Techstars Franchise Cost, Revenue & Review 2026
- Investment
- $60K – $1.5M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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 $60K – $1.5M, including a $250K – $850K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $60K – $1.5M
- 17th pct Business Serv…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- Not extracted
- 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 median · 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 $60K – $1.5M including a $250K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Techstars Startup Communities LLC
- Parent company
- Techstars Central LLC
- FDD Item 1, page 8 of the 2025 FDD
- 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 500% 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
- $60K – $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% |
| Technology fee | $20 |
| Renewal fee | $150 |
| Total fee load | 50.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Techstars makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Techstars unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System shrank 100.0% over 3 years. 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 medians
How Techstars Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Plaintiffs v. Shamrock Capital Advisors, LLC et al. (NY Supreme Court, Case No. 651223/2020) - former FanDuel employees allege breach of fiduciary duty and fraud against former officers/directors/investors including CIO Andrew Cleland; motion to dismiss pending, franchisor believes claims meritless.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REDPATH AND COMPANY, LLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 30 / 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 | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 20,000 to 20,000,000 population (metropolitan area or city) |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Boulder, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
Plaintiffs v. Shamrock Capital Advisors, LLC et al. (NY Supreme Court, Case No. 651223/2020) - former FanDuel employees allege breach of fiduciary duty and fraud against former officers/directors/investors including CIO Andrew Cleland; motion to dismiss pending, franchisor believes claims meritless.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- Franchisee
- 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 $60K – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Techstars?
Techstars is franchised by Techstars Startup Communities LLC. Its parent company is Techstars Central LLC. Source: FDD Item 1, 2025 filing.
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.
Is Techstars a good franchise to buy?
FranchiseVerdict rates Techstars as a D-grade franchise with a verdict score of 30 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.