Menchie’s Franchise Cost, Profit & Failure Rate 2024

Menchie’s sells its brand to franchisee partners, but if you want to open your profitable restaurant and become the restaurateur you have always wanted to be, go no farther than this tried-and-true copy-paste approach.

This Restaurant Launch System is the most user-friendly food business launch system. So keep reading to get more information about the Menchie’s-Franchise.

Menchie's Franchise

About The Menchie’s 

Menchie’s is the global ambassador of frozen yogurt excellence and is a world leader in ensuring best-in-class goods.

The brand promises customers happiness in every cup by offering superior rotating yogurt flavors and delectable toppings for endless combinations in every bite.

The exclusive assortment is created using the milk of “smiley” California cows who have not been given artificial growth hormones. Menchie’s allows you to create your frozen yogurt treat.

You can now bring Menchie’s home with personalized frozen yogurt cakes for your next birthday party, wedding anniversary, or other special occasions.

Menchie’s History

On May 15, 2007, Menchie’s Frozen Yogurt opened its first location in Valley Village, California, a Los Angeles suburb.

They aimed to open a personalized frozen yogurt shop where people of all ages and occupations could enjoy not just a delicious treat of excellent frozen yogurt but also a one-of-a-kind experience in a joyful setting that made everyone smile.

Fans from near and far requested additional Menchie’s Frozen Yogurt in their towns after our initial store garnered overwhelming community support.

Menchie’s Frozen Yogurt was named the fastest-growing food franchise in the United States in 2010, and it is now the world’s largest self-serve frozen yogurt franchise.

Menchie’s Franchise Model

Cost Or FeesAmount
Initial Investment  $300,000 to $350,000  
Net-Worth Requirement  $350,000  
Liquid Cash Requirement  $100,000
Area RequirementApproximately 900 to 1,700 square feet of space
Total Outlets540

Menchie’s Franchise Training 

For the management and operation of Menchie’s, the franchisor will teach franchisees, their operational partner, and one of their manager-level staff.

The franchisor will give five days of training at its training facility, depending on the franchisor’s evaluation (at its sole discretion) of the franchisee’s experience and needs.

Franchisees must attend and finish the complete training program as specified.

The franchisor will send its representatives to the store for three days after receiving approval to open the store at its expense, educate, train, conduct a final inspection, and assist with the business opening.

What Makes Menchie’s Franchise Unique?

What Makes Menchie's Franchise Unique

Menchie’s is a self-serve yogurt franchise that serves a delectable frozen dessert and smiles.

Our rapid global expansion and multiple franchising industry accolades demonstrate our business model’s success.

They are the world’s largest self-serve yogurt franchise still expanding.

They have been growing across the county and internationally. We back up our franchisees and give them the resources to succeed.

Menchie’s Franchise Revenue & Profit

The revenue and profit for Menchie’s franchise can vary based on the size of the outlet, location, number of employees working, etc.

However, as per sources, Menchie’s Franchise owner makes $470,000 in revenue. And if we assume a profit margin of 15% as per the industry standard, then we can find out that a Menchie’s franchise owner make a profit of $141,000 annually on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%470000.00
Franchise Royalty Fees4.38%(20562.50)
Cost of Goods Sold (COGS)21.88%(102812.50)
Labor (Variable)11.38%(53462.50)
Total (Expenses)70.00%(329000.00)
Net Profit30.00%141000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Payback Period Of Menchie’s

With a midpoint investment of $306,885 and a yearly profit of $141,000, we can calculate the payback period of Menchie’s.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $306,885 / $141,000 = 2.17 years

Based on these figures, it will take approximately 2 years to pay back the initial investment for Menchie’s. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Failure Rate Of Menchie’s

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the failure rate was (63)/407×100≈15.48%
  • In 2021, the failure rate was (24)/344×100≈6.98%
  • In 2022, the failure rate was (3)/320×100≈0.94%

According to the above-mentioned data, the franchised outlets have been declining consecutively for 3 years from 2020-2022, showing a failure rate between 15.48% and 0.94%.

This simply shows that it is too risky to invest in Menchie’s franchise as the number of outlets are closing.

Menchie’s Franchise Restrictions & Obligations

The Menchie’s store must be handled on a daily basis by franchisees (or their operational partner) or an assistant store leader who has completed the training program correctly.

Franchisees should offer and sell all menu items and execute all activities that the franchisor expects for Menchie’s shops.

Franchisees cannot provide or sell products or provide services that have not been approved.

If opening an ice cream franchise appeals to you, consider Rita Franchise, Kona Ice Franchise, Baskin Robbins, Sweet Frog, or La Michoacana as viable options.

Menchie’s Comparison

CompanyMenchie’sDippin’ Dot
Founded In20071988
Initial Investment$300,000 to $350,000  $120,000- $367,000
Total Outlet540230
Annual Revenue$194 Million$330 Million

Frequently Asked Questions 

Who founded Menchie's?

Menchie’s was created 14 years ago in 2007. Menchie’s started offering franchises in 2008. The first store was opened in Los Angeles by Adam and Danna Caldwell.

Who owns Menchie's?

Since 2008, Amit Klein Berger, 33, has been the CEO of Menchie’s Frozen Yogurt.

Why is Menchie's called that?

Menchie’s was named for this passion. In their relationship, Adam gave Danna the term “mensch” early on, which means “a person of integrity and honor” in Yiddish. Danna was flattered, but Adam changed the nickname to “Menchie’s” instead.

Is Menchie's a franchise?

Yes, Menchie’s is a frozen yogurt franchise that serves delicious frozen desserts.

How much does a Menchie's Franchise Cost?

Opening a Menchie’s Franchise requires an investment of $300,000 to $350,000 and an additional franchise fee of $40,000.

How many location does Menchie's has?

Menchie’s opened its first store in Valley Village. Currently, it is operating in 540 locations.

Where is Menchie's headquartered?

Menchie’s is headquartered in Encino, California, United States.

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