Without a storefront, there is no lease or build-out, so the Item 7 minimum is often materially lower. The trade-off is operating from a garage, spare room, or vehicle. Every brand below currently follows a home-based, mobile, or van-based format.
32 US franchise brands, ranked by FDD Item 7 minimum
| Rank | Brand | Initial investment | Store count |
|---|---|---|---|
| #1 | $1,945–$20,505 | ||
| #2 | $59,900–$69,900 | ||
| #3 | $81,150–$109,400 | ||
| #4 | $82,200–$194,600 | ||
| #5 | $92,150–$249,500 | ||
| #6 | $92,640–$350,550 | ||
| #7 | $93,440–$149,890 | ||
| #8 | $94,330–$176,239 | ||
| #9 | $97,575–$139,875 | ||
| #10 | $100,500–$211,250 | ||
| #11 | $104,374–$376,241 | ||
| #12 | $107,650–$252,850 | ||
| #13 | $113,808–$271,708 | ||
| #14 | $114,730–$228,601 | ||
| #15 | $117,720–$141,200 | ||
| #16 | $119,560–$190,700 | ||
| #17 | $120,525–$162,420 | ||
| #18 | $123,110–$281,550 | ||
| #19 | $125,460–$171,150 | ||
| #20 | $126,525–$309,500 | ||
| #21 | $126,875–$169,325 | ||
| #22 | $135,820–$163,902 | ||
| #23 | $137,885–$418,385 | ||
| #24 | $143,273–$286,702 | ||
| #25 | $144,150–$203,950 | ||
| #26 | $150,155–$191,575 | ||
| #27 | $152,900–$298,675 | ||
| #28 | $159,500–$357,425 | ||
| #29 | $161,900–$215,000 | ||
| #30 | $182,300–$303,500 | ||
| #31 | $185,336–$351,900 | ||
| #32 | $223,439–$509,283 |
Frequently asked
What counts as a "home-based" franchise?
A format that does not require leased retail or office space. The store-format description in the brand’s own FDD classifies it as home-based, mobile, or van-based. Most are service businesses, such as lawn care, cleaning, mobile repair, and travel advisory.
Do home-based franchises still charge a royalty?
Yes. Royalty and ad-fund percentages apply exactly as they do for a storefront brand. Avoiding a storefront cuts startup cost, but it does not reduce your continuing obligations.