Melt N DipFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $373K – $455K
- 25th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 11
- 22nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants 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
Franchised units fell from 8 to 2 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $373K – $455K including a $50K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 47/100.
- No 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
- 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
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $2.4M
- vs $3.7M prior year
Overview
About
Melt N Dip franchisees operate quick-service restaurants/kiosks specializing in warm dipping sauces paired with food items (likely bread, fries, or novelty foods). Daily operations involve food preparation, inventory management, point-of-sale transactions, and customer service in what is likely a small footprint model (kiosk or small storefront).
- CEO
- Saad M. Khattab
- Headquarters
- IL
- Founded
- 2021
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing · 16 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
- Better than avg vs category
- Liquid capital req'd
- $16K – $35K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · 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 |
| Training fee | $2K |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Melt N Dip Compares
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 (yr3)
- +33.3%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 · Kezos & Dunlavy
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 47 / 100 rating
- 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
- 04MINORHigh initial investment ($50k franchise fee + $323k-$405k setup) relative to unit count raises questions about unit economics and franchisee profitability
- 05MED5% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| 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 |
| Governing law | Illinois |
| 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
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
26 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 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 A-grade franchise with a risk score of 47 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.
For franchisors
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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.