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MENCHIE'S
Menchie’s Group, Inc. franchises MENCHIE’S stores specializing in self-serve premium frozen yogurt, ice cream, desserts, and beverages prepared according to proprietary recipes and served in a distinctive store atmosphere under the MENCHIE’S System. The business model involves granting single-unit franchises or area development agreements for multiple stores, with franchisees adhering to specific operational procedures, designs, and trademarks. It targets the general public in a competitive frozen dessert market, with sales potentially seasonal due to warmer weather demand.
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Franchise Costs
6% royalty + 2% marketing + $80/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 278 franchised Stores operating for the entire Measurement Period (Jan 1 - Dec 31, 2025) and in traditional locations provided gross sales data. Cost of Goods Sold and Labor Cost data is based on a sample of 103 stores for the same period.
* Average gross profit calculated as Average Gross Sales ($639,093) * (1 - Average Cost of Goods Sold percentage (0.2512)). Assumed Net Sales ≈ Average Gross Sales for COGS percentage calculation as no specific Net Sales dollar figure was provided. Other operating expenses (royalty fees, marketing fees, etc.) are explicitly mentioned but not provided, making accurate net profit/income/EBITDA calculation impossible. Profit range (best_guess_profit_low/high) set to null due to missing critical operating expenses.
Extracted Item 19 Section
Avg. Revenue: $639,093
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Unlock financial performance dataMENCHIE'S Franchise Analysis
Frozen yogurt shops thrive on impulse buys in warm weather, but Menchie's self-serve twist adds a fun, customizable edge that keeps customers coming back. Item 19 lays out revenue figures painting a solid picture for operators who nail location and operations. Yet a bankruptcy stain on the record and shifting unit counts raise eyebrows—can this 2008 starter deliver steady scoops of profit, or will seasonality sour the deal?
Item 7 pegs the initial investment at $179,564 to $515,420, covering build-out, equipment, and inventory for that signature bright, inviting store vibe. Upfront franchise fee hits $53,900, followed by 6% royalties on gross sales, 2% brand fund, and a $80 monthly tech fee—standard but adding up quick in a seasonal biz. Item 19 shines here: average gross revenue clocks $639,093 with median at $595,357 across existing units, suggesting strong performers can clear six figures easily if foot traffic flows. No direct profits disclosed, but these topside numbers beat many dessert peers, especially with beverages boosting off-season sales.
System health mixes promise and caution. At 295 franchise locations plus one corporate, growth feels modest—just 18 projected new units amid 7 terminations and 15 transfers last year, hinting some owners exit while others swap hands. SBA data reveals 257 loans averaging $279,995 but a 12.8% default rate, higher than ideal and underscoring financing risks in this capital-heavy category. Bankruptcy history flags past turbulence, so dig into causes via Item 20. For cash-flow savvy buyers eyeing underserved spots, Menchie's offers proven appeal; weaker operators might churn like melted froyo.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How MENCHIE'S Compares
Key Insights
- #2 largest franchise system in Desserts & Ice Cream
- Lower than average SBA loan default rate in Desserts & Ice Cream
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
MENCHIE'S Current | $180K – $515K | $54K | 6.0% | 295 |
| RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS | $315K – $713K | $35K | 6.5% | 569 |
| DIPPIN' DOTS | $139K – $399K | $35K | 6.0% | 260 |
| MARBLE SLAB CREAMERY | $355K – $477K | $25K | 6.0% | 249 |
| BRUSTER'S | $415K – $1.1M | $40K | 5.0% | 219 |
| HAAGEN DAZS SHOP | $213K – $592K | $30K | 4.0% | 215 |
Desserts & Ice Cream Average 28 franchises | $326K – $645K | $37K | 7.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 28 Desserts & Ice Cream franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for MENCHIE'S franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
257 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
322 franchisee contacts on file from official FDD filings.
322 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
Affiliate MidiCi Group, LLC filed Chapter 11 on September 21, 2018.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a MENCHIE'S franchise ranges from $179,564 to $515,420. This includes a franchise fee of $53,900. Ongoing royalty fees are 6.0% of gross sales.
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