Scout & Molly's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Scout & Molly's franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Scout & Molly's discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
2025 data: 19 franchisees divided into thirds by gross sales. Top third: $1.2M sales, $622K gross profit. Middle: $844K sales, $427K profit. Bottom: $517K sales, $266K profit. Unaudited, franchisee-reported data only.
What a Scout & Molly's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $60,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $319,000 – $388,000 | Item 7 — franchisor's own low/high estimate |
Escalating royalty: $250/wk (yr 1-12), $500 (yr 13-24), $750 (yr 25-36), $1000+ (yr 37+). Brand Dev 1% GS. Local ad $1000/mo. POS/tech $750/mo total.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Scout & Molly's system size and owner turnover
| Total outlets | 19 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 1 |
| Closure rate | 5.3% of outlets |
4 closures in 3 years (2023-2025); cumulative 17% outlet decline from 23 to 19.
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 Scout & Molly's worth it? — how it compares to 60 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 9%) |
| Startup cost | from $319,000 | about average (median $191,992) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 5.3% of outlets | worse than 81% of peers |
| Disclosed lawsuits | 3 | more litigious than 87% of peers |
Benchmarked against every children's education & childcare franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Scout & Molly's
The franchisor's framing: 2025 data: 19 franchisees divided into thirds by gross sales. Top third: $1.2M sales, $622… 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
Scout & Molly's franchise — frequently asked
- How much does a Scout & Molly's franchise cost?
- The FDD lists a total initial investment of about $319,000–$388,000, including a $60,000 initial franchise fee.
- How much do Scout & Molly's franchise owners make?
- 2025 data: 19 franchisees divided into thirds by gross sales. Top third: $1.2M sales, $622K gross profit. Middle: $844K sales, $427K profit. Bottom: $517K sales, $266K profit. Unaudited, franchisee-reported data only. We grade this disclosure D for honesty.
- What are the Scout & Molly's franchise fees?
- Scout & Molly's FDD discloses a $60,000 initial franchise fee, a 6% royalty on gross sales, a 1% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. Escalating royalty: $250/wk (yr 1-12), $500 (yr 13-24), $750 (yr 25-36), $1000+ (yr 37+). Brand Dev 1% GS. Local ad $1000/mo. POS/tech $750/mo total.
- What is the Scout & Molly's franchise profit margin?
- Scout & Molly's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 data: 19 franchisees divided into thirds by gross sales. Top third: $1.2M sales, $622K gross profit. Middle: $844K sales, $427K profit. Bottom: $517K sales, $266K profit. Unaudited, franchisee-reported data only. Recurring fees alone take about 7% 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 Scout & Molly's franchise failure rate?
- 4 closures in 3 years (2023-2025); cumulative 17% outlet decline from 23 to 19.
- How many Scout & Molly's locations are there?
- Scout & Molly's FDD reports 19 total outlets, with 1 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Scout & Molly's have complaints or lawsuits?
- Scout & Molly's discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Scout & Molly's franchise worth it?
- It depends on the numbers, not the pitch. Scout & Molly's scores D on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Scout & Molly's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.