise.com/c/claude/blog/franchise-territory-rights-explained): FDD Item 12 defines your franchise territory — and the carve-outs that gut it. Learn protected vs exclusive, encroachment risk, and what to verify before… - [Franchise Due Diligence Checklist: 10 Steps + FDD Data](https://vetmyfranchise.com/c/claude/blog/how-to-choose-the-right-franchise): A 10-step franchise due diligence checklist with real FDD benchmarks — median investment, royalty spread, Item 19 disclosure rates — from 2,364 filings. - [Item 19 Franchise FDD: Financial Performance Representations](https://vetmyfranchise.com/c/claude/blog/item-19-financial-performance-representations): Item 19 of the FDD explains franchise financial performance. Learn what it includes, how to read averages vs medians, and why 35% of brands skip it. - [Laundromat Franchise Opportunities 2026: Cost & Profit](https://vetmyfranchise.com/c/claude/blog/laundromat-franchise-opportunities-2026): Laundromat franchise cost 2026: WaveMAX from $359K, Speed Queen and LaundroLab $1.0M-$2.2M. Verified Item 7 and Item 19 figures from parsed FDDs. - [FDD Item 6 Other Fees: Recurring Franchise Costs Explained](https://vetmyfranchise.com/c/claude/blog/franchise-fees-explained): How to read FDD Item 6 — recurring franchise fees, technology fees, training fees, transfer fees, and the line items most buyers overlook. - [Anytime Fitness Franchise Cost 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/is-anytime-fitness-a-good-franchise): Anytime Fitness franchise cost 2026: investment $539K-$905K, fee $42,500, median revenue $398,982 with 75th-percentile clubs at $746,996. - [FDD Item 3 Litigation Research 2026: Reading & Researching Lawsuits](https://vetmyfranchise.com/c/claude/blog/franchise-litigation-history-research-guide): FDD Item 3 litigation research guide: how to pull franchisor lawsuit history, use PACER and state court databases, and weight different types of claims for… ### Contact (1) - [Contact Us | VetMyFranchise](https://vetmyfranchise.com/c/claude/contact): Questions about a report, press inquiry, partnership, or bug to flag? Send us a message — we respond within 1 business day. ### Legal (2) - [Privacy Policy | VetMyFranchise](https://vetmyfranchise.com/c/claude/privacy): VetMyFranchise privacy policy. Learn how we collect, use, and protect your personal information. - [Terms of Service | VetMyFranchise](https://vetmyfranchise.com/c/claude/terms): VetMyFranchise terms of service. Read our terms and conditions for using our franchise analysis platform. - Other Pages: 17,182 pages — templated set; see the content groups below and the sitemap for the full list. ## Additional content groups ### Franchise pages (~16,204 pages) Pattern: https://vetmyfranchise.com/franchise/{slug} - [Body20 Franchise Review 2026: Ratings & Verdict](https://vetmyfranchise.com/c/claude/franchise/body20-franchisor-llc-2025) - [Best Option Restoration Franchise Review & Verdict (2026)](https://vetmyfranchise.com/c/claude/franchise/bor-franchising-llc) - [Mister Softee Franchise Review 2026: Ratings & Verdict](https://vetmyfranchise.com/c/claude/franchise/mister-softee-franchise-llc) - [La Madeleine Franchise Review 2026: Ratings & Verdict](https://vetmyfranchise.com/c/claude/franchise/la-madeleine-franchising-company-inc) - [Footprints Floors Franchise Review 2026: Ratings & Verdict](https://vetmyfranchise.com/c/claude/franchise/footprints-floors-llc) ### Franchises pages (~787 pages) Pattern: https://vetmyfranchise.com/franchises/{slug} - [Education & Childcare Franchises: Costs & Top Brands 2026 | VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises/child-services-and-education) - [Hair Salon & Spa Franchises: Costs & Top Brands 2026 | VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises/health-and-beauty) - [Food & Restaurant Franchises: Costs & Top Brands 2026 | VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises/food-and-beverage) - [Travel & Hospitality Franchises: Costs & Top Brands 2026 | VetMyFranchise](https://vetmyfranchise.com/c/claude/franchises/hospitality-and-travel) - [Best Alabama Franchise Opportunities 2026: Auto Corridor](https://vetmyfranchise.com/c/claude/franchises/alabama) ### Blog pages (~503 pages) Pattern: https://vetmyfranchise.com/blog/{slug} - [Anytime Fitness Franchise Cost 2026: Real