Is
The Melting Pot
a franchise?
How many
The Melting Pot
franchises
are there?
What are the
The Melting Pot
franchise
fees?
Initial Franchise Fee ($45,000)
- This is a nonrecurring fee payable upon the execution of the agreement. It is fully earned by the company upon the execution of the agreement and is nonrefundable.
Royalty and Service Fee (5% of Gross Revenues)
- This fee is payable on the 10th day of each calendar month. The company reserves the right to change the time, manner, and frequency of the Royalty and Service Fee payments.
Advertising Fee (4.5% of Gross Revenues)
- This combines the Brand Development Contribution (currently 1.19% of Gross Revenues) and Local Advertising (currently 2.5% of Gross Revenues). The total of the Brand Development Contribution and Local Advertising may not exceed 4.5 percent. The Brand Development Contribution is deposited in the MELTING POT® Brand Development Fund and is controlled and spent by the company. It is paid via electronic funds transfer on the 10th day of each calendar month. Local Advertising expenditures are spent by the franchisee in the local market for tactical execution and media.
Digital Ad Cooperative (Minimum $1,000 per month)
- This is designated by the company from time to time and is currently payable on the 25th day of each month.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
The Melting Pot
franchise?
The Melting Pot, a distinctive fondue restaurant, offers a unique dining experience for its patrons. For those considering franchising a The Melting Pot restaurant, the total estimated initial investment necessary to commence operation ranges from approximately $1,364,389 to $2,069,638.
This investment encompasses various costs, including an initial franchise fee paid to the franchisor, among other expenditures.
Initial Investment Breakdown:
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
The Melting Pot
provide
training
to its
franchisees?
Here's a detailed look at what they offer to their franchisees:
Training Program: The Melting Pot offers a comprehensive training program. This program combines various learning methods, ensuring that franchisees are well-prepared with the necessary knowledge and skills to operate their store.
Who Needs to Attend: At least five individuals must attend and successfully complete the initial training program. This includes the franchisee's Operating Principal, the General Manager, and a minimum of two and a maximum of four members of the franchisee’s management personnel, depending on the size of the Restaurant.
Training Content: This includes sales techniques, product orientation, accounting procedures, food preparation, and operations management.
Location and Duration: The training is provided at The Melting Pot's designated locations. The members of the Management Staff must begin training at least five weeks before opening, and the training program will last for at least a thirteen-week period.
Training Expenses: The franchisee will be responsible for all personal expenses incurred by trainees in connection with training programs, including all costs and expenses relating to transportation, lodging, meals, wages, and employee benefits.
Does
The Melting Pot
provides
territory
protection?
Franchisees are granted a specific territory known as the "Territory". This Territory is exclusive, and franchisees have the exclusive right to operate a MELTING POT® Restaurant and to use the MELTING POT® system within that Territory.
The Territory's definition will be based on the total population within a certain geographical area. Depending on the population density, the Territory can vary in size, with different radius measurements determining its boundaries.Continuation of territorial rights does not depend on achieving specific sales volumes or market penetration. However, franchisees must comply with the Franchise Agreement.
The Melting Pot commits not to establish other MELTING POT® Restaurants, either franchised or owned by them, within the Territory. Additionally, they will not establish any other food outlets that serve fondue products by at-the-table preparation or offer fondue products as a significant portion of their menu outside the Territory but under the MELTING POT® brand.
Can a
The Melting Pot
franchise
be run as
a passive
investment?
Franchisees of The Melting Pot are expected to have a dedicated management team in place for their restaurant. This team should consist of a General Manager, who oversees the entire operation, and two to three assistant managers.
Among the assistant managers, one will primarily focus on front-of-the-house responsibilities, while another will handle the heart-of-the-house duties. All these managers, including the General Manager, are required to attend and successfully complete the company's operations training program.
If the franchisee (or one of its owners) does not serve as the General Manager, they might still be required to undergo all or a portion of the company's operations training, based on the company's discretion.
In conclusion, The Melting Pot places significant emphasis on active management and involvement by the franchisee and their designated management team.
