Quick Verdict · who it fits
Boxdrop fits owner-operators looking for a mid-scale retail concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$67K - $202K
Franchise fee (Item 5)
$14K
System size (Item 20)
125 +15
Agreement term
10 yrs
Years in business
7+ yrs
Company-owned units
2
Item 3 litigation
2 suits
Model Boxdrop's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available✓Exclusive territory•Owner-operator required✓No bankruptcy disclosed•2 Item 3 cases
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Free AI summary — the first read on the filing.
127
Total units open
15
Units opened last year
74
Units closed last year
-59
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Boxdrop ranks against 126 Retail peers we've analyzed.
Initial investment
14th pct · of 126 peers
Franchise fee
8th pct · of 126 peers
System size
68th pct · of 126 peers
Retail industry averages
Avg investment
$254K - $680K
Avg franchise fee
$38K
Avg system size
225
Franchises analyzed
126
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Boxdrop | Disclosed | $14K | $67K - $202K | — | 125 |
| Wateria CaSimilar price | None | $30K | $134K - $203K | — | 1 |
| 7-ElevenBiggest system | Disclosed | — | $163K - $1.7M | 45–56% | 7,274 |
| Byrider Franchising PartnersTop-rated in category | Disclosed | $60K | $947K - $1.6M | 1–2.5% | 81 |
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Free explainers to go deeper before you sign.
Brand Analysis
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Brand Analysis
Ace Hardware Corporation is a retailer-owned cooperative, not a conventional franchisor. It counted 5,250 cooperative locations in the United States at the end of 2025, members buy stock rather than paying a royalty, and some states still deem those member-owned stores franchises.
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Boxdrop requires a $13,500 initial franchise fee and a total initial investment range of $67,000–$202,400, per the most recent FDD on file.
Boxdrop franchises are sold by BoxDrop, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
Yes. Boxdrop discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay an advertising fund contribution of Up to 2% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Boxdrop has 125 total locations, with 15 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. Boxdrop grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
Per the FDD, Boxdrop discloses an initial agreement term of 10 years, a transfer fee of $5,000. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt