General

Industry

Food and Beverage

Category

Frozen Dessert

SBA Identifier

S1103

Year of Founding

2008

Fees

Marketing Fee

2%

Royalty Fee

6%

Franchise Fee

$40,000-$40,000

Investment Range

$219K-$381K

Location units

Total U.S. Locations

408

U.S. Franchised Units

407

U.S. Corporate Units

1

Headquarters (City)

Encino

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2008

Issuance of FDD Data

07/15/2020

What to know about Menchie's franchise?

We grant you the right to operate a MENCHIE'S Store. Your Store will offer for sale soft- serve frozen yogurt, ice cream, desserts and beverage items and other related products. We also grant to qualified franchisees the right to develop MENCHIE'S stores under an Area Development Agreement.

Menchie's is based in Encino, CA. Scroll down to learn more!

How much does a Menchie's franchise cost?

Are you wondering how much is a Menchie's franchise? Before starting a Menchie's franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Menchie's franchise is $218,815 and can go all the way up to $381,000. Keep in mind, you should also allocate additional funds to live off of while the Menchie's business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Menchie's franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Menchie's business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Menchie's franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Download our guide to compare Menchie's. Hotels to the Frozen Dessert, Outdoor Food and Beverage industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 394 50 26 419
2017 419 52 40 431
2018 431 27 32 426
2019 426 12 31 407

Additional Details

How much does a Menchie's franchise owner make?

Menchie's franchise earnings and revenue can vary significantly from one franchisee to another.
The Menchie's franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Menchie's unfortunately does not disclose financials on how much Menchie's franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Menchie's does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Menchie's franchisees. Do note that Menchie's is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Menchie's franchisees to understand how much money they are making from their Menchie's business.

You should also speak to former Menchie's franchisees to understand why they left the system. Did they sell their Menchie's at a profit? Were they forced to close their Menchie's franchise down because it kept losing money?

What is the Menchie's franchise fee?

Owning a Menchie's franchise requires 6% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Menchie's Franchise Disclosure Document

Keep in mind, there is also an initial Menchie's franchise fee of $40,000 that is included in the initial investment amount of $218,815 to $381,000. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Menchie's franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Menchie's franchise fee of $40,000.

Visit the Menchie's metrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Menchie's founded?

Menchie's started offering franchises in 2008. Menchie's was founded 14 years ago in 2008.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Menchie's locations are in the U.S.?

As of 2020, there were 407 locations across the U.S. There are also 1 corporate locations. Most Food and Beverage franchises like Menchie's have more franchised locations than corporate locations.

How many Menchie's franchises opened over the past few years?

Over the prior 3 years we have data for, Menchie's has opened 91 outlets throughout the U.S. Visit the Menchie's metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many Menchie's franchises closed over the past few years?

Over the prior 3 years we have data for, Menchie's has closed 103 outlets throughout the U.S

Visit the Menchie's metrics tab to explore how the openings compare to other Food and Beverage franchises.

Is Menchie's growing? Are they opening more locations than they are closing?

The net unit growth rate for Menchie's over the past 3 years is -3%. Over the last year we have data for, Menchie's had a net unit growth rate of -4%.

Without a comparison, this number doesn’t mean much. Compare how the Menchie's growth rate compares to 2,000+ other franchises and Industry franchises like Menchie's. More info in the Menchie's metrics tab.

Is Menchie's franchise eligible for an SBA Loan?

Menchie's is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Menchie's franchise was assigned the SBA Franchise ID of S1103 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Menchie's that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Menchie's a franchise in the United States?

According to the SBA, Menchie's meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Menchie's provides you with an FDD if you are in discussion to buy a Menchie's.

What is the Menchie's Franchise for Sale Rate?

The Menchie's systemwide health and franchisee satisfaction can be measured by the Menchie'sfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Menchie's franchise for sale rate over the past 3 years is 21%. Over the last year we have data for, Menchie's had a franchise for sale rate of 8%.

Without a comparison, this number doesn’t mean much. Compare how the Menchie's franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Menchie's. More info in the Menchie's metrics tab.

What is the Menchie's Franchise Failure Rate?

Menchie's franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Menchie's failure rate over the past 3 years is 25%. Over the last year we have data for, Menchie's had a franchise failure rate of 8%.

Without a comparison, this number doesn’t mean much. Compare how the Menchie's franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Menchie's. More info in the Menchie's metrics tab.

How can I find out more details on Menchie's franchise?

Visit the Menchie's metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Menchie's

$299,908

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Menchie's

6%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Menchie's

$40,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Food and Beverage

Category

Frozen Dessert

SBA Identifier

S1103

Year of Founding

2008

Fees

Marketing Fee

2%

Royalty Fee

6%

Franchise Fee

$40,000-$40,000

Investment Range

$219K-$381K

Location units

Total U.S. Locations

408

U.S. Franchised Units

407

U.S. Corporate Units

1

Headquarters (City)

Encino

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2008

Issuance of FDD Data

07/15/2020

Detailed Franchise metrics for Menchie's

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Menchie's below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Menchie's

0%

-3%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Menchie's

8%

21%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Menchie's

8%

25%

Industry median

All franchises median

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Business details

Company Name

www.menchies.com

Business email

**********@******.com

Mailing address

20631Ventura Boulevard, Suite 200

State headquarters

California

Owner Name

Menchie's

Phone

+1 (000) 0********00

City

Encino

Zip code

91364
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