CanteenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Canteen franchise requires a total initial investment of $44K – $2.1M, including a $25K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $44K – $2.1M
- 3rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 261
- 84th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Franchised units fell from 146 to 100 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $44K – $2.1M including a $25K franchise fee.
- Item 19 discloses "Rebates" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 56/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System 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
- Legal entity
- Canteen (a division of Compass Group USA, Inc.)
- Parent company
- Compass Group USA, Inc.
- Incorporated in
- DE
- HQ
- 2400 Yorkmont Road, Charlotte, NC 28217
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $31.5B
- Most recent fiscal year
Overview
About
Canteen franchisees operate vending machine and micro-market businesses, stocking and servicing machines with snacks, beverages, and other consumer products placed at corporate offices, warehouses, and facilities. Day-to-day responsibilities include machine restocking, cash collection, customer service, maintenance, and route management across their protected territory.
- CEO
- Erik R. Snyder
- Headquarters
- NC
- Founded
- 1994
- FDD year
- 2026
- States available
- 40
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Equipment, build-out, other | $19K | $2.1M |
| Total initial investment | $44K | $2.1M |
Source: Canteen 2026 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
- $44K – $2.1M
- Better than avg vs category
- Liquid capital req'd
- N/A
- Below avg, review vs category
- Franchise fee
- $3K – $25K
- Better than avg vs category
- Royalty
- Up to 5.25% of Gross Sales
- Ad fund
- -n/d
- Total fee load
- 5.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $120 |
| Transfer fee | $13K |
| Total fee load | 5.3% of rev |
Financial Performance
This brand's FDD disclosed "Rebates" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Quick-Service Restaurants averages
How Canteen Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 261
- Opened
- 1
- Last reporting year
- Closed
- 9
- Turnover rate
- 3.4%
- Company-owned
- 161
- Corporate units in the system
- % franchised
- 38%
- vs corporate-owned
- Net growth (yr3)
- -7.4%
- Net unit change last year
- 3-yr CAGR
- -9.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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.
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Canteen's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 56 / 100 rating
- 01MINORUnit count declining 7.4% YoY (261 units) signals system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo Item 19 financial disclosure (Avg Revenue/Net Income) prevents evaluation of actual franchisee profitability and ROI
- 03HIGHActive litigation involving class actions (credit card surcharge notifications, Illinois Biometric Act) creates legal liability exposure and potential compliance costs
- 04MINORWide investment range ($9,150–$2.1M) suggests highly variable unit economics and unclear capital requirements
- 05MINOR15-year term is lengthy commitment given declining unit trajectory and unproven financials
- 06MINORRoyalty 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Territory type | County-based |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 182 hrs
- 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
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Canteen · FDD (2026) PDF
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 $44K – $2.1M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Canteen franchise owners earn?
Canteen does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 146 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 B-grade franchise with a risk score of 56 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.