CANTEEN

CANTEEN

Canteen franchises authorize operators to distribute food, beverages, and other consumer items through vending services, food services, office coffee services, combined services, and/or secured delivery services, often in automated or unattended market environments. The business primarily serves business and industry, institutional, and recreational locations, with franchisees typically converting existing vending or food service operations into the Canteen system. The model grants protected territories for standard agreements, targeting experienced operators in a competitive food service and vending market.

108
Locations
$8K–$41K
Investment
Since 1996
Franchising
ServicesCharlotte, NCCompass Group USA, Inc.www.canteen.comDisclaimer

Franchise Costs


Franchise Fee
$3,250
Item 5 of FDD
Initial Investment Range
$8,350 $41,000
Low: $8,350High: $41,000
Item 7 of FDD
Royalty Rate
5.25%
of gross sales
Brand Fund
N/A
Item 6 of FDD

Up to 5.25% royalty (3.25% if compliant with standards) + approx. $9.50/user/mo MyCompass website access

Financial Performance


Item 19 Financial Performance

Data Based On: Performance of 105 Canteen franchises (out of 112 total) during the Financial Performance Period (September 16, 2023 to September 15, 2024), excluding 1 new franchisee, 4 franchisees that left the system, and 2 franchisees with mixed revenue/rebate information.

* The document provides data on 'rebate returns' as a percentage of 'net revenues' for franchised units, not overall gross revenue, net income, or EBITDA. The document explicitly states that these representations 'do not reflect all revenues franchisee will receive'. The average rebate return is approximately 8.5% of net revenues and the median rebate return is 8.3% of net revenues. Segmented data for rebate returns is provided: 51% (52 franchisees) recognized less than 8.3% (25% equal to or less than 7%) and 49% (53 franchisees) recognized equal to or greater than 8.3% (26% equal to or greater than 9.5%). However, these percentages are for rebate returns, not for the overall financial performance metrics (gross revenue, net profit, EBITDA, etc.) requested by the prompt. Therefore, financial metrics such as average gross revenue, net income, net profit, EBITDA, and EBITDA margin are set to null as they are not directly provided or derivable from the rebate return percentages.

Extracted Item 19 Section

How CANTEEN Compares


Key Insights

  • One of the lowest investment costs in Specialty Food (ranked #2 of 13)
  • #3 largest franchise system in Specialty Food
FranchiseInvestmentFeeRoyaltyLocations
CANTEEN
Current
$8K – $41K$3K5.3%108
EDIBLE ARRANGEMENTS$214K – $587K$30K5.0%680
HONEYBAKED HAM AND THE HONEYBAKED HAM AND CAFE CO.$514K – $830K$20K6.0%212
The Spice & Tea Exchange$299K – $532K$39K7.0%93
GRAZE CRAZE$167K – $326K$50K6.0%89
DOC POPCORN$175K – $414K$15K6.0%79
Specialty Food Average
13 franchises
$248K – $513K$29K6.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 13 Specialty Food franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1TX
18
2MO
10
3PA
10
4MN
9
5CA
9
6IN
8
7WA
7
8NY
7
9GA
7
10IL
7
11AR
6
12IA
6
13SD
6
14KS
6
15OR
6

+35 more states

SBA Loan History


Historical SBA 7(a) loan data for CANTEEN franchisees (20112020)

Total Loans
13
Average Loan
$941,508
Total Volume
$12.2M
Default Rate
7.7%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


278 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

278 Contacts Available

Unlock all CANTEEN franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
1
Sold to Franchisees
0
Projected New
9

Frequently Asked Questions


The total initial investment to open a CANTEEN franchise ranges from $8,350 to $41,000. This includes a franchise fee of $3,250. Ongoing royalty fees are 5.3% of gross sales.

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