FRANCHISE·WATCH·DESK

ITEMS 5–7 · FDD 2017

How much is a American Express Travel Related Services franchise?

Per American Express Travel Related Services's 2017 FDD, the initial franchise fee is $30K (Item 5) and the total initial investment runs $30K–$50K (Item 7).

Franchise fee · Item 5

$30K

one-time, to buy in

Total investment · Item 7

$30K–$50K

franchisor's own estimate

Breakeven framingwhat it costs · what it drags

The buy-in is the smaller number. The larger one is the drag: royalties and fees 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)

$30K–$50K

all-in investment range

Franchise fee (Item 5)

$30K

upfront, one-time

Royalty (Item 6)

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.

Royalty you'd pay / yr

$0

0% of sales, before profit

Over a 10-yr term

$0

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for American Express Travel Related Services with an independent CPA

American Express Travel Related Services cost questions, answered from the filing

How much is a American Express Travel Related Services franchise?

Per American Express Travel Related Services's 2017 FDD, opening a franchise requires an initial franchise fee of $30K (Item 5) and a total initial investment of $30K–$50K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.

Does American Express Travel Related Services tell you what franchisees earn?

No — American Express Travel Related Services's 2017 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.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing American Express Travel Related Services's numbers, including talking you out of a bad deal.

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