Mainstream Boutique Franchise Costs, Fees & FDD

Year Business Began: 1991

Franchising Since: 1998

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 65

Franchise Description: Mainstream Fashions Franchising, Inc. (MFI) is the franchisor. The franchisor is a wholly-owned subsidiary of Mainstream Fashions, Inc. Mainstream Boutique franchise owners own and operate a retail store offering fashionable women’s clothing, jewelry, giftware and accessories to the general public both through the operation of a retail business and through direct sales to customers at shows conducted at the customer’s home, place of business, another location, or online.
Training Overview: Franchisees (or if they are an entity, the owner) must complete training that is available to download on the franchisor’s intranet, SharePoint. Franchisees (or if they are an entity, the owner) must also attend the training program offered at the franchisor’s flagship store location located in Apple Valley, Minnesota or under unique circumstances, remotely over the Internet, which is subject to the franchisor’s prior written approval. The four general casting-day training program includes classroom instruction and on-the-job training covering the Mainstream Boutique business system. Franchisees will receive subsequent training from one of the franchisor’s employees or agents (the store operations team) during the first six months the business is open and operating. The franchisor may provide optional or mandatory training at any time during the term of the Franchise Agreement. The franchisor may, in its discretion, periodically hold or sponsor franchise conventions and meetings relating to new services or products, new operational procedures or programs, retail or clothing trends, system updates or modifications, franchisee feedback, training, business management, sales and sales promotion, or similar topics. Currently, franchisees are required to attend the annual convention.

Territory Granted: The location for the Mainstream Boutique business will be identified in the Franchise Agreement. The franchisor will designate a territory once the location of the business is approved (the designated territory). The designated territory will have a population of approximately 100,000 people, but will not be greater than a 7-mile radius surrounding the business. So long as franchisees are in compliance with the franchisor’s standards and specifications and their Franchise Agreement, the franchisor will not establish or franchise others to establish a Mainstream Boutique retail store within the designated territory, but the designated territory may overlap with the territory of another franchisee. Franchisees can host a show from any location (including online but not at the physical location of another franchisee’s or the franchisor’s protected account, as described in the FDD) and any other franchisee or the franchisor may conduct a show at any location, including within their designated territory, as described in the FDD.

Obligations and Restrictions: If franchisees are individuals, they are required to participate in the operation of the franchised business. If franchisees are a corporation, partnership or other business entity, they must designate in writing to the franchisor the individual who owns 51% of the franchisee entity and that individual is required to participate in the operation of the business. Franchisees are required to attend and successfully complete the initial training program prior to managing or operating the Mainstream Boutique business. The Franchise Agreement provides that franchisees must sell the products and services required by the franchisor from Mainstream’s approved vendors. Furthermore, franchisees are prohibited from offering or selling any products or services not authorized by the franchisor and from using the business for any purposes other than the operation of a Mainstream Boutique business.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10-year term under terms offered to other franchisees at the time of renewal is available, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guaranty a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee	$20,000	$40,000
Initial Inventory	$30,000	$45,000
Leasehold Improvements and Store Design	$55,000	$100,000
Construction Documents	$3,800	$9,000
Construction Coordinator Services	$1,000	$5,250
Signage	$10,000	$25,000
Real Estate Deposits	$3,000	$6,000
Travel and Living Expenses During Training	$1,000	$2,500
Point-of-Sale (POS) System, Computer Hardware and Software	$5,000	$8,600
Furniture, Fixtures, Equipment, and Retail Supplies	$25,000	$38,000
Professional Services & Legal Review	$1,400	$6,000
Grand Opening Advertising	$3,000	$6,000
Additional Funds – Three Months	$40,000	$70,000
ESTIMATED TOTAL	$198,200	$361,350

Other Fees

Type of Fee	Amount
Continuing Fees	7.5% of net revenues.
Advertising Fund Contribution	0.5% of net revenues.
Local Advertising	Currently, 3% of net revenues per year.
MSB Cooperative	$1,000
Reimbursement of Audit Costs	Dependent upon the costs incurred by the franchisor in conducting an audit.
Transfer Fee	$20,000
Renewal Fee	$5,000
Annual Convention Expenses	$500-$2,000
Technology Fees	Currently, the franchisor does not collect technology fees, but may charge an amount not to exceed $500 per month.
Additional Training	Currently, the franchisor does not charge for additional training programs, but may charge an amount not to exceed $300 per course per person.
Additional Supplier Approval	Cost to the franchisor to evaluate, review or test samples of unapproved products or proposed supplier.
Service Charge	$50 if franchisees fail to pay any continuing fees or to submit a report of net revenues or other reports of financial statements to the franchisor within 10 days after due date.
Interest Charges for Unpaid Amounts	18% per annum simple interest or the maximum legal rate allowable in the state in which the business is located, whichever is less.
Extension Fee	$2,500 for up to 6 months.
Annual Modernization Costs	$500-$1,500

The above information has been compiled from the FDD of Mainstream Boutique. Year of FDD: 2025.
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