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Food & Beverage

Swig Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$504,900 – $1,118,000

Franchise Fee

$39,500

Royalty Rate

7.0%

Initial Investment Range

Low: $504,900 High: $1,118,000

The total initial investment to open a Swig franchise ranges from $504,900 to $1,118,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $39,500.

Midpoint estimate: $811,450

Franchise Fee

$39,500

One-time initial fee

The Swig franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Swig brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

7.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Successor Franchise Fee 20.0 PCT Prior to entering into successor franchise agreement. Available only if requirements are met at time of election.
Relocation Fee 35000.0 FIXED Payable if franchisee elects to receive assistance in securing a new location
Royalty 7.0 PCT Payable monthly, weekly, or daily as determined by franchisor. Paid via electronic funds transfer or automatic withdrawal. Gift card redemptions included in net sales.
Marketing Fund Fee 2.0 PCT Same payment frequency as royalties. May be used for national or regional marketing and brand development programs. Uniformly imposed.
Late Charges 25.0 VARIABLE Up to maximum of 2x total amount owing per instance per late payment and up to $500 per late report. Charges accrue after due date of any required payment or report. Subject to CPI increases.
Non-Sufficient Fund Fees 50.0 FIXED Reduced to maximum allowed by state law if higher. Subject to CPI increases.
Interest on Late Fees and Reports 18.0 PCT 18% interest or maximum rate permitted by state law, whichever is less. Accrues after due date of any required payment or report.
Sales or Use Tax N/A VARIABLE Franchisee must pay applicable sales, use, or value added tax when invoiced
Audit Charge N/A VARIABLE Payable only if audit shows understatement of 2% or more of net sales for period audited, or records are unorganized or unavailable
System Non-Compliance Fines 250.0 VARIABLE $250 first violation, $500 second violation, $750 third and subsequent violations. Paid via EFT. If not corrected, franchisee put in default. Subject to CPI increases.
Technology Fee 400.0 FIXED Currently $400 per month. Will be updated periodically in manuals to account for new technologies and increased costs.
New Operating Principal or New Manager Training 2500.0 FIXED In advance of training. Franchisee pays travel, food, lodging. New operating principal must complete initial training. Subject to CPI increases.
Additional In-Person Training 300.0 FIXED Upon billing. Franchisee also pays travel, lodging, food for attendees or franchisor representatives. Subject to CPI increases.
Rescheduling Fee 1500.0 FIXED If training postponed or rescheduled within 15 days of scheduled date, or failure to complete requirements prior to training. Subject to CPI increases.
Insurance Reimbursement Fee N/A VARIABLE Upon demand. If franchisee fails to maintain required insurance, franchisor may obtain on their behalf. Subject to CPI increases.
PCI and DSS Audit Reimbursement Fee N/A VARIABLE Upon demand. Franchisee reimburses all costs related to audit for non-compliance with PCI and DSS requirements.
Conference or Seminar Fee 625.0 VARIABLE Currently $250 to $1,000 per person at time of registering. Franchisee pays travel, lodging, food for attendees. Operating principal must attend annual conferences if held. Subject to CPI increases.
Online Ordering and Delivery 15.0 PCT Currently 15% of order price. Fees generally deducted from order price by third party provider's platform.
Interim Management Fee 15.0 PCT At time of service. If franchisor operates business during unapproved closing, absence, incapacity, death, or after default notice. Franchisee also pays travel, lodging, food, expenses, plus royalties and advertising fees. Period not to exceed 6 months unless agreed.
Supplier Evaluation Fee N/A VARIABLE Within 10 days of notice. Payable if franchisee wants unapproved suppliers evaluated for approval.
Additional Copies of Marketing Materials N/A VARIABLE At time of delivery. Franchisor may develop and provide samples of marketing and promotional materials.
Fees on Default N/A VARIABLE On demand, as incurred. Paid in addition to other payments to franchisor.
Post-Termination Fees N/A VARIABLE As incurred. Franchisee responsible for post-termination expenses including attorney's fees and costs to enforce post-term obligations.
Early Termination Liquidated Damages N/A VARIABLE Upon termination. Payable if franchise agreement terminated prior to expiration. Only to compensate for lost royalties, not sole remedy.
Franchise Agreement Transfer Fee 20000.0 FIXED At time of approved transfer. Payable when selling franchise, prior to franchisor signing approval or new agreement. Owners with 5%+ must personally guarantee. Subject to state law.
Minority Interest Transfer Fee N/A VARIABLE On demand. Applies to transfers of up to 40% of franchisee entity (cumulative during term). Transferees with 5%+ must personally guarantee. Subject to state law.
Transferee Training Fee 10000.0 FIXED At time of approved transfer. Transferee pays to have franchisor train them. Subject to CPI increases.
Area Development Agreement Transfer Fees 10000.0 FIXED At time of approved transfer. $5,000 paid by franchisee, $5,000 by transferee. Transferees with 5%+ must personally guarantee. Subject to state law.
Indemnification N/A VARIABLE As incurred or on demand. Franchisee indemnifies franchisor from damages/costs related to acts, errors, omissions in franchise operation. Not required for franchisor's willful misconduct, gross negligence, strict liability, or fraud.
Non-Compete Violations 1000.0 FIXED Upon demand. Liquidated damages for breach of non-compete covenants or unauthorized use of system. Not sole remedy, not price for privilege of non-performance. Subject to CPI increases.
Dispute Resolution Fees N/A VARIABLE As incurred or on demand. Franchisee pays half of mediation or arbitration fees. Prevailing party entitled to reimbursement of legal fees and expenses.

What You Get

Category

Food & Beverage

Franchise Score

62

out of 100

Swig operates a drive-thru and walk-in beverage franchise specializing in custom sodas, energy drinks, and lemonades. The brand emphasizes convenient ordering, customization, and trendy drink combinations for quick service.

Financial Performance (Item 19)

Median Revenue

$988,051

per year, per location

Profitability Estimate

Estimated Owner Profit

$128,447

per year

Profit Margin

13.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 6.3 years

Based on midpoint investment of $811,450 and estimated annual owner profit of $128,447.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

+2 units

From 2021 to 2023

Unit Activity History

Year Start Opened Closed Transfers End
2021
2022
2023 +2 2

Is a Swig Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Swig franchise opportunity:

Overall Score

62/100

Moderate opportunity

Est. Payback Period

6.3 yrs

Longer payback

Risk Level

N/A

Insufficient data

Swig shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $988,051 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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