Mochinut Franchise Cost & Profit For 2024
Mochinut Franchise is a unique and innovative franchise that combines the delicious flavors of mochi, a traditional Japanese dessert, with the popular American treat of donuts. With their signature Mochinut creations, this franchise has quickly gained popularity among food enthusiasts looking for something new and exciting in the dessert industry. In this franchise analysis, we will delve into the details of Mochinut’s business model, financials, and growth potential to provide you with valuable insights into this emerging franchise opportunity.
Mochinut Franchise Cost & Profit For 2023
How is Mochinut Franchise Positioned in the Food and Beverage Industry?
Mochinut capitalizes on the growing popularity of mochi, a traditional Japanese rice cake, and donuts to create a fusion product that appeals to a wide range of consumers.
By combining two beloved treats into one, Mochinut offers customers an exciting and novel experience. This positioning sets it apart from traditional donut shops or bakeries, creating a niche market for itself.
Mochinut also differentiates itself by offering various flavors and fillings for its mochi donuts. With options like matcha green tea, black sesame, strawberry cheesecake, or Nutella-filled varieties, Mochinut caters to diverse tastes and preferences.
From 2021 to 2026, the global bakery industry is anticipated to expand at a compound annual growth rate (CAGR) of about 3.8%. Also, it is anticipated that the global market for mochi will reach $1.7 billion by 2025 due to expanding consumer demand for distinctive and exotic flavors as well as the rising recognition of Asian cuisine in general.
How Much is a Mochinut Franchise?
The initial Mochinut Franchise Fee is $35,000. You have to pay this upfront fee when opening a Mochinut franchise.
Mochinut Franchise Cost
The estimated total investment necessary to begin the operation of a Mochinut Franchise ranges from $188,500 – $336,000. The following costs are part of the upfront costs included in the initial investment for a Mochinut. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Mochinut franchise in 2023.
Estimated Initial Investment
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|
| Initial Franchise Fee | $35,000 | Lump sum | At signing of Franchise Agreement | Franchisor |
| Real Estate Security/Deposits and Initial Rent | $15,000 – $40,000 | As arranged | When Incurred | Landlord/Mortgagee |
| Construction, Design and Architectural Expenses | $70,000 – $150,000 | As arranged | When Incurred | Suppliers/Approved Architect |
| Equipment, Furniture and Fixtures | $35,000 – $40,000 | As arranged | When Incurred | Franchisor and Suppliers |
| Opening Inventory | $13,000 – $20,000 | As arranged | When Incurred | Suppliers and Franchisor |
| Insurance | $1,000 – $4,000 | As arranged | When Incurred | Insurance Provider |
| Opening Promotion and Grand Opening | $3,500 – $6,000 | As arranged | When Incurred | Franchisor and Suppliers |
| Cash Registers/Other Office Equipment | $2,000 – $3,000 | As arranged | When Incurred | Suppliers |
| Business Licenses, Utility Deposits, Prepaid Fees | $2,000 – $5,000 | As arranged | When Incurred | Government and agencies |
| Initial Training Expenses | $2,000 – $3,000 | As arranged | When Incurred | Employees and Suppliers |
| Additional Funds – 3 months | $10,000 – $30,000 | As arranged | When Incurred | Employees and Suppliers, etc. |
| TOTAL BASIC PACKAGE | $188,500 – $336,000 |
Owning a Mochinut Franchise Requires Ongoing Fees
Royalty: 5% of Gross Sales
Marketing Fee: Up to 1% of Gross Sales
How much do Mochinut franchise owners make?
Mochinut does not disclose financials, instead stating: “The FTC’s Franchise Rule permits a franchisor to provide information about actual or potential financial performance of its franchised and/or franchiser-owned outlets, if there is a reasonable basis for the information, and the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.” Additionally, since Mochinut Franchise is new, they do not have any financial statements either.
However, based on our estimates, we believe that you can earn around $775,000 in a well-trafficked location like Sherman Oaks, CA.
Mochinut Estimated Franchise Sales: $775,000
2022 Mochinut Financial Estimates
| Initial Investment (Midpoint) | % Profit Margin of Average Franchise Sales | Estimated Profits | Time to Recoup Investment |
|---|---|---|---|
| $262,000 | 10% | $77,500 | 5 years |
| $262,000 | 15% | $116,250 | 3.75 years |
| $262,000 | 20% | $155,000 | 3 years |
Based on the median sales provided by Mochinut’s franchise locations, at an average of a 15% profit margin it will take around 3.75 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Food and Beverage stores; the extent of market penetration and brand awareness that Mochinut stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
How many Mochinut units have opened and closed?
Outlet Type, Outlets at the Start of the Year, Outlets at the End of the Year, and Net Change
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2020 | 0 | 9 | +9 |
| 2021 | 9 | 52 | +43 | |
| 2022 | 52 | 103 | +51 | |
| Company or Affiliate-Owned | 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 | |
| 2022 | 0 | 0 | 0 | |
| Total Outlets | 2020 | 0 | 9 | +9 |
| 2021 | 9 | 52 | +43 | |
| 2022 | 52 | 117 | +65 |
Over the last three years, the company has seen explosive growth. From 0 stores at the start of 2020, Mochinut now has 117 stores. That is an annual average growth rate of 39 new franchises per year.
Summary
Mochinut Franchise capitalizes on the growing popularity of both treats and offers various flavors to cater to diverse tastes. The bakery industry is set to grow, as more and more people demand unique flavors such as mochi.. The initial franchise fee for Mochinut is $35,000, with an estimated total investment ranging from $188,500 to $336,000. Franchise owners are required to pay ongoing fees such as royalties and marketing fees. Financial performance information is not disclosed by Mochinut, as it is a new franchise without financial statements. However, the company has experienced rapid growth in recent years, with 117 stores opened since 2020 at an average rate of 39 new franchises per year.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Food and Beverage industry.
