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FranchiseVerdict

How Much Does a Pepper Palace Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$211K – $288K

Franchise Fee

$50K

Royalty

6.0%

Ad Fund

N/A

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Pepper Palace 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 Pepper Palace franchise requires a total investment of $211K – $288K. 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 $25K to $35K.

Ongoing Costs

Beyond the initial investment, Pepper Palace franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Revenue). There is also a technology fee of $400.

Net Worth & Liquid Capital Requirements

Pepper Palace requires working capital of $25K – $35K 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 Pepper Palace's Item 19 financial performance representation:

$349KAvg. Gross Sales

Median gross sales: $323K

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.

Next Steps

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