Canteen Franchise Cost, Revenue & Review 2026
- Investment
- $1.4M – $2.1M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 0.0%
- on 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Canteen is a vending and micro-market franchise stocking snacks, drinks, and fresh food at offices, warehouses, and facilities. Franchisees run a route-based operation servicing machines and markets and managing accounts in a territory.
FranchiseVerdict summary · 2026
A Canteen franchise requires a total initial investment of $1.4M – $2.1M, including a $3K – $25K franchise fee and an ongoing 5.3% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.4M – $2.1M
- 96th pct Service Resta…
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.3%
- 44th pct Service Resta…
- Units
- 261
- 85th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.4M – $2.1M including a $3K franchise fee, 5.3% ongoing royalty.
- RETURNSItem 19 reports a non-revenue operating metric rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -8 franchised outlets in the latest year (1 opened, 9 closed) (Item 20).
- DECLINESystem contracting at -9.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Compass Group USA, Inc. (d/b/a Canteen)
- Parent company
- Compass Group USA, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Compass Group PLC
- FDD Item 1, page 8 of the 2025 FDD
- Incorporated in
- DE
- HQ
- 2400 Yorkmont Road, Charlotte, NC 28217
- Auditor
- Forvis Mazars, LLP
- Audited financials
Overview
About
- CEO
- Erik R. Snyder
- Headquarters
- NC
- Founded
- 1994
- FDD year
- 2025
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 261% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $3K | $3K |
| Working capital (3–6 mo) | $75K | $100K |
| Equipment, build-out, other | $1.3M | $2.0M |
| Total initial investment | $1.4M | $2.1M |
Source: Canteen 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.4M – $2.1M
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $100K
- Bottom third — review vs category
- Franchise fee
- $3K – $25K
- Top 40% of category vs category
- Royalty
- 5.3%
- Tiered by sales volume · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 5.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.3% of gross sales |
| Technology fee | $10 |
| Training fee | $3K |
| Transfer fee | $13K |
| Inventory (initial) | $60K – $80K |
| Total fee load | 5.3% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Canteen is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Canteen unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Not a revenue figure
- Item 19 type
- a non-revenue metric
- Sample size
- 93
- vs category median 19 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.3% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Item 19 reports a non-revenue operating metric rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -9.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Canteen Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 261
- Opened
- 1
- Last reporting year
- Closed
- 9
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.4%
- Company-owned
- 161
- Corporate units in the system
- % franchised
- 38%
- vs corporate-owned
- Net growth (3-yr)
- -9.9%
- Net unit change over 3 years
- 3-yr CAGR
- -9.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 4
- Reacquired
- 3
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 9
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
78 current owners across 7 states.
- SC 58
- MI 15
- HI 1
- LA 1
- ME 1
- NH 1
- WA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $11.9M
- Median loan
- $645K
- 50th percentile
- Charge-off rate
- 0.0%
- on 11 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 8.9%
- brand beats franchise avg ↓
- Jobs supported
- 825
- 6.9 per loan
- Lender concentration
- 55%
- top lender's share
Franchise vs independent — in mobile food services, franchised businesses charge off at 8.9% vs 13.0% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Canteen franchisees
Showing 3 of 5 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Canteen from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 5.92%
- Lender concentration
- 54.5%
- Job velocity
- 6.9 per $100K
- NAICS benchmark
- 3.6%
- NAICS 722330
- Jobs supported
- 825
Top SBA lendersTop lender holds 55% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Central State Bank | 6 | $1.6M | 0.0% |
| 2 | Simmons Bank | 2 | $7.1M | 0.0% |
| 3 | First Horizon Bank | 1 | $645K | 0.0% |
| 4 | Hawthorn Bank | 1 | $1.6M | 0.0% |
| 5 | BMO Bank National Association | 1 | $1.0M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| IAIowa | 6 | 0 | 0.0% |
| MOMissouri | 2 | 0 | 0.0% |
| ILIllinois | 1 | 0 | 0.0% |
| LALouisiana | 1 | 0 | 0.0% |
| WIWisconsin | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Canteen presents elevated risk due to contracting franchise system, undisclosed unit economics, active litigation exposure, and lack of franchisee financial transparency required for informed investment decisions.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three pending class action lawsuits alleging credit card surcharges without sufficient notice at vending machines (Jilek settled $6.94M pending final approval; Pemberton settled $5,000; Whitaker settled $5,000). One prior settled BIPA biometric case (Bryant, $6.8M total, Canteen share $1.22M).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 (p65) attaches only the audited statements of Convenience Foods International, Inc., the guarantor and a wholly owned subsidiary of Compass Group USA, Inc., for the years ended September 30, 2025, 2024 and 2023 (Exhibit J, audited by Forvis Mazars, LLP): the company 'has had no revenue generating operations for the years ended September 30, 2025, 2024 and 2023' (p239); FY2025 loss before tax $100,306, deferred tax provision $7,819, net loss $108,125. No revenue figure is published for that reason. The franchisor, Canteen, is a division of Compass Group USA, Inc., whose total revenues for October 1, 2024 through September 30, 2025 were $31,459,475,921 (Item 8, p28), with $285,079,756 of supplier rebates based on franchisee purchases. Balance sheet figures are image pages.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 74 / 100 verdict
- 01MINORUnit count declining 7.4% YoY (261 units) signals system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHActive litigation involving class actions (credit card surcharge notifications, Illinois Biometric Act) creates legal liability exposure and potential compliance costs
- 03MINOR15-year term is lengthy commitment given declining unit trajectory and unproven financials
- 04MINORRoyalty structure up to 5.25% on gross sales (not net) creates ongoing margin pressure without visibility into profitability thresholds
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, NC (AAA office closest to principal offices) |
| Jury trial waiver | No |
| Governing law | NC |
| Litigation count | 4 |
View Item 3 litigation summary
Three pending class action lawsuits alleging credit card surcharges without sufficient notice at vending machines (Jilek settled $6.94M pending final approval; Pemberton settled $5,000; Whitaker settled $5,000). One prior settled BIPA biometric case (Bryant, $6.8M total, Canteen share $1.22M).
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 182 hrs
- Training location
- Regional locations and Charlotte, NC (Canteen Headquarters)
- Ongoing training
- Optional
- Time to open
- 2 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- FISH (Franchise Information Systems Hub)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: FISH (Franchise Information Systems Hub)
Item 20 · call current owners
Franchisee Contacts
78 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Canteen franchise?
The total investment to open a Canteen franchise ranges from $1.4M – $2.1M, with an initial franchise fee of $3K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Canteen franchise owners earn?
Item 19 of the Canteen FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Canteen?
Canteen is franchised by Compass Group USA, Inc. (d/b/a Canteen). Its parent company is Compass Group USA, Inc.. The ultimate parent named in the FDD is Compass Group PLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Canteen FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Canteen FDD and qualifies whose outlets they describe.
What is Canteen's franchise failure rate?
Based on SBA 7(a) loan data, Canteen has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Canteen franchise locations are there?
As of their most recent FDD filing, Canteen has 261 total units in the United States, including 100 franchised units and 161 company-owned units. 1 new units were opened in the latest reporting year.
Is Canteen a good franchise to buy?
FranchiseVerdict rates Canteen as a A-grade franchise with a verdict score of 74 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.