Melt Gelato
Date Incorporation: 2005
Franchising Since: 2005
Headquarters: Temecula, California
Description: The Melt Gelato Bar will offer for sale some or all of the following: gelato, sorbetto, yogurt, smoothies, coffees, sodas, crepes, salads, paninis, and a variety of other similar or related products and items.
Franchise Offer: Melt Franchising franchises Gelato Bars which will operate under the name MELT gelato italiano®, MELT CAFE AND GELATO BAR® OR MELT gelato & crepe cafiS®. The system is characterized by its menu products and recipes, distinctive layout, service style, design, signs, decor, furnishings, procedures and technique. A Gelato Bar typically will have approximately 150 to 2,000 square feet with seating capacity for between 0 (at a kiosk location) and 50 people, depending on the size of the Gelato Bar.
Training and Assistance: The Gelato Bar must be under the direct, on-site supervision of the franchise owner or a manger that has completed the Melt Franchising training program. Not more than thirty days before the opening of your Gelato Bar, the franchisor will provide the following initial training and familiarization course to train up to two (2) people from the franchise management team.
The franchisor will provide assistance and on-the-job training up to a maximum of thirty hours during the first week open for business and also provide 10 hs of classroom training covering such aspects as food preparation and marketing and advertising. The franchisor will not charge for this assistance, but the franchisee must pay the travel and living expenses of the franchisor during this time. However, if Melt
Franchising determines additional training is required, the franchisee must pay the then-current daily fees, which will not exceed $500 per day plus expenses.
Financial Assistance: The franchisor does not offer, either directly or indirectly, any financing to the franchisee. Melt Franchising does not guarantee the franchisee’s notes, leases or other obligations.
Territory: A franchisee will receive the right to operate his Gelato Bar at a specific location described in the franchise agreement. The right to operate the Gelato Bar is not exclusive except Melt Franchising agrees that they will not allow anyone else to operate another Melt brand Gelato Bar within a one mile radius from the Gelato Bar.
Term of the Franchise Agreement and renewal: The term of the franchise agreement is 10 years. There is a possibility to renew for an additional 2 term of 5 years each.
Obligations and Restrictions: During the term of the franchise agreement, the franchisee, the principal owner or store manager must devote their full time and best efforts to the management of the Gelato Bar. If the franchisee has a full time store manager, they (or a person representing the head office) must spend at least twelve hours per week in the store.
Total Number of Units 2007: 22
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $85,000 | $400,000 |
| External Signage | $3,500 | $15,000 |
| Internal Signage (Menu and internal graphics) | $4,500 | $6,500 |
| Equipment and Furniture | $70,000 | $100,000 |
| Deposits | $1,000 | $20,000 |
| Office Equipment/Supplies | $500 | $1,000 |
| Business License and Permits | $1,000 | $5,000 |
| Professional Fees | $5,000 | $15,000 |
| Initial Inventory | $5,000 | $15,000 |
| Insurance | $500 | $750 |
| Initial Marketing Expenses | $0 | $3,000 |
| Site Finders Fee | $0 | $15,000 |
| Training Expenses | $1,500 | $5,000 |
| Additional Funds | $10,000 | $50,000 |
| Total | $260,000 | $650,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 6% of Gross Sales |
| Marketing Fee | 1% of Gross Sales |
| Local Marketing | 1% of Gross Sales |
| Audits | Cost of audit plus interest at the maximum rate allowable by law |
| Transfer Fees | 60% of the then-current Initial Franchise Fee plus payment of the then –current training fee |
| Remodeling | Not more than $50,000 during the initial term of the Franchise Agreement |
| Insurance | $1,600 to $ 4,800 for annual premium |
| Delinquent Report Late Fees | $100 for each delinquent report |
| Non sufficient Funds | $150 |
| Management fees | 10% Gross Sales |
The above information has been taken from the UFOC/FDD of Melt Gelato
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