Border Magic Franchise
Cost, fees, owner earnings, closure rate and litigation for a Border Magic franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Border Magic discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor explicitly declines to provide any financial performance representations or projections. States employees cannot make oral or written income claims.
What a Border Magic franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $63,000 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 10% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 17% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $144,715 – $168,830 | Item 7 — franchisor's own low/high estimate |
7% royalty or $750-$1500/mo minimum. Technology fee $65-$175/mo. 10% local advertising recommended. Multiple ancillary fees including transfer ($7500), renewal ($5500), defaults ($1500+).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Border Magic system size and owner turnover
| Total outlets | 26 |
| Ceased operations | 2 |
| Terminated by franchisor | 4 |
| Transferred to new owners | 0 |
| Closure rate | 7.7% of outlets |
System contracted 20% over three years (46→26 outlets). 20 cumulative ceased/terminated since 2023.
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 Border Magic worth it? — how it compares to 436 similar franchises
| Ongoing fees | 17% of sales | steeper than 95% of other franchises franchises |
| Startup cost | from $144,715 | about average (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 7.7% of outlets | worse than 84% of peers |
| Disclosed lawsuits | 4 | more litigious than 80% 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 Border Magic
The franchisor's framing: Franchisor explicitly declines to provide any financial performance representations or pro… 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
Border Magic franchise — frequently asked
- How much does a Border Magic franchise cost?
- The FDD lists a total initial investment of about $144,715–$168,830, including a $63,000 initial franchise fee.
- How much do Border Magic franchise owners make?
- Border Magic discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Border Magic franchise fees?
- Border Magic's FDD discloses a $63,000 initial franchise fee, a 7% royalty on gross sales, a 10% advertising-fund contribution, for roughly 17% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty or $750-$1500/mo minimum. Technology fee $65-$175/mo. 10% local advertising recommended. Multiple ancillary fees including transfer ($7500), renewal ($5500), defaults ($1500+).
- What is the Border Magic franchise profit margin?
- Border Magic discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Border Magic franchise failure rate?
- System contracted 20% over three years (46→26 outlets). 20 cumulative ceased/terminated since 2023.
- How many Border Magic locations are there?
- Border Magic's FDD reports 26 total outlets, with 2 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Border Magic have complaints or lawsuits?
- Border Magic discloses 4 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 Border Magic franchise worth it?
- It depends on the numbers, not the pitch. Border Magic scores F on disclosure honesty, carries about 17% of sales in ongoing fees, and discloses 4 legal matters. Get the real owner take-home before you sign.
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Compare Border Magic to similar franchises
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Source: MN CARDS 35736-202603-13 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Border Magic or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.