Complete investment analysis based on official FDD data
Total Investment
$504,900 – $1,118,000
Franchise Fee
$39,500
Royalty Rate
7.0%
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
$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.
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.
| 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. |
Category
Food & Beverage
Franchise Score
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.
Median Revenue
$988,051
per year, per location
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.
Avg. Annual Closure Rate
N/A
Net Unit Growth
+2 units
From 2021 to 2023
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2021 | — | — | — | — | — |
| 2022 | — | — | — | — | — |
| 2023 | — | +2 | — | — | 2 |
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.
Get the full Swig franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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