Rocky Mountain Chocolate FactoryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Rocky Mountain Chocolate Factory franchise requires a total initial investment of $176K – $872K, including a $35K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 20.1% charge-off rate across 176 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $176K – $872K
- 24th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 140
- 76th pct Service Resta…
- SBA default
- 20.1%
- 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
20.1% of SBA loans charged off across 176 loans, above the 16% franchise average.
Franchising since 1982. Systems this mature have refined operations and brand recognition.
Franchised units fell from 153 to 138 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $176K – $872K including a $35K franchise fee.
- Item 19 discloses "gross_sales" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 81/100. 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, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Rocky Mountain Chocolate Factory, Inc.
- Parent company
- Rocky Mountain Chocolate Factory, Inc. (Delaware)
- Incorporated in
- CO
- HQ
- 265 Turner Drive, Durango, Colorado 81303
- Auditor
- CohnReznick LLP
- Audited financials
- Franchisor revenue
- $28.0M
- vs $29.6M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate retail chocolate shops selling premium chocolates, candy, and confections under the Rocky Mountain Chocolate Factory brand. Daily operations include inventory management, point-of-sale transactions, customer service, seasonal product promotions, and potential catering/corporate sales. Stores typically occupy 1,000-1,500 sq ft in malls, street-front locations, or outlet centers.
- CEO
- Jeff Geygan
- Headquarters
- CO
- Founded
- 1982
- FDD year
- 2025
- States available
- 25
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 | $120K | $787K |
| Total initial investment | $176K | $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
- $176K – $872K
- Better than avg vs category
- Liquid capital req'd
- $21K – $50K
- Near category avg vs category
- Franchise fee
- $20K – $35K
- Near category avg vs category
- Royalty
- Initially 5% of Gross Retail Sales; thereafter, 4% to 6% …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
Financial Performance
This brand's FDD disclosed "gross_sales" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Quick-Service Restaurants averages
How Rocky Mountain Chocolate Factory Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 140
- Opened
- 2
- Last reporting year
- Closed
- 13
- Turnover rate
- 9.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -7.4%
- Net unit change last year
- 3-yr CAGR
- -9.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
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.
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%
- 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with active litigation, undisclosed profitability, going concern status, and an opaque royalty structure presents meaningful risk despite protected territory.
Audited financials (Item 21)
Yes · CohnReznick LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 81 / 100 rating
- 01MINORSystem declining 7.4% YoY with only 140 units remaining—suggests weakening brand momentum and potential saturation
- 02HIGHMultiple active litigation cases including fraudulent inducement and breach of contract claims raise concerns about corporate practices and transparency
- 03MEDNet income not disclosed in FDD Item 19—prevents accurate ROI calculation and suggests weak or inconsistent franchisee profitability
- 04HIGHGoing concern status indicates potential financial instability at corporate level, affecting support and long-term viability
- 05MINORWide royalty range (4-6%) and initial 5% rate on gross sales (not net) creates unpredictable cost structure and incentivizes corporate revenue extraction over franchisee profitability
- 06MEDHigh investment ceiling ($871,700) with undisclosed profit data creates disproportionate risk-to-reward scenario
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 18 hrs
- 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
FDD download
Rocky Mountain Chocolate Factory · FDD (2025) PDF
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 $176K – $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?
Rocky Mountain Chocolate Factory 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 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 153 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 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.