Rachel's Kitchen Franchise Cost 2022: $252K - $688K + Item 19 Data

Contents

Key facts


Rachel's Kitchen franchise at a glance — core figures from the 2022 Franchise Disclosure Document:

Investment (Item 7)

$252K - $688K

Franchise fee

$40K

Royalty

6% of Gross Sales

Franchised units

7

Item 19 earnings

Disclosed

This data is from the 2022 FDD, 4 years old. Fees, unit counts, litigation, and other terms may have changed — always request the current FDD directly from RDR Inc. (Rachels Kitchen) before making investment decisions.

Opening a Rachel's Kitchen franchise requires a total investment of $252K - $688K (Item 7 of the 2022 FDD), including a $40K franchise fee, with ongoing royalties of 6% of Gross Sales. The franchisor makes an Item 19 financial performance representation.

Initial Investment (Item 7)

Investment Range

Industry avg: $589K - $1.4M

Franchise Fee

Industry avg: $37K

Investment Percentile

vs. 749 Food & Beverage franchises

Item 19 Financial Performance Representation

Disclosed Small sample (n=6)

Rachel's Kitchen provides financial performance representations in Item 19 of their 2022 FDD. We're still extracting structured detail for this brand — request the full FDD from the franchisor for the headline revenue figures.

Contact existing franchisees listed in Item 20 for firsthand performance data.

Ongoing Fee Impact

See the detailed Fees breakdown page for all franchise costs.

Royalty Rate

Ad Fund Rate

See the full ongoing fee breakdown — royalty rates, ad fund contributions, and how they impact your bottom line over the agreement term.

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How to Read Rachel's Kitchen Franchise Investment Data

The investment range disclosed in Item 7 of the Rachel's Kitchen 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 Rachel's Kitchen 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 Rachel's Kitchen 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 Rachel's Kitchen franchise buyers carry significantly more capital than the listed minimums.

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Data shown is extracted from the 2022 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.

Frequently Asked Questions

Investment (Item 7)

$252K - $688K

Franchise fee

$40K

Royalty

6% of Gross Sales

Franchised units

7

Item 19 earnings

Disclosed

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