Scout & Molly’s Franchise Cost, Revenue & Review 2026
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 and an ongoing 7.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 25.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $319K – $388K
- 37th pct Retail
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 26th pct Retail
- 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 avg · 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, 7.0% ongoing royalty.
- RETURNSData covers 19 franchised outlets operating full 2025 calendar year, divided into top/middle/bottom thirds by gross sales (7/7/5 franchisees). Excludes company-owned locations (none exist) and 1 franchisee that closed during 2025. COGS is material and freight only, excludes payroll. Not audited/independently verified.
- RISKVerdict D (Below 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).
- DATAItem 19 reports historical actual (top/middle/bottom thirds averages) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
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 runs 14% below the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown12 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.
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
- 7.0%
- Percentage of 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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Scout & Molly’s did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Scout & Molly’s unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
Below the 30–60% attractive-franchise band
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
Data covers 19 franchised outlets operating full 2025 calendar year, divided into top/middle/bottom thirds by gross sales (7/7/5 franchisees). Excludes company-owned locations (none exist) and 1 franchisee that closed during 2025. COGS is material and freight only, excludes payroll. Not audited/independently verified.
- Item 19 type
- historical actual (top/middle/bottom thirds averages)
- Sample size
- 19
- vs category median 47 · small
- Transparency tier
- full
- Categorical assessment of disclosure depth
- 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.
Fee burden
Total ongoing fee load of 8.0% (near the Retail average).
Disclosure
Item 19 reports historical actual (top/middle/bottom thirds averages) rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Scout & Molly’s Compares
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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- 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 · 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).
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
- 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.
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.
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)
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.
Largest disclosed settlement: $312,500
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 |
| 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
FDD download
Scout & Molly’s · FDD (2026) 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?
Scout & Molly’s 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 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 D-grade franchise with a verdict score of 38 out of 100 (higher is better), 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.