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SUBJECT DOSSIER · FDD 2026

iFoam Franchise

Cost, fees, owner earnings, closure rate and litigation for a iFoam franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Other Franchises · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

iFoam discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets96
Disclosed lawsuits2
Closure signals21 ceased
Investment
$164,599–$255,507
Total fees
0.3% of sales
Outlets
96
Closure signals
21 ceased, 21 terminated
Lawsuits
2
◢ FINDINGS
ITEM 20
21 outlets ceased operations
System declined 27% (2023-2025). 21 non-renewals/terminations in 2025 alone. High churn risk.
ITEM 03
2 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

What their own earnings claim actually says

Gross sales quartile data for 19 franchisees (87 territories) in 2025. Top 25% averaged $3.47M; bottom 25% averaged $517K. No net income/profit data disclosed.

What a iFoam franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$15,000Item 5 — paid up front, before you open
Royalty0.3% of gross salesItem 6 — charged on revenue, not profit
Total recurring fees0.3% of gross salesBefore rent, labor, food or debt service
Total initial investment$164,599 – $255,507Item 7 — franchisor's own low/high estimate

Monthly fee: $3K+ or $3/1K population. Territory fee $15K+ based on population. Multiple initial fees ($2.5K marketing, $5K partnerships, $5K tuition).

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

iFoam system size and owner turnover

Total outlets96
Ceased operations21
Terminated by franchisor21
Transferred to new owners6
Closure rate21.9% of outlets

System declined 27% (2023-2025). 21 non-renewals/terminations in 2025 alone. High churn risk.

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 iFoam worth it? — how it compares to 436 similar franchises

Ongoing fees0.3% of saleslower than most (median 8%)
Startup costfrom $164,599about average (median $138,750)
Disclosure honestyGrade Ctypical for the category
Closure rate21.9% of outletsworse than 95% of peers
Disclosed lawsuits2more litigious than 68% of peers

Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a iFoam

The franchisor's framing: Gross sales quartile data for 19 franchisees (87 territories) in 2025. Top 25% averaged $3… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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iFoam franchise — frequently asked

How much does a iFoam franchise cost?
The FDD lists a total initial investment of about $164,599–$255,507, including a $15,000 initial franchise fee.
How much do iFoam franchise owners make?
Gross sales quartile data for 19 franchisees (87 territories) in 2025. Top 25% averaged $3.47M; bottom 25% averaged $517K. No net income/profit data disclosed. We grade this disclosure C for honesty.
What are the iFoam franchise fees?
iFoam's FDD discloses a $15,000 initial franchise fee, a 0.3% royalty on gross sales, for roughly 0.3% of gross sales in recurring fees before rent, labor, or debt service. Monthly fee: $3K+ or $3/1K population. Territory fee $15K+ based on population. Multiple initial fees ($2.5K marketing, $5K partnerships, $5K tuition).
What is the iFoam franchise profit margin?
iFoam does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales quartile data for 19 franchisees (87 territories) in 2025. Top 25% averaged $3.47M; bottom 25% averaged $517K. No net income/profit data disclosed. Recurring fees alone take about 0.3% 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 iFoam franchise failure rate?
System declined 27% (2023-2025). 21 non-renewals/terminations in 2025 alone. High churn risk.
How many iFoam locations are there?
iFoam's FDD reports 96 total outlets, with 21 that ceased operations in the most recent reporting year and 6 transferred to new owners. Item 20 is where system health shows up before the marketing does.
Does iFoam have complaints or lawsuits?
iFoam discloses 2 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 iFoam franchise worth it?
It depends on the numbers, not the pitch. iFoam scores C on disclosure honesty, carries about 0.3% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with iFoam or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.