How Much Does a Flip Flop Shops Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$183K – $349K
Franchise Fee
$30K
Royalty
5.0%
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Flip Flop Shops is $30K. 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 Flip Flop Shops franchise requires a total investment of $183K – $349K. 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 $0 to $55K.
Ongoing Costs
Beyond the initial investment, Flip Flop Shops franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 1.0% of gross sales.
Net Worth & Liquid Capital Requirements
Flip Flop Shops requires working capital of $0 – $55K 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 Flip Flop Shops's Item 19 financial performance representation:
Median gross sales: $333K
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 Flip Flop Shops?
SBA Loans Issued
24
Default Rate
52.6%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Flip Flop Shops has 24 SBA-backed loans on record. The default rate is 52.6%, 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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