Melt N Dip Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Melt N Dip is a dessert and snack franchise serving chocolate-dipped treats, crepes, and warm desserts. Franchisees run the shops and kiosks, managing dessert prep, inventory, and counter service.
FranchiseVerdict summary · 2026
A MELT N DIP franchise requires a total initial investment of $373K – $455K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $373K – $455K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 11
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $373K – $455K including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSTotal operating revenue for FY ended Dec 31, 2024 comprises product sales 3,017,922; royalties and marketing fees 591,136; initial franchise fees 55,000. 2023 and 2022 financials were restated to correct errors (Note 2).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Melt n Dip Franchising, LLC
- CEO title
- Manager and CEO
- Saad M. Khattab
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- IL
- HQ
- 4620 Forest Ave., Brookfield, IL 60513
- Auditor
- Unknown (St. George, Utah CPA firm)
- Audited financials
- Franchisor revenue
- $3.7M
- vs $2.4M prior year
Overview
About
- CEO
- Saad M. Khattab
- Headquarters
- IL
- Founded
- 2021
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 65% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Rent (3 months) and Security Deposit | $10K | $20K | |
| Utilities (3 months) and Utility Deposit | $6K | $8K | |
| Architect Fees | $5K | $7K | |
| Leasehold Improvements | $150K | $200K | |
| Travel and Living Costs While Training | $3K | $4K | |
| Initial Inventory and Supplies | $21K | $32K | |
| Furniture | $25K | $40K | |
| Fixtures and Equipment | $75K | $125K | |
| Signage | $5K | $10K | |
| Office Supplies | $300 | $700 | |
| Computer System and Software | $4K | $7K | |
| Business Licenses and Permits | $200 | $600 | |
| Insurance | $2K | $2K | |
| Professional Fees | $2K | $5K | |
| Additional Funds - 3 Months | $16K | $35K | |
| Total initial investment | $373K | $545K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $373K – $455K
- Top 40% of category vs category
- Liquid capital req'd
- $16K – $35K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $450 |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Inventory (initial) | $21K – $32K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
MELT N DIP did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one MELT N DIP unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Total operating revenue for FY ended Dec 31, 2024 comprises product sales 3,017,922; royalties and marketing fees 591,136; initial franchise fees 55,000. 2023 and 2022 financials were restated to correct errors (Note 2).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Full-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 300.0% CAGR over 3 years across 11 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Melt N Dip Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 73%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage franchise system with minimal disclosure, undisclosed profitability metrics, and franchisor financial concerns requiring extensive validation with existing operators.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Unknown (St. George, Utah CPA firm)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01MINORNo Item 19 financial disclosure (average revenue and net income) makes ROI impossible to validate; $373k-$455k investment requires transparency
- 02HIGHGoing Concern = False indicates franchisor may have financial instability or operational challenges that could jeopardize support and system viability
- 03MEDOnly 11 units total with 33.3% YoY growth suggests early-stage system with limited track record; small base makes growth percentage less meaningful
- 04MED5% royalty on undisclosed revenue streams creates uncertainty about actual monthly obligations and cash flow burden on franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 7 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | DuPage County, Illinois |
| Jury trial waiver | No |
| Governing law | IL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 59 hrs
- On-the-job training
- 21 hrs
- Training location
- Bridgeview, Illinois (affiliate-owned Melt n Dip Business)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MELT N DIP · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MELT N DIP franchise?
The total investment to open a MELT N DIP franchise ranges from $373K – $455K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do MELT N DIP franchise owners earn?
MELT N DIP does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the MELT N DIP FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the MELT N DIP FDD and qualifies whose outlets they describe.
What is MELT N DIP's franchise failure rate?
SBA 7(a) loan charge-off data is not available for MELT N DIP (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many MELT N DIP franchise locations are there?
As of their most recent FDD filing, MELT N DIP has 11 total units in the United States, including 8 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is MELT N DIP a good franchise to buy?
FranchiseVerdict rates MELT N DIP as a B-grade franchise with a verdict score of 58 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.