Data Sources & Methodology
Data last updated: March 2025 · Updated annually
How the Numbers Work
Investment ranges come directly from FDD Item 7 (Estimated Initial Investment), which franchisors are legally required to disclose. Royalty structures from FDD Item 6. Estimated Year 1 cash flow uses FDD Item 19 data where disclosed (not all franchisors provide this). Monthly payment estimates assume SBA loan terms at current rates.
Data Sources
Franchise Disclosure Documents (FDDs)
FTC-mandated disclosure filings from franchisors. Items 5-7 cover initial fees, estimated initial investment, and other fees. Items are public record.
SBA Franchise Loan Data
SBA 7(a) loan data for franchised businesses. Used to cross-validate investment ranges and assess typical financing patterns.
FRANdata Industry Benchmarks
Industry research on royalty rates, fee structures, and average unit volumes by franchise category.
IFA Economic Reports
International Franchise Association annual economic impact data used for sector-level context.
Limitations
FDDs are updated annually but some franchisors file late. Item 7 ranges are what franchisors have reported; actual costs can fall outside the range based on site, construction costs, and local requirements. Item 19 (financial performance) is optional and not disclosed by all franchisors. Past financial performance is not a guarantee of future results.
About Estimates
The numbers on this site are estimates built from published data. They're a starting point for budgeting and comparison, not a quote. Your actual cost depends on specifics no calculator can know: your vendor, your timing, your circumstances.
Nothing on this site is financial, legal, or professional advice. If the decision is significant, talk to a professional.
FranchiseBudget · Built in Sacramento, CA · Data updated March 2025