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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.
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Franchise Costs
Up to 5.25% royalty (3.25% if compliant with standards) + $10/user/mo MyCompass website access
Financial Performance
Item 19 Financial Performance
Data Based On: Data compiled from the performance of 93 Canteen franchises during the Financial Performance Period (October 1, 2024, to September 30, 2025). Excluded were 5 new franchises, 13 exited franchises, and 2 franchises with mixed revenue/rebate information.
Extracted Item 19 Section
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Unlock financial performance dataCANTEEN Franchise Analysis
Picture scaling vending routes in offices and institutions without building from zero—Canteen's conversion model targets pros ready to plug into a branded system. With Item 19 laying bare franchisee financials and SBA records showing real-world funding paths, the data hints at accessible entry backed by a global parent. But in a setup where corporate outpaces franchises, can operators carve out profitable territories amid modest expansion signals?
Canteen launched franchising in 1996, steadily reaching 100 franchise locations against 161 corporate ones for a 261-unit system where franchises hold 38% share. This corporate-heavy structure reflects Compass Group's scale but signals cautious franchise rollout. System health remains solid: just 1 termination, 4 transfers, and 9 projected new units indicate stability over rapid growth, suiting experienced vending operators converting routes rather than novices chasing hyper-expansion.
Financials favor low-barrier entry—$3,250 franchise fee and $9,150-$44,300 total investment make it one of the cheapest in specialty food vending. Royalties flex from 3.25% (compliance bonus) to 5.25% plus $10/user/month for MyCompass tech; Item 19 discloses earnings for vetted performance insights. SBA stats reveal 13 loans averaging $941,508 with a low 7.7% default rate, underscoring capital needs for equipment fleets despite cheap startup. Few red flags emerge, though limited franchise growth and high loan averages flag scale-up costs; steady metrics position Canteen for reliable B2B cash flow over lottery-like upside.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How CANTEEN Compares
Key Insights
- One of the lowest investment costs in Specialty Food (ranked #2 of 15)
- #3 largest franchise system in Specialty Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CANTEEN Current | $9K – $44K | $3K | 5.3% | 100 |
| 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 15 franchises | $229K – $480K | $28K | 6.9% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 15 Specialty Food franchises by location count.
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.
13 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
108 franchisee contacts on file from official FDD filings.
108 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a CANTEEN franchise ranges from $9,150 to $44,300. This includes a franchise fee of $3,250. Ongoing royalty fees are 5.3% of gross sales.
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