How Much Does the Adam & Eve Franchise Cost?

AEFC, Inc. discloses three separate U.S. cost structures in its June 24, 2025 Franchise Disclosure Document: $170,415 to $365,410 for a start-up franchise, $105,365 to $272,410 for a conversion franchise, and $192,915 to $387,910 for the minimum two-outlet Multi-Unit Development Agreement. The formats are not interchangeable, and the multi-unit range does not include the build-out of both outlets.

The FDD cover separately states that $30,830 to $30,950 of the start-up total, $10,830 to $10,950 of the conversion total, and $52,500 of the minimum multi-unit total must be paid to AEFC, Inc. or an affiliate. For each single-unit format, that direct-pay amount combines the Initial Franchise Fee with $830 to $950 of initial check-out products; most other opening capital is paid to third parties.

How to read the ranges: the low endpoint is not a promise that a buyer can open with only that amount, and the high endpoint is not a cap on every local project. Actual lease terms, construction work, deposits, permits, professional services, insurance arrangements, and supplier orders may differ. A buyer also needs separate personal living resources because the three-month operating allowance excludes owner compensation and debt service.

The conversion franchise has the lowest disclosed range because the model assumes the operator already has an approved retail location and therefore assigns $0 to Lease Deposits. It also uses a lower Initial Franchise Fee, opening inventory range, and Grand Opening Marketing range than the start-up franchise.

Where does the conversion range differ?

The following categories change materially between a new start-up outlet and a conversion of an existing approved store. The remaining categories carry the same disclosed ranges in both tables, including premises work, furnishings, training travel, technology, insurance, advisory costs, and the initial operating allowance.

The $170,415 to $365,410 range for a new outlet covers the entry payment, premises-related deposits and improvements, fixtures, signs, opening merchandise, required technology, launch promotion, advisory costs, and a three-month operating allowance. It does not mean every listed expenditure is paid to the franchisor; most payments go to landlords, suppliers, contractors, insurers, government authorities, and professional advisers.

Premises, fixtures, inventory, and technology

The premises assumptions are based on an approximately 2,500- to 3,500-square-foot location. The low Leasehold Improvements estimate assumes space that previously operated as a retail business; the high estimate assumes a “vanilla box” requiring more work. The range does not subtract a negotiated tenant-improvement allowance, and lease terms may separately require broker fees, rent prepayments, common-area maintenance charges, real estate taxes, or insurance costs. Source: 2025 FDD, Item 7, pp. 19-20.

Pre-opening expenses and working capital

The investment is paid in stages rather than as one check. The first binding payments arise at agreement signing, followed by the second start-up franchise-fee installment at lease signing, then site, inventory, technology, insurance, and marketing payments before and around opening.

The 2025 FDD estimates a typical six-to-ten-month period from Franchise Agreement signing to opening, subject to site, financing, permits, build-out, equipment, signage, and training. Item 11, pp. 25-26. The FTC explains the separate 14-day disclosure period in its Franchise Rule materials.

A new outlet pays a 5% Royalty Fee on Net Sales; an existing-store outlet pays 3% of Net Sales. The franchisee must also spend 5% of Net Sales per month on Local Marketing and Advertising. Item 6 states a 1.5% Brand Fund Contribution, collectible with the Royalty Fee and subject to increase to 2%, although no Brand Fund had been established as of the 2025 FDD issuance date.

These percentages cannot be converted into a reliable annual dollar figure without a sales assumption, and the disclosure does not supply one for this cost analysis. They should therefore be read as separate contractual bases: one amount paid to the franchisor, one minimum spent locally, and one system contribution that may be activated or increased under the agreement. The combined burden also changes when a cooperative assessment, reduced multi-outlet rate, late charge, technology payment, or other conditional obligation applies.

Net Sales

All sales at or from the Franchised Business or under the Franchise Agreement, whether collected or not, excluding sales tax turned over to government, properly documented refunds, and properly documented promotional discounts.

Multiple-outlet royalty

Item 6 provides conditional reduced rates: the longest-open outlet remains at 5%; the second through fourth may pay 4%; qualifying later outlets may fall to 3.5%, 3%, or 2.5%, subject to compliance, purchasing, technology, ownership, and non-conversion conditions.

Local versus Brand Fund

The 5% local expenditure is a franchisee spending requirement. The 1.5% Brand Fund Contribution is a separate system-level fee when collected. A future cooperative may add an assessment, with limited credit against local spending.

Technology has both an opening budget range and separate monthly obligations. The disclosure lists the required technology at $1,035 to $21,260 before opening. Item 11 separately estimates hardware and software at $900 to $20,000, plus approximately $420 to $795 per month in software access fees.

Item 8 names NALPAC for 80% of a start-up outlet's Initial Inventory, Sherwin-Williams for paint and laminate flooring, Bella Furniture for design, fixtures, and furniture, and The Packaging Source for check-out products. The franchisor estimates designated or approved sources represent approximately 73% to 75% of establishment costs for a standard start-up, 86% to 90% for a conversion, and 40% to 50% of ongoing operating costs. Source: 2025 FDD, Item 8, pp. 21-23.

The $192,915 to $387,910 multi-unit range covers the $52,500 Development Fee for two outlets plus $140,415 to $335,410 of other expenditures for the first outlet. The FDD expressly says costs to build later outlets depend on inflation, labor, materials, and other factors it cannot estimate or control.

Important scope limit: a two-outlet development commitment is not the same as a two-outlet opening budget. The second outlet's lease, construction, equipment, inventory, technology, launch marketing, and working capital are not included in the headline multi-unit total. Source: 2025 FDD, Item 7, p. 21.

How is the Development Fee calculated?

The Development Fee is paid in a lump sum when the Multi-Unit Development Agreement is signed. It equals the full $30,000 Initial Franchise Fee for the first outlet plus the following reduced per-outlet amounts for each additional committed outlet.

Item 6 contains charges that do not belong in the normal opening total but can become material after late payment, noncompliance, transfer, relocation, training, audit, default, or termination. These obligations are generally nonrefundable.

Source: 2025 FDD, Item 6, pp. 11-16, and Item 17, pp. 36-43. State-specific addenda may modify enforcement or remedies.

The June 2025 disclosure does not state a minimum cash-on-hand or balance-sheet threshold. Item 10 states that the franchisor offers no direct or indirect financing and does not guarantee a note, lease, or obligation. The POS payment option in Item 11 is a disclosed supplier financing structure, not franchisor financing.

The official franchise FAQ says the franchisor does not provide financing and mentions unnamed lending relationships, while suggesting local banking relationships. No lender, terms, approval standard, or guaranteed funding amount is disclosed. The contract also requires a spouse guaranty in specified circumstances, creating personal exposure without adding a separate opening fee.

The decisive checks depend on the selected structure. A buyer should reconcile the current disclosure, site and lease economics, supplier quotations, technology payment choice, and post-opening cash needs before signing the governing contracts.

The verified cost decision is therefore not one headline number. It is a choice among a $170,415-$365,410 start-up, a $105,365-$272,410 conversion, or a $192,915-$387,910 minimum multi-unit commitment, followed by percentage-based Royalty Fee, marketing, possible Brand Fund, technology, supplier, and event-triggered obligations. The largest unresolved variables are the condition of the premises, the opening merchandise order, required-source packages, the selected technology payment structure, and the cash needed after the first three months.