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FranchiseVerdict

How Much Does a Varsity Zone Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$204K – $269K

Franchise Fee

$60K

Royalty

Greater of: (i) tiered percentage of Gross Revenue Collected (5% for $0-$1M, 4% for $1M-$3M, 3% for $3M+) or (ii) Minimum Royalty ($500 per month starting after the one-year anniversary)

Ad Fund

3.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Varsity Zone is $60K. 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 Varsity Zone franchise requires a total investment of $204K – $269K. 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, Varsity Zone franchisees pay ongoing fees. The royalty structure is: Greater of: (i) tiered percentage of Gross Revenue Collected (5% for $0-$1M, 4% for $1M-$3M, 3% for $3M+) or (ii) Minimum Royalty ($500 per month starting after the one-year anniversary). The advertising or brand fund contribution is 3.0% of gross sales. There is also a technology fee of $1K.

Net Worth & Liquid Capital Requirements

Varsity Zone 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?

According to Varsity Zone's Item 19 financial performance representation:

$1.4MAvg. Gross Sales

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 Varsity Zone?

SBA Loans Issued

1

Default Rate

N/A

The SBA (Small Business Administration) tracks loan performance for franchise brands. Varsity Zone has 1 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

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