About Vessel Franchise
Vessel is a franchise that operates proprietary, high-design and high-tech, prefabricated, software-enabled apartment buildings.
Franchisees operate a Vessel Business from a Vessel Building located at a site selected by the franchisor, managing the rental of apartment units to residents.
Day-to-day operations include property management services, leasing units, managing resident relations, handling maintenance, and overseeing back office activities.
Vessel Franchise Cost & Fees
Minimum Investment
$289K
Average Investment
$308K
Maximum Investment
$327K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of monthly Gross Revenues (not currently collected) | National brand fund |
| Total Investment Range | $288,930 – $327,038 | Includes build-out, inventory, working capital |
The investment range of $289K–$327K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues) and marketing fee (Up to 1% of monthly Gross Revenues (not currently collected)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee | $2,500 | $2,500 |
| Initial Franchise Fee | $30,000 | $30,000 |
| Monthly Installments of Base Rent (3 Months) | $150,000 | $150,000 |
| Furniture, Fixtures and Equipment for Building's Units | $30,000 | $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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 for non-controlling interest; then-current Initial Franchise Fee for controlling interest |
| Renewal Fee | Then-current franchise fee, plus $500 per unit in the Building for replacement furniture, fixtures, and equipment |
| Audit Fee | The cost of inspection or audit |
| Monthly Installment of Base Rent | $833.33 per unit in the Building per month |
| Quarterly Installment of Base Rent | Positive difference of 65% of Gross Revenues less sum of Monthly Installments paid |
| Cooperative Advertising Programs | Up to 2% of Gross Revenues |
| Initial Training Fee | $200 per person, per day, plus expenses |
| Additional or Renewal Training | $200 per person, per day |
| Operations Manual Replacement | $250 |
| Insurance | Approximately $2,500 to $5,000 per month for 60-unit building |
| Taxes | Approximately $18,810 to $23,513 per month for 60-unit building |
| Insufficient Funds Processing Fee | $250 plus expenses |
| Management Fee | Direct out-of-pocket costs and expenses plus 5% of Gross Revenues |
| Administrative Fee | $500 per day |
| Interest on Overdue Amounts | 6% above prime rate |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | At least 5 days of initial training, plus at least 5 days of on-site support |
| Classroom Training | 20 hours |
| On-the-Job Training | 20 hours |
| Training Location | Corporate Office (New York, New York) and the Building |
| Additional Training | On-site support period of at least 5 total days at the Building; periodic refresher training courses online or in-person; annual national meeting may be required |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not receive a territory. The franchisor retains the right to operate and grant others the right to operate Vessel Businesses from Vessel Buildings located anywhere except at the franchisee's Site. The franchisor will not operate or grant a franchise for another Vessel Business at the same Site during the franchise term. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (1 successor franchise term) |
| Renewal Fee | Then-current franchise fee, plus $500 per unit for replacement furniture, fixtures, and equipment |
| Renewal Conditions | Must be in full compliance with Franchise Agreement; give timely notice; pay renewal fee; maintain possession of Building and Site by renewing Master Lease Agreement; give access for replacement furniture, fixtures and equipment; sign then-current Franchise Agreement and release |
| Transfer Fee | $5,000 for non-controlling interest; then-current Initial Franchise Fee for controlling interest |
| Transfer Conditions | No transfer without prior written consent; new franchise owner must qualify; all amounts due must be paid; no default during 60-day period before request and transfer's proposed effective date; training completed; transfer Master Lease Agreement; sign then-current agreements; transfer fee paid; sign release |
| Termination for Cause | Non-curable defaults include misrepresentation, failure to open within 60 days, abandonment, unapproved transfers, conviction of felony, unauthorized disclosure of confidential information. Curable defaults include 72 hours for health/safety violations, 10 days for monetary defaults, 30 days for operational defaults. |
| Non-Compete Period | Not Applicable |
| Non-Compete Details | During the term: no diverting business; no performing services for or lending money to a Competitive Business within 10 miles of the Site or any other Vessel Building. After termination/expiration: Not Applicable. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If a legal entity, the franchisee must appoint a Managing Owner responsible for overseeing and supervising operations. A fully-trained, full-time Caretaker must be on-premises at all times for direct management of the Building, under the supervision of the franchisee or Managing Owner. |
| Required Suppliers | Franchisees must lease the Vessel Building, furniture, fixtures and equipment from the applicable SPE under a Master Lease Agreement. Franchisees must obtain vOS Software from the franchisor and the required Management System and Building appliances from designated third-party suppliers. |
| Supply Restrictions | Approximately 95% - 100% of overall purchases and leases in establishing and operating the Business must come from the franchisor, affiliates, designated and approved suppliers. |
| Franchisor Revenue from Suppliers | Neither the franchisor nor its affiliates received any payments directly from franchise owners or from suppliers based on franchise owner purchases during the prior fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Vessel USA, LLC and its affiliates do not offer direct or indirect financing. Neither the franchisor nor its affiliates will guarantee the franchisee's note, lease, or obligation. |
Vessel Franchise Earnings — Item 19
Vessel 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.
Vessel 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.
Vessel Litigation & Risk Flags
Clean Litigation RecordVessel 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.
Vessel System Growth
Total Units
1
Franchised
0
Company-Owned
1
Vessel currently operates 0 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 |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 1 | 0 | 1 |
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
Vessel Franchise — FAQ
The total investment to open a Vessel franchise ranges from $288,930 to $327,038, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Vessel charges a royalty fee of 5% of Gross Revenues of gross sales, plus a Up to 1% of monthly Gross Revenues (not currently collected) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Vessel 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 Vessel to ensure you have the most up-to-date version.
Vessel 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.
Vessel has been franchising since 2023. The FDD shows an investment range of $288,930-$327,038, a 5% 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 $30,000 and the total investment ranges from $288,930 to $327,038 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 Vessel and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Vessel or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com