How Much Does a Menchie's Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$165K – $425K
Franchise Fee
$40K
Royalty
The greater of $125 or 6% of Gross Sales
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Menchie's is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Menchie's franchise requires a total investment of $165K – $425K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $6K to $36K.
Ongoing Costs
Beyond the initial investment, Menchie's franchisees pay ongoing fees. The royalty structure is: The greater of $125 or 6% of Gross Sales. The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $80.
Net Worth & Liquid Capital Requirements
Menchie's requires working capital of $6K – $36K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Menchie's's Item 19 financial performance representation:
Median gross sales: $461K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Menchie's?
SBA Loans Issued
234
Default Rate
17.6%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Menchie's has 234 SBA-backed loans on record. The default rate is 17.6%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Menchie's franchise owners
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