Mochinut Franchise Cost, Profit & Failure Rate 2024

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.

Mochinut Franchise
Mochinut Franchise

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

Cost Or FeesAmount
Initial Investment       $159,200-$375,000
FranchiseYES
Franchising Since2020
Franchise-Fee$25,000
Royalty-Fee6%
Liquidity$150,000
Estimated Outlets148

How Much Does It Cost To Open A Mochinut Franchise?

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 FranchiseAmount
Annual Revenue Range Per Store$250,000 – $2 million
Profit Margin Range2% – 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.


Payback Period Of Mochinut

The total investment of Mochinut is $375,000, and the yearly profit is $120,000. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $375,000 / $120,000= 3.1 years

Based on these figures, it will take approximately 3 years to pay back the initial investment for Mochinut. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Mochinut

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202009+9
2021952+43
202252103+51

For the Franchised outlets:

  • In 2020, the growth rate was (9)/0×100≈cannot be divided by zero.
  • In 2021, the growth rate was (43)/9×100≈477.7%
  • In 2022, the growth rate was (51)/52×100≈98.07%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Mochinut grew from 2020 to 2022, showing a growth rate between 477.7% and 98.07%. 

Entrepreneurs considering a venture into the beverage franchise sector might explore options such as Kung Fu Tea franchiseMilkshake FactoryTiger SugarGong Cha, and Ding Tea franchises.


Mochinut Comparison

Company NameFranchise FeeRoyalty FeeInitial Investment
Duck Donuts$40,0005%$424,285-$608,835
Donut King$55,0007%$295,500-$340,000
Mochinut$25,0006%$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.


FAQs

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.

Who founded Mochinut?

The chain was founded in March 2020 by Jaewok Ha. It was founded in Cerritos, California.

How many locations does Mochinut has?

As of 2023, Mochinut has 148 throughout the United States.

Where is Mochinut headquartered?

The headquarters of Mochinut is located in Los Angeles, California, United States.

https://en.wikipedia.org/wiki/Mochinut

https://www.duckdonuts.com/franchising/investment/

Leave a Comment