Melting Pot
Date Incorporation: 1975
Franchising Since: 1984
Headquarters: Tampa, Florida
Business Description: The Melting Pot restaurants are specialty restaurants serving cheese, beef, chicken, seafood, vegetables and chocolate fondue, salads, fruits, fresh breads, imported and domestic beer, wine and other foods and beverages. As an integral part of the total dining experience, the guests of The Melting Pot restaurant cook much of the food they are served in fondue pots on in-table burners.
Franchise Offer: Two types of franchise offers:
1. Single Location Agreement: gives franchisee the right to operate a The Melting Pot restaurant at a single location.
2. Area Development Agreement: gives franchisee the right to develop, within a predetermined time frame, and operate restaurants at multiple locations within specific geographical areas.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisee and two members of the management team must attend the initial training program. The program is approximately seven weeks in duration. It comprises of 53 hours of classroom training and 211 hours of 'On-The-Job' training. The training is located in the Franchise Support Center, Tampa Florida.
Territory: The franchisee will be granted an exclusive territory to operate the Melting Pot restaurant. The territory will typically be delineated by a five-mile radius surrounding the designated location.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for a successive 10 year term.
Obligations and Restrictions: The franchisee is expected to continuously exert their best efforts to promote and enhance the restaurant and not engage in any other business or activity that conflicts with their obligations to operate the restaurant. The franchisee is not required to actually be on the premises every day that the restaurant is open for business. However, the franchisee or a designated manager who has satisfactorily completed the initial training program must be on the premises.
Total Number of Units: 141 outlets as of 2011
Total Number of franchises Units: 137 franchised outlets as of 2011
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Real Estate (Rent - First 3 months) | $25,000 | $62,500 |
| Security Deposit | $10,000 | $20,000 |
| Real Estate Improvements | $400,000 | $750,000 |
| Computer and Point of Sales Hardware/Software | $15,000 | $30,000 |
| Computer Software Installation and Training; First Year Subscription | $3,195 | $3,195 |
| Restaurant Equipment, Furniture, Fixtures and Signage | $250,000 | $400,000 |
| Utility Deposits | $2,000 | $5,000 |
| Opening Inventory and Supplies | $16,500 | $15,000 |
| Grand Opening Advertising | $8,000 | $15,000 |
| Training Expenses | $18,000 | $33,000 |
| Licenses - Alcoholic Beverages, Business and Health | $6,000 | $10,000 |
| Insurance | $3,000 | $6,000 |
| Legal | $2,000 | $6,000 |
| Accounting Firm | $9,000 | $9,000 |
| Additional Funds | $74,000 | $105,000 |
| Total Estimated Initial Investment under the Franchise Program | $886,695 | $1,544,695 |
| Development Fee (Includes $45,000 Initial Franchise Fee for the first Restaurant) | $22,500 | $90,000 |
| Total Estimated Initial Investment under the Area Development Program | $909,195 | $1,644,695 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty and Service Fee | 4.5% of monthly Gross Revenues |
| Advertising Contribution | Up to 1.5% of Gross Revenues ; maximum contribution $45,000 per calendar year |
| Cooperative Advertising | No more than 1.5% of Gross Revenues |
| Local Advertising | 3% of Gross Revenues |
| Additional or Refresher Training | Fees range from $200 to $1,500, plus expenses |
| Additional Assistance | Currently $300 per day, plus expenses |
| Transfer of Franchise | $5,000, plus additional assistance expenses for training, if incurred Renewal of Franchise Agreement 1/2 of the then-current initial franchise fee not to exceed $17,500 most recently received by the franchisor for a new franchise in a comparable area |
| Audit | Cost of inspection or audit |
| Interest and Late Fees | Lesser of 1.5% per month or highest contract rate of interest allowed by law, plus a late payment fee of 5% of the amount due. |
| Management Fee | Will vary under circumstances |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Testing | Cost of Testing |
| Hosting Services | To be determined; not yet charged |
| User Fee | To be determined; not yet charged |
The above information has been provided by The Melting Pot.
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