Flip Flop Shops franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.17 ↗

Franchise fees and ongoing costs

Franchise fee

$30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5% · 5% of Gross Sales, paid weekly (Thursday for the preceding week) by EFT

Marketing contribution

1% (basis not captured; see original filing)

Technology fee

Not captured

Other fees

Late fee up to $100 per late payment; 18%/year interest on overdue amounts; audit fee (cost of audit) if understatement of amounts owed exceeds 3%

Working capital (FDD Item 7)

$0 to $55,000 for the 3-month start-up phase to cover employees, supplies, and other expenses; excludes debt service

Fees sourceFDD p.13 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.17 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median annual Gross Sales, broken out by retail location type

Reporting period

Calendar year January 1, 2024 to December 31, 2024

Sample

37 US/territory franchised Shops open a full calendar year as of 12/31/2024; the primary average/median figures are based on the 36 of those located in common retail spaces (malls/strip malls)

Reported average

$473,319

Reported median

$333,235

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.41 ↗

Unit growth: Item 20

Reporting year

2024

Scope

franchised outlets

Starting outlets

49

Year-end outlets

47

Net change

-2

Derivation

ending minus starting outlets

Openings

10

Terminations

0

Non-renewals

0

Other closures

12

Reacquisitions

0

Transfers

3

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.45 ↗

SBA loan history

Loan activity

8 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$160,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

5 loans

Historical charge-off share

47.06%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

8 / 17

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Flip Flop Shops franchise cost?

standard shop (leased, 800-1,200 sq ft): $182,900 to $349,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.17 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Flip Flop Shops owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median annual Gross Sales, broken out by retail location type. Sample: 37 US/territory franchised Shops open a full calendar year as of 12/31/2024; the primary average/median figures are based on the 36 of those located in common retail spaces (malls/strip malls). Period: Calendar year January 1, 2024 to December 31, 2024.

Item 19 performance sourceFDD p.41 ↗

What's the SBA charge-off rate for Flip Flop Shops?

47.06%; numerator / denominator: 8 / 17. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $160,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 5 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