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FranchiseVerdict

How Much Does a Raceway Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$198K – $585K

Franchise Fee

$25K

Royalty

$1,000 per month

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Raceway 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 Raceway franchise requires a total investment of $198K – $585K. 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 $20K to $40K.

Ongoing Costs

Beyond the initial investment, Raceway franchisees pay ongoing fees. The royalty structure is: $1,000 per month. The advertising or brand fund contribution is 0.0% of gross sales. There is also a technology fee of $500.

Net Worth & Liquid Capital Requirements

Raceway requires working capital of $20K – $40K 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?

Raceway 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 Raceway?

SBA Loans Issued

2

Default Rate

50.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Raceway has 2 SBA-backed loans on record. The default rate is 50.0%, 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

Talk to current Raceway franchise owners

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See full Raceway research

Risk analysis, unit growth, contract terms, and more

Compare Raceway to similar franchises

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