Menchie'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Menchie's franchise requires a total initial investment of $165K – $425K, including a $40K franchise fee. Per the 2024 FDD, average unit revenue was $499K[2]. SBA 7(a) loans show a 17.6% charge-off rate across 234 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $165K – $425K
- 23rd pct Service Resta…
- Avg gross sales
- $499K
- 9th pct Service Resta…
- Royalty
- N/A
- Units
- 297
- 85th pct Service Resta…
- SBA default
- 17.6%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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 320 to 296 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $165K – $425K including a $40K franchise fee.
- Average unit revenue of $499K/year (median $461K).
- Verdict F (Bottom Quintile) with a risk score of 81/100. SBA loan charge-off rate of 17.6% across 234 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Menchie’s Group, Inc.
- Incorporated in
- CA
- HQ
- 20631 Ventura Boulevard, Suite 200, Woodland Hills, California 91364
- Auditor
- Sher | Gelb
- Audited financials
- Franchisor revenue
- $15.3M
- vs $17.5M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- BSD USA
- MidiCi Group
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate self-serve frozen yogurt shops where customers fill cups with yogurt, add toppings, and pay by weight. Day-to-day operations include managing point-of-sale systems, maintaining yogurt/topping inventory, cleaning equipment, staffing shifts, and handling customer service in a high-traffic retail environment.
- CEO
- Amit Y. Kleinberger
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2024
- States available
- 32
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $6K | $36K |
| Equipment, build-out, other | $119K | $349K |
| Total initial investment | $165K | $425K |
Source: Menchie's 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$70K
14.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $165K – $425K
- Better than avg vs category
- Liquid capital req'd
- $6K – $36K
- Better than avg vs category
- Franchise fee
- $25K – $40K
- Below avg, review vs category
- Royalty
- The greater of $125 or 6% of Gross Sales
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $80 |
| Transfer fee | $10K |
| Renewal fee | $4K |
| Inventory (initial) | $6K – $8K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $499K
- Per unit, per year
- Median gross sales
- $461K
- Item 19 type
- gross_sales
- Sample size
- 275 units
- vs category median 28 · large
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Menchie's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 297
- Opened
- 4
- Last reporting year
- Closed
- 10
- Turnover rate
- 3.4%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -6.6%
- Net unit change last year
- 3-yr CAGR
- -7.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 30
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 38 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 234
- Loan volume
- $66.4M
- Median loan
- $301K
- 50th percentile
- Charge-off rate
- 17.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 82.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 79
- Defaults
- 33
Vintage analysis
Menchie's charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Menchie's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 16-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Menchie's presents meaningful caution-level risk due to contracting unit count, missing profitability disclosure, and high capital requirements relative to an uncertain return profile in a declining franchise system.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
BANKRUPTCY On September 21, 2018, an affiliate, MidiCi Group, LLC (“MidiCi”) filed a petition to reorganize under Chapter 11 in the Central District of California (Case No. 18-BK-12354). MidiCi continues to operate its business. MidiCi is a separate entity from us, and operates a separate brand, and
Audited financials (Item 21)
Yes · Sher | Gelb
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 81 / 100 rating
- 01MINORUnit count declining 6.6% YoY (297 units) indicates systemic contraction and potential franchisee dissatisfaction
- 02MINORNo Item 19 (average net income) disclosure raises transparency concerns about actual profitability claims
- 03MINORHigh initial investment ($165k-$425k) coupled with declining system suggests uncertain ROI and market saturation
- 04MINORRoyalty structure ($125 minimum + 6% of sales) creates fixed costs that may be unaffordable during slow periods, especially for locations with <$2,083 monthly revenue
- 05MED10-year term is long for a declining QSR franchise without disclosed unit economics or performance benchmarks
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 |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 34 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Harbor Touch
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Harbor Touch
Item 20 · call current owners
Franchisee Contacts
467 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Menchie's · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Menchie's franchise?
The total investment to open a Menchie's franchise ranges from $165K – $425K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Menchie's franchise owners earn?
According to Item 19 of the Menchie's FDD, the average gross sales per unit is $499K. The median is $461K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Menchie's's franchise failure rate?
Based on SBA 7(a) loan data, Menchie's has a charge-off rate of 17.6% across 234 loans, meaning 17.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Menchie's franchise locations are there?
As of their most recent FDD filing, Menchie's has 297 total units in the United States, including 320 franchised units and 1 company-owned units. 4 new units were opened in the latest reporting year.
Is Menchie's a good franchise to buy?
FranchiseVerdict rates Menchie's as a F-grade franchise with a risk score of 81 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.
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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.