Canteen Franchise Cost, Revenue & Review 2026
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. The 2025 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.4M – $2.1M
- 97th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 261
- 86th 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 avg · 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.
- RETURNSConvenience Foods International, Inc. (the guarantor/franchisor financial entity, a wholly owned subsidiary of Compass Group USA, Inc.) had no revenue-generating operations for the years ended September 30, 2025, 2024 and 2023. FY2025 book loss before tax was ($100,306) with a deferred tax provision of $7,819, for a net loss of ($108,125). Balance sheet figures (total assets, liabilities, equity) are presented as images in Exhibit J and were not machine-readable.
- 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).
- 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.
- Ultimate parent
- Compass Group PLC
- 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
- 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 166% 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
- Up to 5.25% of Gross Sales (3.25% of Gross Sales if in co…
- Ad fund
- -n/d
- Total fee load
- 5.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| 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
Canteen did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Canteen unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
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
Convenience Foods International, Inc. (the guarantor/franchisor financial entity, a wholly owned subsidiary of Compass Group USA, Inc.) had no revenue-generating operations for the years ended September 30, 2025, 2024 and 2023. FY2025 book loss before tax was ($100,306) with a deferred tax provision of $7,819, for a net loss of ($108,125). Balance sheet figures (total assets, liabilities, equity) are presented as images in Exhibit J and were not machine-readable.
- Item 19 type
- rebate return pct
- Sample size
- 93
- vs category median 20 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 782 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 average of 7.9%.
Disclosure
Item 19 reports rebate return pct 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 averages
How Canteen Compares
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
- 5
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 5
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 3
- Franchisor bought back
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.
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
- 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.
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.
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.
Litigation (Item 3)
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).
Largest disclosed settlement: $6,940,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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
- 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
- 04MINOR15-year term is lengthy commitment given declining unit trajectory and unproven financials
- 05MINORRoyalty 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 |
| 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
FDD download
Canteen · FDD (2025) 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 $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?
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 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), 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
Are you the franchisor?
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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.