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FranchiseVerdict

How Much Does a Border Magic Franchise Cost?

Data from the 2026 Franchise Disclosure Document

Investment Summary

Total Investment

$145K – $169K

Franchise Fee

$63K

Royalty

Greater of 7% of Gross Revenue or minimum monthly fee ($750 Year 1, $950 Year 2, $1,500 thereafter)

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Border Magic is $63K. 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 Border Magic franchise requires a total investment of $145K – $169K. 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 $4K to $9K.

Ongoing Costs

Beyond the initial investment, Border Magic franchisees pay ongoing fees. The royalty structure is: Greater of 7% of Gross Revenue or minimum monthly fee ($750 Year 1, $950 Year 2, $1,500 thereafter). The advertising or brand fund contribution is 0.0% of gross sales. There is also a technology fee of $65.

Net Worth & Liquid Capital Requirements

Border Magic requires working capital of $4K – $9K 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?

Border Magic does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Border Magic?

SBA Loans Issued

10

Default Rate

33.3%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Border Magic has 10 SBA-backed loans on record. The default rate is 33.3%, which is above the franchise industry average, suggesting higher lending risk. 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

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