AFC Franchise
Cost, fees, owner earnings, closure rate and litigation for a AFC franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
AFC discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
79 affiliate & 291 franchisee centers 2025 data. Average cash revenue $1.79M franchised, $1.78M affiliate. 4-Wall EBITDA average $282K affiliate, varies by octile. 50-51% met/exceeded averages.
What a AFC 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 | 6% 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 | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $948,250 – $1,514,000 | Item 7 — franchisor's own low/high estimate |
6% royalty + 2% marketing fee on net payments. Technology fee $767/mo (capped 1% revenue). Lost Revenue Damages up to 36 months post-termination. Multiple training, transfer, successor fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
AFC system size and owner turnover
| Total outlets | 407 |
| Ceased operations | 0 |
| Terminated by franchisor | 15 |
| Transferred to new owners | 11 |
| Closure rate | 0.0% of outlets |
15 terminations in 2025; 11 transfers same year. Prior litigation settlements $6.71M combined.
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 AFC worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $948,250 | pricier than 89% of peers |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 6 | more litigious than 86% 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 AFC
The franchisor's framing: 79 affiliate & 291 franchisee centers 2025 data. Average cash revenue $1.79M franchised, $… 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
AFC franchise — frequently asked
- How much does a AFC franchise cost?
- The FDD lists a total initial investment of about $948,250–$1,514,000, including a $60,000 initial franchise fee.
- How much do AFC franchise owners make?
- 79 affiliate & 291 franchisee centers 2025 data. Average cash revenue $1.79M franchised, $1.78M affiliate. 4-Wall EBITDA average $282K affiliate, varies by octile. 50-51% met/exceeded averages. We grade this disclosure B for honesty.
- What are the AFC franchise fees?
- AFC's FDD discloses a $60,000 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty + 2% marketing fee on net payments. Technology fee $767/mo (capped 1% revenue). Lost Revenue Damages up to 36 months post-termination. Multiple training, transfer, successor fees.
- What is the AFC franchise profit margin?
- AFC does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 79 affiliate & 291 franchisee centers 2025 data. Average cash revenue $1.79M franchised, $1.78M affiliate. 4-Wall EBITDA average $282K affiliate, varies by octile. 50-51% met/exceeded averages. Recurring fees alone take about 8% 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 AFC franchise failure rate?
- 15 terminations in 2025; 11 transfers same year. Prior litigation settlements $6.71M combined.
- How many AFC locations are there?
- AFC's FDD reports 407 total outlets, with 0 that ceased operations in the most recent reporting year and 11 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does AFC have complaints or lawsuits?
- AFC discloses 6 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 AFC franchise worth it?
- It depends on the numbers, not the pitch. AFC scores B on disclosure honesty, carries about 8% of sales in ongoing fees, and discloses 6 legal matters. Get the real owner take-home before you sign.
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Compare AFC to similar franchises
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Source: MN CARDS 36318-202604-11 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with AFC or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.