Techstars Startup CommunityFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Techstars Startup Community franchise requires a total initial investment of $600K – $1.0M, including a $600K franchise fee and an ongoing 30.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $600K – $1.0M
- 59th pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- 30.0%
- 51st pct Education
- Units
- 1
- 2nd pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $600K – $1.0M including a $600K franchise fee, 30.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 85/100.
- No 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
- Legal entity
- Techstars Startup Communities LLC
- Parent company
- Techstars Central LLC
- CEO title
- Chief Executive Officer
- David Cohen
- CEO experience
- 18 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CO
- HQ
- 1660 Wynkoop St, Ste 800, Denver, CO 80202
- Auditor
- REDPATH AND COMPANY, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Franchisees establish local Techstars startup community hubs, managing entrepreneur networks, hosting pitch events, and facilitating startup connections within their territory. Revenue is primarily derived from sponsorships and partnerships, with 30% of sponsor fees sourced by Techstars flowing back as royalties. Day-to-day operations involve community programming, member engagement, and relationship management with local startups and corporate sponsors.
- CEO
- David Cohen
- Headquarters
- CO
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $600K | $600K |
| Working capital (3–6 mo) | $0 | $130K |
| Equipment, build-out, other | $0 | $270K |
| Total initial investment | $600K | $1.0M |
Source: Techstars Startup Community 2025 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
- $600K – $1.0M
- Near category avg vs category
- Liquid capital req'd
- $0 – $130K
- Better than avg vs category
- Franchise fee
- $600K
- Below avg, review vs category
- Royalty
- 30.0%
- Sponsorship Revenue Share · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 30.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 30.0% of gross sales |
| Renewal fee | $100K |
| Total fee load | 30.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Education averages
How Techstars Startup Community Compares
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
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 12
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Severe structural and governance red flags including going concern status, active fraud litigation involving leadership, opaque economics, unproven unit model (1 unit), and questionable royalty mechanics make this an extremely high-risk, likely unviable franchise investment.
Litigation (Item 3)
Plaintiffs v. Shamrock Capital Advisors, LLC et al., Case No. 651223/2020 (New York Supreme Court). Mass action lawsuit filed 02/25/2020 by former FanDuel employees against former officers, directors, and investors including Andrew Cleland (former FanDuel director). Allegations include breach of fiduciary duties and fraud related to structuring of FanDuel sale to Paddy Power Betfair. Plaintiffs seek compensatory damages exceeding $500,000, punitive damages, disgorgement of profits, and attorney's fees and costs. Motion to dismiss filed 09/06/2024; defendants believe claims are meritless. Motion not yet considered by court.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REDPATH AND COMPANY, LLC
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 85 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates serious financial/operational viability issues at corporate level
- 02HIGHActive litigation involving CIO Andrew Cleland alleging breach of fiduciary duty and fraud in FanDuel transaction raises governance and integrity concerns
- 03MINORExtremely high royalty rate (30% of sponsorship revenue) with vague trigger conditions ('if sourced by Techstars') creates ambiguity and potential revenue leakage
- 04MEDNo disclosed average revenue or net income data prevents validation of unit economics and profitability
- 05MINOROnly 1 known franchise unit with unknown growth trajectory suggests failed expansion model or nascent/collapsing system
- 06MINORHigh franchise fee ($600,000) paired with unproven unit economics and no Item 19 creates significant downside risk
- 07MINORTerritory is unprotected — no geographic exclusivity despite capital-intensive sponsorship model
- 08MINORShort 4-year term limits opportunity to recoup investment and build sustainable business
- 09HIGHLitigation cloud around leadership (CIO) creates reputational and operational execution risk
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 | 4 years |
|---|---|
| Renewal term | 1 year |
| Allowed renewalsℹ | 6 |
| Territory type | Metropolitan areas or particular cities |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 20,000 |
| Online sales rightsℹ | 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 |
| 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., Case No. 651223/2020 (New York Supreme Court). Mass action lawsuit filed 02/25/2020 by former FanDuel employees against former officers, directors, and investors including Andrew Cleland (former FanDuel director). Allegations include breach of fiduciary duties and fraud related to structuring of FanDuel sale to Paddy Power Betfair. Plaintiffs seek compensatory damages exceeding $500,000, punitive damages, disgorgement of profits, and attorney's fees and costs. Motion to dismiss filed 09/06/2024; defendants believe claims are meritless. Motion not yet considered by court.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- Online Training
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Techstars Startup Community · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Techstars Startup Community franchise?
The total investment to open a Techstars Startup Community franchise ranges from $600K – $1.0M, with an initial franchise fee of $600K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Techstars Startup Community franchise owners earn?
Techstars Startup Community 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 Techstars Startup Community's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Techstars Startup Community (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 Startup Community franchise locations are there?
As of their most recent FDD filing, Techstars Startup Community has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Techstars Startup Community a good franchise to buy?
FranchiseVerdict rates Techstars Startup Community as a F-grade franchise with a risk score of 85 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.
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.