Terrace UpFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Terrace Up franchise requires a total initial investment of $186K – $356K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.2M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $186K – $356K
- 68th pct Home Services
- Avg gross sales
- $2.2M
- 44th pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 1
- 2nd pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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
Each dollar invested generates 8.0x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $186K – $356K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.2M/year.
- Verdict A (Top Quintile) with a risk score of 42/100.
- 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
- Terrace Up Franchising Inc.
- Incorporated in
- NJ
- HQ
- 1 Gatehall Drive, Suite 300, Parsippany, New Jersey 07054
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- operates a business similar to the Terrace Up Business in Cedar Knolls
- Pando Landscapes
- maintains a pr
- VIP Global Holdings
- also supports Terrace Up Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Terrace Up franchisees operate a restaurant/hospitality venue with an outdoor terrace or elevated dining concept, managing daily food/beverage service, staff, inventory, and customer experience. Revenue modeling suggests full-service restaurant operations with estimated $2.16M in gross annual sales at maturity.
- CEO
- Kris Goodrich
- Headquarters
- NJ
- Founded
- 2023
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Construction and Leasehold Improvements | $0 | $6K | |
| Storage Unit | $0 | $2K | |
| Lease Deposits - Three Months | $0 | $4K | |
| Utility Deposits | $0 | $200 | |
| Furniture and Fixtures | $0 | $2K | |
| Equipment | $15K | $28K | |
| Signage | $0 | $500 | |
| Initial Inventory | $700 | $900 | |
| Computer, Software, and Business Management System | $4K | $7K | |
| Estimating Services Fees | $7K | $10K | |
| Service Vehicle | $15K | $28K | |
| Start-Up Marketing | $10K | $15K | |
| Insurance Deposits - Three Months | $3K | $10K | |
| Travel for Initial Training | $1K | $4K | |
| Professional Fees | $3K | $7K | |
| Licenses and Permits | $500 | $2K | |
| Additional Funds - Three Months | $68K | $171K | |
| Total initial investment | $186K | $356K |
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.
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
$270K
12.5% margin
Unlevered ROIC
69%
EBITDA / total invested capital
Payback
17 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $186K – $356K
- Below avg, review vs category
- Liquid capital req'd
- $68K – $171K
- Below avg, review vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $0 |
| Training fee | $500 |
| Transfer fee | $30K |
| Renewal fee | $12K |
| Inventory (initial) | $700 – $900 |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Company Owned Outlet
- Sample size
- 1 units
- vs category median 25 · small
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
Revenue is 8.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How Terrace Up Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
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
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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
Terrace Up presents caution-level risk: a single-unit franchise system with unproven scalability, unprotected territory, and financial claims unsupported by multi-unit franchisee data.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $329,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 42 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory—insufficient data to validate model scalability or franchisee success rates
- 02MINORNo protected territory creates direct competition risk and limits franchisee exclusivity
- 03MINORHigh initial investment range ($186K-$356K) relative to single-unit validation and early-stage system maturity
- 04MINORSignificant gap between average net income ($562K) and typical franchisee experience unclear—may reflect outlier performance
- 05MINOR7-year term is relatively short for franchise relationship and capital recovery timeline
- 06MINORNo Item 19 financial performance representations provided to independent franchisees
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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | Qualified Buildings |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 19 hrs
- On-the-job training
- 21 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- Buildertrend, QuickBooks Online, and Google Workspace
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Buildertrend, QuickBooks Online, and Google Workspace
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Terrace Up · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Terrace Up franchise?
The total investment to open a Terrace Up franchise ranges from $186K – $356K, 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 Terrace Up franchise owners earn?
According to Item 19 of the Terrace Up FDD, the average gross sales per unit is $2.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Terrace Up's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Terrace Up (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 Terrace Up franchise locations are there?
As of their most recent FDD filing, Terrace Up has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Terrace Up a good franchise to buy?
FranchiseVerdict rates Terrace Up as a A-grade franchise with a risk score of 42 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.