Class 101 Franchise
Cost, fees, owner earnings, closure rate and litigation for a Class 101 franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Class 101 discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross sales by quartile for 52 units (2025): Top $415k avg, 2nd $175k avg, 3rd $86k avg, 4th $29k avg. Does not include operating costs or net income.
What a Class 101 franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $49,900 | Item 5 — paid up front, before you open |
| Royalty | 8% 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 | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $83,700 – $138,300 | Item 7 — franchisor's own low/high estimate |
8% royalty or $500 min/month; 2% NAF + 4% local marketing (6% combined cap); $149-$300 tech fee.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Class 101 system size and owner turnover
| Total outlets | 85 |
| Ceased operations | 3 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 1 |
| Closure rate | 3.5% of outlets |
3 ceased operations in 2025; zero terminations reported. Low failure rate visible.
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 Class 101 worth it? — how it compares to 436 similar franchises
| Ongoing fees | 10% of sales | steeper than 74% of other franchises franchises |
| Startup cost | from $83,700 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 3.5% of outlets | worse than 66% of peers |
| Disclosed lawsuits | 1 | about average |
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 Class 101
The franchisor's framing: Gross sales by quartile for 52 units (2025): Top $415k avg, 2nd $175k avg, 3rd $86k avg, 4… 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
Class 101 franchise — frequently asked
- How much does a Class 101 franchise cost?
- The FDD lists a total initial investment of about $83,700–$138,300, including a $49,900 initial franchise fee.
- How much do Class 101 franchise owners make?
- Gross sales by quartile for 52 units (2025): Top $415k avg, 2nd $175k avg, 3rd $86k avg, 4th $29k avg. Does not include operating costs or net income. We grade this disclosure C for honesty.
- What are the Class 101 franchise fees?
- Class 101's FDD discloses a $49,900 initial franchise fee, a 8% royalty on gross sales, a 2% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 8% royalty or $500 min/month; 2% NAF + 4% local marketing (6% combined cap); $149-$300 tech fee.
- What is the Class 101 franchise profit margin?
- Class 101 does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales by quartile for 52 units (2025): Top $415k avg, 2nd $175k avg, 3rd $86k avg, 4th $29k avg. Does not include operating costs or net income. Recurring fees alone take about 10% 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 Class 101 franchise failure rate?
- 3 ceased operations in 2025; zero terminations reported. Low failure rate visible.
- How many Class 101 locations are there?
- Class 101's FDD reports 85 total outlets, with 3 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Class 101 have complaints or lawsuits?
- Class 101 discloses 1 legal matter 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 Class 101 franchise worth it?
- It depends on the numbers, not the pitch. Class 101 scores C on disclosure honesty, carries about 10% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare Class 101 to similar franchises
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Source: MN CARDS 36083-202604-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Class 101 or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.