Melt Shop
Bottom line
- Total investment $427K – $767K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 68/100. SBA loan default rate of 0.0% across 129 loans (below the industry average).
- 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
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 Shop unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Overview
About
Franchisees operate specialty grilled cheese sandwich and melted sandwich restaurants, managing food preparation, inventory, customer service, and daily P&L. Day-to-day operations include managing a small team, maintaining food quality standards, handling cash flow, and driving local marketing to build customer loyalty in a competitive QSR segment.
Item 7 · what it costs
The Vitals
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
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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Melt Shop presents high risk due to going concern status, tiny unit base with unknown growth, zero territory protection, and complete absence of financial performance disclosure necessary to validate the $426k-$767k investment.
Score breakdown · what drove the 68 / 100 rating
- 01HIGHGoing concern warning indicates franchisor financial distress or viability uncertainty
- 02MINOROnly 13 units with unknown growth trajectory suggests stagnant or declining system
- 03MINORNo Item 19 financial performance data (avg revenue/net income) prevents ROI validation
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MEDHigh investment range ($426k-$767k) with no disclosed average unit economics creates payback uncertainty
- 06MINORMinimal franchise fee ($35k) relative to total investment suggests thin franchisor support model
- 07MINOR10-year term locks capital with no clear exit strategy given small unit count
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Melt Shop · FDD (2022) PDF