Item 19 Data](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-franchise-cost) - [Anytime Fitness vs Orangetheory Franchise Comparison 2026](https://vetmyfranchise.com/c/claude/blog/anytime-fitness-vs-orangetheory-franchise) - [Automotive Franchise Guide: Costs & Data (2026 FDD Analysis)](https://vetmyfranchise.com/c/claude/blog/automotive-franchise-opportunities) - [7-Eleven vs Circle K Franchise: Cost & Real Operator Take](https://vetmyfranchise.com/c/claude/blog/7-eleven-vs-circle-k-franchise) - [Acai Bowl Franchise Cost 2026: 10 Brands Compared](https://vetmyfranchise.com/c/claude/blog/acai-bowl-franchise-opportunities) ### Glossary pages (~45 pages) Pattern: https://vetmyfranchise.com/glossary/{slug} - [Home-Based Franchise: Definition and Meaning in Franchising | VetMyFranchise](https://vetmyfranchise.com/c/claude/glossary/home-based-franchise) - [Ad Fund / Marketing Fund: Definition and Meaning in Franchising | VetMyFranchise](https://vetmyfranchise.com/c/claude/glossary/ad-fund-marketing-fund) - [Area Development Agreement: Definition and Meaning in Franchising | VetMyFranchise](https://vetmyfranchise.com/c/claude/glossary/area-development-agreement) - [Assignment: Definition and Meaning in Franchising | VetMyFranchise](https://vetmyfranchise.com/c/claude/glossary/assignment) - [Brand Standards: Definition and Meaning in Franchising | VetMyFranchise](https://vetmyfranchise.com/c/claude/glossary/brand-standards) ### Compare pages (~41 pages) Pattern: https://vetmyfranchise.com/compare/{slug} - [Domino's vs Pizza Hut: 2026 FDD Comparison | VetMyFranchise](https://vetmyfranchise.com/c/claude/compare/dominos-pizza-franchising-llc-vs-pizza-hut-llc) - [Domino's vs Little Caesars: 2026 FDD Comparison | VetMyFranchise](https://vetmyfranchise.com/c/claude/compare/dominos-pizza-franchising-llc-vs-little-caesar-enterprises-inc) - [Domino's vs Papa John's: 2026 FDD Comparison | VetMyFranchise](https://vetmyfranchise.com/c/claude/compare/dominos-pizza-franchising-llc-vs-papa-johns-franchising-llc) - [Papa John's vs Pizza Hut: 2026 FDD Comparison | VetMyFranchise](https://vetmyfranchise.com/c/claude/compare/papa-johns-franchising-llc-vs-pizza-hut-llc) - [Five Guys vs McDonald's: 2026 FDD Comparison | VetMyFranchise](https://vetmyfranchise.com/c/claude/compare/five-guys-franchisor-llc-vs-mcdonalds-usa-llc) ### States pages (~39 pages) Pattern: https://vetmyfranchise.com/states/{slug} - [Best Alaska Franchise Opportunities 2026: Freight & PFD](https://vetmyfranchise.com/c/claude/states/alaska) - [Best Arizona Franchise Opportunities 2026: Snowbird Season](https://vetmyfranchise.com/c/claude/states/arizona) - [Best Alabama Franchise Opportunities 2026: Auto Corridor](https://vetmyfranchise.com/c/claude/states/alabama) - [Best Arkansas Franchise Opportunities: Good-Cause Law](https://vetmyfranchise.com/c/claude/states/arkansas) - [Best Colorado Franchise Opportunities 2026: Denver Wages](https://vetmyfranchise.com/c/claude/states/colorado) ### Fdd pages (~23 pages) Pattern: https://vetmyfranchise.com/fdd/{slug} - [FDD Item 1: The Franchisor and Any Parents, Predecessors, and Affiliates | VetMyFranchise](https://vetmyfranchise.com/c/claude/fdd/item-1) - [FDD Item 2: Business Experience | VetMyFranchise](https://vetmyfranchise.com/c/claude/fdd/item-2) - [FDD Item 5: Initial Fees | VetMyFranchise](https://vetmyfranchise.com/c/claude/fdd/item-5) - [FDD Item 7: Estimated Initial Investment | VetMyFranchise](https://vetmyfranchise.com/c/claude/fdd/item-7) - [FDD Item 10: Financing | VetMyFranchise](https://vetmyfranchise.com/c/claude/fdd/item-10) ### Reports pages (~20 pages) Pattern: https://vetmyfranchise.com/reports/{slug} - [Franchise Agreement Length 2026: 10-Year Median, 1,830 FDDs](https://vetmyfranchise.com/c/claude/reports/franchise-agreement-length) - [Where Franchisors Require You to Litigate (Item 17 Dispute Venue, 2026)](https://vetmyfranchise.com/c/claude/reports/franchise-dispute-venue) - [Franchise Non-Compete Clauses, Ranked by Length (2026)](https://vetmyfranchise.com/c/claude/reports/franchise-non-compete-terms) - [Franchise AUV Leaderboard: Top 100 by Revenue (2026)](https://vetmyfranchise.com/c/claude/reports/auv-leaderboard) - [Franchise Closure & Growth Rates by Industry (2026)](https://vetmyfranchise.com/c/claude/reports/franchise-network-health)