About Point 5 Franchise
Point 5 is a retail franchise concept offering non-alcoholic products for customers choosing to be more mindful of their alcohol intake or embracing sobriety.
Franchisees operate a retail business location where they educate customers on non-alcoholic products, offer in-house samples, and provide private events both on and off site.
The target customers are people of all ages who are looking for sophisticated non-alcoholic beverage alternatives, including those pursuing sobriety, reducing alcohol consumption, or simply seeking premium non-alcoholic options.
Point 5 Franchise Cost & Fees
Minimum Investment
$67K
Average Investment
$101K
Maximum Investment
$134K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (Marketing Fund Contribution) | National brand fund |
| Total Investment Range | $67,350 – $133,750 | Includes build-out, inventory, working capital |
The investment range of $67K–$134K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Sales) and marketing fee (1% of Gross Sales (Marketing Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| Rent and Lease Security Deposit | $2,200 | $5,000 |
| Utilities | $200 | $1,000 |
| Leasehold Improvements | $1,000 | $15,000 |
| Market Introduction Program | $500 | $2,000 |
| Furniture, Fixtures, and Equipment | $10,000 | $20,000 |
| Computer Systems | $1,500 | $3,000 |
| Insurance | $800 | $2,000 |
| Signage | $1,000 | $3,000 |
| Office Expenses | $400 | $750 |
| Inventory | $25,000 | $40,000 |
| Licenses and Permits | $1,000 | $1,500 |
| Professional Fees | $750 | $3,000 |
| Travel, Lodging and Meals for Initial Training | $2,000 | $2,500 |
| Additional Funds (first 3 months) | $6,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs |
| Renewal Fee | No additional franchise fee for successor agreement |
| Technology Fee | $1,500 - $2,000 per year (Shopify and QuickBooks software subscription) |
| Audit Fee | Our actual cost |
| Local Marketing/Required Spending | 1% of Gross Sales |
| Replacement/Additional Training Fee | $300 per day |
| Third Party Vendors | Pass-through of costs plus reasonable administrative charge |
| Non-compliance Fee | $500 initial, then $250 per week |
| Reimbursement | Amount spent on your behalf plus 10% |
| Late Fee | $100 plus interest at 18% per year |
| Insufficient Funds Fee | $30 |
| Costs of Collection | Our actual costs |
| Special Support Fee | $600 per day plus out-of-pocket expenses |
| Customer Complaint Resolution | Our expenses |
| Special Inspection Fee | $600 plus out-of-pocket costs |
| Non-compliance Cure Costs and Fee | Our out-of-pocket costs and internal cost allocation plus 10% |
| Liquidated Damages | Royalty fees and marketing fund contributions for lesser of 2 years or remaining term |
| Indemnity | Our costs and losses from legal action related to franchise operation |
| Prevailing Party Legal Costs | Attorney fees, court costs, and other expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 39 hours total (12 classroom + 27 on-the-job) |
| Classroom Training | 12 hours |
| On-the-Job Training | 27 hours |
| Training Location | Our Location, Richmond, VA, or Your Location |
| Additional Training | Replacement/additional training available at $300 per day. No fee for initial training attendees. Must complete training at least 4 weeks before opening. Must pass a test on content. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Population of approximately 50,000-100,000 people |
| Description | Territory specified as a radius around your location, or using other boundaries such as county lines, political boundaries, streets, geographical features, or trade area. No circumstances permit franchisor to modify territorial rights. However, franchisor reserves right to solicit and accept orders within territory via internet, catalog sales, telemarketing, and other channels. MUDA does not grant exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years (unlimited successive renewals) |
| Renewal Fee | No additional franchise fee for successor agreement |
| Renewal Conditions | Must give advance notice 90-180 days prior to end of term; be in compliance with all agreements; renovate to then-current standards; sign then-current franchise agreement and related documents; execute general release. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs |
| Transfer Conditions | No transfers without franchisor approval. Buyer must meet standards, not be a competitor, sign then-current franchise agreement, complete training. Seller must be current on all payments and in compliance. Franchisor has right of first refusal. |
| Termination for Cause | Curable defaults: Non-payment (10 days to cure), other violations (30 days to cure). Non-curable defaults: misrepresentation, bankruptcy, loss of possession, violation of law, confidentiality or non-compete violations, slander/libel, refusal to cooperate with inspection, ceasing operations 5+ consecutive days, 3 defaults in 12 months, felony conviction. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination/expiration, neither you, any owner, nor any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within 5 miles of your former territory or any other Point 5 business operating on the date of termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are not required to participate personally in the direct operation of your business, but it is recommended. You must designate a Principal Executive who owns at least 10% of the business and has decision-making authority. The general manager must complete the training program. |
| Required Suppliers | Must purchase from approved vendors as prescribed in Brand Standards/Operations Manual. Must purchase POS software and hardware (Shopify, QuickBooks) from specified suppliers. |
| Supply Restrictions | Required purchases and leases to establish business are 50% to 80% of total. Required purchases to operate business are 50% to 80% of total. Must request written approval to use alternative suppliers. |
| Franchisor Revenue from Suppliers | We do not currently derive revenue from required purchases and leases by franchisees, but the franchise agreement does not prohibit us from doing so. |
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 obligations. |
Point 5 Franchise Earnings — Item 19
Average Revenue
$404K
Sample Size
1 units
Past financial performance does not guarantee future results. Individual results will vary.
Point 5 Litigation & Risk Flags
Clean Litigation RecordPoint 5 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.
Point 5 System Growth
Total Units
2
Franchised
1
Company-Owned
1
Point 5 currently operates 1 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
| 2024 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Point 5 Franchise — FAQ
The total investment to open a Point 5 franchise ranges from $67,350 to $133,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Point 5 charges a royalty fee of 3% of Gross Sales of gross sales, plus a 1% of Gross Sales (Marketing Fund Contribution) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Point 5 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 Point 5 to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Point 5 franchise owners report average revenue of $404K. This is based on a sample of 1 units. Past performance does not guarantee future results.
Point 5 has been franchising since 2024. The FDD shows an investment range of $67,350-$133,750, a 3% of Gross Sales royalty, and includes an 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 $15,000 and the total investment ranges from $67,350 to $133,750 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Point 5?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Point 5 and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Point 5 or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com