Cupbop Franchise
Cost, fees, owner earnings, closure rate and litigation for a Cupbop franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Cupbop discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Gross revenues data provided; some outlets achieved stated amounts. No assurance of individual results. Substantiation available upon request.
What a Cupbop franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | 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 | $298,740 – $669,390 | Item 7 — franchisor's own low/high estimate |
Royalty 6%, ad fund currently 2% (up to 4.5%). Multiple ancillary fees for training, transfers, non-compliance, liquidated damages.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Cupbop system size and owner turnover
| Total outlets | 56 |
| Ceased operations | 2 |
| Terminated by franchisor | 3 |
| Transferred to new owners | 0 |
| Closure rate | 3.6% of outlets |
2025: 3 terminations, 2 ceased operations out of 31 franchised outlets.
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 Cupbop worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $298,740 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 3.6% of outlets | worse than 66% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Cupbop
The franchisor's framing: Gross revenues data provided; some outlets achieved stated amounts. No assurance of indivi… 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
Cupbop franchise — frequently asked
- How much does a Cupbop franchise cost?
- The FDD lists a total initial investment of about $298,740–$669,390, including a $40,000 initial franchise fee.
- How much do Cupbop franchise owners make?
- Gross revenues data provided; some outlets achieved stated amounts. No assurance of individual results. Substantiation available upon request. We grade this disclosure D for honesty.
- What are the Cupbop franchise fees?
- Cupbop's FDD discloses a $40,000 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. Royalty 6%, ad fund currently 2% (up to 4.5%). Multiple ancillary fees for training, transfers, non-compliance, liquidated damages.
- What is the Cupbop franchise profit margin?
- Cupbop does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross revenues data provided; some outlets achieved stated amounts. No assurance of individual results. Substantiation available upon request. 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 Cupbop franchise failure rate?
- 2025: 3 terminations, 2 ceased operations out of 31 franchised outlets.
- How many Cupbop locations are there?
- Cupbop's FDD reports 56 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 Cupbop have complaints or lawsuits?
- Cupbop 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 Cupbop franchise worth it?
- It depends on the numbers, not the pitch. Cupbop scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a Cupbop? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Cupbop to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 35819-202604-10 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Cupbop or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.