Crestcom Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Crestcom is a leadership development franchise delivering management and sales training programs to businesses. Franchisees run local training operations, enrolling corporate clients and facilitating training sessions.
FranchiseVerdict summary · 2026
A Crestcom franchise requires a total initial investment of $92K – $105K, including a $75K franchise fee and an ongoing 19.8% royalty[2]. Per the 2026 FDD, average unit revenue was $239K[2]. SBA 7(a) loans show a 14.3% charge-off rate across 21 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $92K – $105K
- 30th pct Education
- Avg gross sales
- $239K
- 5th pct Education
- Royalty
- 19.8%
- 61st pct Education
- Units
- 168
- 70th pct Education
- SBA charge-off
- 14.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education 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 $92K – $105K including a $75K franchise fee, 19.8% ongoing royalty.
- RETURNSAverage unit revenue of $239K/year (median $158K).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 14.3% across 21 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Crestcom International, LLC
- Parent company
- Crestcom International Holdings, LLC
- Predecessor
- Crestcom International, Ltd. (CIL)
- Prior franchisor entity
- CEO title
- President and Chief Financial Officer
- Julie Draguns
- Incorporated in
- Delaware
- HQ
- 6900 East Belleview Avenue, Suite 100, Greenwood Village, Colorado 80111
- Auditor
- TAG CPA (Greenwood Village, Colorado)
- Audited financials
- Franchisor revenue
- $5.2M
- vs $5.3M prior year
Overview
About
- CEO
- Julie Draguns
- Headquarters
- Colorado
- Founded
- 2007
- FDD year
- 2026
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 85% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $5K | $9K |
| Equipment, build-out, other | $12K | $21K |
| Total initial investment | $92K | $105K |
Source: Crestcom 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
- $92K – $105K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $9K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Bottom third — review vs category
- Royalty
- 19.8%
- percentage · typical 6–8%
- Ad fund
- No required advertising fund/cooperative; Area Representa…
- Total fee load
- 9.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 19.8% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $17K |
| Inventory (initial) | $575 – $2K |
| Total fee load | 9.8% of rev |
What do units actually make?
Average unit sales run 70% below the education norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$598
0.2% margin
Unlevered ROIC
1%
EBITDA / total invested capital
Payback
176.0 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Crestcom unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $239K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $158K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- revenue
- Sample size
- 60 franchisees
- vs category median 17 · large
- Range (low → high)
- $7K→$1.5M
- Cohort dispersion (min → max)
- Quartile band
- $46K→$548K
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $239K/year in gross sales. Median is $158K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.4x.
Fee burden
Total ongoing fee load of 9.8% (near the Education average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 8.0% CAGR over 3 years across 168 units — operators are staying and new ones are joining.
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 Education averages
How Crestcom Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 168
- Opened
- 2
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +8.0%
- Net unit change over 3 years
- 3-yr CAGR
- +8.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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
- 21
- Loan volume
- $2.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 14.3%
- 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)
- 85.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 3
- Typical loan rate
- 7.2%
- avg rate to borrowers
- Franchised industry avg
- 27.5%
- brand beats franchise avg ↓
- Jobs supported
- 70
- 2.4 per loan
- Lender concentration
- 48%
- top lender's share
Borrower mix: 90% went to startups / new businesses, 10% to established operators
Franchise vs independent — in professional and management development training, franchised businesses charge off at 27.5% vs 16.0% for independents — franchising is associated with 72% higher SBA default risk in this category.
Top lenders financing Crestcom 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 Crestcom'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 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 14.3% — 11% 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
Crestcom presents moderate-to-caution risk due to missing profitability data, slow unit growth, and lack of transparency on actual franchisee earnings relative to substantial capital investment.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · TAG CPA (Greenwood Village, Colorado)
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 verdict
- 01MINORModest unit growth of 8.0% YoY with only 27 total units suggests slow system expansion and potential market saturation concerns
- 02MEDHigh royalty rate of 9.75% combined with undisclosed net income creates uncertainty about franchisee take-home earnings
- 03MINORZero franchise fee unusual for $231K+ investment — may indicate weak demand, system maturity issues, or hidden ongoing costs
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | part of a state, an entire state, or multiple states; minimum size reasonably serviceable by three CRESTCOM Businesses |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 15 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado, U.S.A. |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 4 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtually or in-person in the Denver, Colorado metropolitan area (or another location selected by Crestcom)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Crestcom · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Crestcom franchise?
The total investment to open a Crestcom franchise ranges from $92K – $105K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Crestcom franchise owners earn?
According to Item 19 of the Crestcom FDD, the average gross sales per unit is $239K. The median is $158K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Crestcom 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 Crestcom FDD and qualifies whose outlets they describe.
What is Crestcom's franchise failure rate?
Based on SBA 7(a) loan data, Crestcom has a charge-off rate of 14.3% across 21 loans, meaning 14.3% 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 Crestcom franchise locations are there?
As of their most recent FDD filing, Crestcom has 168 total units in the United States, including 168 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Crestcom a good franchise to buy?
FranchiseVerdict rates Crestcom as a A-grade franchise with a verdict score of 75 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
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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.