Cottage Inn Franchisor, LLC Franchise
Cost, fees, owner earnings, closure rate and litigation for a Cottage Inn Franchisor, LLC franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Cottage Inn Franchisor, LLC discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
AWUS $14,027-$17,906 franchised vs $19,119-$24,281 corporate (2019-2024). EBITDA 12.74-14.94%. Based on corporate stores only; no guarantee franchisees achieve these results.
What a Cottage Inn Franchisor, LLC franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% 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 | $216,000 – $550,000 | Item 7 — franchisor's own low/high estimate |
5% royalty on weekly gross revenue, $30k annual minimum. 4-6% advertising fund. $10k grand opening deposit. Exclusive supplier requirements.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Cottage Inn Franchisor, LLC system size and owner turnover
| Total outlets | 63 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 0.0% of outlets |
No terminations/non-renewals in 3 years. 2 transfers in 2024. System growing.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Cottage Inn Franchisor, LLC worth it? — how it compares to 38 similar franchises
| Ongoing fees | 9% of sales | steeper than 62% of pizza franchises |
| Startup cost | from $216,000 | cheaper than most (median $380,000) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 0.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every pizza franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Cottage Inn Franchisor, LLC
The franchisor's framing: AWUS $14,027-$17,906 franchised vs $19,119-$24,281 corporate (2019-2024). EBITDA 12.74-14.… 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
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Cottage Inn Franchisor, LLC franchise — frequently asked
- How much does a Cottage Inn Franchisor, LLC franchise cost?
- The FDD lists a total initial investment of about $216,000–$550,000, including a $25,000 initial franchise fee.
- How much do Cottage Inn Franchisor, LLC franchise owners make?
- AWUS $14,027-$17,906 franchised vs $19,119-$24,281 corporate (2019-2024). EBITDA 12.74-14.94%. Based on corporate stores only; no guarantee franchisees achieve these results. We grade this disclosure C for honesty.
- What are the Cottage Inn Franchisor, LLC franchise fees?
- Cottage Inn Franchisor, LLC's FDD discloses a $25,000 initial franchise fee, a 5% royalty on gross sales, a 4% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty on weekly gross revenue, $30k annual minimum. 4-6% advertising fund. $10k grand opening deposit. Exclusive supplier requirements.
- What is the Cottage Inn Franchisor, LLC franchise profit margin?
- Cottage Inn Franchisor, LLC does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: AWUS $14,027-$17,906 franchised vs $19,119-$24,281 corporate (2019-2024). EBITDA 12.74-14.94%. Based on corporate stores only; no guarantee franchisees achieve these results. 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 Cottage Inn Franchisor, LLC franchise failure rate?
- No terminations/non-renewals in 3 years. 2 transfers in 2024. System growing.
- How many Cottage Inn Franchisor, LLC locations are there?
- Cottage Inn Franchisor, LLC's FDD reports 63 total outlets, with 0 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Cottage Inn Franchisor, LLC have complaints or lawsuits?
- Cottage Inn Franchisor, LLC discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Cottage Inn Franchisor, LLC franchise worth it?
- It depends on the numbers, not the pitch. Cottage Inn Franchisor, LLC scores C on disclosure honesty, carries about 9% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2025). FranchiseValidate is independent and not affiliated with Cottage Inn Franchisor, LLC or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.