Techstars Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Techstars is a startup accelerator franchise that runs mentorship-driven programs and invests in early-stage companies. Franchisees operate accelerator programs, sourcing startups, mentoring founders, and managing investments.
FranchiseVerdict summary · 2026
A Techstars franchise requires a total initial investment of $250K – $1.5M, including a $250K – $850K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $250K – $1.5M
- 17th pct Business Serv…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- N/A
- Units
- 1
- 2nd pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services 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 $250K – $1.5M including a $250K franchise fee.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict F (Weakest tier), verdict score 25/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Techstars Startup Communities LLC
- Parent company
- Techstars Central LLC
- CEO title
- Chief Executive Officer
- David Cohen
- Incorporated in
- Colorado
- HQ
- 4845 Pearl East Circle, Ste 118, PMB 99696, Boulder, CO 80301-6112
- Auditor
- REDPATH AND COMPANY, LLC
- Audited financials
Overview
About
- CEO
- David Cohen
- Headquarters
- CO
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 220% above the typical business services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown8 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Feenot refundable | $0 | $850K | |
| Rent, Utilities, Furniture and Leasehold Improvements | $0 | $250K | |
| Expenses for Initial Techstars Programs | $10K | $100K | |
| Insurance | $15K | $50K | |
| Licenses and Permits | $5K | $15K | |
| Professional Fees (lawyer, accountant) | $30K | $100K | |
| Techstars Expensesnot refundable | $0 | $20K | |
| Additional Funds (for first 3 months) | $0 | $150K | |
| Total initial investment | $60K | $1.5M |
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
- $250K – $1.5M
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $150K
- Top 40% of category vs category
- Franchise fee
- $250K – $850K
- Middle of category vs category
- Royalty
- 30% of the carried interest and 15% to 30% of Sponsorship…
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 50.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $20 |
| Renewal fee | $150 |
| Total fee load | 50.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Techstars 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 Techstars unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 50.0% — above the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System shrank 100.0% over 3 years — 0 closures. Ask existing franchisees about local market conditions.
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 Business Services averages
How Techstars Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Net growth (3-yr)
- Effectively gone
- Likely small-sample artifact
- 3-yr CAGR
- Effectively gone
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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.
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
Brand-new franchisor (2024) with 1 company-owned unit, 0 franchised units, $0 revenue and a nominal $50,000 net worth. Single inherited litigation matter (FanDuel fraud/fiduciary suit, motion to dismiss pending) against a former director, not the brand itself. Net growth -100% reflects the tiny/early base.
Litigation (Item 3)
1 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REDPATH AND COMPANY, LLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 25 / 100 verdict
- 01MINORNascent: 1 unit, 0 franchised, $0 revenue, $50,000 net worth
- 02HIGHOne inherited litigation (breach of fiduciary/fraud, motion to dismiss pending), franchisor deems meritless
- 03MINORNo Item 19; net growth -100% off a trivial base
- 04MINORAudited financials, no bankruptcy/going-concern
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 50.0% 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 | 4 years |
|---|---|
| Renewal term | 1 year |
| Allowed renewalsℹ | 6 |
| Territory type | Metropolitan areas or particular cities |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Application Management System (AMS), Bizzabo, and Notion
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Application Management System (AMS), Bizzabo, and Notion
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Techstars franchise?
The total investment to open a Techstars franchise ranges from $250K – $1.5M, with an initial franchise fee of $250K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Techstars franchise owners earn?
Techstars 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 Techstars 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 Techstars FDD and qualifies whose outlets they describe.
What is Techstars's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Techstars (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 Techstars franchise locations are there?
As of their most recent FDD filing, Techstars has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Techstars a good franchise to buy?
FranchiseVerdict rates Techstars as a F-grade franchise with a verdict score of 25 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?
If you represent Techstars, you can request corrections or provide updated information.
Other Business Services franchises
Compare similar franchise opportunities in the Business Services category
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.