ITEMS 5–7 · FDD 2026
How much is a Cloudbound franchise?
Per Cloudbound's 2026 FDD, the initial franchise fee is $60K (Item 5) and the total initial investment runs $2.3M–$4.2M (Item 7); once open, you pay an ongoing royalty of 6.0% of gross sales (Item 6).
$60K
one-time, to buy in
6.0%
of gross sales, ongoing
$2.3M–$4.2M
franchisor's own estimate
The buy-in is the smaller number. The larger one is the drag: 6.0% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD, and this brand publishes no Item 19 earnings data to anchor it.
To open (Item 7)
$2.3M–$4.2M
all-in investment range
Franchise fee (Item 5)
$60K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Cloudbound with an independent CPACloudbound cost questions, answered from the filing
How much is a Cloudbound franchise?
Per Cloudbound's 2026 FDD, opening a franchise requires an initial franchise fee of $60K (Item 5) and a total initial investment of $2.3M–$4.2M (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.
What royalty does Cloudbound charge?
Cloudbound charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does Cloudbound tell you what franchisees earn?
No — Cloudbound's 2026 FDD makes no Item 19 earnings claim, so any revenue figure you hear comes from sales conversations, not disclosure documents. Validate with current and former franchisees.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Cloudbound's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →