Project LeanNation Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Project LeanNation is a health retail franchise selling ready-to-eat prepared meals, supplements, and nutrition coaching. Franchisees run the stores, managing meal inventory, member subscriptions, and body-composition coaching.
FranchiseVerdict summary · 2026
A Project LeanNation franchise requires a total initial investment of $260K – $397K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $643K[2]. 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
- $260K – $397K
- 30th pct Retail
- Avg gross sales
- $643K
- 5th pct Retail
- Royalty
- 7.0%
- 26th pct Retail
- Units
- 34
- 16th pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail 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 $260K – $397K including a $60K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $643K/year (median $517K).
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- EARLYEmerging franchise: only 3 years of franchising with 34 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Project Lean Nation Franchising, Inc.
- CEO title
- President and Chief Executive Officer and Director
- Tim Dougherty
- Incorporated in
- New York
- HQ
- 14 Franklin Street, Suite 1403, Rochester, New York 14604
- Auditor
- Nacca & Capizzi, LLP
- Audited financials
- Franchisor revenue
- $1.5M
- vs $2.1M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Tim Dougherty
- Headquarters
- NY
- Founded
- 2020
- FDD year
- 2026
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 21% below the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (single location)not refundable | $60K | $60K | |
| Real Estate Rent - 1st Monthnot refundable | $3K | $7K | |
| Security Deposit(s)not refundable | $0 | $7K | |
| Leasehold Improvements (net amount)not refundable | $60K | $125K | |
| Site Development Feenot refundable | $18K | $18K | |
| Furnishings, Fixtures, and Decoratingnot refundable | $3K | $6K | |
| Signagenot refundable | $5K | $10K | |
| Training Expensesnot refundable | $1K | $2K | |
| Equipment and supplies acquired locallynot refundable | $47K | $62K | |
| Computer System/POSnot refundable | $1K | $1K | |
| Initial Inventory, supplies, packaging, uniforms and corporate identity materialsnot refundable | $500 | $1K | |
| Initial inventory of products for resalenot refundable | $10K | $14K | |
| SBA fees and other financing costsnot refundable | $0 | $10K | |
| Additional Operating funds/Working Capital - 3 monthsnot refundable | $25K | $35K | |
| Professional Feesnot refundable | $6K | $15K | |
| Pre-Opening Marketingnot refundable | $18K | $18K | |
| Business Licenses/Permitsnot refundable | $500 | $2K | |
| Technology Fee (PLN Storefront and Square POS licensing)not refundable | $350 | $350 | |
| Insurancenot refundable | $3K | $5K | |
| Initial Franchise Fee under Area Development Agreementnot refundable | $135K | $350K | |
| Total initial investment | $395K | $747K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $260K – $397K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $35K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $350 |
| Training fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $8K – $11K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 33% below the retail 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
$39K
6.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.3 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 Project LeanNation unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
11%
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
- $643K
- Per unit, per year
- Median gross sales
- $517K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 25 outlets
- vs category median 47
- Range (low → high)
- $179K→$1.8M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail 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 $643K/year in gross sales. Median is $517K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.0x.
Fee burden
Total ongoing fee load of 9.0% (near the Retail average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 Retail averages
How Project LeanNation Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 34
- Opened
- 8
- Last reporting year
- Closed
- 1
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 1
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 5.9%
- Franchisor-initiated terminations
- Ceased ops
- 8.8%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 12 · 13 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.
13
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $1.9M
- Median loan
- $236K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (9 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Small meal-prep franchisor (34 units, $2.1M revenue, positive but thin $194,702 net worth) with a single minor regulatory matter: a $5,000 Virginia registration penalty settled Sept 2025 with no admission. Audited financials, Item 19 disclosed, low 9% turnover. Thin equity is the main concern.
Litigation (Item 3)
Commonwealth of Virginia, ex rel. State Corporation Commission v. Project Lean Nation Franchising, Inc. Case No. SEC-2025-00025. Allegation of selling franchise location prior to Virginia registration completion and failure to provide cleared FDD. Settled September 26, 2025 with $5,000 penalty and $1,000 in fees. Franchisor neither admitted nor denied allegations.
Largest disclosed settlement: $6,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Nacca & Capizzi, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 verdict
- 01MINORSingle minor Item-3 regulatory matter ($5,000 VA penalty + $1,000 fees, settled)
- 02MINORThin net worth $194,702 on $2.1M revenue; net income only $24,470
- 03MEDAudited, item19_disclosed=true, turnover 9%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
Commonwealth of Virginia, ex rel. State Corporation Commission v. Project Lean Nation Franchising, Inc. Case No. SEC-2025-00025. Allegation of selling franchise location prior to Virginia registration completion and failure to provide cleared FDD. Settled September 26, 2025 with $5,000 penalty and $1,000 in fees. Franchisor neither admitted nor denied allegations.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 24 hrs
- Training location
- Project LeanNation headquarters or another location chosen by franchisor
- Site selection
- franchisee
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Project LeanNation · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Project LeanNation franchise?
The total investment to open a Project LeanNation franchise ranges from $260K – $397K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Project LeanNation franchise owners earn?
According to Item 19 of the Project LeanNation FDD, the average gross sales per unit is $643K. The median is $517K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Project LeanNation 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 Project LeanNation FDD and qualifies whose outlets they describe.
What is Project LeanNation's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Project LeanNation (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 Project LeanNation franchise locations are there?
As of their most recent FDD filing, Project LeanNation has 34 total units in the United States, including 33 franchised units and 1 company-owned units. 8 new units were opened in the latest reporting year.
Is Project LeanNation a good franchise to buy?
FranchiseVerdict rates Project LeanNation as a A-grade franchise with a verdict score of 70 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.