Menchie's Franchise Costs, Fees & FDD

Year Business Began: 2008

Franchising Since: 2008

Headquarters: Woodland Hills, California

Estimated Number of Units: 500

Franchise Description: The franchisor is Menchie’s Group, Inc. The franchisor grants the right to operate a store under the “Menchie’s” trademark and other marks and the system. Menchie’s stores offer soft-serve frozen yogurt, ice cream, desserts and beverage items and other related products.
Training Overview: The franchisor will train franchisees, their operating partner, and one of their manager-level employees to operate a Menchie's store. The franchisor will provide five days of training (although the specific number of days depends on the franchisor’s assessment (in its sole discretion) of the franchisee’s experience and needs) at its training facility in Los Angeles, California, or another location it designates. Franchisees must attend and complete the entire prescribed length of the training program. Fourteen days after obtaining approval to open the store, the franchisor will, at its cost, send one of its representatives to the store for three days to educate, train, conduct a final inspection and assist with the store opening. Franchisees (or their operating partner) and/or other previously trained and experienced employees must attend and satisfactorily complete various training courses the franchisor periodically provides at the times and locations it designates. In addition to attending these courses, franchisees must attend an annual meeting of all franchisees at a location the franchisor designates. The franchisor may require store managers to satisfactorily complete initial and ongoing training programs.

Territory Granted: Franchisees will operate the store at a specific location that the franchisor first must approve. Typically, the designated territory will be a two-mile radius around the restaurant. The following locations are excluded from the designated territory and the franchisor has the right to develop or franchise restaurants at these locations (whether within or outside the designated territory): (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; and (6) special events. The boundaries of the designated territory may depend upon any major topographical features which clearly define a contiguous area, like rivers, major freeways, etc. During the term of the Franchise Agreement and provided franchisees are in compliance with the terms and conditions of their Franchise Agreement, the franchisor will not: (i) modify the designated territory; or (ii) establish a company-owned or franchised Menchie’s store inside the designated territory.

Obligations and Restrictions: The day-to-day operations of the Menchie’s store must be managed at all times by franchisees (or their operating partner) or an assistant store leader who has satisfactorily completed the training program. Franchisees must attend any annual meeting, convention or conference of franchisees and all meetings related to new products or product preparation procedures, new operational procedures or programs, training, management, sales or sales promotion or similar topics that the franchisor offers, at their own expense. Franchisees must offer and sell all menu items and perform all services that the franchisor requires for Menchie’s stores. Franchisees may not offer or sell any products or perform any services that have not been authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for three additional terms of 10 years each, if requirements are met.

Financial Assistance: The franchisor does not offer, either directly or indirectly, financing to franchisees for any items.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$32,000
Travel and Living Expenses While Training	$664	$3,500
Lease Deposit and Rent	$3,600	$11,200
Leasehold Improvements	$36,000	$216,000
Furniture, Fixtures, and Equipment	$46,000	$136,000
Computer (POS) System	$168	$5,379
Signage	$4,414	$15,400
Opening Inventory	$5,800	$7,400
Uniforms, Merchandise, Equipment and Sales	$600	$1,000
Grand Opening Marketing	$3,500	$5,000
Utility Deposits, Security Deposits, Business Licenses, etc.	$200	$3,700
Insurance (3 months)	$1,000	$1,500
Inspection Fee	$0	$1,500
Additional Funds—3 months	$6,000	$36,000
ESTIMATED TOTAL	$139,946	$475,579

 
Other Fees

Type of Fee	Amount
Royalty Fee	The greater of $125 or 6% of gross sales.
Marketing Fee	2% of gross sales.
Audit Fee	Cost of audit.
Late Fee	10% of the amount due.
Interest on Late Payments	The lesser of 18% per annum or the maximum amount permitted by applicable law.
Additional Training Fee	To be determined by the franchisor, but not to exceed $500 per person per day.
Alternative Supplier Evaluation Fees	Various amounts to be determined by the amount of time and money necessary to evaluate the alternative supplier and/or the alternative product.
Renewal Fee	$4,000
Technology Fee	$80
Alternative Dispute Fee	To be determined by the American Arbitration Association.
Transfer Fee	$10,000
Costs and Attorneys' Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Inspection Fee	The franchisor’s costs and expenses in conducting any subsequent pre-opening store inspection. The franchisor estimates that this amount will not exceed $1,500.
Taxes	Actual costs.
Liquidated Damages	$250 per day.
Termination Fee	$250 per week for each week remaining in the term of the Franchise Agreement if the term of the Franchise Agreement had not been terminated early.
Dispute Resolution Fees	$50,000 plus attorneys’ fees and expenses.

The above information has been compiled from the FDD of Menchie's. Year of FDD: 2025.
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