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.
Franchise Costs
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
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CANTEEN Current | $8K – $41K | $3K | 5.3% | 108 |
| EDIBLE ARRANGEMENTS | $214K – $587K | $30K | 5.0% | 680 |
| HONEYBAKED HAM AND THE HONEYBAKED HAM AND CAFE CO. | $514K – $830K | $20K | 6.0% | 212 |
| The Spice & Tea Exchange | $299K – $532K | $39K | 7.0% | 93 |
| GRAZE CRAZE | $167K – $326K | $50K | 6.0% | 89 |
| DOC POPCORN | $175K – $414K | $15K | 6.0% | 79 |
Specialty Food Average 13 franchises | $248K – $513K | $29K | 6.1% | – |
* 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
+35 more states
SBA Loan History
Historical SBA 7(a) loan data for CANTEEN franchisees (2011 – 2020)
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.
| Name | SBA 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)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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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