Menchies Franchise
Cost, fees, owner earnings, closure rate and litigation for a Menchies franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Menchies discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
278 stores: average $639,093 gross sales (44% at/above), median $595,357 (50% at/above). Cost of goods 25.12% average, labor 24.29% average. No net income projections.
What a Menchies franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $53,900 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $179,564 – $515,420 | Item 7 — franchisor's own low/high estimate |
Minimum royalty $125/week; $15,000 transfer fee; $50,000 dispute resolution fee
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Menchies system size and owner turnover
| Total outlets | 295 |
| Ceased operations | 7 |
| Terminated by franchisor | 7 |
| Transferred to new owners | 15 |
| Closure rate | 2.4% of outlets |
7 terminations, 7 ceased operations in 2025; net growth +1 outlet
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Menchies worth it? — how it compares to 59 similar franchises
| Ongoing fees | 8% of sales | about average |
| Startup cost | from $179,564 | cheaper than most (median $209,354) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 2.4% of outlets | worse than 63% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every bakery, dessert & ice cream franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Menchies
The franchisor's framing: 278 stores: average $639,093 gross sales (44% at/above), median $595,357 (50% at/above). C… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Menchies franchise — frequently asked
- How much does a Menchies franchise cost?
- The FDD lists a total initial investment of about $179,564–$515,420, including a $53,900 initial franchise fee.
- How much do Menchies franchise owners make?
- 278 stores: average $639,093 gross sales (44% at/above), median $595,357 (50% at/above). Cost of goods 25.12% average, labor 24.29% average. No net income projections. We grade this disclosure C for honesty.
- What are the Menchies franchise fees?
- Menchies' FDD discloses a $53,900 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Minimum royalty $125/week; $15,000 transfer fee; $50,000 dispute resolution fee
- What is the Menchies franchise profit margin?
- Menchies does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 278 stores: average $639,093 gross sales (44% at/above), median $595,357 (50% at/above). Cost of goods 25.12% average, labor 24.29% average. No net income projections. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Menchies franchise failure rate?
- 7 terminations, 7 ceased operations in 2025; net growth +1 outlet
- How many Menchies locations are there?
- Menchies' FDD reports 295 total outlets, with 7 that ceased operations in the most recent reporting year and 15 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Menchies have complaints or lawsuits?
- Menchies discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Menchies franchise worth it?
- It depends on the numbers, not the pitch. Menchies scores C on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Menchies to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Menchies or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.