Scout & Molly’s Franchise Cost, Revenue & Review 2026
- Investment
- $319K – $388K
- Disclosed sales
- $889K
- gross sales, not profit
- SBA charge-off
- 25.0%
- on 22 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Scout & Molly's is a women's fashion boutique franchise selling apparel, accessories, and jewelry with personalized styling. Franchisees run the boutiques, managing inventory, merchandising, styling, and local marketing.
FranchiseVerdict summary · 2026
A Scout & Molly’s franchise requires a total initial investment of $319K – $388K, including a $60K franchise fee. Per the 2026 FDD, average unit revenue was $889K[2]. SBA 7(a) loans show a 25.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: C (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: low - issued within the last 12 months
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
- $319K – $388K
- 36th pct Retail
- Avg gross sales
- $889K
- 12th pct Retail
- Royalty
- Flat fee
- Units
- 19
- 12th pct Retail
- SBA charge-off
- 25.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail 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 $319K – $388K including a $60K franchise fee.
- RETURNSAverage unit revenue of $889K/year.
- RISKVerdict C (Average), verdict score 38/100 (higher is better). SBA loan charge-off rate of 25.0% across 22 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed); 1 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- FranLogic Scout Development, LLC
- Predecessor
- Scout & Molly's Franchise Organization, LLC; Scout & Molly's, Incorporated
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Ed Samane
- Incorporated in
- Pennsylvania
- HQ
- 640 Freedom Business Center Drive, Suite 131, King of Prussia, PA 19406
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.1M
- vs $1.2M prior year
Affiliated brands
- FRANLOGIC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Ed Samane
- Headquarters
- PA
- Founded
- 2014
- FDD year
- 2026
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost is about typical for a retail franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Opening Inventory (branded bags, promotional items)not refundable | $45K | $60K | |
| Leasenot refundable | $12K | $20K | |
| Upfit, Furniture, Signage, and Fixturesnot refundable | $94K | $129K | |
| Equipment, POS applications, software, web based memberships and telephonesnot refundable | $4K | $6K | |
| Deposits and Licensesnot refundable | $500 | $8K | |
| Training Expensesnot refundable | $2K | $4K | |
| Opening Assistancenot refundable | $10K | $10K | |
| Initial Marketingnot refundable | $6K | $6K | |
| Additional Funds - 3 monthsnot refundable | $70K | $70K | |
| Construction Project Management Feenot refundable | $16K | $16K | |
| Total initial investment | $319K | $388K |
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
- $319K – $388K
- Top 40% of category vs category
- Liquid capital req'd
- $70K – $70K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- Flat weekly royalty, not a percentage: $250/week (months …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Flat weekly royalty: $250/week (months 1-12), $500/week (months 13-24), $750/week (months 25-36), $1,000/week (months 37+), paid via EFT. |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $8K |
| Inventory (initial) | $45K – $60K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 11% above the retail norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Scout & Molly’s until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, 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.
Total invested capital · disclosed
$424K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Scout & Molly’s 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 royalty rate, 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $889K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 19 outlets
- vs category median 46 · small
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 5 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $889K/year in gross sales. Revenue-to-investment ratio: 2.5x.
Fee burden
Total ongoing fee load of 8.0% (near the Retail median).
Disclosure
Transparency score 5/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -20.0% 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 Retail medians
How Scout & Molly’s Compares
Category median of published Retail 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -20.0%
- Net unit change over 3 years
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 87.0%
- Units that stayed open
- Ceased ops
- 15.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- South Dakota
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
15 current owners across 11 states.
- CT 2
- MD 2
- NC 2
- TX 2
- FL 1
- IL 1
- KS 1
- OK 1
- PA 1
- SC 1
- VA 1
Counts only, from the list the franchisor prints in Item 20; 5 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
- 22
- Loan volume
- $4.4M
- Median loan
- $200K
- average
- Charge-off rate
- 25.0%
- on 22 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
- 7
- Defaults
- 4
- Typical loan rate
- 6.3%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- 133
- Lender concentration
- N/A
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Scout & Molly’s franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Scout & Molly’s from SBA 7(a) FOIA data.
