TownhouseFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Townhouse franchise requires a total initial investment of $604K – $760K, including a $40K franchise fee and an ongoing 7.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $604K – $760K
- 43rd pct Personal Care…
- Avg gross sales
- N/A
- 34th pct Personal Care…
- Royalty
- 7.0%
- 28th pct Personal Care…
- Units
- 4
- 11th pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty 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 2026. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $604K – $760K including a $40K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- 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
- Townhouse Franchising, LLC
- Parent company
- Townhouse Group Limited
- Ultimate parent
- Townhouse Group
- CEO title
- Chief Executive Officer
- Jonathan Millet
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 611 South Dupont Highway Suite 102, Dover, Delaware 19901
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- Townhouse Holdings US
- Townhouse Franchising Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Townhouse appears to be a hospitality or residential service brand where franchisees manage operations at individual locations. Without disclosed details, franchisees likely handle day-to-day management, customer service, staffing, and local marketing while paying royalties on net revenue to the franchisor.
- CEO
- Jonathan Millet
- Headquarters
- DE
- Founded
- 2025
- FDD year
- 2026
- States available
- 0
FDD Item 7 · 2026 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Marketing Launch Feenot refundable | $10K | $10K | |
| Real Property, Utility, Security, and Other Deposits | $5K | $15K | |
| Leasehold, Contractor Improvements; Construction Costs and Equipment | $415K | $485K | |
| Computer and Audio Visual Equipment | $14K | $14K | |
| Architects & Engineers Fees | $20K | $40K | |
| Start-up Supplies and Inventory | $25K | $35K | |
| Business Licenses and Permits | $15K | $25K | |
| Insurance | $600 | $1K | |
| Professional Fees | $15K | $20K | |
| Additional Funds (three months) | $45K | $75K | |
| Development Fee (Area Development Agreement)not refundable | $85K | $100K | |
| Total initial investment | $689K | $860K |
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
- $604K – $760K
- Near category avg vs category
- Liquid capital req'd
- $45K – $75K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Training fee | $3K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $25K – $35K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Personal Care & Beauty averages
How Townhouse Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- 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
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
This is a pre-revenue or distressed franchise system with insufficient scale, missing critical financial disclosures, and franchisor going concern issues that present substantial investment risk.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
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 75 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and market validation
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests weak performance data
- 03HIGHGoing Concern = False is critical red flag indicating potential financial instability or viability questions at franchisor level
- 04MEDHigh initial investment ($604k-$760k) combined with 7% royalty on undisclosed revenues creates repayment risk
- 05MINORExtremely small franchisee base (4 units) limits peer support network and increases operational isolation
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 | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Townhouse · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Townhouse franchise?
The total investment to open a Townhouse franchise ranges from $604K – $760K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Townhouse franchise owners earn?
Townhouse 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 Townhouse's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Townhouse (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 Townhouse franchise locations are there?
As of their most recent FDD filing, Townhouse has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Townhouse a good franchise to buy?
FranchiseVerdict rates Townhouse as a D-grade franchise with a risk score of 75 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.