THE MELTING POT Franchise Cost and Profit

THE MELTING POT requires a total initial investment of $1.6M to $2.7M (midpoint approximately $2.2M), with an initial franchise fee of $45K. The ongoing fee burden is 7.2% (5% royalty plus 2.2% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.

According to Item 19 of the 2025 FDD, the median revenue for THE MELTING POT locations is $1.9M. The implied franchisee EBITDA is approximately $54K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 2.5% with a payback period of approximately 40.4 years.

THE MELTING POT operates approximately 89 franchised units. However, the brand has been contracting with a 3.3% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.