Franchise Industry Statistics 2026: Median Cost, Royalties & Item 19 Data

Contents

Key facts


VetMyFranchise · Original Research

Benchmarks computed from 2,379 Franchise Disclosure Documents analyzed by VetMyFranchise — median investment, fees, royalties, Item 19 disclosure and unit revenue, agreement terms, and litigation across 17 industries. Every figure is drawn from the franchisors' own FDD filings and refreshes as new documents are analyzed.

Source: 2022-2026 FDD filings · 2,379 brands analyzed

Key findings

$361K

Median initial investment

Across 2,379 FDDs analyzed by VetMyFranchise (2026), the median initial franchise investment is $361K (Item 7 midpoint).

$40K

Median franchise fee

The median one-time franchise fee across analyzed brands is $40K (FDD Item 5).

6%

Median royalty rate

The median ongoing royalty across analyzed franchises is 6% of revenue (FDD Item 6).

69%

Disclose Item 19 earnings

69% of the 2,379 franchises analyzed make an Item 19 financial performance representation.

$758K

Median disclosed unit revenue

Among brands that disclose Item 19, the median reported unit revenue is $758K.

2%

Median ad-fund rate

The median advertising-fund contribution is 2% of revenue, on top of the royalty (FDD Item 6).

10 yrs

Median agreement term

The median initial franchise agreement term is 10 years (FDD Item 17, n=847).

734K

Franchised units covered

The analyzed brands operate 734,098 franchised units in total (FDD Item 20).

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Every analyzed brand with Item 7 ranges, fees, and royalties, as a CSV that opens in Excel or Google Sheets. We'll email it now, plus occasional buyer research. No spam, unsubscribe anytime.

What it costs to open a franchise

Distribution of the 2,196 analyzed franchises by total Item 7 investment (midpoint of the low and high estimates). 13% open for under $100K; 18% require $1M or more.

Item 19: what units actually earn

69% of analyzed brands disclose an Item 19 financial performance representation (1,639 of 2,379). Among those that report a median unit figure, the benchmarks below summarize 782 brands. Revenue is gross sales, not profit.

Median 25th percentile

$371K

Lower-performing units (n=258)

Median unit revenue

$758K

Across 782 disclosing brands

Median 75th percentile

$1.19M

Higher-performing units (n=258)

Median disclosed unit revenue by industry (Item 19)

Industries with at least 8 Item 19–disclosing brands. Bars show the median of each brand's own median unit revenue.

Royalty rates

Distribution of ongoing royalty rates across 2,144 brands (FDD Item 6). The median is 6% of revenue.

≤5%

5–6%

6–7%

7–8%

8%+

Franchise benchmarks by industry

Median initial investment, median royalty, Item 19 disclosure rate, and median disclosed unit revenue for each industry with at least eight analyzed brands. Sorted by number of franchises.

Industry Brands Median investment Median royalty Disclose Item 19 Median unit revenue
Food & Beverage 836 $590K 5% 60% $1.07M
Home Services 263 $177K 6% 77% $553K
Fitness & Wellness 160 $523K 7% 73% $508K
Cleaning & Maintenance 151 $211K 7% 77% $482K
Child Services & Education 150 $228K 7% 73% $537K
Retail 128 $282K 6% 73% $744K
Senior Care 125 $188K 6% 78% $893K
Business Services 95 $125K 7% 74% $336K
Health & Beauty 94 $454K 6% 82% $587K
Hospitality & Travel 82 $7.78M 5% 67% $453K
Real Estate 81 $134K 5% 53% $297K
Automotive 71 $379K 6% 65% $950K
Pet Services 58 $350K 7% 78% $390K
Financial Services 32 $86K 10% 69% $205K
Other 22 $268K 6% 68%
Staffing & HR 20 $150K 10% 80%
Technology 11 $127K 7% 82%

Analyze any single brand: $49

These are industry-wide medians. For one brand's exact Item 7, Item 19, fees, litigation, and a buyer verdict, our full 12-section FDD analysis is $49 per report, or three for $99.

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Frequently Asked Questions

What is the average cost to open a franchise?

The median initial investment across 2,379 franchises analyzed by VetMyFranchise is $361K (the midpoint of FDD Item 7). Costs range from under $50,000 for home-based brands to over $1 million for full-service restaurants and large-format concepts.

What percentage of franchises disclose earnings (Item 19)?

69% of the franchises analyzed make an Item 19 financial performance representation. The remaining 31% disclose no earnings figures, so prospective buyers must validate performance by calling existing franchisees listed in Item 20.

What is a typical franchise royalty rate?

The median ongoing royalty is 6% of gross revenue (FDD Item 6), with a further 2% median advertising-fund contribution. Most brands cluster between 5% and 8%.

How much revenue does a typical franchise unit generate?

Among franchises that disclose Item 19, the median reported unit revenue is $758K. Revenue varies widely by industry and is not profit — it is gross sales before royalties, rent, labor, and other costs.

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