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Retail

The Vitamin Shoppe Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$528,900 – $976,900

Franchise Fee

$39,900

Royalty Rate

5.0%

Initial Investment Range

Low: $528,900 High: $976,900

The total initial investment to open a The Vitamin Shoppe franchise ranges from $528,900 to $976,900, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $39,900.

Midpoint estimate: $752,900

Franchise Fee

$39,900

One-time initial fee

The The Vitamin Shoppe 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 The Vitamin Shoppe brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

3.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 5.0 PCT Due on or before the 15th day of each calendar month. Based on Net Revenue for the preceding fiscal month. Subject to automatic debit from business checking account.
Technology Fee 850.0 FIXED Could increase if franchisor's costs increase. Covers costs of all store systems, store networking, telecommunications, and other IT expenses. Subject to automatic debit.
Brand Fund Contribution 2.0 VARIABLE If established, the greater of $1,000 or 2% of Net Revenue, up to a maximum of 3% of Net Revenue but not to exceed $40,000 per fiscal year. Used to develop and prepare advertising and media materials. Subject to automatic debit.
Marketing Cooperative Contribution 3.0 PCT Not currently established or collected. If established, total amount for Brand Fund, local marketing expenditures and/or Marketing Cooperatives will not exceed 3% of Net Revenue.
Extension Option Fee 1500.0 VARIABLE $1,500 per month for months 1-6 after required opening date, $2,500 per month for months 7-12. Due only if franchisor allows extension of opening date (not to exceed 12 months).
Successor Franchise Fee 50.0 PCT 50% of the then-current initial franchise fee. Due when signing successor franchise agreement (if franchisee has that right).
Transfer of Franchise Rights or Controlling Ownership Interest in Franchisee 2000.0 FIXED $2,000 for each Store upon transfer.
Ongoing and Supplemental Training and Assistance 500.0 FIXED Not to exceed $500 per trainer per day, plus franchisor's expenses. As incurred for ongoing and supplemental training.
Retraining of Managers 500.0 FIXED Not to exceed $500 per trainer per day, plus franchisor's expenses. Due if general manager or assistant manager fails to complete initial training or replacements need training.
Meetings / Conferences/Conventions 1000.0 FIXED Will vary under circumstances, not to exceed $1,000 per person (does not include actual out-of-pocket attendance costs). Must attend no more than four events per year. Fee may be charged even if franchisee does not attend.
Product and Service Purchases N/A VARIABLE Varies depending on products and services purchased from franchisor, affiliates, or designated/approved suppliers according to standards and specifications.
Testing and Evaluation Costs N/A VARIABLE Amount depends on circumstances, including supplier's location, testing required, and item involved. Covers costs of testing new products/services or inspecting new suppliers franchisee proposes.
Relocation 10000.0 FIXED $10,000 plus reasonable costs franchisor incurs. Due only if franchisee relocates Store.
Audit N/A VARIABLE Cost of inspection or audit, including legal fees, independent accountants' fees, travel expenses, room and board, and compensation of franchisor's employees. Due if franchisee fails to report or understates Net Revenue by 2% or more.
Inspection Fee 500.0 VARIABLE Actual costs of first follow-up audit (including personnel wages, travel, hotel, living expenses). $500 per day for second and each follow-up evaluation and for each inspection franchisee specifically requests.
Interest 1.5 PCT Lesser of 1.5% per month or highest commercial contract interest rate law allows. Due on past due amounts.
Administrative Fee 250.0 FIXED $250 for each payment not made when due or for each dishonored payment.
Non-Compliance Fee 250.0 FIXED $250 for each deviation from operational requirements/Brand Standards. Compensates franchisor for administrative and management costs, not for damages due to default.
Costs and Attorneys' Fees N/A VARIABLE Varies under circumstances and depends on nature of franchisee's non-compliance. Due when franchisee does not comply with Franchise Agreement.
Indemnification N/A VARIABLE Varies under circumstances. Franchisee must reimburse for all claims and losses arising from Store construction/design/operation, business conduct, non-compliance with law, data security incidents, or breach of Franchise Agreement.
Management Fee 10.0 PCT Up to 10% of Net Revenue, plus any out-of-pocket expenses incurred in connection with Store's management. Due if franchisor assumes Store's management in certain situations, including franchisee's default.
Remedial Expense N/A VARIABLE Franchisee must reimburse franchisor's costs of correcting any deficiencies at Store or in its operation if franchisee fails to do so (short of taking over management).
Tax Reimbursement N/A VARIABLE Franchisee must reimburse franchisor for taxes paid to any state taxing authority on account of franchisee's operation or payments to franchisor (except franchisor's income taxes).
Insurance Reimbursement N/A VARIABLE Franchisee must reimburse franchisor's costs if franchisor obtains insurance coverage for Store because franchisee fails to do so.
De-Identification Fee N/A VARIABLE Franchisee must reimburse franchisor's costs of de-identifying Store if franchisee fails to do so.

What You Get

Category

Retail

Franchise Score

69

out of 100

The Vitamin Shoppe operates as a specialty retailer offering vitamins, supplements, and nutritional products to health-conscious consumers. The franchise provides expert guidance and a curated selection of wellness products at multiple locations.

Financial Performance (Item 19)

Median Revenue

$1,313,157

per year, per location

Mean Revenue

$1,491,432

per year, per location

Profitability Estimate

Estimated Owner Profit

$168,084

per year

Profit Margin

12.8%

of revenue

Estimation method: disclosed+benchmark

Estimated ROI (Simple Payback): 4.5 years

Based on midpoint investment of $752,900 and estimated annual owner profit of $168,084.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

+2 units

From 2020 to 2022

Unit Activity History

Year Start Opened Closed Transfers End
2020
2021
2022 2

Is a The Vitamin Shoppe Franchise Worth It?

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

Overall Score

69/100

Moderate opportunity

Est. Payback Period

4.5 yrs

Average payback

Risk Level

N/A

Insufficient data

The Vitamin Shoppe shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $1,313,157 and a combined fee burden of 8.0% 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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