Zerorez franchise research

Investment by format

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

Investment sourceFDD p.19 ↗

Franchise fees and ongoing costs

Franchise fee

$15,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · 6% of Gross Sales, paid monthly by the 15th based on prior month's sales; or a $750/month flat fee for Hometown Market territories, subject to minimum royalty amounts

Marketing contribution

1% (basis not captured; see original filing)

Technology fee

2.25% of Gross Sales monthly ("Zr Ware Technology Fee"), may increase up to 0.5%/year to a max of 3.5% during the initial term; plus a $1,500 one-time initial license/setup fee

Other fees

National Brand Fund Contribution: 1% of Gross Sales currently, up to 3%; Non-Compliance Fee: $100/day per deviation; Annual Conference Fee: varies (currently no charge for up to 4 attendees)

Working capital (FDD Item 7)

Item 7 discloses 'Additional Funds' covering the first 12 months (not 3) at $90,000-$241,500, including security deposits, ongoing software subscriptions, advertising, rent, payroll, insurance and transitional living expenses; based on an owner-operated business with no allowance for salaries or an owner's draw.

Fees sourceFDD p.14 ↗

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.19 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average, median, high and low Gross Revenues, Costs of Goods Sold, Gross Profit, Advertising & Marketing expense, and Contribution Margin (Gross Profit less Advertising & Marketing)

Reporting period

Fiscal year 2025

Sample

43 of 60 total franchisees (those with at least one year of operating history that properly reported to the franchisor); 17 franchisees excluded (5 with <1 year of history, 12 that did not properly report)

Reported average

$1,428,301

Reported median

$890,136

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.46 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

57

Year-end outlets

60

Net change

+3

Derivation

ending minus starting outlets

Openings

8

Terminations

3

Non-renewals

0

Other closures

2

Reacquisitions

0

Transfers

2

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.48 ↗

SBA loan history

Loan activity

4 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$104,750

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

2 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 5

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 Zerorez franchise cost?

standard (single Mobile Unit operation): $218,718 to $410,698 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $15,000 to $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.19 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Zerorez owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, high and low Gross Revenues, Costs of Goods Sold, Gross Profit, Advertising & Marketing expense, and Contribution Margin (Gross Profit less Advertising & Marketing). Sample: 43 of 60 total franchisees (those with at least one year of operating history that properly reported to the franchisor); 17 franchisees excluded (5 with <1 year of history, 12 that did not properly report). Period: Fiscal year 2025.

Item 19 performance sourceFDD p.46 ↗

What's the SBA charge-off rate for Zerorez?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 5. 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: $104,750; window: FY2023-FY2026 YTD through 2026-06-30; sample: 2 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