The Coven®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Coven® franchise requires a total initial investment of $213K – $465K, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $519K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $213K – $465K
- 17th pct Recreation & …
- Avg gross sales
- $519K
- 9th pct Recreation & …
- Royalty
- N/A
- Units
- 6
- 18th pct Recreation & …
- SBA default
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment 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
Franchised units fell from 4 to 0 over 3 years. Investigate why operators are leaving.
25% cash-on-cash return. Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $213K – $465K including a $50K franchise fee.
- Average unit revenue of $519K/year, with an estimated 25% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 39/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Coven Franchising, LLC
- Parent company
- The Coven, Inc.
- Predecessor
- and parent was originally formed as a Minnesota limited liability company on
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Founder
- Alex West Steinman
- CEO experience
- 2017 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 165 Western Avenue North, Suite 8, St. Paul, MN 55102
- Auditor
- Schechter Dokken Kanter Andrews & Selcer Ltd.
- Audited financials
- Franchisor revenue
- $12K
- vs $119K prior year
Affiliated brands
- has not offered franchises in any line of business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
The Coven® franchisees operate what appears to be a specialized retail or wellness/lifestyle concept. Day-to-day operations likely involve direct customer service, inventory management, staff supervision, and marketing activities within a protected territory. Franchisees are responsible for achieving approximately $519k in annual revenue while maintaining operations under corporate standards.
- CEO
- Alex West Steinman
- Headquarters
- MN
- Founded
- 2022
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Site Selection Assistance | $0 | $2K | |
| Rent (3 months) | $45K | $84K | |
| Lease, Utility and Security Deposits | $2K | $10K | |
| Design and Architectural Fees | $5K | $35K | |
| Coven Design Servicesnot refundable | $15K | $25K | |
| Leasehold Improvements | $50K | $100K | |
| Equipment | $3K | $5K | |
| Fixtures & Furniture | $15K | $100K | |
| Inventory | $1K | $5K | |
| The Coven Digital Community, Booking Software, and Designated Software (Including 3 months of fees) | $4K | $9K | |
| Signage | $3K | $5K | |
| Training Expenses | $2K | $8K | |
| Community Grand Opening and Pre-Sale Marketing Campaign | $10K | $10K | |
| Licenses, Permits and Professional Fees | $3K | $5K | |
| Insurance | $1K | $2K | |
| Additional Funds - 3 months | $5K | $10K | |
| Total initial investment | $213K | $465K |
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
$78K
15.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $213K – $465K
- Better than avg vs category
- Liquid capital req'd
- $5K – $10K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- Greater of 8% of Gross Sales or $800 per month
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 4.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of 8% of Gross Sales or $800 per month |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $850 |
| Transfer fee | $25K |
| Renewal fee | $13K |
| Inventory (initial) | $1K – $5K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $519K
- Per unit, per year
- Median gross sales
- N/A
- Avg net income
- $84K
- Cash-on-cash
- 24.8%
- Based on Net Income / investment midpoint
- Item 19 type
- Historical Performance
- Sample size
- 2 units
- vs category median 5 · small
- Range (low → high)
- $472K→$567K
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 176 Recreation & Entertainment brands
vs Recreation & Entertainment averages
How The Coven® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 2
- 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
- 2
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +100.0%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 2
- Transfers (3yr)
- 0
- Projected new
- 7
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage franchise with unproven unit economics, minimal system stability, and aggressive royalty structure that could strain profitability in variable revenue months.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Schechter Dokken Kanter Andrews & Selcer Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 rating
- 01MEDExtremely small franchise system (only 6 units) indicates unproven scalability and limited peer support network
- 02MINOR100% YoY unit growth from 3 to 6 units is mathematically volatile and statistically unreliable for projecting future performance
- 03MINORHigh royalty floor ($800/month minimum = $9,600 annually) creates cash flow burden even in slow months, representing 11.4% of average net income
- 04MINORNo Item 19 financial performance representations provided despite claiming $519k average revenue — franchisor may lack confidence in numbers
- 05MINORSignificant investment range ($213k-$465k spread) suggests unclear initial costs and inconsistent unit economics
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Drive time |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 8 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- The Coven Digital Community
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: The Coven Digital Community
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Coven® · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Coven® franchise?
The total investment to open a The Coven® franchise ranges from $213K – $465K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Coven® franchise owners earn?
According to Item 19 of the The Coven® FDD, the average gross sales per unit is $519K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Coven®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Coven® (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 The Coven® franchise locations are there?
As of their most recent FDD filing, The Coven® has 6 total units in the United States, including 4 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is The Coven® a good franchise to buy?
FranchiseVerdict rates The Coven® as a A-grade franchise with a risk score of 39 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.