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Sip Fresh franchise — is it worth it?

Medium risk Significant turnover Item 19 disclosed

Sip Fresh is an emerging food and beverage brand with a relatively low initial investment range of $233,660 to $420,760.

Everything below is free, read straight off Sip Fresh's registered filing, with where the numbers land against food & beverage peers. Weighing Sip Fresh against other options? Get a free shortlist of franchises that fit your budget.

Figures above are as disclosed in Sip Fresh's most recent FDD (registered 2025). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-31253 — check it yourself. See every other California-registered franchise.

How much does a Sip Fresh franchise make?

Sip Fresh is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure did not machine-read cleanly from this filing, so we don't print one; Item 19 of the source FDD has the tables. See every food & beverage brand that discloses earnings in the Food & beverage franchises with disclosed Item 19 earnings ranking.

Sip Fresh franchise profit vs. revenue

Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Sip Fresh's 6% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Sip Fresh franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Sip Fresh franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure.

Sip Fresh lawsuits & legal history (FDD Item 3)

Sip Fresh's most recently filed Franchise Disclosure Document (2025) discloses no litigation in Item 3. That is a real signal rather than a gap: the FTC Franchise Rule requires a franchisor to disclose material litigation involving itself, its predecessors, parents, affiliates and management, so an empty Item 3 in a current filing means there was nothing it was required to report. It is worth reading alongside the churn numbers — a system can have a clean Item 3 and still be losing franchisees, which is what Item 20 shows.

Sip Fresh closures & failure rate

Before you sign, Sip Fresh will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Sip Fresh's most recent filing shows, and whether it's normal for a food & beverage of this kind.

The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Sip Fresh's latest tables show significant franchisee turnover. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 100%, against a food & beverage median of 3.3% — worse than the category. Net franchised outlets moved 0 to 1 in the latest reported year.

Who owns Sip Fresh?

Sip Fresh's franchise is offered by Sip Fresh Franchising, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2025), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.

Food & beverage franchises at a similar investment level

Anyone weighing Sip Fresh is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.

Sip Fresh franchise — frequently asked