Pepper Palace franchise
2025 filing · July 28, 2025Shares sales figures
Pepper Palace at a glance
A retail shop selling handcrafted hot sauces, barbecue and wing sauces, salsas, seasonings and rubs. At the end of 2024 there were 81 Pepper Palace locations in the US, all company-owned.
The business
- Franchisor
- PP Franchise LLC
- The company that sells the franchises
- Franchisor based in
- Sevierville, Tennessee
What you pay
- Cost to open
- $211K–$288K
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross revenue, paid monthly, plus 2% on local advertising
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 81
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 81
- Change in 3 years
- 0
- Franchised locations, 2022–2024
From PP Franchise LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Pepper Palace among all franchises with the same figure.
| Figure | Pepper Palace | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $249,500 | Costs less than 63% 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 | 81 | More than 73% of franchises |
How much a Pepper Palace franchise costs
Opening one Pepper Palace costs an estimated $211,000 to $288,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are initial franchise fee ($50,000) and leasehold improvements ($30,000 to $40,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | ||
| Traveling and Living Expenses while Training | $5,000 | $7,500 | |
| Real Estate Rent Deposits and Prepaid Expenses (3 months) | $25,000 | $35,000 | |
| Leasehold Improvements | $30,000 | $40,000 | |
| Furniture, Fixtures, and Décor | $25,000 | $35,000 | |
| Equipment | $4,000 | $6,000 | |
| Computer and POS System | $5,000 | $7,500 | |
| Initial Inventory and Supplies | $20,000 | $32,500 | |
| Office supplies, TV, Cameras, and other equipment | $3,000 | $6,000 | |
| Signage | $10,000 | $15,000 | |
| Grand Opening Advertising | $2,000 | $5,000 | |
| Licenses, Permits, and Certifications | $2,000 | $3,500 | |
| Insurance (3 Months) | $2,500 | $5,000 | |
| Professional Fees | $2,500 | $5,000 | |
| Additional Funds (3 months) | $25,000 | $35,000 | |
| Total | $211,000 | $288,000 | |
Source: PP Franchise LLC, 2025 filing, page 16
Pepper Palace franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: PP Franchise LLC, 2025 filing, page 12
Royalty and ongoing fees
| Royalty | 6% of gross revenue, paid monthly, plus 2% on local advertising. |
|---|---|
| POS and Software Fees | $300-$400 per month plus transaction costs |
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Local Advertising | 2% of Gross Revenues |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: PP Franchise LLC, 2025 filing, page 13
Other fees as filed, from pages 13–15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Pepper Palace publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average revenue
- $349,436
- Median revenue
- $323,112
Yearly figures for 2024, covering affiliate-owned stores in 2024 (81 locations). The average is about 1.4 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: PP Franchise LLC, 2025 filing, page 43
How Pepper Palace compares
Of the 302 retail franchises on this site, Pepper Palace is the 162nd cheapest to open and the 108th largest by number of locations.
| Figure | Pepper Palace | Typical retail brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $211K | $198K | $222K |
| Cost to open, high end | $288K | $425K | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 6% | 5.7% | 6% |
| US locations | 81 | 38 | 21 |
| Shares earnings figures | Yes | 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 |
|---|---|---|---|---|
| 2022 | 0 (0) | 145 | 0 | 0 |
| 2023 | 0 (0) | 114 | 0 | 0 |
| 2024 | 0 (0) | 81 | 0 | 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: PP Franchise LLC, 2025 filing, page 46
Who owns Pepper Palace?
Pepper Palace franchises are sold by PP Franchise LLC. Its filing names no parent company.
From PP Franchise LLC’s 2025 filing, page 9.
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: PP Franchise LLC, 2025 filing, litigation on page 11, bankruptcy on page 11
Pepper Palace filings
The figures on this page come from PP Franchise LLC’s 2025 filing, issued July 28, 2025, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | July 28, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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