ITEMS 5–7 · 2026 FDD
How much is a COMPASS BY MARGARITAVILLE franchise?
Per COMPASS BY MARGARITAVILLE's 2026 FDD, the initial franchise fee is $65,000 (Item 5) and the total initial investment runs $10.4M–$57.9M (Item 7); once open, you pay an ongoing royalty of 5.0% of gross sales (Item 6).
$65,000
one-time, to buy in
5.0%
of gross sales, ongoing
$10.4M–$57.9M
franchisor's own estimate
| Cost line | COMPASS BY MARGARITAVILLE | Sector median |
|---|---|---|
| Initial franchise fee ITEM 5 | $65,000 | $57,500 |
| Ongoing royalty ITEM 6 | 5.0% | 5.5% |
| Total initial investment ITEM 7 | $10.4M–$57.9M | $8.8M–$17.7M |
MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 37 HOTELS & HOSPITALITY SYSTEMS · FULL HOTELS & HOSPITALITY BENCHMARK →
The buy-in is the smaller number. The larger one is the drag: 5.0% 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)
$10.4M–$57.9M
all-in investment range
Franchise fee (Item 5)
$65,000
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Starts at a placeholder of $500K — a round figure for the sector, not from COMPASS BY MARGARITAVILLE’s filings. This brand's FDD makes no Item 19 earnings claim; set your own figure and check it with current and former owners.
Royalty you'd pay / yr
$25K
5% of sales, before profit
Over a 10-yr term
$250K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for COMPASS BY MARGARITAVILLE with a buyer-paid CPACOMPASS BY MARGARITAVILLE cost questions, answered from the filing
How much is a COMPASS BY MARGARITAVILLE franchise?
Per COMPASS BY MARGARITAVILLE's 2026 FDD, opening a franchise requires an initial franchise fee of $65,000 (Item 5) and a total initial investment of $10.4M–$57.9M (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.
What royalty does COMPASS BY MARGARITAVILLE charge?
COMPASS BY MARGARITAVILLE charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD. The median across 37 hotels & hospitality systems tracked here is 5.5%.
Does COMPASS BY MARGARITAVILLE tell you what franchisees earn?
No — COMPASS BY MARGARITAVILLE'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.
The COMPASS BY MARGARITAVILLE validation checklist
questions built from this brand's own filings · read them all on the profile
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A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing COMPASS BY MARGARITAVILLE’s numbers, including talking you out of a bad deal.