Franchise Fee Breakdown

Initial Franchise Fee (Item 5)

FDD Item 5

Franchise Fee

$20K

Paid at signing, before opening

Industry Average

$50K

Home Services sector avg (166 franchises)

Fee Percentile

10th

Below-average fee vs. peers

CBD FRANCHISING, INC.'s franchise fee is below the Home Services industry average of $50K.

Ongoing Royalty & Advertising Fees (Item 6)

FDD Item 6

Royalty Rate

7.25% of previous month's gross revenues, minimum $3,000/month

Paid on gross sales, ongoing

Ad Fund / Marketing Fee

16% of gross revenues (if less than $2M), 14% (if $2M-$7M), 12% (if over $7M)

Contributed to brand advertising fund

Combined Ongoing Fee Impact

On a hypothetical $500,000 annual revenue unit, a franchisee would pay approximately royalties plus ad fund contributions each year, in addition to the initial franchise fee. These are separate from other operating costs and the initial investment.

Renewal Fee (Item 10)

FDD Item 10

Renewal Fee

$5K

Paid at end of each 5-year agreement term

Agreement Term

5 years

Initial franchise agreement length

Transfer Fee (Item 17)

FDD Item 17

Transfer Fee

$9K

Charged when selling or transferring your franchise to a new owner

A transfer fee of $9K applies when you sell your CBD FRANCHISING, INC. franchise. Factor this into your exit strategy and overall investment analysis.

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Data shown is extracted from the 2025 Franchise Disclosure Document filed with state regulators. Fees, investment ranges, and other terms may have changed since this filing. Always request the current FDD directly from the franchisor before making any investment decisions. This information is not financial, legal, or investment advice. Full disclaimer.