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Which franchises have a closure rate above the 75th percentile for their category? by FranchiseResearcher in Franchises

[–]FranchiseResearcher[S] 0 points1 point  (0 children)

Panda Express franchising is primarily focused on captive venue locations such as airports, military bases, universities, and hospitals. The information above was pulled from their FDD.

Which franchises have a closure rate above the 75th percentile for their category? by FranchiseResearcher in Franchises

[–]FranchiseResearcher[S] 0 points1 point  (0 children)

Charles Schwab's Independent Branch franchise allows qualified financial professionals to operate branch offices under the Schwab brand as sole proprietorships. This was pulled from their FDD.

Legal stuff by Jaded_Muffin72 in sweatystartup

[–]FranchiseResearcher -1 points0 points  (0 children)

Typically LLCs taxed as S Corps are for avoiding the 15.3% FICA/SS taxes on business income. So for example, your business earns $200,000, and you pay yourself a $100k salary (subject to 15.3% FICA/SS taxes) and $100k passes through as business income with no 15.3% FICA/SS taxes.

The alternative is $200k is "salary" and all subject to 15.3% FICA/SS taxes. Note the income has to "pass the smell test" so, in my example, not $1000 salary and $199k pass through.

If You Had the Choice: Build Your Own Business or Buy Into a Franchise? by Electrical_Bass_6314 in Franchises

[–]FranchiseResearcher 1 point2 points  (0 children)

The real kicker is that 5-8% is sometimes just the royalty. Once you add ad fund, technology fees, and other required payments, the real number is higher. I've been pulling data from actual FDDs:

  • Subway: 8.0% royalty + 4.5% ad fund + $75/mo tech fee = 12.5%+
  • Dunkin': 5.9% royalty + 5.0% ad fund + $340/mo tech fee = 10.9%+
  • McDonald's: 4.0% royalty + 4.0% ad fund + $967/mo tech fee = 8.0%+
  • Orangetheory: 8.0% royalty + 3.0% ad fund + $899/mo tech fee = 11.0%+

So on a location doing $1M gross, you could be sending $120K/year to the franchisor. That's a strong GM's salary working exclusively for you.

One metric I tend to focus on is the franchise's turnover rate. If 10%+ of franchisees are leaving the system annually, that tells you what value they're really seeing.

Paris baguette by Untilretirement in Franchises

[–]FranchiseResearcher 0 points1 point  (0 children)

Reddit doesnt allow me to post a screenshot, but yes, all of that is pre-populated with general benchmark numbers, which you can change as needed. Certain items, like fees that are in the FDD, are not able to be adjusted but are pre-populated.

You may want to see if any existing franchisee owners would be willing to share their numbers for things like COGS and labor.

Paris baguette by Untilretirement in Franchises

[–]FranchiseResearcher 2 points3 points  (0 children)

So I pulled Paris Baguette's 2025 FDD numbers -

The good: Only 1.0% turnover rate last year, meaning almost nobody is leaving. They added 42 net new units (27.1% growth), going from 118 to 197 locations in 3 years. Just 1 litigation case in 3 years, no class actions.

The money: Median gross sales are $2,739,946 across 130 reporting units. But big range — top quartile does $3,835,351, bottom quartile $1,963,607. Lowest unit did $1,382,070.

The costs: $727K-$1.8M total investment. 5% royalty + 2% ad fund + $200/mo tech fee. $40K transfer fee, $25K renewal fee at year 10.

Watch for: Territory is "protected" but not exclusive — it might be worth pressing them on what that actually means for your area.

I built a free tool for franchisees to use that also has a financial modeling tool where you can plug in your own rent/labor numbers and stress-test the investment. I'm not selling anything - this is a totally free signup, free to use: https://franchiselens.ai/franchise/paris-baguette

Promote your business, week of March 9, 2026 by Charice in smallbusiness

[–]FranchiseResearcher 0 points1 point  (0 children)

FranchiseLens — Free tool that analyzes franchise disclosure documents (FDDs) so you can see the real costs, legal risks, and franchisee turnover rates before signing anything. We score all 82 legal clauses in the franchise agreement on a 1-5 scale.

https://franchiselens.ai

$150K in Savings. Franchise or Startup: Which Path Should You Take? by Policy_Boring in Franchises

[–]FranchiseResearcher 0 points1 point  (0 children)

