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TravelLimited DataItem 19: ✓ DisclosedMedium Confidence · 60/100

Reverb Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Reverb.

Based on 2020 FDD · 1 filing in corpus

FranchiseIQ Score
54
C
Moderate Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
57/100
2/7 metrics · Low confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Reverb franchise cost and make?

Based on FDDIQ's FDD corpus, a Reverb franchise shows an estimated initial investment of $15.5M – $37.1M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$15.5M – $37.1M
Total initial investment
Profit / Revenue
Item 19 not disclosed
FDD Item 19 signal
Payback Signal
Estimate unavailable
Modeled return metric
SBA Default Rate
No matched SBA history
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Travel franchises →Compare similar franchises →

Quick fee read: $50K franchise fee · 6.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Reverb, check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Total Investment Range$15.5M – $37.1M
MinMid: $26.3MMax

Key Metrics

Franchise Fee
$50K
Royalty Rate
5%
Ad Fund Rate
1.5%
Total Burden
6.5%
Royalty + ad fund
Units (2023)
-
Net Unit Growth
→ -
Year over year
Cash-on-Cash Return
~8–15%
Annual estimated return
Payback Period
~5–12 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
~$800K–$2M
Item 19 disclosed
Red Flags Assessment
LOW: Single-year corpus
LOW ×1
Premium Data

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Get cash-on-cash return, payback period, SBA default rate, and red flag details for Reverb.

CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Reverb vs. Travel Average

MetricReverbTravel Avg
SBA Default Rate - 7.2%
Cash-on-Cash Return - 15.5%
Total Investment$26.3M$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Reverb vs Signature InnReverb vs WOODSPRING SUITESReverb vs SureStay

Similar Franchises · Travel

Signature Inn
Limited Data
$256K–$6.6M
WOODSPRING SUITES
Limited Data
$8.2M–$13.3M
SureStay
Limited Data
$168K–$13.7M
Signature Inn
$256K – $6.6M
WOODSPRING SUITES
$8.2M – $13.3M
SureStay
$168K – $13.7M
Red Lion Hotels Franchising, Inc.
$646K – $8.7M

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Founded 2017 - May 2024 · General
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Questions to Ask Before You Sign

5 data-driven questions every Reverb franchise buyer should ask.

  1. 1.What is Reverb's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Reverb disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Reverb →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

Explore More

All Travel FranchisesLow-Cost FranchisesReverb vs Signature InnFranchises With Item 19Industry Benchmarks