Franchise Fee Breakdown

Initial Franchise Fee (Item 5)

FDD Item 5

Franchise Fee

$40K

Paid at signing, before opening

Industry Average

$47K

Health & Beauty sector avg (57 franchises)

Fee Percentile

18th

Below-average fee vs. peers

Townhouse Franchising, LLC's franchise fee is below the Health & Beauty industry average of $47K.

Ongoing Royalty & Advertising Fees (Item 6)

FDD Item 6

Royalty Rate

7% of Net Revenue

Paid on gross sales, ongoing

Ad Fund / Marketing Fee

2% of Net Revenue

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

$20K

Paid at end of each 10-year agreement term

Agreement Term

10 years

Initial franchise agreement length

Transfer Fee (Item 17)

FDD Item 17

Transfer Fee

$20K

Charged when selling or transferring your franchise to a new owner

A transfer fee of $20K applies when you sell your Townhouse Franchising, LLC franchise. Factor this into your exit strategy and overall investment analysis.

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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.