Scout & Molly’sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Scout & Molly’s franchise requires a total initial investment of $319K – $388K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $742K[2]. SBA 7(a) loans show a 25.0% charge-off rate across 22 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $319K – $388K
- 33rd pct Retail
- Avg gross sales
- $742K
- 9th pct Retail
- Royalty
- 7.0%
- 24th pct Retail
- Units
- 20
- 10th pct Retail
- SBA default
- 25.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
25.0% of SBA loans charged off across 22 loans, above the 16% franchise average.
The system contracted 9% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $319K – $388K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $742K/year.
- Verdict F (Bottom Quintile) with a risk score of 87/100. 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, 2010–2024).
- 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
- FRANLOGIC SCOUT DEVELOPMENT, LLC
- Incorporated in
- PA
- HQ
- 640 Freedom Business Center Drive, Suite 131, King of Prussia, PA 19406
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.2M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- FRANLOGIC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Scout & Molly's franchisees operate children's specialty retail stores selling clothing, accessories, and related merchandise for infants and children. Day-to-day operations include inventory management, visual merchandising, customer service, staff training, and local marketing in a protected territory.
- CEO
- Ed Samane
- Headquarters
- PA
- Founded
- 2014
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 12 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 | |
| Initial Fee (Multi-Unit Franchise Agreement)not refundable | $110K | $190K | |
| Total initial investment | $429K | $578K |
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.
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
$52K
7.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $319K – $388K
- Better than avg vs category
- Liquid capital req'd
- $70K – $70K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| 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 |
Financial Performance
- Avg gross sales
- $742K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historical segment averages
- Sample size
- 13 units
- vs category median 49 · small
- Range (low → high)
- $543K→$953K
- Cohort dispersion (min → max)
- Quartile band
- $543K→$953K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 5 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How Scout & Molly’s Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 1
- Last reporting year
- Closed
- 3
- Turnover rate
- 15.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -9.1%
- Net unit change last year
- 3-yr CAGR
- -13.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 13 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).
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Scout & Molly’s's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
A 25.0% charge-off rate means roughly 1 in 4 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 litigation history, undisclosed profitability metrics, and compliance concerns creates elevated risk despite stable average revenues.
Litigation (Item 3)
5 case reference(s): 0 pending, 3 settled.
Largest disclosed settlement: $800,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC⚠ Going-concern note flagged
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: Yes
Score breakdown · what drove the 87 / 100 rating
- 01MEDUnit count declined 9.1% YoY (20 units) indicating system contraction and potential market saturation or operational issues
- 02HIGHMultiple material litigation disclosures totaling $600,612.50 including California Franchise Investment Law violations, wage claims, and fiduciary duty breaches suggest compliance and management problems
- 03MEDAverage net income not disclosed in Item 19 despite $741,857 average revenue—lack of profitability transparency is a major red flag for franchisee earnings potential
- 04MINORHigh cumulative investment ($319K-$388K) combined with 7% royalty against declining unit base raises break-even concerns
- 05HIGHLitigation history includes specific allegations of franchise law violations in California, the most litigious franchising jurisdiction, indicating systematic compliance failures
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 | 20 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius or Population |
| Protected territory | Yes |
| 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 |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 3 |
View Item 3 litigation summary
5 case reference(s): 0 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 24 hrs
- Training location
- Off-site and On-site
- Site selection
- joint
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Scout & Molly’s · FDD (2025) PDF
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 $742K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 20 total units in the United States, including 20 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Scout & Molly’s a good franchise to buy?
FranchiseVerdict rates Scout & Molly’s as a F-grade franchise with a risk score of 87 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.