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FranchiseVerdict

How Much Does a 2nd Family Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$120K – $522K

Franchise Fee

$60K

Royalty

5.5%

Ad Fund

1.0

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for 2nd Family is $60K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a 2nd Family franchise requires a total investment of $120K – $522K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $20K to $40K.

Ongoing Costs

Beyond the initial investment, 2nd Family franchisees pay ongoing fees. The royalty fee is 5.5% of gross sales (Percentage of Gross Revenue). The ad fund contribution is: 1.0. There is also a technology fee of $1K.

Net Worth & Liquid Capital Requirements

2nd Family requires working capital of $20K – $40K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to 2nd Family's Item 19 financial performance representation:

$1.2MAvg. Gross Sales

Median gross sales: $786K

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View 2nd Family?

SBA Loans Issued

3

Default Rate

N/A

The SBA (Small Business Administration) tracks loan performance for franchise brands. 2nd Family has 3 SBA-backed loans on record. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current 2nd Family franchise owners

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