Menchie's franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.16 ↗

Franchise fees and ongoing costs

Franchise fee

$53,900 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · Greater of $125 or 6% of Gross Sales, paid weekly on Friday by EFT (based on prior Sunday-Saturday week)

Marketing contribution

2% (basis not captured; see original filing)

Technology fee

$80 per month, starting 30 days after lease is signed; may change by up to 5% per calendar year

Other fees

Termination fee $250 per week for each week remaining in the term; late fee 10% of amount due plus interest at lesser of 18% or legal max; additional training up to $500 per person per day

Working capital (FDD Item 7)

Additional Funds - 3 Months: $6,000-$36,000 (first three months of operation, includes payroll but not owner's draw or salary)

Fees sourceFDD p.12 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median Gross Sales, Gross Sales distribution by category, plus average/median cost of goods sold and labor cost as % of Net Sales

Reporting period

Calendar year 2025 (Jan 1 - Dec 31, 2025)

Sample

278 of 295 franchised Stores (open the full period, traditional locations only); COGS and labor based on 103 Stores that reported them

Reported average

$639,093

Reported median

$595,357

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.37 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

294

Year-end outlets

295

Net change

+1

Derivation

ending minus starting outlets

Openings

8

Terminations

7

Non-renewals

0

Other closures

0

Reacquisitions

0

Transfers

15

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.40 ↗

SBA loan history

Loan activity

37 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$247,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

35 loans

Historical charge-off share

16.50%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

33 / 200

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Menchie's franchise cost?

Single Store: $179,564 to $515,420; Two Stores (concurrent development, reduced second-store fee): $351,228 to $1,022,670 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $53,900 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Menchie's owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median Gross Sales, Gross Sales distribution by category, plus average/median cost of goods sold and labor cost as % of Net Sales. Sample: 278 of 295 franchised Stores (open the full period, traditional locations only); COGS and labor based on 103 Stores that reported them. Period: Calendar year 2025 (Jan 1 - Dec 31, 2025).

Item 19 performance sourceFDD p.37 ↗

What's the SBA charge-off rate for Menchie's?

16.50%; numerator / denominator: 33 / 200. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $247,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 35 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