ManageMowed Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $114,800 to $245,800
• Franchise Fee: $49,500
• Royalty: 8% of the first $750,000 of Gross Sales each calendar year, then 7% above $750,000.01
• Marketing / Ad Fee: 2% National Brand Fund contribution, up to $10,000 per year
• Key additional recurring fees: at least 2% local marketing; required call center/lead generation at $65 per hour for 300 hours during the first year; monthly software and technology fees including $250, $350, and optional $50 routing upgrade
• Number of locations: 23 franchised businesses and 5 company-operated businesses at year-end 2024
• Best Fit: Hybrid ownership with an active Managing Owner; fully passive ownership is not clearly established in the disclosure

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The estimated initial investment ranges from $114,800 to $245,800, with a $49,500 initial franchise fee. The midpoint is about $180,300, which places this in a mid-cost startup range.

Major cost drivers appear to include the franchise fee, additional funds of $10,500 to $50,000, technology and software setup, and an operating model that appears to rely on vendor coordination, lead generation support, and equipment-related field operations. The disclosure also points to a required market introduction period with paid call center and lead generation support, which adds to early ramp costs.

This is not positioned as a low-cash-entry model. While the startup range is below many brick-and-mortar concepts, it is still substantial for a service business, especially given the required first-year support spending.

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• Royalty: 8% of the first $750,000 of Gross Sales each calendar year; 7% above $750,000.01
• National Brand Fund: 2% of Gross Sales, up to $10,000 per year
• Local Marketing Expenditures: at least 2% of annual Gross Sales
• Cooperative Contributions: currently 0%, but may be imposed up to 2% of Gross Sales, with a corresponding 1% reduction in local marketing obligation
• Call Center / Lead Generation (MGen): $65 per hour; required for 40 hours per month for the first 3 months and 20 hours per month for the remaining 9 months, totaling 300 hours
• Software and Technology License Fees: monthly charges including $250 for software programs, $350 for serviceminder license fees, and an optional $50 advanced routing upgrade
• Convention Registration: up to $1,500 per attendee
• Interest on overdue amounts: 1.5% per month or the maximum rate permitted by law, if lower

Overall, the recurring fee load is not limited to royalty and brand fund contributions. The required local marketing spend, first-year lead generation hours, and monthly software costs make the ongoing burden more layered than the headline royalty alone suggests.

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Yes, Item 19 includes revenue and certain expense data.

2024 gross sales and certain expenses

Sample covered: 21 franchised businesses and 5 company-operated businesses that operated for the full 2024 calendar year. The disclosure states there were 23 franchised businesses in operation at the end of 2024, and 2 franchised businesses that opened in 2024 were excluded.

Systemwide

• Average gross sales: $426,571
• Median gross sales: $218,140
• Range: $51,322 to $1,430,177
• Businesses at or above average: 14 of 26, or 54%

Franchised businesses open more than 3 years

• Average gross sales: $396,221
• Median gross sales: $218,140
• Range: $63,323 to $1,430,177
• Businesses at or above average: 8 of 13, or 62%

Franchised businesses open between 2 and 3 years

• Average gross sales: $224,611
• Median gross sales: $188,552
• Range: $121,731 to $399,610
• Businesses at or above average: 2 of 4, or 50%

Franchised businesses open between 1 and 2 years

• Average gross sales: $57,012
• Median gross sales: $54,954
• Range: $51,322 to $66,817
• Businesses at or above average: 2 of 4, or 50%

Company-operated businesses

• Average gross sales: $962,697
• Median gross sales: $1,033,141
• Range: $680,921 to $1,033,141
• Businesses at or above average: 4 of 5, or 80%

Certain disclosed expense percentages, systemwide

• Vendors: 53%
• Job materials: 2%
• Insurance: 2%
• Local advertising: 0%
• Royalty: 8%
• National Brand Fund: 2%
• Software/Office: 1%
• Travel: 1%

Multi-territory franchisees

The disclosure also includes consolidated gross revenue data for 6 franchisees operating two territories:

• Average consolidated gross revenues: $522,252
• Range: $102,644 to $1,086,904
• Median consolidated gross revenues: the disclosure lists $39,265, which does not clearly align with the stated range and average, so the disclosure does not clearly establish a reliable median figure for this table.

The main takeaway is variability. Systemwide gross sales range from just over $51,000 to more than $1.43 million, and the median is far below the average, which suggests a skewed distribution with some higher-volume operators pulling up the average. The age-of-business breakdown also suggests that newer franchised businesses reported materially lower gross sales than more established ones.

Revenue is not profit. The Item 19 table includes only certain expenses, not full operating costs, owner compensation, debt service, taxes, or all local overhead. The disclosure does not clearly state here whether these figures are audited.

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• Model: Hybrid service model
• Revenue type: Appears to be recurring and service-based rather than one-time retail transactions
• Customer type: The disclosure does not clearly establish whether the model is primarily B2C or B2B
• Operational characteristics: sales-center support, required lead generation support during launch, significant software usage, vendor-managed service delivery, a designated Managing Owner, and field operations that appear to involve equipment and travel

This appears to be an operating business rather than a simple licensing arrangement. The model likely depends on lead flow, service coordination, vendor execution, and ongoing local market development.

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Advantages

• Item 19 provides actual gross sales data across 21 franchised and 5 company-operated businesses for full-year 2024 operations.
• The disclosure breaks out performance by years in operation, which helps show ramp differences between newer and more established units.
• Outlet count increased from 21 to 23 franchised businesses in 2024, while company-operated locations remained at 5.
• Certain expense categories are disclosed alongside revenue, including vendors, royalties, brand fund, insurance, software/office, and travel.

Considerations

• Revenue dispersion is wide, with systemwide gross sales ranging from $51,322 to $1,430,177.
• The median systemwide gross sales of $218,140 are well below the average of $426,571, which suggests uneven unit performance.
• Newer franchised businesses reported much lower sales, with the 1-to-2-year group averaging $57,012.
• The territory is non-exclusive, which can affect market protection.
• Ongoing costs extend beyond royalty and ad fund contributions because franchisees also face local marketing requirements, software fees, and required first-year lead generation spending.

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This franchise may fit an operator comfortable with a structured service business that uses technology, centralized lead generation support, and a designated owner responsible for financial and operational decisions. It may also fit someone prepared for a ramp period where early revenue may be modest relative to startup cost.

It likely does not fit someone seeking a clearly passive model, a protected exclusive territory, or a business with tightly clustered revenue outcomes. It may also be a mismatch for buyers who want a simple retail format with limited operational coordination.

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• The franchise agreement term is 15 years, which is a long commitment if the business underperforms.
• Early termination damages are tied to prior royalty and brand fund contributions, which can increase exit cost after a failed launch.
• The disclosure lists short cure periods for some defaults, including five days for non-payment of fees or non-submission of reports.
• The franchisor may require cooperative marketing contributions in the future, changing the mix of local and system marketing spend.
• Some additional fees are open-ended or based on actual cost, including audit reimbursement, indemnification, complaint resolution, and enforcement expenses.

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ManageMowed presents a service-based franchise with a mid-range initial investment and a defined recurring fee structure, but the disclosed revenue results show substantial spread across operators. The main tradeoff is that the model provides actual sales history and some expense detail, yet a buyer still has to accept non-exclusive territory, a meaningful first-year support cost structure, and no clear evidence of profit.

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