Melt Shop franchise
2022 filing · April 18, 2022
Melt Shop at a glance
A fast-casual restaurant serving melted sandwiches, milkshakes, salads and tots.
The business
- Franchisor
- Melt Shop Enterprises, LLC
- The company that sells the franchises
- Franchising since
- 2017
- 5 years of selling franchises
- Franchisor based in
- New York, New York
- Typical size
- 600–1,800 sq ft
What you pay
- Cost to open
- $427K–$767K
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of net sales, paid weekly
- Brand fund
- Yes
- 2% of net sales once the fund is set up, paid with the royalty
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- Franchised, 2021
- 4
- As printed in the filing
From Melt Shop Enterprises, LLC’s 2022 filing; revenue and net income from its audited financial statements, page 67; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Melt Shop among all franchises with the same figure.
| Figure | Melt Shop | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $597,158 | Costs more than 70% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
How much a Melt Shop franchise costs
Opening one Melt Shop costs an estimated $426,946 to $767,369. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($180,000 to $375,000) and equipment ($110,000 to $165,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Fee | $35,000 | ||
| Leasehold Improvements | $180,000 | $375,000 | |
| Lease Payments and other Rental Expenses | $6,000 | $20,000 | |
| Equipment | $110,000 | $165,000 | |
| Furniture & Fixtures | $5,000 | $25,000 | |
| Signage | $30,087 | $40,731 | |
| Initial Inventory | $6,000 | $12,000 | |
| Plans/Blueprints | $17,500 | $24,300 | |
| POS | $13,859 | $17,338 | |
| Travel & Expenses for Initial Training | $5,000 | $10,000 | |
| Business Supplies | $1,000 | $2,500 | |
| Business Licenses (Not Including Beer/Wine License) | $1,000 | $4,000 | |
| Insurance Premiums | $2,500 | $3,500 | |
| Grand Opening Advertising | $5,000 | $10,000 | |
| Additional Funds (3 months) | $9,000 | $23,000 | |
| Total | $426,946 | $767,369 | |
Source: Melt Shop Enterprises, LLC, 2022 filing, page 21
Melt Shop franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: Melt Shop Enterprises, LLC, 2022 filing, page 12
Royalty and ongoing fees
| Royalty | 6% of net sales, paid weekly. |
|---|---|
| Brand or marketing fund | 2% of net sales once the fund is set up, paid with the royalty. |
| Digital Menu Board Fee | $95 |
| Local Advertising | 2% of Net Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Melt Shop Enterprises, LLC, 2022 filing, page 14
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Melt Shop does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Melt Shop Enterprises, LLC, 2022 filing, page 56
How Melt Shop compares
Of the 80 sandwich franchises on this site, Melt Shop is the 55th cheapest to open.
| Figure | Melt Shop | Typical sandwich brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $427K | $321K | $222K |
| Cost to open, high end | $767K | $683K | $477K |
| Franchise fee | $35K | $32K | $40K |
| Royalty | 6% | 6% | 6% |
| Shares earnings figures | No | 50 of 80 | 2,147 of 3,352 |
Typical is the median across the 80 brands in sandwich franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2019 | 7 (+5) | 13 |
| 2020 | 4 (−3) | 9 |
| 2021 | 4 (−3) | 9 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
These figures don't add up as printed: the 2021 counts come to 4, but the filing shows 7. Worth asking the franchisor.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: sandwich and sub franchise costs and franchise failure rates.
Source: Melt Shop Enterprises, LLC, 2022 filing, page 57
Who owns Melt Shop?
Melt Shop franchises are sold by Melt Shop Enterprises, LLC.
From Melt Shop Enterprises, LLC’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Melt Shop Enterprises, LLC, 2022 filing, litigation on page 12, bankruptcy on page 12
Melt Shop filings
The figures on this page come from Melt Shop Enterprises, LLC’s 2022 filing, issued April 18, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 18, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other sandwich franchises
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Melt Shop is also on these lists: fast food franchises, restaurant franchises, food franchises.