How Much Does a Honest Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$1.9M – $2.7M
Franchise Fee
$25K
Royalty
5.5%
Ad Fund
3.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Honest is $25K. 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 Honest franchise requires a total investment of $1.9M – $2.7M. 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 $265K to $385K.
Ongoing Costs
Beyond the initial investment, Honest franchisees pay ongoing fees. The royalty fee is 5.5% of gross sales (Percentage of Gross Revenues). The advertising or brand fund contribution is 3.0% of gross sales.
Net Worth & Liquid Capital Requirements
Honest requires working capital of $265K – $385K 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?
Honest 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 Honest?
SBA Loans Issued
4
Default Rate
N/A
The SBA (Small Business Administration) tracks loan performance for franchise brands. Honest has 4 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 Honest franchise owners
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See full Honest research
Risk analysis, unit growth, contract terms, and more
Compare Honest to similar franchises
Side-by-side investment, revenue, and risk comparison