FranchiseVerdict
MELT N DIP logo
FV-01609·MODERATEExcellent81

Melt N Dip

Food & Beverage - Full ServiceFranchising since 2022Website
Investment
$373K – $455K
50th pct Full Service
Avg revenue
57th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
11
43rd pct Full Service
SBA default

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.
  • Rated MODERATE with a risk score of 62/100.
  • 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
Incorporated in
Illinois
HQ
4620 Forest Ave., Brookfield, IL 60513
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$2.4M
vs $3.7M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one MELT N DIP unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $373K–$455K
Working capital
$
FDD reports $16K–$35K

Unlevered ROIC · per unit

27%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$440K
Payback
44 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2021
FDD year
2025
States available
5

Item 7 · what it costs

The Vitals

Total investment
$373K – $455K
All-in to open one unit
Liquid capital
$16K – $35K
Cash you must have on hand
Franchise fee
$50K
Royalty
5.0%
Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
11
Opened
2
Last reporting year
Closed
0
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
2023
8+2
Franchised units
2024
6
Franchised units
2025
2
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Early-stage franchise system with minimal disclosure, undisclosed profitability metrics, and franchisor financial concerns requiring extensive validation with existing operators.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income) makes ROI impossible to validate; $373k-$455k investment requires transparency
  2. 02HIGHGoing Concern = False indicates franchisor may have financial instability or operational challenges that could jeopardize support and system viability
  3. 03MEDOnly 11 units total with 33.3% YoY growth suggests early-stage system with limited track record; small base makes growth percentage less meaningful
  4. 04MINORHigh initial investment ($50k franchise fee + $323k-$405k setup) relative to unit count raises questions about unit economics and franchisee profitability
  5. 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

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Illinois

Item 11

Training & Operations

Classroom training
59 hrs
On-the-job training
21 hrs
POS system
Toast
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

26 numbers

Locked
(954) 394-••••
Abdel Zahriyeh Pembroke Pines,
FL
(347) 817-••••
Qahtan Alsaidi Clifton,
NJ
(314) 680-••••
Mohammad Ayyash Ballwin,
MO

One-time purchase · CSV download · Validation questions included

FDD download

MELT N DIP · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above