Melt Shop Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Melt Shop is a fast-casual franchise specializing in melted sandwiches, grilled cheese, and chicken. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Melt Shop franchise requires a total initial investment of $427K – $767K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2022 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 2022 FDD issuance
Overview
- Investment
- $427K – $767K
- 69th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 13
- 43rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $427K – $767K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited combined financial statements of Melt Shop Enterprises, LLC and Affiliate (Melt Shop, LLC) for FY2021 (ended Dec 26, 2021). Total revenue $397,468 = Franchise fee income $17,500 + Royalty fees $175,356 + Brand development fee $204,612.
- 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 Shop Enterprises, LLC
- Incorporated in
- NY
- HQ
- 56 W. 22nd Street, 2nd Floor, New York, NY 10010
- Auditor
- CohnReznick LLP
- Audited financials
- Franchisor revenue
- $397K
- vs $264K prior year
Overview
About
- CEO
- Spencer Rubin
- Headquarters
- NY
- Founded
- 2017
- FDD year
- 2022
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 9% below the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $35K | $35K | |
| Leasehold Improvementsnot refundable | $180K | $375K | |
| Lease Payments and other Rental Expenses | $6K | $20K | |
| Equipmentnot refundable | $110K | $165K | |
| Furniture & Fixturesnot refundable | $5K | $25K | |
| Signagenot refundable | $30K | $41K | |
| Initial Inventorynot refundable | $6K | $12K | |
| Plans/Blueprintsnot refundable | $18K | $24K | |
| POSnot refundable | $14K | $17K | |
| Travel & Expenses for Initial Trainingnot refundable | $5K | $10K | |
| Business Suppliesnot refundable | $1K | $3K | |
| Business Licenses (Not Including Beer/Wine License)not refundable | $1K | $4K | |
| Insurance Premiumsnot refundable | $3K | $4K | |
| Grand Opening Advertisingnot refundable | $5K | $10K | |
| Additional Funds (3 months)not refundable | $9K | $23K | |
| Total initial investment | $427K | $767K |
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
- $427K – $767K
- Bottom third — review vs category
- Liquid capital req'd
- $9K – $23K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $2K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $6K – $12K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Melt Shop 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 Shop unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
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: 2022 FDD
Financial Performance
Audited combined financial statements of Melt Shop Enterprises, LLC and Affiliate (Melt Shop, LLC) for FY2021 (ended Dec 26, 2021). Total revenue $397,468 = Franchise fee income $17,500 + Royalty fees $175,356 + Brand development fee $204,612.
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 8.0% (near the Quick-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 contracting at -42.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Quick-Service Restaurants averages
How Melt Shop Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- 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
- 9
- Corporate units in the system
- % franchised
- 31%
- vs corporate-owned
- Net growth (3-yr)
- +125.0%
- Net unit change over 3 years
- 3-yr CAGR
- -42.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 50.0%
- Units that stayed open
- Ceased ops
- 100.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CohnReznick LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: 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
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 4 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 | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York, NY |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 224 hrs
- Training location
- Corporate headquarters and affiliate Restaurant, New York, NY
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Brink POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink POS
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Melt Shop · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Melt Shop franchise?
The total investment to open a Melt Shop franchise ranges from $427K – $767K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Melt Shop franchise owners earn?
Melt Shop 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 Shop 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 Shop FDD and qualifies whose outlets they describe.
What is Melt Shop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Melt Shop (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 Shop franchise locations are there?
As of their most recent FDD filing, Melt Shop has 13 total units in the United States, including 4 franchised units and 9 company-owned units.
Is Melt Shop a good franchise to buy?
FranchiseVerdict rates Melt Shop 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.