Mrs. Fields

Item 7 lays out the financial entry: a $35,000 franchise fee within a total initial investment of $311,500 to $495,850 for retail stores or kiosks, covering build-out, equipment, and inventory for selling cookies, brownies, and beverages, often co-branded with TCBY. Ongoing fees hit 6% royalty on gross sales plus 3% brand/ad fund, plus a local marketing minimum of $2,000 monthly for the first nine months post-launch (then $1,000 or 2% of revenue). Item 19 shines here, reporting average gross revenue of $378,393 across units, though the median drops to $331,730—suggesting top performers boost the average while many hover lower, with seasonal November-December spikes driving variability by location.

System health metrics from Items 20 and 21 reveal contraction: 125 locations in 2023 shrank to 114 in 2024 (now 113 total), with just 8 projected new units and 3 transfers. SBA data underscores caution—20 loans averaging $196,260 carry a 10% default rate, higher than many peers, signaling financing risks in this mature, competitive bakery niche. For investors eyeing $300K+ commitments, the revenue disclosure tempts, but declining footprint and middling medians question long-term scalability versus established coffee-bakery rivals.