Patrice & Associates franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Patrice & Associates FDD 2026 · Updated 2026
A Patrice & Associates franchise costs $105,100–$121,050 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $65,000 (Item 5); the ongoing royalty is 10% of sales, plus 2% of sales to the advertising fund (Item 6). Patrice also deducts billing-services and P&A Database fees: in all, it keeps 24% of each placement fee for its royalty and other percentage-based fees before paying the franchisee. On the lending side, Patrice & Associates franchisees defaulted on 36.4% of SBA 7(a) loans approved FY2010–FY2019 (12 of 33), and the average SBA loan to a Patrice & Associates franchisee in that cohort was $126,218.
| Total initial investment (Item 7) | $105,100–$121,050 |
|---|---|
| Initial franchise fee (Item 5) | $65,000 |
| Royalty (Item 6) | 10% of sales |
| Advertising fund (Item 6) | 2% of sales |
| Fee notes (Item 6) | Patrice also deducts billing-services and P&A Database fees: in all, it keeps 24% of each placement fee for its royalty and other percentage-based fees before paying the franchisee. |
| SBA 7(a) default rate, FY2010–FY2019 | 36.4% |
| Average SBA loan, 2010s cohort | $126,218 |
| Average SBA loan since 2020 | $137,558 |
| Industry | Employment Placement Agencies |
How much does it cost to open a Patrice & Associates franchise?
Item 7 of the FDD estimates the total initial investment at $105,100–$121,050. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Patrice & Associates franchisees defaulted on 36.4% of SBA 7(a) loans approved FY2010–FY2019 (12 of 33 resolved loans), against the Employment Placement Agencies industry average of 7.5%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 52 new SBA loans, of which 2 have already charged off.
Set the investment range against the loans: an average SBA loan of $126,218 against the $105,100–$121,050 investment range says roughly how much of a typical Patrice & Associates opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Patrice & Associates's royalty and ad fund cost at your sales level?
From Item 6: royalty 10% of sales, advertising fund 2%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $25,000 | $5,000 | $30,000 |
| $500,000 | $50,000 | $10,000 | $60,000 |
| $1,000,000 | $100,000 | $20,000 | $120,000 |
| $2,000,000 | $200,000 | $40,000 | $240,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Patrice & Associates franchise cost?
A Patrice & Associates franchise costs $105,100–$121,050 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $65,000 (Item 5); the ongoing royalty is 10% of sales, plus 2% of sales to the advertising fund (Item 6). Patrice also deducts billing-services and P&A Database fees: in all, it keeps 24% of each placement fee for its royalty and other percentage-based fees before paying the franchisee. On the lending side, Patrice & Associates franchisees defaulted on 36.4% of SBA 7(a) loans approved FY2010–FY2019 (12 of 33), and the average SBA loan to a Patrice & Associates franchisee in that cohort was $126,218.
What is the Patrice & Associates franchise fee?
$65,000, per Item 5 of the FDD.
What royalty does Patrice & Associates charge?
10% of sales, plus 2% of sales to the advertising fund, per Item 6. Patrice also deducts billing-services and P&A Database fees: in all, it keeps 24% of each placement fee for its royalty and other percentage-based fees before paying the franchisee.
What is Patrice & Associates's SBA loan default rate?
36.4%: 12 of 33 SBA 7(a) loans approved FY2010–FY2019 to Patrice & Associates franchisees were charged off.
Source
Sources: Patrice & Associates Franchise Disclosure Document (2026, Wisconsin DFI filing 641541); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Patrice & Associates franchise cost, Items 5–7, and SBA 7(a) default rate. From the Patrice & Associates FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/patrice-and-associates/cost/ · Data & methodology