Benny's Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $138,400 to $479,500
• Franchise Fee: $50,000
• Royalty: 5% of monthly Gross Sales
• Marketing / Ad Fee: Up to 2% of monthly Gross Sales to the Brand Fund; not currently required
• Key additional recurring fees: Local marketing minimum of $3,000 per 12-month period; possible late fees, interest on overdue amounts, audit costs, training-related charges, and other as-incurred fees
• Number of locations: 32 total outlets at year-end 2024, including 4 franchised and 28 company-owned
• Best Fit: Owner-operator or franchisee with a designated operating principal and active oversight

---

The estimated initial investment ranges from $138,400 to $479,500, with a $50,000 initial franchise fee. The spread is fairly wide, which suggests site, buildout, equipment, and opening conditions can materially affect startup cost.

The disclosure also lists additional funds of $19,000 to $25,500, which indicates working capital needs beyond the upfront setup costs. Given the total investment range and the restaurant operating model, this reads as a mid-range startup cost overall, but the upper end is meaningful for an owner entering a single-unit foodservice business.

---

• Royalty: 5% of monthly Gross Sales
• Brand Fund Contribution: Up to 2% of monthly Gross Sales, not currently required
• Local marketing requirement: Minimum $3,000 per 12-month period, subject to reasonable increases
• Late charge: $100 per late submission
• Interest on overdue amounts: 18% per annum, or the maximum allowed by law
• NSF fee: $50 per violation
• Transfer / relocation / successor-related fees: Often 50% of the then-current initial franchise fee
• Training and remedial support: Various as-incurred charges may apply

Overall, the core recurring burden appears moderate: the main ongoing charges are the 5% royalty and the local marketing requirement, with the brand fund contribution only applying if established. The broader fee schedule still matters because several event-driven charges can add cost if operations or compliance slip.

---

Yes, the FDD includes Item 19 financial performance data. It reports 2024 revenue, expenses, and net income (loss) for 15 company-owned restaurants that were open for a full 12 months. The disclosure states these restaurants are typical of the type franchised, located in metropolitan areas or college towns, and have been in business for more than one year.

Reported revenue data (15 company-owned units)

• Average revenue: $684,911
• Median revenue: $589,346
• Range: $310,361 to $1,244,363

Quartiles by revenue

• Top quartile revenue range: $1,015,317 to $1,244,363
• Upper-middle quartile revenue range: $589,346 to $743,816
• Lower-middle quartile revenue range: $354,311 to $542,023
• Bottom quartile revenue range: $310,361 to $343,203

The spread is wide. The highest reported revenue is about 4.0x the lowest reported revenue, which points to meaningful location-level variability.

Reported net income (loss) data for the same 15 units

• Average net income: $136,928
• Median net income: $95,293
• Range: $18,938 to $443,081

These figures are based on company-owned units, not franchised outlets. They also reflect the expense categories shown in the Item 19 tables, including operating expenses and certain other expenses. However, revenue is not profit, and even the reported net income figures should not be treated as what a franchisee will earn. Franchisee results can differ due to financing, owner compensation, local rent, labor conditions, taxes, management structure, and other factors.

The disclosure does not clearly state here whether the Item 19 figures are audited. The sample is also limited to 15 full-year company-owned restaurants, even though the system had 28 company-owned outlets at year-end 2024 and 24 of those were open for the full year.

---

• Model: B2B franchise system serving end customers through restaurant outlets
• Revenue pattern: Primarily recurring daily sales rather than one-time project revenue
• Operations: Store-based foodservice business with labor, food and beverage costs, merchant fees, rent, utilities, and other ongoing operating expenses
• Staffing: Appears staffing-intensive based on payroll and payroll tax line items in Item 19
• Equipment / physical footprint: The disclosure indicates a physical operating location and equipment-heavy setup consistent with a restaurant model

---

Advantages

• Item 19 includes actual revenue, expense, and net income data for 15 company-owned units, which gives more operating detail than a revenue-only presentation.
• The system had 32 total outlets at year-end 2024, including 28 company-owned and 4 franchised, so the concept is operating across multiple markets.
• Core ongoing fees are relatively straightforward: 5% royalty, local marketing minimum, and a brand fund contribution that is not currently required.
• The disclosure shows unit-level results across a broad revenue range, which helps frame possible operating variability.

Considerations

• Startup cost is not low at $138,400 to $479,500, and the upper end is substantial for a single restaurant unit.
• Revenue varies materially, from $310,361 to $1,244,363, so site economics are unlikely to be uniform.
• The model appears operationally intensive, with payroll representing a major expense line in the disclosed unit results.
• The territory is non-exclusive, which can limit geographic protection.
• The franchisee must maintain an approved Operating Principal, so this is not a purely passive ownership structure.

---

This franchise may fit someone comfortable with restaurant operations, local staffing, and active oversight of a physical unit. It may also fit an investor who has a qualified operating partner and is prepared for location-level variability.

It likely does not fit someone seeking a low-cost startup, a passive ownership model, or a business with exclusive territorial protection clearly built in.

---

• The franchise term is 10 years, which creates a long commitment relative to the upfront investment.
• The disclosure notes short cure timing for some defaults, including 5 days to cure non-payments.
• Several fees can be triggered by operational issues, including remedial training, audit-related costs, interim management support, and prohibited product or service fees.
• Only 4 franchised outlets were operating at year-end 2024, so the franchised-unit base remains small.
• Item 19 results are drawn from units in metropolitan areas or college towns; the disclosure does not establish that all future franchise locations will have similar market characteristics.

---

Benny's presents a restaurant model with a mid-range initial investment, a relatively simple core royalty structure, and detailed company-unit operating results in Item 19. The main tradeoff is that the disclosed revenue and net income figures show meaningful upside at some locations, but also substantial variability and a hands-on operating model with limited territorial protection.

---