How Much Does a Town Square Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$847K – $1.4M
Franchise Fee
$100K
Royalty
7.0%
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Town Square is $100K. 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 Town Square franchise requires a total investment of $847K – $1.4M. 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 $50K to $100K.
Ongoing Costs
Beyond the initial investment, Town Square franchisees pay ongoing fees. The royalty fee is 7.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $500.
Net Worth & Liquid Capital Requirements
Town Square requires working capital of $50K – $100K 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 Town Square's Item 19 financial performance representation:
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 Town Square?
SBA Loans Issued
10
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Town Square has 10 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower 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 Town Square franchise owners
Get verified franchisee phone numbers for due diligence
See full Town Square research
Risk analysis, unit growth, contract terms, and more
Compare Town Square to similar franchises
Side-by-side investment, revenue, and risk comparison