Scout & Molly’s
Formerly known as FranLogic
Bottom line
- Total investment $319K – $388K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $742K/year.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Scout & Molly’s unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 54 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Scout & Molly’s · FDD (2025) PDF