- Avg interest rate
- 6.35%
- Avg chargeoff amount
- $102K
- Jobs supported
- 133
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 13 | N/A | N/A |
| 2 | JPMorgan Chase Bank, National Association | 2 | N/A | N/A |
| 3 | Wells Fargo Bank National Association | 2 | N/A | N/A |
| 4 | The Huntington National Bank | 2 | N/A | N/A |
| 5 | Traditional Bank, Inc. | 1 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 4 | 0 | -- |
| FLFlorida | 3 | 0 | -- |
| OHOhio | 3 | 0 | -- |
| COColorado | 2 | 0 | -- |
| VAVirginia | 2 | 0 | -- |
| AZArizona | 1 | 0 | -- |
| CACalifornia | 1 | 0 | -- |
| KYKentucky | 1 | 0 | -- |
| MTMontana | 1 | 0 | -- |
| WAWashington | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 25.0% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 25.0% — 56% 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
Small 20-unit retail system with negative franchisor equity of -$364,130 and 3 litigation matters, including a $240,000 California franchise-investment-law settlement and a fiduciary-duty suit. Unit count declined -20% (net growth). Multiple concerns stack: negative equity, meaningful litigation relative to a 20-unit base, and shrinking system.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three disclosed cases: (1) Scott Holdings, Inc. v. FranLogic Scout Development, LLC et al. (2016) - California Franchise Investment Law violations, rescission/damages claim, settled with $240,000 stipulated judgment (2018); (2) PeopleShare, LLC v. Scout and Molly's Boutique (2018) - wage/breach of oral contract claim, arbitrator awarded $48,112.90, settled via installment payments (2022); (3) Lisa Kornstein Kaufman et al. v. Edward Samane et al. (2018) - breach of fiduciary duty, fraud, and related claims by former owner, settled 2022 with $312,500 payment plus $200,000 release and equity transfer.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 38 / 100 verdict
- 01MINORNegative franchisor net worth of -$364,130
- 02HIGH3 litigation matters including $240K CA franchise-law settlement, on only 20 units
- 03MINORNet unit growth -20.0% (shrinking system)
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 2026 · 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Montgomery County, Pennsylvania |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 3 |
View Item 3 litigation summary
Three disclosed cases: (1) Scott Holdings, Inc. v. FranLogic Scout Development, LLC et al. (2016) - California Franchise Investment Law violations, rescission/damages claim, settled with $240,000 stipulated judgment (2018); (2) PeopleShare, LLC v. Scout and Molly's Boutique (2018) - wage/breach of oral contract claim, arbitrator awarded $48,112.90, settled via installment payments (2022); (3) Lisa Kornstein Kaufman et al. v. Edward Samane et al. (2018) - breach of fiduciary duty, fraud, and related claims by former owner, settled 2022 with $312,500 payment plus $200,000 release and equity transfer.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 24 hrs
- Training location
- King of Prussia, Pennsylvania (corporate office), at the Franchised Business, or a location designated by Franchisor
- Ongoing training
- Optional
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
20 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 Scout & Molly’s franchise?
The total investment to open a Scout & Molly’s franchise ranges from $319K – $388K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Scout & Molly’s franchise owners earn?
According to Item 19 of the Scout & Molly’s FDD, the average gross sales per unit is $889K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Scout & Molly’s?
Scout & Molly’s is franchised by FranLogic Scout Development, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Scout & Molly’s 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 Scout & Molly’s FDD and qualifies whose outlets they describe.
What is Scout & Molly’s's franchise failure rate?
Based on SBA 7(a) loan data, Scout & Molly’s has a charge-off rate of 25.0% across 22 loans, meaning 25.0% 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 Scout & Molly’s franchise locations are there?
As of their most recent FDD filing, Scout & Molly’s has 19 total units in the United States, including 19 franchised units and 0 company-owned units.
Is Scout & Molly’s a good franchise to buy?
FranchiseVerdict rates Scout & Molly’s as a C-grade franchise with a verdict score of 38 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
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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.