Are you looking for an exciting and upcoming opportunity as an entrepreneur for a franchise?
Mochinut offers a specialized dessert that innovatively combines Japanese and American tastes, and they also offer franchising.
Their popularity is increasing every day, and they are opening more and more stores every year.
That’s why a Mochinut franchise could be a good opportunity if you are interested in this world. This article will take a look at Mochinut, its franchise system, and if it’s worth buying or not.
About Mochinut And Its History
Mochinut is a special bakery chain offering its own unique food that combines Japanese mochi and American doughnuts.
Their menu offers a wide selection of flavoured mochi doughnuts, both in the traditional and modern way, and their menu also has hotdogs and boba.
Mochinut was founded in 2020 in California, United States, and quickly grew to over 100 locations combined in the United States and in South Korea.
They are offering franchises to those individuals interested, and they are rapidly expanding their network.
They currently operate in two countries and plan to open more stores through franchising.
Franchise Model Table
| Initial Investment | $159,200-$375,000 |
| Franchise | YES |
| Franchising Since | 2020 |
| Franchise-Fee | $25,000 |
| Royalty-Fee | 6% |
| Liquidity | $150,000 |
| Estimated Outlets | 148 |
How Much Does It Cost To Open A Mochinut Franchise?
The total average expected to open a Mochinut franchise is between $159,200 and $375,000. This average cost includes the $25,000 franchise fee and all other startup costs to open the store.
Depending on your location, the size of the store, and some other factors, you might pay less or more than this average cost.
When you open the store, you also need to pay about a 6% royalty fee from your gross monthly sales to the brand.
You pay this fee each month or year, depending on your contract, and it’s part of the franchise agreement.
Mochinut Franchise Requirements
When you apply to be a Mochinut franchisee, you need to have a minimum net worth of $300,000 and a liquidity of at least $150,000.
This is the only necessary requirement in the application. There is no strict requirement for past management or sector experience.
However, having these experiences would be beneficial for your application to get approved.
Mochinut searches for individuals who have the ability to manage their staff and the restaurant are driven, and have the skills for great customer service.
Mochinut Average Revenue & Profit
| Mochinut Franchise | Amount |
|---|---|
| Annual Revenue Range Per Store | $250,000 – $2 million |
| Profit Margin Range | 2% – 6% |
| Estimated Annual Profit Per Store | $5,000 – $120,000 |
Mochinut is not a public company, so they are not obligated to share their financial information. This includes the financials of their franchisees.
That’s why we don’t have an exact average number. However, data from the industry gives us a glimpse of what the revenues and profits might look like.
Annual revenue of bakeries ranges between $250,000 to $2 million with a profit margin of between 2% to 6%.
Considering these numbers, we can say that an average Mochinut franchise might make between $5,000 to $120,000 annually. Many variables, such as location and size, affect this number.
Mochinut Comparison
| Company Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Duck Donuts | $40,000 | 5% | $424,285-$608,835 |
| Donut King | $55,000 | 7% | $295,500-$340,000 |
| Mochinut | $25,000 | 6% | $159,200-$375,500 |
Conclusion
If you are looking for new experiences as an entrepreneur and don’t want to take many risks, Mochinut is a great choice.
They offer something that’s not so common in the US market and have a high brand reputation.
You need to spend between $159,200 and $375,500 to open a Mochinut franchise, including the $25,000 franchise fee.
It’s expected that a Mochinut franchise branch makes between $5,000 to $120,000 annually on average.
This equals a profit margin of about 2% to 6%, which is not so high compared to other industries.
Overall, Mochinut is a popular brand, and it’s getting more popular, making them an attractive investment with good average profit numbers.
FAQ
How much does it cost to open a Mochinut franchise?
The average expected initial investment to open a Mochinut franchise is between $159,200 and $375,500.
This total cost includes the $25,000 franchise fee that you pay in the beginning. The rest is all the related startup costs.
Does Mochinut offer franchise opportunities?
Yes, Mochinut has been offering franchise opportunities since 2020, and you can apply to become a franchisee.
You just need to comply with the requirements, both financial and personal.
How risky is the Mochinut franchise?
Mochinut is quite a popular name in its industry. This lowers the failure risk substantially.
However, there is still a slight risk that you might fail if you can’t manage the store well. Most of the Mochinut stores make a profit and stay alive.
https://en.wikipedia.org/wiki/Mochinut
https://www.duckdonuts.com/franchising/investment/
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.