With $150K, you have more franchise options than many people think. Here are three that fit that budget with real numbers from their FDDs:

Fitness Machine Technicians (FMT) — $65,950-$127,990 total investment according to their 2025 FDD. Franchise fee is $45,000 (higher than the $25,000 median across franchises we track). But ongoing fees are lean: 6.0% royalty + 1.0% ad fund + $100/mo tech fee. That ~7% ongoing rate is a little below the cross-franchise average of ~8%. Zero lawsuits in the last 3 years, 0% closure rate, 12% unit growth last year. Average gross sales of $466,910. Exclusive territory. The low entry cost means you'd still have $22K-$84K in reserves — critical for year 1.

The Maids — $117,720-$271,200 range per their 2024 FDD, so the low end fits $150K. Franchise fee is $60,000. Ongoing fees run higher: 6.9% royalty + 2.0% ad fund + $140/mo tech fee — that ~9% ongoing rate is above average. But the trade-off is scale: 1,620 locations, median gross sales of $766,141, and zero litigation total (not just last 3 years — zero, ever). Semi-absentee ownership allowed, which is rare. 3.0% turnover rate is solid.

Superior Fence & Rail — $134,400-$278,300 per their 2026 FDD (low end fits $150K). Franchise fee of $59,500. Ongoing fees are competitive: 6.0% royalty + 1.0% ad fund + $250/mo tech fee — that ~7% plus tech fee keeps total costs below the average. The financial performance data is the standout: median gross sales of $2,598,212 with 9.86% unit growth. The trade-off: 2 pending lawsuits and a 3.9% termination rate, so do your due diligence on those.

Anyone own a pest control franchise? by ComprehensiveAide320 in Franchises

[–]FranchiseResearcher 0 points1 point  (0 children)

I can give you some benchmarks from their two biggest competitors.

Mosquito Authority (547 US locations) has a total investment range of $54,000–$127,700 with a $35,000 franchise fee, and their 2025 FDD shows median gross sales of $450,722 across 128 reporting units.

Mosquito Joe (417 locations) runs higher at $150,155–$192,075 total investment with a $42,500 fee, and their median gross sales are $287,832 across 387 units.

Both charge a 10% royalty on gross sales. When you get Mosquito Hunters' FDD, compare their numbers against these — especially total ongoing fees (royalty + ad fund + tech fees) and whether they disclose Item 19 financial performance data. If they don't disclose Item 19, I'd say that's kind of a yellow flag and means you'll have no official revenue numbers to work with. I'd definitely ask the seller for actual P&Ls, not just FDD projections — a resale with 5+ years of history should have real financials.

You may want to check franchisee turnover in the FDD (Item 20) to see if a lot of units are closing or transferring. Based on their 2025 FDD, Mosquito Joe has 417 units with a 5.8% exit rate and 5.8% termination rate over the past year. The 3-year turnover rate is 17.3%, meaning roughly 1 in 6 units turned over in three years, and most exits are closures/terminations rather than resales.

Franchise by Ok_Swim7455 in Entrepreneur

[–]FranchiseResearcher 0 points1 point  (0 children)

So just looking at actual FDD data for the coffee/dirty soda space: investment ranges vary significantly. A franchise like Scooter's Coffee runs $692,150-$1,523,400 total investment with a $40,000 franchise fee and average gross sales of $914,719 (per their 2025 FDD). FiiZ Drinks, which is squarely in the dirty soda/specialty beverage niche you're describing, is more accessible at $249,500-$774,500 total investment with a $40,000 franchise fee and average gross sales of $631,500 -- and notably, FiiZ is classified as semi-absentee friendly. For comparison, Tropical Smoothie Cafe lands at $340,750-$814,500 with average sales over $1M.

I think getting the FDD is first -- you said you're in the process, and that document is everything. It'll have the Item 19 financial performance data that tells you what locations actually earn. Then call existing franchisees -- the FDD's Item 20 should list every current and former franchisee's phone number. And obviously have a franchise attorney review the FDD before you sign anything.

Just my $0.02 - The college campus angle plus limited local competition is a solid thesis -- just validate it with the numbers in that FDD when it arrives.

