How Much Does a Tailored Living Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$185K – $299K
Franchise Fee
$20K
Royalty
$300 - $2,000 monthly flat fee
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Tailored Living is $20K. 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 Tailored Living franchise requires a total investment of $185K – $299K. 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 $55K to $65K.
Ongoing Costs
Beyond the initial investment, Tailored Living franchisees pay ongoing fees. The royalty structure is: $300 - $2,000 monthly flat fee. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $300.
Net Worth & Liquid Capital Requirements
Tailored Living requires working capital of $55K – $65K 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 Tailored Living's Item 19 financial performance representation:
Median gross sales: $433K
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 Tailored Living?
SBA Loans Issued
30
Default Rate
20.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Tailored Living has 30 SBA-backed loans on record. The default rate is 20.0%, which is near the franchise industry average. 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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