Menchie's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$143,000 - $471,000
Royalty fee
6.00%

Menchie's: Revolutionizing the Frozen Yogurt Experience

Menchie's Frozen Yogurt, established in 2007, has quickly risen to prominence within the self-serve frozen yogurt industry. By 2008, the company began offering franchising opportunities, facilitating rapid global expansion and establishing itself as a brand associated with fun and engaging customer experiences.

Menchie's is celebrated for its welcoming and family-friendly atmosphere, where customers can create their own unique frozen yogurt combinations from a wide selection of flavors and toppings.

The brand sets itself apart through a strong commitment to quality and community engagement, aiming to create memorable experiences for both guests and franchisees. Based in Encino, California, Menchie's operates under Menchie's Group, Inc.

Prospective franchisees can benefit from comprehensive support provided by Menchie's, which includes training and marketing assistance to ensure each store's success. Menchie's continues to grow, driven by its innovative approach to frozen yogurt and its dedication to spreading smiles and making positive impacts in the community.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Travel and Living Expenses While Training $625-$2,600
Lease Deposit and Rent $1,593
Leasehold Improvements $56,230-$205,570
Computer (POS) System $5,735-$5,850
Signage $3,435-$8,475
Opening Inventory $5,300-$7,300
Uniforms, Merchandise, Equipment and Sales $1,000
Grand Opening Marketing $3,000
Utility Deposits, Professional Fees, Business Licenses, etc. $200-$3,700
Insurance (3 months) $1,000-$1,500
Inspection Fee $0-$1,500
Additional Funds—3 Months $6,000-$36,000
Total $142,683-$471,087

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Number of units

2024
Franchised units

344

320

317

Company-owned units

1

1

1

Total units

345

321

318

Franchise Disclosure Document

Training 

The franchisor offers an extensive training program for Menchie's franchisees, ensuring they are well-equipped to manage their franchises effectively. The training program includes:

Pre-Opening Support: Prior to launching the store, the franchisor provides guidance on site selection, design requirements, and approved suppliers and supplies. Franchisees receive an Operations Manual and are enrolled in the "Circle of Success Program," which features recorded webinars on essential operational topics.

Initial Training: The franchisor conducts a comprehensive initial training program for the franchisee or their Operating Partner and one manager-level employee. This training, offered at no additional cost, covers crucial subjects like company culture, guest care, and product knowledge. It takes place over several days at the franchisor's training facility in Los Angeles, California, or another designated location. Additional participants can join for a fee, and all attendees must cover their own travel, living expenses, and wages.

Ongoing Training: Franchisees, store managers, and key employees may be required to attend ongoing training sessions at the franchisor's training facility or other specified locations. These sessions might introduce new products, services, and operational procedures or serve as refresher courses. The franchisor may charge a fee for manager training, not exceeding $500 per person per day, and franchisees are responsible for all related costs.

Annual Meetings and Conferences: Franchisees must attend annual franchisee meetings, conventions, or conferences to stay informed about new products, services, and operational strategies. Attendance costs, including travel and accommodation, are borne by the franchisee.

Territory Protection

Menchie's does not provide an exclusive territory for its franchisees. This means that franchisees might encounter competition from other franchisees, company-owned outlets, or other distribution channels or competitive brands managed by the franchisor. The franchise agreement grants the right to operate in a specific approved location, and franchisees must conduct business solely at this location. Operating or accepting orders outside this designated area requires the franchisor's approval.

Franchisees are assigned a "Designated Territory," typically a 2-mile radius around their store. However, certain areas are excluded from this territory where the franchisor can develop or franchise new locations. These exclusions include military bases, public transportation facilities, sports facilities, student unions on college campuses, amusement and theme parks, and special events ("Special Sites").

The boundaries of the Designated Territory may also be influenced by significant topographical features. Throughout the term of the franchise agreement, as long as franchisees adhere to its terms and conditions, the franchisor will not alter the Designated Territory or establish a company-owned or franchised Menchie's store within it.

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