Rocky Mountain Chocolate Factory Franchise Cost, Revenue & Review 2026
- Investment
- $466K – $872K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 20.1%
- on 176 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Rocky Mountain Chocolate Factory is a confectionery franchise selling premium chocolates, fudge, caramel apples, and candy, often made in-store. Franchisees run retail shops managing candy production, merchandising, and counter service.
FranchiseVerdict summary · 2026
A Rocky Mountain Chocolate Factory franchise requires a total initial investment of $466K – $872K, including a $20K – $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 20.1% charge-off rate across 176 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $466K – $872K
- 72nd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 140
- 79th pct Service Resta…
- SBA charge-off
- 20.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $466K – $872K including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better). SBA loan charge-off rate of 20.1% across 176 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -11 franchised outlets in the latest year (2 opened, 13 closed) (Item 20).
- FLAG13 units terminated last reporting year (9.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Rocky Mountain Chocolate Factory, Inc.
- Parent company
- Rocky Mountain Chocolate Factory, Inc. (Delaware holding company, formed March 1, 2015)
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Rocky Mountain Chocolate Factory, Inc. (Delaware)
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- Chief Executive Officer and Director
- Robert Sarlls
- Incorporated in
- Colorado
- HQ
- 265 Turner Drive, Durango, Colorado 81303
- Auditor
- CohnReznick LLP
- Audited financials
- Franchisor revenue
- $28.0M
- vs $29.6M prior year
Overview
About
- CEO
- Robert Sarlls
- Headquarters
- CO
- Founded
- 1982
- FDD year
- 2025
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 38% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $21K | $50K |
| Equipment, build-out, other | $410K | $787K |
| Total initial investment | $466K | $872K |
Source: Rocky Mountain Chocolate Factory 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $466K – $872K
- Bottom third — review vs category
- Liquid capital req'd
- $21K – $50K
- Middle of category vs category
- Franchise fee
- $20K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Rocky Mountain Chocolate Factory is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Rocky Mountain Chocolate Factory unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2025 FDD
Financial Performance
- Item 19 type
- gross sales
- Sample size
- 134
- vs category median 19 · large
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
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 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 medians
How Rocky Mountain Chocolate Factory Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 140
- Opened
- 2
- Last reporting year
- Closed
- 13
- Terminated
- 13
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 13
- Not renewed
- 0
- Transferred
- 9
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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.
Where the owners are · Item 20 owner list
83 current owners across 19 states.
- CA 29
- CO 10
- IL 9
- MO 8
- AZ 6
- MN 3
- MI 2
- MS 2
- NC 2
- NM 2
- WI 2
- FL 1
- +7 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 176
- Loan volume
- $36.5M
- Median loan
- $208K
- average
- Charge-off rate
- 20.1%
- on 176 loans · 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 67
- Defaults
- 29
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 20.1% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 20.1% — 25% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Eight disclosed litigation matters (landlord disputes, terminated-franchisee injunctions, arbitrations, mostly settled/resolved) across a mature 156-unit system franchising since 1982. Financials strong: net worth $19.4M, revenue $32.3M, audited with Item 19. Litigation count is elevated but routine relative to system size and age.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Eight disclosed cases including landlord breach-of-lease dispute (Tomco LLC, settled $60,000), counterclaims in DJRJ/CherryBerry stock dispute (summary judgment for defendants), injunctions against terminated franchisees (Wright), AAA arbitration with a development-agreement franchisee (settled $55,000), unlawful detainer dispute with a landlord (settled $95,000), unpaid royalty suit against a NJ franchisee (settled $5,000), and a Canadian subfranchisor dispute (settled) plus a related defamation counterclaim (dismissed).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CohnReznick LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Revenue from purchases by franchisees was $18,587,900 (57%) of total revenues of $32,342,579 for fiscal year ended February 28, 2022.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 verdict
- 01HIGH8 litigation matters, mostly settled/resolved, routine for mature system
- 02MINORStrong net worth $19.4M, revenue $32.3M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Geographic area |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 3 |
View Item 3 litigation summary
Eight disclosed cases including landlord breach-of-lease dispute (Tomco LLC, settled $60,000), counterclaims in DJRJ/CherryBerry stock dispute (summary judgment for defendants), injunctions against terminated franchisees (Wright), AAA arbitration with a development-agreement franchisee (settled $55,000), unlawful detainer dispute with a landlord (settled $95,000), unpaid royalty suit against a NJ franchisee (settled $5,000), and a Canadian subfranchisor dispute (settled) plus a related defamation counterclaim (dismissed).
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 18 hrs
- Ongoing training
- Required
- Site selection
- Franchisee selects and acquires premises subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary software from third-party supplier
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary software from third-party supplier
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Rocky Mountain Chocolate Factory franchise?
The total investment to open a Rocky Mountain Chocolate Factory franchise ranges from $466K – $872K, 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 Rocky Mountain Chocolate Factory franchise owners earn?
Item 19 of the Rocky Mountain Chocolate Factory FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Rocky Mountain Chocolate Factory?
Rocky Mountain Chocolate Factory is franchised by Rocky Mountain Chocolate Factory, Inc.. Its parent company is Rocky Mountain Chocolate Factory, Inc. (Delaware holding company, formed March 1, 2015). The ultimate parent named in the FDD is Rocky Mountain Chocolate Factory, Inc. (Delaware). Source: FDD Item 1, 2025 filing.
What is Item 19 in the Rocky Mountain Chocolate Factory 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 Rocky Mountain Chocolate Factory FDD and qualifies whose outlets they describe.
What is Rocky Mountain Chocolate Factory's franchise failure rate?
Based on SBA 7(a) loan data, Rocky Mountain Chocolate Factory has a charge-off rate of 20.1% across 176 loans, meaning 20.1% 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 Rocky Mountain Chocolate Factory franchise locations are there?
As of their most recent FDD filing, Rocky Mountain Chocolate Factory has 140 total units in the United States, including 138 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is Rocky Mountain Chocolate Factory a good franchise to buy?
FranchiseVerdict rates Rocky Mountain Chocolate Factory as a B-grade franchise with a verdict score of 54 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.