About Ghost Kitchen Franchise
Ghost Kitchen is a virtual restaurant franchise launched in 2023 by Ghost Kitchen Brands Inc.
The concept operates delivery only restaurant kitchens that house multiple restaurant brands under a single roof, allowing one location to serve customers through several distinct menus on popular food delivery platforms.
The franchise fee is $40,000.
Ghost Kitchen Franchise Cost & Fees
Minimum Investment
$194K
Average Investment
$355K
Maximum Investment
$515K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues | National brand fund |
| Total Investment Range | $194,400 – $515,000 | Includes build-out, inventory, working capital |
The investment range of $194K–$515K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenues) and marketing fee (2% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Training Travel Expenses | $500 | $3,000 |
| Real Estate and Rent Deposits | $9,000 | $40,000 |
| Rent Deposit | $5,000 | $5,000 |
| Utilities | $1,000 | $6,000 |
| Kitchen Build Out | $50,000 | $200,000 |
| Furniture, Fixtures, and Equipment | $50,000 | $100,000 |
| Computer Software, Point of Sale System, TV, Cameras, and other Supplies | $15,000 | $25,000 |
| Technology Installation | $5,000 | $7,500 |
| Signs | $1,000 | $12,000 |
| Insurance | $100 | $1,500 |
| Professional Fees | $500 | $5,000 |
| Architecture and Engineering | $1,000 | $20,000 |
| Opening Inventory | $10,000 | $30,000 |
| Licenses and Permits | $300 | $5,000 |
| Grand Opening | $1,000 | $5,000 |
| Additional Funds – Three (3) Months | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee |
| Technology Fee | $500 - $2,000 Monthly |
| Audit Fee | Cost of inspection |
| Kitchen Brand Royalty | 0% to 6% of Gross Revenues for revenues associated with that specific brand |
| Local Marketing Requirement | 1% of Gross Revenues |
| Additional Training or Assistance | Our then-current per diem fee, plus expenses |
| Lease Review Fee | You must reimburse our expenses |
| Testing of Products or Approval of new Suppliers | $750 |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows |
| Maintenance and Refurbishing of Business | You must reimburse our expenses |
| Insurance | You must reimburse our costs |
| Insufficient Funds | $50 |
| Cost of Enforcement | All costs including reasonable attorneys’ fees |
| Management Fee | $350 per person per day (plus costs and expenses) |
| Indemnification | Will vary |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 200 hours |
| Classroom Training | 100 |
| On-the-Job Training | 100 |
| Training Location | Toronto, Ontario |
| Additional Training | Training for replacement managers or employees is required and provided on the same terms as the initial training provided to you, except that there may be a fee. We may charge a fee for continuing education programs at cost plus an administrative fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a circle having the lesser of a 2-mile radius around your location or an area with a population of 30,000 people. |
| Description | The specific location for each Kitchen granted shall be identified in the Franchise Agreement itself or an addendum, as the case may be, once a site has been approved. You will have the license to operate a Kitchen within your Territory. The Approved Location of a single franchise with common restaurant brands than another franchise, will be at the center of the Territory, composed of a circle having the lesser of a 2-mile radius around your location or an area with a population of 30,000 people. We can, however, place other Ghost Kitchens with restaurant brands uncommon to yours, within your Territory. U.S Census data will be used to determine the population size by zip codes. You will not receive an exclusive territory. The Exclusive Territory only applies to Ghost Kitchens with at least one common restaurant brand to yours. You have no right to exclude development of concepts owned, franchised, or licensed by Ghost Kitchen or its affiliates. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten (10) years from the Effective Date of the Franchise Agreement. |
| Renewal Term | up to three (3), successive renewal terms of Five (5) years each, or the remainder of your then-current lease term, whichever is shorter. |
| Renewal Conditions | Good standing; timely advance notice; sign new Franchise Agreement that may contain materially different terms and conditions; be current in payments; sign release; and modernize Kitchen to meet then-current standards. |
| Transfer Fee | 50% of the then-current initial franchise fee |
| Transfer Conditions | New franchisee qualifies, payment of all of your outstanding debts to us, cure of any defaults, then-current agreement signed by new franchisee or assumption of existing agreement, transfer fee paid; training completed; and release signed by you and your Related Parties. |
| Termination for Cause | Franchisor can terminate if franchisee defaults. Curable defaults have 30 days to cure (5 days for non-payment). Non-curable defaults include misuse of trademarks, breach of non-competition, unauthorized assignment, material misrepresentation, abandonment, repeated defaults, threat to public health or safety, bankruptcy, or felony conviction. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | No competing business for two (2) years: (i) at the Approved Location, (ii) within 25 miles of the Approved location, or (iii) within 25 miles of another Ghost Kitchen restaurant (including after assignment). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you or a trained manager must personally manage the franchised business at all times. You and your manager, if any, must attend and successfully complete initial training. If you are a legal entity, you must designate a managing shareholder, partner, or member (“Operating Principal”). If you are a legal entity, your Operating Principal or a trained manager must personally manage the franchised business at all times. Your Operating Principal and your manager, if any, must attend and successfully complete initial training. |
| Required Suppliers | Soigne is the only Approved Supplier for the proprietary software which is required to be used in the operation of your Kitchen. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. We have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us. |
| Franchisor Revenue from Suppliers | $0 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or any of your obligations. |
Ghost Kitchen Franchise Earnings — Item 19
Ghost Kitchen does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Ghost Kitchen does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Ghost Kitchen Litigation & Risk Flags
Clean Litigation RecordGhost Kitchen has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Ghost Kitchen System Growth
Total Units
1
Franchised
1
Company-Owned
0
Ghost Kitchen currently operates 1 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 1 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 13 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, WA, WI
Franchisor Financials (Item 21)
Revenue
$27K
Net Income
$27K
Total Assets
$375K
Audited by Divine, Blalock, Martin & Sellari, LLC for year ending December 31, 2022.
Ghost Kitchen Franchise — FAQ
The total investment to open a Ghost Kitchen franchise ranges from $194,400 to $515,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Ghost Kitchen charges a royalty fee of 6% of Gross Revenues of gross sales, plus a 2% of Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Ghost Kitchen Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Ghost Kitchen to ensure you have the most up-to-date version.
Ghost Kitchen does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Ghost Kitchen has been franchising since 2023. The FDD shows an investment range of $194,400-$515,000, a 6% of Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $194,400 to $515,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Ghost Kitchen and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Ghost Kitchen or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com