Canteen Franchise FDD, Profits & Costs (2025)
Canteen’s story began in 1929 in Chicago, Illinois, when entrepreneur Nathaniel Leverone launched the Chicago Automatic Canteen Corporation in response to the unreliable vending machines of that era.
Over the decades, the company has grown into a top-tier provider of workplace food and beverage solutions across the United States. Its offerings span a wide spectrum—from vending machines and micro-markets to office coffee and dining services.
Now based in Charlotte, North Carolina, Canteen operates through a hybrid model of corporate locations and franchise partnerships. This structure empowers the company to serve both local businesses and large national clients, maintaining high service standards across more than 225 distribution centers in 48 states.
What sets Canteen apart is its forward-thinking approach. By integrating cutting-edge technology and data-driven strategies, the company tailors its services to meet customer needs efficiently and effectively.
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Initial Investment
How much does it cost to start a Canteen franchise? It costs on average between $1,007,000 – $1,568,000 to start a Canteen franchised business.
This includes expenses related to setting up the operation—such as equipment, product inventory, installation, and initial operating costs. The total investment can vary based on several factors, including the type of Canteen service model implemented (vending, micro-market, office coffee, or dining), the geographic location, and whether the franchisee opts to lease or own the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $3,250 – $25,000 (Canteen) / $3,000 (Threshold) |
| Training Fee | $3,000 |
| Real Estate & Improvements | $22,000 – $73,000 |
| Vehicles | $216,000 – $232,000 |
| Equipment | $600,000 – $1,000,000 |
| Opening Costs | $25,000 – $50,000 |
| Opening Inventory | $60,000 – $80,000 |
| Travel and Living Expenses While Training | $2,500 – $5,000 |
| Additional Funds (12 weeks) | $75,000 – $100,000 |
| Total | $1,006,750 – $1,568,000 |
Competitors
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Canteen Franchise Disclosure Document
Frequently Asked Questions
How many Canteen locations are there?
As of the latest data, Canteen operates a total of 264 units across the United States. Of these, 156 are company-owned locations, while 108 are franchised units. This balanced mix supports both corporate oversight and entrepreneurial franchise partnerships within Canteen’s nationwide network.
What is the total investment required to open a Canteen franchise?
The total investment required to open a Canteen franchise ranges from $1,007,000 to $1,568,000.
What are the ongoing fees for a Canteen franchise?
Canteen franchisees pay ongoing fees that include a royalty fee ranging from 3.25% to 5.25% of gross sales. Additionally, there is a marketing or advertising fee that typically ranges from 0% to 3% of gross sales. These fees support brand usage, ongoing support, and promotional efforts.
What are the financial requirements to become a Canteen franchisee?
To qualify as a Canteen franchisee, you need a minimum liquid capital of $1,000. Although there is no officially stated minimum net worth requirement, the total investment can range from $8,100 to $1,568,000, depending on the type of franchise. Strong overall financial stability is essential to cover both startup and operating costs.
Who owns Canteen?
Canteen is owned by Compass Group North America, a leading foodservice management and support services company headquartered in Charlotte, North Carolina. Canteen operates through a combination of company-owned branches and franchised locations. Notably, Five Star Food Service is Canteen’s largest franchise partner, with operations spanning multiple states
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