Vessel franchise
2023 filing · July 17, 2023
Vessel at a glance
A business that runs a prefabricated, tech-enabled apartment building the franchisor makes and owns, leasing the building and renting its apartments. At the end of 2022 there were 1 Vessel locations in the US, all company-owned.
The business
- Industry
- Real estate
- Franchisor
- Vessel USA, LLC
- The company that sells the franchises
- Franchisor based in
- New York, New York
What you pay
- Cost to open
- $289K–$327K
- Fee, build-out and opening working capital
- Franchise fee
- $30,000
- $500 for each apartment in the building
- Royalty
- 5%
- 5% of gross revenues, including resident rent, paid monthly
- Brand fund
- None now
- Up to 1% of monthly gross revenue; not charged at present
- Agreement length
- 10 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2020–2022
From Vessel USA, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Vessel among all franchises with the same figure.
| Figure | Vessel | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $307,984 | Costs less than 56% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Vessel franchise costs
Opening one Vessel costs an estimated $288,930 to $327,038. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are monthly installments of base rent (3 months) ($150,000) and taxes associated with the site ($56,430 to $70,538). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Application Fee | $2,500 | ||
| Initial Franchise Fee | $30,000 | ||
| Monthly Installments of Base Rent (3 Months) | $150,000 | ||
| Furniture, Fixtures and Equipment for Building’s Units | $30,000 | ||
| Equipment | $1,500 | $2,500 | |
| Computer System | $1,500 | $3,000 | |
| Opening Inventory of Supplies | $1,000 | $3,000 | |
| Training Expenses (out-of-pocket costs for up to 2 people) | $1,000 | $3,000 | |
| Insurance | $7,500 | $15,000 | |
| Taxes Associated with the Site | $56,430 | $70,538 | |
| Additional Funds – 3 Months | $10,000 | $20,000 | |
| Total | $288,930 | $327,038 | |
Source: Vessel USA, LLC, 2023 filing, page 17
Vessel franchise fee
The franchise fee is $30,000, $500 for each apartment in the building. You pay it when you sign the franchise agreement.
Source: Vessel USA, LLC, 2023 filing, page 17
Royalty and ongoing fees
| Royalty | 5% of gross revenues, including resident rent, paid monthly. |
|---|---|
| Brand or marketing fund | Up to 1% of monthly gross revenue; not charged at present. |
| Computer System | $1,500-$3,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Vessel USA, LLC, 2023 filing, page 12
Other fees as filed, from page 17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Vessel 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: Vessel USA, LLC, 2023 filing, page 47
How Vessel compares
Of the 95 real estate franchises on this site, Vessel is the 86th cheapest to open and the 85th largest by number of locations.
| Figure | Vessel | Typical real estate brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $289K | $69K | $222K |
| Cost to open, high end | $327K | $244K | $477K |
| Franchise fee | $30K | $35K | $40K |
| Royalty | 5% | 6% | 6% |
| US locations | 1 | 67 | 21 |
| Shares earnings figures | No | 40 of 95 | 2,147 of 3,352 |
Typical is the median across the 95 brands in real estate franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 0 | 0 | 0 |
| 2021 | 0 (0) | 0 | 0 | 0 |
| 2022 | 0 (0) | 1 | 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: Vessel USA, LLC, 2023 filing, page 48
Who owns Vessel?
Vessel franchises are sold by Vessel USA, LLC. It is a subsidiary of Vessel Technologies, Inc.
From Vessel USA, LLC’s 2023 filing, page 7.
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: Vessel USA, LLC, 2023 filing, litigation on page 9, bankruptcy on page 9
Vessel filings
The figures on this page come from Vessel USA, LLC’s 2023 filing, issued July 17, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | July 17, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
