Fado franchise
2023 filing · April 28, 2023Growing
Fado at a glance
A boutique selling clothing and accessories for women, children and men. At the end of 2022 there were 3 Fado locations in the US, 1 franchised and 2 company-owned, so most are run by the company itself.
The business
- Industry
- Retail
- Franchisor
- Fado Headquarters LLC
- The company that sells the franchises
- Franchisor based in
- St. Augustine, Florida
- Typical size
- 1,000–1,500 sq ft
What you pay
- Cost to open
- $193K–$509K
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 6%
- The greater of 6% of gross sales or $2,000 a month, plus 2% to the brand fund
- Brand fund
- 2%
- 2% of gross sales, paid with the royalty
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 3
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 2
- Change in 3 years
- +1
- Franchised locations, 2020–2022
- States
- 2
- Most in New York and New Jersey
From Fado Headquarters LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Fado among all franchises with the same figure.
| Figure | Fado | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $350,900 | Costs less than 51% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 3 | Fewer than 78% of franchises |
How much a Fado franchise costs
Opening one Fado costs an estimated $193,100 to $508,700. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are additional funds – 3 months ($50,000 to $200,000) and equipment, furniture, fixtures, office set up and branded materials. ($25,000 to $100,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | ||
| Rent-3 Months | $14,000 | $26,000 | |
| Utility Security Deposits | $0 | $1,000 | |
| Construction, Remodeling, Leasehold Improvements | $20,000 | $70,000 | |
| Signage | $2,000 | $4,000 | |
| Equipment, Furniture, Fixtures, Office Set Up and branded materials. | $25,000 | $100,000 | |
| Computer Equipment and software | $6,000 | $10,000 | |
| Business Licenses and Permits | $1,500 | $2,500 | |
| Professional Fees | $2,000 | $7,000 | |
| Insurance – 3 months | $600 | $1,200 | |
| Initial Inventory | $20,000 | $30,000 | |
| Training Expenses | $1,000 | $4,000 | |
| Grand Opening Marketing | $1,000 | $3,000 | |
| Additional Funds – 3 Months | $50,000 | $200,000 | |
| Total | $193,100 | $508,700 | |
Source: Fado Headquarters LLC, 2023 filing, page 14
Fado franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: Fado Headquarters LLC, 2023 filing, page 9
Royalty and ongoing fees
| Royalty | The greater of 6% of gross sales or $2,000 a month, plus 2% to the brand fund. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid with the royalty. |
| Software License Fee | Currently $1200 |
| Transfer Fee | 25% of then-current franchise fee |
| Training Fee | Currently $100 per hour plus our costs and travel expenses |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Fado Headquarters LLC, 2023 filing, page 10
Other fees as filed, from pages 10–11. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Fado does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Fado Headquarters LLC, 2023 filing, page 47
How Fado compares
Of the 302 retail franchises on this site, Fado is the 143rd cheapest to open and the 233rd largest by number of locations.
| Figure | Fado | Typical retail brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $193K | $198K | $222K |
| Cost to open, high end | $509K | $425K | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 6% | 5.7% | 6% |
| Brand fund | 2% | 2% | 2% |
| US locations | 3 | 38 | 21 |
| Shares earnings figures | No | 187 of 302 | 2,147 of 3,352 |
Typical is the median across the 302 brands in retail franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 2 | 0 | 0 |
| 2021 | 0 (0) | 2 | 0 | 0 |
| 2022 | 1 (+1) | 2 | +1 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Fado Headquarters LLC, 2023 filing, page 48
Where Fado locations are
At the end of 2022, Fado had locations in 2 states. The most are in New York and New Jersey.
- New York2
- New Jersey1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 0 | 2 | 2 |
| New Jersey | 1 | 0 | 1 |
Source: Fado Headquarters LLC, 2023 filing, page 49
Who owns Fado?
Fado franchises are sold by Fado Headquarters LLC. Its filing names no parent company.
From Fado Headquarters LLC’s 2023 filing, page 6.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Fado Headquarters LLC, 2023 filing, litigation on page 8, bankruptcy on page 8
Fado filings
The figures on this page come from Fado Headquarters LLC’s 2023 filing, issued April 28, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 28, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
