Franchise Industry Statistics 2026: Median Cost, Royalties & Item 19 Data

Contents

Key facts


VetMyFranchise · Original Research

Benchmarks computed from 2,175 Franchise Disclosure Documents analyzed by VetMyFranchise — median investment, fees, royalties, Item 19 disclosure and unit revenue, agreement terms, and litigation across 17 industries. Every figure is drawn from the franchisors' own FDD filings and refreshes as new documents are analyzed.

Last updated 2026-07-18 · 2,175 brands analyzed

Key findings

$331K

Median initial investment

Across 2,175 FDDs analyzed by VetMyFranchise (2026), the median initial franchise investment is $331K (Item 7 midpoint).

$43K

Median franchise fee

The median one-time franchise fee across analyzed brands is $43K (FDD Item 5).

6%

Median royalty rate

The median ongoing royalty across analyzed franchises is 6% of revenue (FDD Item 6).

70%

Disclose Item 19 earnings

70% of the 2,175 franchises analyzed make an Item 19 financial performance representation.

$712K

Median disclosed unit revenue

Among brands that disclose Item 19, the median reported unit revenue is $712K.

2%

Median ad-fund rate

The median advertising-fund contribution is 2% of revenue, on top of the royalty (FDD Item 6).

10 yrs

Median agreement term

The median initial franchise agreement term is 10 years (FDD Item 17, n=848).

1,415K

Franchised units covered

The analyzed brands operate 1,415,299 franchised units in total (FDD Item 20).

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Every analyzed brand with Item 7 ranges, fees, and royalties, as a CSV that opens in Excel or Google Sheets. We'll email it now, plus occasional buyer research. No spam, unsubscribe anytime.

What it costs to open a franchise

Distribution of the 1,963 analyzed franchises by total Item 7 investment (midpoint of the low and high estimates). 14% open for under $100K; 18% require $1M or more.

Item 19: what units actually earn

70% of analyzed brands disclose an Item 19 financial performance representation (1,516 of 2,175). Among those that report a median unit figure, the benchmarks below summarize 669 brands. Revenue is gross sales, not profit.

Median 25th percentile

$318K

Lower-performing units (n=232)

Median unit revenue

$712K

Across 669 disclosing brands

Median 75th percentile

$1.16M

Higher-performing units (n=232)

Median disclosed unit revenue by industry (Item 19)

Industries with at least 8 Item 19–disclosing brands. Bars show the median of each brand's own median unit revenue.

Royalty rates

Distribution of ongoing royalty rates across 1,985 brands (FDD Item 6). The median is 6% of revenue.

≤5%

5–6%

6–7%

7–8%

8%+

Franchise benchmarks by industry

Median initial investment, median royalty, Item 19 disclosure rate, and median disclosed unit revenue for each industry with at least eight analyzed brands. Sorted by number of franchises.

Industry Brands Median investment Median royalty Disclose Item 19 Median unit revenue
Food & Beverage 642 $597K 5% 62% $1.05M
Home Services 261 $176K 6% 77% $548K
Fitness & Wellness 159 $536K 7% 72% $505K
Cleaning & Maintenance 151 $215K 7% 76% $500K
Child Services & Education 150 $220K 7% 72% $533K
Retail 127 $302K 5.75% 72% $744K
Senior Care 122 $181K 6% 80% $926K
Business Services 95 $125K 7% 74% $336K
Health & Beauty 93 $458K 6% 82% $587K
Hospitality & Travel 82 $7.18M 5% 68% $453K
Real Estate 80 $135K 5% 53% $297K
Automotive 70 $365K 6% 63% $950K
Pet Services 58 $356K 7% 76% $363K
Financial Services 32 $86K 10% 75% $205K
Other 22 $365K 6% 59%
Staffing & HR 20 $133K 10% 70%
Technology 11 $130K 7% 82%

Analyze any single brand: $49

These are industry-wide medians. For one brand's exact Item 7, Item 19, fees, litigation, and a buyer verdict, our full 12-section FDD analysis is $49 per report, or three for $99.

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Frequently Asked Questions

What is the average cost to open a franchise?

The median initial investment across 2,175 franchises analyzed by VetMyFranchise is $331K (the midpoint of FDD Item 7). Costs range from under $50,000 for home-based brands to over $1 million for full-service restaurants and large-format concepts.

What percentage of franchises disclose earnings (Item 19)?

70% of the franchises analyzed make an Item 19 financial performance representation. The remaining 30% disclose no earnings figures, so prospective buyers must validate performance by calling existing franchisees listed in Item 20.

What is a typical franchise royalty rate?

The median ongoing royalty is 6% of gross revenue (FDD Item 6), with a further 2% median advertising-fund contribution. Most brands cluster between 5% and 8%.

How much revenue does a typical franchise unit generate?

Among franchises that disclose Item 19, the median reported unit revenue is $712K. Revenue varies widely by industry and is not profit — it is gross sales before royalties, rent, labor, and other costs.

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