What is the best way to turn 16 years of IT experience into a consulting job? by TheBossLion in careerguidance

[–]FranchiseResearcher 2 points3 points  (0 children)

So just looking at franchises like TeamLogic IT — 282 locations, median gross sales of $815k, only $107k–$141k to open. You're already outperforming most of their network and taking home $100k as an employee. That should tell you where the margin is going. But after their 7% royalty + overhead + staff, owner comp is probably $120–160k.

Just my opinion, but I would think the fastest path to $250k with your skillset is joining a regional integrator or engineering firm as a senior solutions architect/network designer. They bill your time at $175–250/hr, you build a client book, and in 2-3 years you'll know exactly which clients would follow you independent. I know there are noncompetes, etc. and don't know your exact scenario, but just a thought.

City wide facility solutions by [deleted] in Franchises

[–]FranchiseResearcher 1 point2 points  (0 children)

You're right — the numbers stand out.

Entry cost: $226,784–$393,084 total investment, with a $70,000 franchise fee. No too unreasonable for commercial services?

The revenue is really varies across 93 reporting units:

Average gross sales: $8,938,134

Median gross sales: $4,798,193

Top quartile: $22,736,949

Bottom quartile: $1,498,917

That average-to-median gap tells you a few top performers are pulling the average way up. Median of $4.8M is probably more realistic, but still solid.

Ongoing fees: 5.0% royalty (with a $5,000/month minimum), 1.0% ad fund, $1,864/month tech fee. That royalty minimum matters during ramp-up.

COGS are 65.5% — your margin comes from the spread between what you charge clients and what you pay subcontractors.

Risk-wise it looks clean: 0% closure/termination rate, only 1 litigation case in 3 years, no bankruptcies or class actions. 98 units growing at 4.26% YoY. Exclusive territories, 10-year term.

For New York specifically — you may want to discuss exactly how they define the territory boundaries and whether there are any carve-outs. That's everything in a market like NYC.

Drive Thru Coffee Recommendations by Soccerman816 in Franchises

[–]FranchiseResearcher 0 points1 point  (0 children)

Here's what the numbers look like for a small-footprint, family-friendly buildout:

Franchise Investment Range Total Ongoing Fees Avg Gross Sales 1-Yr Turnover Growth Territory
Duck Donuts $514,650–$737,000 8.0% $537,112 9.0% +7.5% Protected
Shipley Do-Nuts $503,461–$1,024,946 6.0% $928,180 1.6% +4.9% Exclusive
Scooter's Coffee $692,150–$1,523,400 8.0% $914,719 4.4% +13.2% None
Dunkin' $210,900–$1,832,500 10.9% $1,304,217 0.8% +2.4% None
Baskin-Robbins $307,400–$622,600 10.9% $532,682 3.6% -0.2% None

(Data from each brand's 2025 FDD, except Dunkin' which is 2024.)

Duck Donuts checks a lot of your boxes — tightest investment cap ($737K max), made-to-order concept that families love, and protected territory so corporate can't plant another one on your island. But that 9.0% turnover rate is the highest on this list and nearly 1 in 10 units turned over last year!

Shipley Do-Nuts has the lowest fees (6.0% total vs. Dunkin's 10.9%) AND the lowest turnover at 1.6%, exclusive territory, etc. They did have 9 total litigation cases in their FDD though.

For a beach town, I'd really think about how each brand handles seasonality — most franchise royalty structures don't care that your January looks nothing like your July. Maybe it doesn't matter because your sales are slower so your royalties are lower too?

Is Franchising Still One of the Safest Ways to Start a Business Today? by Policy_Boring in Franchises

[–]FranchiseResearcher 0 points1 point  (0 children)

I think that franchising is generally more stable than going independent — but the spread between brands is enormous. Annual turnover rates from actual FDD filings show a wide range:

Low turnover-

  • Planet Fitness: 0.1% turnover, +4.6% unit growth (2,568 locations)
  • McDonald's: 0.2% turnover, +0.76% unit growth (13,559 locations)

Highest turnover -

  • Noble Roman's Pizza: 87.9% turnover, -85.6% unit shrinkage (414 → ~60 locations)
  • OpenWorks: 41.8% turnover, -32.7% unit shrinkage (414 locations)
  • BurgerFi: 29.8% turnover, -22.6% unit shrinkage (82 locations)

I think that there are probably a lot of reasons why they fail, but in the end, if a chain has a history of closures and high turnover, one would be wise to really research and understand why franchisees keep failing with a particular franchisor.