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SUBJECT DOSSIER · FDD 2026

Pokéworks Franchise

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

Quick Service Restaurants · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

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

Outlets69
Disclosed lawsuits0
Closure signals5 ceased
Investment
$270,435–$599,661
Total fees
7.5% of sales
Outlets
69
Closure signals
5 ceased, 5 terminated
Lawsuits
0
◢ FINDINGS
ITEM 20
5 outlets ceased operations
5 franchised closures in 2025; 5 terminations in 2025. Modest 2-year growth trajectory.

What their own earnings claim actually says

2025 data: 6 company-owned restaurants averaged $1,391,931 gross sales; 52 franchised averaged $1,082,563. Top 20% franchised averaged $1,743,199; bottom 20% averaged $630,723. No net profit figures provided.

What a Pokéworks franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$40,000Item 5 — paid up front, before you open
Royalty6% of gross salesItem 6 — charged on revenue, not profit
Advertising fund1.5% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees7.5% of gross salesBefore rent, labor, food or debt service
Total initial investment$270,435 – $599,661Item 7 — franchisor's own low/high estimate

6% royalty + 1.5% marketing fund, $300/month technology fee. Multiple non-compliance penalties. Transfer fee 50% of current initial fee.

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

Pokéworks system size and owner turnover

Total outlets69
Ceased operations5
Terminated by franchisor5
Transferred to new owners0
Closure rate7.2% of outlets

5 franchised closures in 2025; 5 terminations in 2025. Modest 2-year growth trajectory.

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 Pokéworks worth it? — how it compares to 164 similar franchises

Ongoing fees7.5% of saleslower than most (median 8%)
Startup costfrom $270,435cheaper than most (median $481,500)
Disclosure honestyGrade Ctypical for the category
Closure rate7.2% of outletsworse than 78% of peers
Disclosed lawsuits0fewer than most

Benchmarked against every quick service restaurants 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 Pokéworks

The franchisor's framing: 2025 data: 6 company-owned restaurants averaged $1,391,931 gross sales; 52 franchised aver… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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Pokéworks franchise — frequently asked

How much does a Pokéworks franchise cost?
The FDD lists a total initial investment of about $270,435–$599,661, including a $40,000 initial franchise fee.
How much do Pokéworks franchise owners make?
2025 data: 6 company-owned restaurants averaged $1,391,931 gross sales; 52 franchised averaged $1,082,563. Top 20% franchised averaged $1,743,199; bottom 20% averaged $630,723. No net profit figures provided. We grade this disclosure C for honesty.
What are the Pokéworks franchise fees?
Pokéworks' FDD discloses a $40,000 initial franchise fee, a 6% royalty on gross sales, a 1.5% advertising-fund contribution, for roughly 7.5% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty + 1.5% marketing fund, $300/month technology fee. Multiple non-compliance penalties. Transfer fee 50% of current initial fee.
What is the Pokéworks franchise profit margin?
Pokéworks does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 data: 6 company-owned restaurants averaged $1,391,931 gross sales; 52 franchised averaged $1,082,563. Top 20% franchised averaged $1,743,199; bottom 20% averaged $630,723. No net profit figures provided. Recurring fees alone take about 7.5% 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 Pokéworks franchise failure rate?
5 franchised closures in 2025; 5 terminations in 2025. Modest 2-year growth trajectory.
How many Pokéworks locations are there?
Pokéworks' FDD reports 69 total outlets, with 5 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 Pokéworks have complaints or lawsuits?
Pokéworks 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 Pokéworks franchise worth it?
It depends on the numbers, not the pitch. Pokéworks scores C on disclosure honesty, carries about 7.5% of sales in ongoing fees. 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 Pokéworks or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.