Franchise Category Comparison
Compare typical investment ranges, fees, and unit economics across franchise categories. Select up to 3 categories to analyze side-by-side.
Select Categories to Compare (up to 3)
| Metric | 🍔Quick Service Restaurant (QSR) | 🏋️Fitness & Wellness |
|---|---|---|
| Initial Investment | $250,000 – $1,200,000 | $150,000 – $800,000 |
| Royalty Fee | 4.0% – 8.0% | 5.0% – 9.0% |
| Ad / Marketing Fund | 2.0% – 5.0% | 1.0% – 3.0% |
| Avg Unit Volume (AUV) | $900,000 – $2,500,000 | $400,000 – $1,200,000 |
| Est. Break-Even | 24–48 months | 18–36 months |
| System Unit Count | 200–20,000+ | 100–5,000 |
| FDD Item 19 Rate | ~65% — Moderate | ~50% — Moderate |
* Ranges represent typical published FDD data across active franchisors in each category. Individual brands vary significantly. Always verify figures in the brand's current FDD.
What to Watch in the FDD — By Category
Category-specific due diligence flags for each section of the Franchise Disclosure Document.
Quick Service Restaurant (QSR)
Highest brand recognition but also highest capital intensity. Labor cost control is the #1 driver of profitability in QSR.
- Item 7Build-out costs vary wildly — get real bids before signing
- Item 19AUV often excludes underperformers; ask for median, not average
- Item 21Check franchisee restatement history — a red flag if financials get restated
- Item 20Transfers & terminations ratio — high churn = unhappy franchisees
- Item 8Required supplier markups can quietly erode margins by 5–15%
Fitness & Wellness
Membership model creates recurring revenue but churn is the silent killer. Location and local competition drive outcomes more than brand in this sector.
- Item 19Member retention (churn) data is rarely disclosed — ask franchisor directly
- Item 7Equipment lease vs. buy significantly impacts cash flow
- Item 12Territory exclusivity is critical — studio saturation kills performance
- Item 21Look for post-COVID recovery trajectory in unit-level financials
- Item 20Pre-opening failures often spike in fitness — check openings vs. closures
Quick Stats Snapshot
At-a-glance figures for selected categories.
Min. Investment
$250,000
Avg Royalty
6.0%
Median AUV
$1,700,000
Break-Even
36 mo
Min. Investment
$150,000
Avg Royalty
7.0%
Median AUV
$800,000
Break-Even
27 mo
Ready to analyze a specific FDD?
The data above shows category benchmarks. To see how a specific franchise stacks up — red flags, fee analysis, and Item 19 breakdown — upload the FDD directly to FDDIQ.
Disclaimer: All data represents typical published ranges across franchise systems in each category. Figures are estimates for research purposes only and are not guarantees of investment performance. Always consult a franchise attorney and accountant before signing any franchise agreement. Verify all figures in the current FDD issued by your specific franchisor.