Rocky Mountain Chocolate Factory Franchise Costs, Fees & Owner Salary (2023)

Rocky Mountain Chocolate Factory is an esteemed name in the confectionery industry, renowned for its diverse range of premium chocolate and other confectionary products. Founded in 1981 in the picturesque town of Durango, Colorado, the company has grown significantly over the years. 

The brand's product portfolio is impressive, featuring around 300 varieties of chocolate candies and other confectionery items. These include a wide array of clusters, caramels, creams, meltaways, truffles, and molded chocolates, all produced in its 53,000-square-foot production facility. This commitment to quality and variety has helped Rocky Mountain Chocolate Factory to carve a niche for itself in the confectionery market.

Rocky Mountain Chocolate Factory's journey from a single store to an international franchise is a testament to its dedication to quality and innovation. The company has been publicly traded on the NASDAQ exchange under the symbol "RMCF" since 1985, reflecting its established presence in the market.

The brand's evolution continued with a recent decision in 2023 to streamline its name by dropping the word "factory," and rebranding itself as Rocky Mountain Chocolate, which signifies a return to its core values and identity.

Initial Franchise Fee

The initial franchise fee for a Rocky Mountain Chocolate Factory full-sized store is $35,000, and for a Kiosk Store, it is $20,000. This fee is payable in full when the franchisee signs the Franchise Agreement.

Monthly Royalty

The royalty fee for a Rocky Mountain Chocolate Factory franchise initially is 5% of Gross Retail Sales for the first twelve months or until the end of February of the following year, whichever comes first. After this initial period, the royalty fee adjusts to:

• 6% of Gross Retail Sales if less than 60% of sales were from Durango Product annually,
• 5% of Gross Retail Sales if 60-64% of sales were from Durango Product.

Marketing and Promotion Fee

Franchisees must contribute to a Marketing and Promotion Fee, which is up to 3% of the monthly Gross Retail Sales. Currently, only 1% is charged, but the franchisor reserves the right to increase this fee up to 3% with 60 days' notice. This fee is payable by electronic funds transfer along with the monthly Royalty.

Transfer Fee

A transfer fee of $12,500 is required for franchisees wishing to transfer their franchise to another party. This fee is non-refundable and is payable upon approval of the transferee before they attend the initial training program. Certain exemptions apply, such as transfers to a wholly-owned corporation of the franchisee or to a spouse upon the franchisee's death or disability.

The franchisor provides a comprehensive initial training program for franchisees, covering various essential aspects of operating a Rocky Mountain Chocolate Factory store. This training includes:

Initial Training Program

The program is designed for up to three individuals from the franchisee's side without any tuition or fee. It is conducted at the franchisor's designated training facilities or other locations specified by the franchisor, and it may also include webinar or remote methods if necessary. The training aims to equip franchisees with the knowledge and skills needed for successful store operation. Franchisees are responsible for all travel and living expenses related to attending the training program.

Length of Training

The initial training consists of 7 days of instruction. The franchisor reserves the right to alter the training schedule or waive parts of the program if the franchisee or their general manager has sufficient prior experience or training.

Additional Training

The franchisor may offer seminars, conventions, or continuing development programs from time to time. Attendance at any mandatory events is required, with the franchisor providing at least 30 days' notice for such events. While there is no tuition or fee for mandatory training, franchisees must cover all related travel and living expenses.

The franchisor provides a Protected Territory for the franchisees. Before executing the agreement, the franchisor will define a specific geographic area surrounding the premises as the Territory. 

The size and boundaries of this Territory are determined solely by the franchisor's judgment. Provided the franchisee complies with the agreement, the franchisor and its affiliates will not operate or grant a franchise for another store within this Territory during the term of the agreement.

However, the franchise granted is non-exclusive beyond the Protected Territory, allowing the franchisor to operate or grant franchises outside this designated area without restriction.

The Rocky Mountain Chocolate Factory franchise disclosure document outlines that franchisees (or their managing partner or principal shareholder) are not required to personally participate in the direct on-premises operation of the store. However, it is strongly recommended that they do so.

If the franchisee or their managing partner or principal shareholder chooses not to be directly involved in day-to-day operations, they must appoint a General Manager who will be responsible for the direct on-premises supervision of the store at all times during operational hours.

This General Manager, whether the franchisee, a managing partner, a principal shareholder, or an appointed individual, must complete the franchisor's mandatory initial training program. Additionally, the franchisee and their managers are required to enter into a confidentiality and non-competition agreement with the franchisor.