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Casual DiningRevenue OnlyItem 19: ✓ DisclosedMedium Confidence · 78/100

Mel’s Drive-In Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Mel’s Drive-In.

Based on 2023 FDD · 2 filings in corpus

FranchiseIQ Score
61
C
Moderate Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
61/100
4/7 metrics · Medium confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Mel’s Drive-In franchise cost and make?

Based on FDDIQ's FDD corpus, a Mel’s Drive-In franchise shows an estimated initial investment of $2.1M – $3.6M. Reported owner economics show $170K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$2.1M – $3.6M
Total initial investment
Profit / Revenue
$170K
FDD Item 19 signal
Payback Signal
16.8 years
Modeled return metric
SBA Default Rate
No matched SBA history
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Casual Dining franchises →Compare similar franchises →

Quick fee read: $35K franchise fee · 5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Mel’s Drive-In, check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Total Investment Range$2.1M – $3.6M
MinMid: $2.9MMax

Key Metrics

Franchise Fee
$35K
Royalty Rate
4.5%
Ad Fund Rate
-
Total Burden
5.0%
Royalty + ad fund
Units (2023)
-
Net Unit Growth
→ -
Year over year
Cash-on-Cash Return
6.0%
Annual estimated return
Payback Period
16.8 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
$3.4M
Item 19 disclosed
Premium Data

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Get cash-on-cash return, payback period, SBA default rate, and red flag details for Mel’s Drive-In.

CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Mel’s Drive-In vs. Casual Dining Average

MetricMel’s Drive-InCasual Dining Avg
SBA Default Rate - 7.2%
Cash-on-Cash Return6.0%▼15.5%
Total Investment$2.9M$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Mel’s Drive-In vs Giordano's® RestaurantsMel’s Drive-In vs Fala BarMel’s Drive-In vs PAINT Nail Bar

Similar Franchises · Casual Dining

Giordano's® Restaurants
Limited Data
$645K–$1.8M
Fala Bar
Limited Data
$232K–$824K
PAINT Nail Bar
Limited Data
$218K–$756K
Giordano's® Restaurants
$645K – $1.8M
Fala Bar
$232K – $824K
PAINT Nail Bar
$218K – $756K
Bombshells Restaurant and Bar
$1.8M – $3.1M

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Questions to Ask Before You Sign

5 data-driven questions every Mel’s Drive-In franchise buyer should ask.

  1. 1.What is Mel’s Drive-In's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Mel’s Drive-In disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Mel’s Drive-In →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

Explore More

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