How Much Does a Famous Toastery Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$688K – $1.2M
Franchise Fee
$50K
Royalty
5.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Famous Toastery is $50K. 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 Famous Toastery franchise requires a total investment of $688K – $1.2M. 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 $15K to $45K.
Ongoing Costs
Beyond the initial investment, Famous Toastery franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $500.
Net Worth & Liquid Capital Requirements
Famous Toastery requires working capital of $15K – $45K 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 Famous Toastery's Item 19 financial performance representation:
Median gross sales: $1.4M
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 Famous Toastery?
SBA Loans Issued
7
Default Rate
40.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Famous Toastery has 7 SBA-backed loans on record. The default rate is 40.0%, 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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