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

• Category: Food & Beverage
• Initial Investment: $608,400 to $1,718,000
• Franchise Fee: $39,500
• Royalty: 7% of Gross Sales
• Marketing / Ad Fee: 3% of Gross Sales
• Key additional recurring fees: $400 monthly technology fee; possible online ordering and delivery fee currently 15% of order price
• Number of locations: 89 total outlets at year-end 2024 (16 franchised, 73 company-owned)
• Best Fit: Not clearly established in the disclosure; likely best suited to operators comfortable with a location-based foodservice business and active oversight

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The estimated initial investment ranges from $608,400 to $1,718,000, with a stated initial franchise fee of $39,500. The disclosure also lists additional funds of $30,000 to $40,000, which suggests a need for working capital beyond opening costs.

This is a high-cost to very high-cost startup range. The spread between the low and high end is wide, which usually indicates that site conditions, buildout, equipment, and related opening costs can vary materially by location and format.

Major cost drivers appear to include the physical store setup and equipment needs associated with a traditional drink shop model. The disclosure also indicates a technology component and equipment intensity, which can add to upfront and ongoing operating requirements.

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• Royalty: 7% of Gross Sales
• Marketing Fund Fee: 3% of Gross Sales
• Technology Fee: currently $400 per month
• Online Ordering and Delivery: currently 15% of the order price, generally deducted by the third-party platform
• Late Charges: $25 per day, subject to stated caps
• Interest on Late Amounts: 1.5% per month or the maximum rate permitted by law
• Conference or Seminar Fee: currently $250 to $1,000 per person
• Training-related fees: $2,500 for new operating principal or new manager training; $300 per day per person for additional in-person training

Overall, the recurring fee load includes both percentage-based fees on Gross Sales and fixed charges. The 7% royalty plus 3% marketing contribution creates a 10% top-line fee burden before considering the monthly technology fee and any third-party ordering costs.

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Yes, the FDD includes Item 19 financial performance data.

Gross Sales

Table 1: 2024 company-owned and franchised traditional stores

• Sample: 58 stores total, consisting of 56 affiliate-owned stores and 2 franchised stores that operated for the full period from December 27, 2023 to December 31, 2024
• Average Gross Sales: $1,216,950
• Median Gross Sales: $1,161,632
• Maximum: $2,086,172
• Minimum: $688,202

Company-owned store economics and franchise-adjusted figures

Table 2: 56 affiliate-owned traditional stores

• Average Gross Sales: $1,219,645
• Median Gross Sales: $1,161,632
• Range: $688,202 to $2,086,172

Average costs and earnings measures:

• Prime Costs: $612,581 average; $585,974 median
• Other Costs: $353,978 average; $330,491 median
• Franchise Adjusted Other Costs: $475,942 average; $446,655 median
• SLEBITDA: $315,710 average; $277,182 median
• Franchise Adjusted SLEBITDA: $193,746 average; $161,018 median
• SLEBITDA %: 25.9% average; 23.9% median
• Franchise Adjusted SLEBITDA %: 15.9% average; 13.9% median

Minimum franchise-adjusted figures:

• Franchise Adjusted SLEBITDA: ($5,364)
• Franchise Adjusted SLEBITDA %: -0.8%

The spread is material. Gross Sales range from about $688k to $2.09M, and the franchise-adjusted earnings measure ranges from slightly negative to $469,242. That suggests location-level performance can vary substantially.

A few caveats matter here:

• Revenue is not profit. Gross Sales do not show what an owner ultimately keeps.
• The earnings measure disclosed is SLEBITDA / Franchise Adjusted SLEBITDA, not net income.
• The figures are based primarily on affiliate-owned stores, with only 2 franchised stores included in the combined sales table.
• The tables exclude stores that did not operate for the full measurement period, including 20 affiliate-owned stores and 17 franchised stores, as well as 4 non-traditional affiliate-owned stores.
• The disclosure does not clearly establish here whether the Item 19 figures are audited.

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• Model: B2C retail food and beverage
• Revenue pattern: Primarily transaction-based, with repeat customer potential implied by the drink shop format, though the disclosure does not quantify recurring customer behavior
• Operating characteristics: Physical retail location, equipment needs, technology systems, and in-store operations
• Format notes: Traditional stores are the basis for the main Item 19 data; non-traditional formats exist but are excluded from those results

This appears to be a location-based operating business rather than a lightweight service model. The disclosure does not clearly establish whether the concept is suitable for semi-absentee ownership, and owner participation requirements are not clearly stated in the provided information.

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Advantages

• Item 19 includes actual Gross Sales data and a franchise-adjusted operating earnings measure for a substantial group of traditional stores.
• The system had 89 total outlets at year-end 2024, including 73 company-owned units, which provides a larger base of operating history than a franchise system with only a handful of stores.
• The FDD states there are no material differences in Gross Sales of franchised and company-owned outlets.
• Outlet count increased from 59 to 89 in 2024, including franchised outlets rising from 2 to 16.

Considerations

• The initial investment of $608,400 to $1,718,000 is substantial.
• The territory is non-exclusive, which can limit geographic protection.
• Ongoing fees are meaningful: 7% royalty, 3% marketing fund, and a $400 monthly technology fee before other charges.
• The Item 19 sample is weighted heavily toward affiliate-owned stores, so franchisee-specific outcomes are less directly shown.
• Performance variability is notable, with franchise-adjusted SLEBITDA ranging from ($5,364) to $469,242.

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This franchise may fit someone prepared for a capital-intensive, store-based food and beverage operation who wants actual unit-level sales and operating metric disclosure to review before making a decision.

It likely does not fit buyers seeking a low-cost entry point, clear exclusive territory rights, or a business that is clearly structured for passive ownership.

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• The franchise term is 10 years, creating a long commitment period.
• Disputes are to be handled in Utah County or Salt Lake County, Utah under Utah law, which may increase complexity for out-of-state franchisees.
• Certain defaults appear to have short cure periods, with some curable defaults allowing only 24 hours to 30 days.
• Non-curable defaults listed in the disclosure include serious events such as felony conviction, fraud, abandonment, trademark misuse, and repeated defaults even if cured.
• Delivery and online ordering economics may be affected by a fee currently stated as 15% of the order price through third-party platforms.

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Swig presents a clear tradeoff: it offers disclosed unit-level sales and franchise-adjusted operating figures, but it also requires a high upfront investment and carries a meaningful ongoing fee structure. The main decision point is whether the disclosed revenue range and adjusted store-level earnings metrics are sufficient to justify the capital required and the lack of exclusive territory.

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