Mainstream BoutiqueFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mainstream Boutique franchise requires a total initial investment of $198K – $361K, including a $40K franchise fee and an ongoing 7.5% royalty[2]. Per the 2025 FDD, average unit revenue was $790K[2]. SBA 7(a) loans show a 28.6% charge-off rate across 21 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $198K – $361K
- 22nd pct Retail
- Avg gross sales
- $790K
- 10th pct Retail
- Royalty
- 7.5%
- 27th pct Retail
- Units
- 67
- 22nd pct Retail
- SBA default
- 28.6%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
28.6% of SBA loans charged off across 21 loans, above the 16% franchise average.
Franchising since 1998. Systems this mature have refined operations and brand recognition.
Franchised units fell from 73 to 64 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $198K – $361K including a $40K franchise fee, 7.5% ongoing royalty.
- Average unit revenue of $790K/year.
- Verdict C (Average) with a risk score of 68/100. SBA loan charge-off rate of 28.6% across 21 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -12.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Mainstream Fashions Franchising, Inc.
- Parent company
- Mainstream Fashions, Inc.
- Incorporated in
- MN
- HQ
- 7900 International Drive, Suite 515, Minneapolis, Minnesota 55425
- Auditor
- Cummings Keegan CPAs & Advisors
- Audited financials
- Franchisor revenue
- $2.9M
- vs $2.6M prior year
Overview
About
Mainstream Boutique franchisees operate upscale women's apparel and accessories retail locations, managing inventory selection, point-of-sale operations, staff scheduling, and customer service. Day-to-day responsibilities include visual merchandising, sales floor engagement, inventory management, and executing marketing campaigns provided by the franchisor within their protected territory.
- CEO
- Corey M. DeNicola
- Headquarters
- MN
- Founded
- 1997
- FDD year
- 2025
- States available
- 18
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $40K | $70K |
| Equipment, build-out, other | $118K | $251K |
| Total initial investment | $198K | $361K |
Source: Mainstream Boutique 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$55K
7.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
6.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $198K – $361K
- Better than avg vs category
- Liquid capital req'd
- $40K – $70K
- Better than avg vs category
- Franchise fee
- $20K – $40K
- Better than avg vs category
- Royalty
- 7.5%
- Gross Sales · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $500 |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $790K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- net_sales
- Sample size
- 59 units
- vs category median 49
- Range (low → high)
- $157K→$1.4M
- Cohort dispersion (min → max)
- Quartile band
- $224K→$853K
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 2 / 5 · below
Compared against 304 Retail brands
vs Retail averages
How Mainstream Boutique Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 67
- Opened
- 2
- Last reporting year
- Closed
- 7
- Turnover rate
- 10.4%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- -7.2%
- Net unit change last year
- 3-yr CAGR
- -12.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 21
- Loan volume
- $3.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 28.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 57.1%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 6
Vintage analysis
Mainstream Boutique charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mainstream Boutique's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 10-year lending trend
Instant access. No subscription.
A 28.6% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count, absent financial disclosures, recent litigation settlement, and high royalty burden create meaningful investment risk despite protected territory and 10-year term.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cummings Keegan CPAs & Advisors
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 68 / 100 rating
- 01MEDUnit count declined 7.2% year-over-year (67 units), indicating system contraction and potential market saturation or operational challenges
- 02MEDFinancial performance metrics (average revenue and net income) not disclosed in FDD Item 19, preventing ROI validation and profitability assessment
- 03HIGHRecent litigation settlement (November 2020) involving breach of contract and Minnesota Franchise Act violations suggests franchisor-franchisee relationship tension and potential compliance issues
- 04MEDHigh royalty rate of 7.5% combined with undisclosed profitability data creates uncertainty about net income viability
- 05MINORFranchise fee of $40,000 plus total investment of $198,200–$361,350 requires strong unit economics to justify, which cannot be verified
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Retail Location State |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 10 hrs
- Training location
- On-site and off-site
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
71 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mainstream Boutique · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mainstream Boutique franchise?
The total investment to open a Mainstream Boutique franchise ranges from $198K – $361K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mainstream Boutique franchise owners earn?
According to Item 19 of the Mainstream Boutique FDD, the average gross sales per unit is $790K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Mainstream Boutique's franchise failure rate?
Based on SBA 7(a) loan data, Mainstream Boutique has a charge-off rate of 28.6% across 21 loans, meaning 28.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Mainstream Boutique franchise locations are there?
As of their most recent FDD filing, Mainstream Boutique has 67 total units in the United States, including 73 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is Mainstream Boutique a good franchise to buy?
FranchiseVerdict rates Mainstream Boutique as a C-grade franchise with a risk score of 68 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.