Ginger Ale'sFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Ginger Ale's franchise requires a total initial investment of $175K – $1.3M, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $658K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $175K – $1.3M
- 8th pct Service Resta…
- Avg gross sales
- $658K
- 4th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 12
- 23rd pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Franchised units fell from 12 to 3 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $175K – $1.3M including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $658K/year (median $676K).
- Verdict B (Above Average) with a risk score of 55/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GA Franchising, LLC
- Parent company
- JMH Ventures, LLC
- Incorporated in
- IL
- HQ
- 1926 Miller Drive, Olney, Illinois 62450
- Auditor
- Kemper CPA Group LLP
- Audited financials
- Franchisor revenue
- $262K
- vs $416K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Ginger Ale's franchisees operate casual beverage-focused food service locations (likely cafés or quick-service restaurants emphasizing ginger ale and complementary food items). Day-to-day operations include inventory management, POS systems, customer service, local marketing, staff scheduling, and compliance with brand standards across menu, décor, and operational procedures.
- CEO
- Michael Hill
- Headquarters
- IL
- Founded
- 2020
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $4K | $80K |
| Equipment, build-out, other | $146K | $1.2M |
| Total initial investment | $175K | $1.3M |
Source: Ginger Ale's 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$79K
12.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $175K – $1.3M
- Better than avg vs category
- Liquid capital req'd
- $4K – $80K
- Better than avg vs category
- Franchise fee
- $15K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 31.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $25 |
| Training fee | $350 |
| Transfer fee | $2K |
| Renewal fee | $3K |
| Total fee load | 31.0% of rev |
At 31.0% total fee load, roughly $204K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $658K
- Per unit, per year
- Median gross sales
- $676K
- Item 19 type
- Financial
- Sample size
- 12 units
- vs category median 13
- Range (low → high)
- $387K→$700K
- Cohort dispersion (min → max)
- Quartile band
- N/A→$700K
- Bottom 25% → top 25%
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Full-Service Restaurants averages
How Ginger Ale's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 3
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +33.3%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
- Termination rate
- 16.7%
- Franchisor-initiated terminations
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, rapidly expanding system with non-disclosed profitability, wide cost variance, and unverified unit economics presents moderate-to-high risk for franchisee cash flow and ROI.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kemper CPA Group LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 55 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot verify actual profitability despite $657,787 average revenue
- 02MINORExtreme investment range ($174,851–$1,321,627) suggests inconsistent unit economics or high variability in startup costs
- 03MEDAggressive 33.3% YoY unit growth with only 12 total units indicates very small franchise system with limited track record
- 04MINOR5% royalty on gross (not net) revenues reduces margins and creates ongoing cash flow pressure for franchisees
- 05MINORWide revenue dispersion likely — average of $657,787 masks potential underperforming locations
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius / Zip Code |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1.5 mi |
| Territory population | 15,000 |
| Online sales rightsℹ | Restricted |
| 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 | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 56 hrs
- Training location
- franchisee's location
- Field support
- 88 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- POS system
- CRISP
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CRISP
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ginger Ale's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ginger Ale's franchise?
The total investment to open a Ginger Ale's franchise ranges from $175K – $1.3M, 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 Ginger Ale's franchise owners earn?
According to Item 19 of the Ginger Ale's FDD, the average gross sales per unit is $658K. The median is $676K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ginger Ale's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ginger Ale's (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Ginger Ale's franchise locations are there?
As of their most recent FDD filing, Ginger Ale's has 12 total units in the United States, including 12 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Ginger Ale's a good franchise to buy?
FranchiseVerdict rates Ginger Ale's as a B-grade franchise with a risk score of 55 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.
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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.