Freddo Franchise Investment & Financials
Data extracted from Freddo Franchising International, LLC (Unit)'s 2026 Franchise Disclosure Document, filed under FTC Rule 16 CFR 436.
Freddo franchise at a glance — core figures from the 2026 Franchise Disclosure Document:
- Investment (Item 7)
- $163K - $455K
- Franchise fee
- $20K
- Royalty
- 5% of monthly Net Revenues
- Franchised units
- 23
- Item 19 earnings
- $226K median
Opening a Freddo franchise requires a total investment of $163K - $455K (Item 7 of the 2026 FDD), including a $20K franchise fee, with ongoing royalties of 5% of monthly Net Revenues. Franchisees disclosed a median unit revenue of $226K in Item 19.
Freddo Franchise Investment & Financial Overview
Initial Investment (Item 7)
Investment Range
$163K - $455K
Industry avg: $589K - $1.4M
Franchise Fee
$20K
Industry avg: $37K
Investment Percentile
17th
vs. 749 Food & Beverage franchises
Item 19 Financial Performance Representation
Freddo discloses financial performance in Item 19 of their 2026 FDD. The numbers below are extracted directly from the FDD — median is preferred over average because top performers skew the mean upward.
Median revenue
$226K
Per disclosed unit
Sample size
17 units
Reporting period
fiscal year 2025
Unit segment
all franchised units open for full 2025 measurement period
Item 19 data is the franchisor's own disclosure — request the full FDD for percentile detail, year-over-year trend, and per-segment cuts. Always validate with 10-15 calls to existing franchisees listed in Item 20.
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How to Read Freddo Franchise Investment Data
The investment range disclosed in Item 7 of the Freddo franchise FDD covers everything required to open the unit — franchise fee, build-out, equipment, signage, opening inventory, training, and a working-capital reserve. The High end of the range is the realistic budget. Most food & beverage buyers see actual costs cluster within 5-15% of the High range once site-specific real estate and construction costs are factored in.
Item 7 does not include personal living expenses, debt service, or the cost of due diligence (attorney, accountant, validation calls). Plan for an additional 20-30% of the Item 7 High range to cover these gaps. Lenders evaluating an SBA loan for a Freddo franchise will look at the High range as the deal size, not the Low.
If Item 19 is disclosed, the franchisor has provided either gross sales averages, profit metrics, or both. Median figures are more reliable than averages — top performers can pull the mean upward by 30% or more. If Item 19 is blank, the franchisor declined to make financial performance representations. Absence of data is itself a signal — call 10-15 existing franchisees from Item 20 and ask directly.
Net worth and liquidity requirements published by Freddo are the franchisor's filter for new buyers, not necessarily what your SBA lender will accept. SBA underwriting overlays its own credit, debt-service-coverage, and post-closing liquidity requirements on top. The published numbers are a floor, not a ceiling — many approved Freddo franchise buyers carry significantly more capital than the listed minimums.
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Data shown is extracted from the 2026 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.