CBD FRANCHISING, INC.
Franchise Fee Breakdown
Initial Franchise Fee (Item 5)
FDD Item 5Franchise Fee
$20K
Paid at signing, before opening
Industry Average
$50K
Home Services sector avg (166 franchises)
Fee Percentile
10th
Below-average fee vs. peers
Ongoing Royalty & Advertising Fees (Item 6)
FDD Item 6Royalty 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 10Renewal 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 17Transfer 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.