Verified — real FDD extraction
SBA-eligible · directory code S1103 since 2017
MENCHIE'S
Food & Dining · independent · est. —
Menchie's is a self-serve frozen yogurt chain. Customers fill their own cups from a range of frozen yogurt flavors and toppings and pay by weight. A franchisee operates a colorful, family-oriented frozen-yogurt shop, keeping machines and toppings stocked and managing staff.
MENCHIE'S net unit count grew 0.0% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The standout in the record: owners who leave mostly sell rather than fail.
Exit rate · latest year
2.4%
vs 8.6% across 137 food & dining systems
Cost to open
$180K–$515K
Item 7 total investment range
SBA loan defaults
17.4%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 7 of 294 franchised outlets left the system — a 2.4% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 303 | 296 | 295 |
| Opened | 4 | 9 | 8 |
| Transfers | 22 | 34 | 15 |
| Terminations | 0 | 10 | 7 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 11 | 0 | 0 |
| Outlets at end | 296 | 295 | 296 |
| Net change | -7 | -1 | +1 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 267 SBA-backed loans to MENCHIE'S franchisees since 2010. Of the 190 that have resolved, 17.4% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
17.4%
33 of 190 resolved defaulted
60.6%
avg. charged-off $ ÷ approved $
10.5%
default rate × loss severity
$236,295
what recent franchisees borrowed
61 mo
approval → charge-off, defaulted loans
15 vs 36
distinct banks — pulling back
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO MENCHIE'S BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
the Huntington National Bank
17.6% of this brand's loans
That lender charges off 10.0% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
72.7%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
+28.7pp
multi-unit vs single-unit owners
Owners of multiple units default at 41.4%; single-unit owners at 12.7%.
Computed from 267 SBA 7(a)/504 loans to MENCHIE'S franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $54K franchise fee (Item 5) and a total investment of $180K–$515K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$180K–$515K
all-in investment range
Franchise fee (Item 5)
$54K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for MENCHIE'S with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 21 wage cases against operators of this system, recovering $53K in back wages for 499 workers, including 11 child-labor cases. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
21
Back wages owed
$53K
Employees affected
499
Since 2020
6
11 of these cases involved child-labor violations, covering 56 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual MENCHIE'S franchisees — separately owned businesses operating under the brand name — not MENCHIE'S itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2024.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 67% of systems we score.
Risk percentile
33 / 100
Loan-corroborated
Modeled SBA charge-off
10.5%
Observed SBA charge-off
17.4%
Top drivers: Share financed by high-loss lenders (lowers) · System size (log units) (lowers) · Single-lender dependence (raises) · Item 20 exit rate (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
Franchise litigation docket: Fernandez v. Menchie's Group, Inc (District Court, S.D. Florida)
CourtListener/RECAP · 23mo ago
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing MENCHIE'S's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →MENCHIE'S franchise questions, answered from the filings
What percentage of MENCHIE'S franchises closed last year?
In MENCHIE'S's latest FDD Item 20 (fiscal 2025), 7 of 294 franchised outlets left the system — an annualized exit rate of 2.4% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a MENCHIE'S franchise cost?
Per MENCHIE'S's 2025 FDD, buying in requires an initial franchise fee of $54K (Item 5) and a total initial investment of $180K–$515K (Item 7).
What royalty does MENCHIE'S charge?
MENCHIE'S charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2025 FDD.
Does MENCHIE'S disclose earnings (Item 19)?
Yes — MENCHIE'S makes a financial performance representation in Item 19 of its 2025 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for MENCHIE'S franchises default?
Across 267 SBA-backed loans to MENCHIE'S franchisees since 2010, 33 of the 190 that have resolved were charged off — a 17.4% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.