ACT Franchise
Cost, fees, owner earnings, closure rate and litigation for a ACT franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
ACT discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 data: 116 qualifying units, avg gross revenue $609,587, avg gross profit $365,706. Year-over-year revenue growth 4.6%. Quartile breakdowns provided. Cherry-picking: excludes 12 units (11 mid-year opens, 1 limited schedule), excludes terminated/ceased operations.
What a ACT franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $60,000 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $83,447 – $635,078 | Item 7 — franchisor's own low/high estimate |
7% royalty on gross revenues; 2% advertising fee; $199/month technology fee; $15/email data security; numerous contingent fees (audit, late reporting, termination, liquidated damages $50k+).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
ACT system size and owner turnover
| Total outlets | 128 |
| Ceased operations | 3 |
| Terminated by franchisor | 5 |
| Transferred to new owners | 5 |
| Closure rate | 2.3% of outlets |
2025: 4 net outlet decline; 3 ceased operations; 5 terminations; confidentiality clauses limit franchisee contact.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is ACT worth it? — how it compares to 436 similar franchises
| Ongoing fees | 9% of sales | steeper than 60% of other franchises franchises |
| Startup cost | from $83,447 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 2.3% of outlets | about average |
| Disclosed lawsuits | 2 | more litigious than 68% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a ACT
The franchisor's framing: 2025 data: 116 qualifying units, avg gross revenue $609,587, avg gross profit $365,706. Ye… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
ACT franchise — frequently asked
- How much does a ACT franchise cost?
- The FDD lists a total initial investment of about $83,447–$635,078, including a $60,000 initial franchise fee.
- How much do ACT franchise owners make?
- 2025 data: 116 qualifying units, avg gross revenue $609,587, avg gross profit $365,706. Year-over-year revenue growth 4.6%. Quartile breakdowns provided. Cherry-picking: excludes 12 units (11 mid-year opens, 1 limited schedule), excludes terminated/ceased operations. We grade this disclosure B for honesty.
- What are the ACT franchise fees?
- ACT's FDD discloses a $60,000 initial franchise fee, a 7% royalty on gross sales, a 2% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty on gross revenues; 2% advertising fee; $199/month technology fee; $15/email data security; numerous contingent fees (audit, late reporting, termination, liquidated damages $50k+).
- What is the ACT franchise profit margin?
- ACT does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 data: 116 qualifying units, avg gross revenue $609,587, avg gross profit $365,706. Year-over-year revenue growth 4.6%. Quartile breakdowns provided. Cherry-picking: excludes 12 units (11 mid-year opens, 1 limited schedule), excludes terminated/ceased operations. Recurring fees alone take about 9% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the ACT franchise failure rate?
- 2025: 4 net outlet decline; 3 ceased operations; 5 terminations; confidentiality clauses limit franchisee contact.
- How many ACT locations are there?
- ACT's FDD reports 128 total outlets, with 3 that ceased operations in the most recent reporting year and 5 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does ACT have complaints or lawsuits?
- ACT discloses 2 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a ACT franchise worth it?
- It depends on the numbers, not the pitch. ACT scores B on disclosure honesty, carries about 9% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
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Compare ACT to similar franchises
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Source: MN CARDS 36193-202604-07 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with ACT or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.