The Counter Franchise
Cost, fees, owner earnings, closure rate and litigation for a The Counter franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
The Counter discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Average gross sales $2.31M across 6 franchised outlets for fiscal year ending 11/30/2025. Half met/exceeded average; half met/exceeded median ($2.24M).
What a The Counter franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $713,133 – $1,988,750 | Item 7 — franchisor's own low/high estimate |
6% royalty plus up to 3% advertising fee, surcharge $10/week max. Multiple ancillary fees for training, technology, data collection, loyalty program.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
The Counter system size and owner turnover
| Total outlets | 8 |
| Ceased operations | 1 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 0 |
| Closure rate | 12.5% of outlets |
Franchise system declining: 18 outlets (2023) to 6 (2025). Net loss of 12 units in two 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 The Counter worth it? — how it compares to 164 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $713,133 | pricier than 72% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 12.5% of outlets | worse than 88% of peers |
| Disclosed lawsuits | 3 | more litigious than 74% of peers |
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 The Counter
The franchisor's framing: Average gross sales $2.31M across 6 franchised outlets for fiscal year ending 11/30/2025. … 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
The Counter franchise — frequently asked
- How much does a The Counter franchise cost?
- The FDD lists a total initial investment of about $713,133–$1,988,750, including a $35,000 initial franchise fee.
- How much do The Counter franchise owners make?
- Average gross sales $2.31M across 6 franchised outlets for fiscal year ending 11/30/2025. Half met/exceeded average; half met/exceeded median ($2.24M). We grade this disclosure D for honesty.
- What are the The Counter franchise fees?
- The Counter's FDD discloses a $35,000 initial franchise fee, a 6% royalty on gross sales, a 1% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty plus up to 3% advertising fee, surcharge $10/week max. Multiple ancillary fees for training, technology, data collection, loyalty program.
- What is the The Counter franchise profit margin?
- The Counter does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Average gross sales $2.31M across 6 franchised outlets for fiscal year ending 11/30/2025. Half met/exceeded average; half met/exceeded median ($2.24M). Recurring fees alone take about 7% 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 The Counter franchise failure rate?
- Franchise system declining: 18 outlets (2023) to 6 (2025). Net loss of 12 units in two years.
- How many The Counter locations are there?
- The Counter's FDD reports 8 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 The Counter have complaints or lawsuits?
- The Counter discloses 3 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 The Counter franchise worth it?
- It depends on the numbers, not the pitch. The Counter scores D on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
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Compare The Counter to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with The Counter or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.