Inter-State Studio Franchise
Cost, fees, owner earnings, closure rate and litigation for a Inter-State Studio franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Inter-State Studio discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
19 franchised businesses' 2025 gross revenues disclosed ($2,475–$1.7M). Lab fees included. Unaudited data; no cherry-picking noted but newer outlets (<12mo) included.
What a Inter-State Studio franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $15,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% 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 | $25,600 – $53,950 | Item 7 — franchisor's own low/high estimate |
Management 3-7% tiered on gross revenue; Marketing 3%; Technology $100-500/mo; multiple ancillary fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Inter-State Studio system size and owner turnover
| Total outlets | 43 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 2.3% of outlets |
1 cessation in 2025; no terminations or non-renewals in 3 years.
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 Inter-State Studio worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $25,600 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 2.3% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
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 Inter-State Studio
The franchisor's framing: 19 franchised businesses' 2025 gross revenues disclosed ($2,475–$1.7M). Lab fees included.… 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
Inter-State Studio franchise — frequently asked
- How much does a Inter-State Studio franchise cost?
- The FDD lists a total initial investment of about $25,600–$53,950, including a $15,000 initial franchise fee.
- How much do Inter-State Studio franchise owners make?
- 19 franchised businesses' 2025 gross revenues disclosed ($2,475–$1.7M). Lab fees included. Unaudited data; no cherry-picking noted but newer outlets (<12mo) included. We grade this disclosure B for honesty.
- What are the Inter-State Studio franchise fees?
- Inter-State Studio's FDD discloses a $15,000 initial franchise fee, a 5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Management 3-7% tiered on gross revenue; Marketing 3%; Technology $100-500/mo; multiple ancillary fees.
- What is the Inter-State Studio franchise profit margin?
- Inter-State Studio does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 19 franchised businesses' 2025 gross revenues disclosed ($2,475–$1.7M). Lab fees included. Unaudited data; no cherry-picking noted but newer outlets (<12mo) included. 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 Inter-State Studio franchise failure rate?
- 1 cessation in 2025; no terminations or non-renewals in 3 years.
- How many Inter-State Studio locations are there?
- Inter-State Studio's FDD reports 43 total outlets, with 1 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 Inter-State Studio have complaints or lawsuits?
- Inter-State Studio 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 Inter-State Studio franchise worth it?
- It depends on the numbers, not the pitch. Inter-State Studio scores B on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Inter-State Studio to similar franchises
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Source: MN CARDS 35589-202603-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Inter-State Studio or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.