About Melty Way Franchise
Melty Way is a quick casual restaurant franchise offering gourmet grilled cheese sandwiches, soups, and specialty desserts.
The Area Representative opportunity involves promoting, establishing, and supporting individual Melty Way unit locations within a designated territory, building a network of restaurants that serve the brand's craveable comfort food to the general public.
The Area Representative franchise fee ranges from $182,000 to $567,750, reflecting the scope of multi unit territory development.
Melty Way Franchise Cost & Fees
Minimum Investment
$192K
Average Investment
$405K
Maximum Investment
$619K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $182,000 to $567,750 | One-time payment upon signing |
| Royalty Fee | 3% of the Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $299 per month (Social Media Advertising Fee) and not less than $500 per month or $6,000 per year per Development Area (Franchise Recruitment Advertising and Marketing Expenditures) | National brand fund |
| Total Investment Range | $191,644 – $619,344 | Includes build-out, inventory, working capital |
The investment range of $192K–$619K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of the Gross Revenues) and marketing fee ($299 per month (Social Media Advertising Fee) and not less than $500 per month or $6,000 per year per Development Area (Franchise Recruitment Advertising and Marketing Expenditures)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Development Fee (1) | $156,000 | $420,750 |
| Demographic Analysis (2) | $0 | $3,000 |
| Real property – rental (3 months) (3) | $0 | $3,000 |
| Lease security deposit (3) | $0 | $1,000 |
| Construction Costs, Equipment and Fixtures (4) | $0 | $5,000 |
| Insurance (4) | $1,000 | $6,500 |
| Utility deposits (5) | $0 | $500 |
| Vehicle (6) (3 months) | $0 | $1,200 |
| Professional service fees (7) | $500 | $5,000 |
| Travel and living expenses during initial training (per person) (8) | $0 | $2,500 |
| Filing fees (9) | $0 | $750 |
| Social Media Advertising Fee (3-months) | $897 | $897 |
| Franchise sales and advertising (3 months) (10) | $1,500 | $15,000 |
| CRM System (3 months) (11) | $147 | $747 |
| Computer system (11) | $0 | $1,500 |
| Additional funds (3 months) (12) | $5,000 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 for the Development Area |
| Renewal Fee | The greater of: a) 10% of the Royalties we actually receive and pay to you during the 12 consecutive months immediately preceding the date of the notice of renewal; or b) 25% of the original Development Fee for your Development Area |
| Technology Fee | $249 per month (CRM System Fee), with a right to increase up to $349 per month. A monthly computer system or technology fee of up to $499 may be charged in the future. |
| Audit Fee | Cost of audit and inspection plus any reasonable accounting and legal expenses |
| Area Representative Advertising Cooperatives | Varies without limitation; based on a majority vote of the Cooperative |
| Interest | Lesser of 15% per annum or the highest commercial contract interest rate permitted by law |
| Computer System Fee | As incurred (currently not collected, but reserved for future) |
| Late Reporting Fee | $100 |
| Additional Training fee | An amount set by us per attendee, per day, plus expenses (not to exceed $500/day) |
| Termination Fee | One-half of the original Initial Area Representative fee for your Development Area, plus our attorneys’ fees and costs |
| Insurance | Amount of unpaid premiums and related costs |
| Legal Costs and Attorney’s Fees | All legal costs and attorneys’ fees incurred by us |
| Indemnification | All amounts (including attorneys’ fees and costs) incurred by us or otherwise required to be paid |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately three (3) days, totaling 20 hours (16.0 classroom hours, 4.0 on-the-job hours) |
| Classroom Training | 16.0 hours |
| On-the-Job Training | 4.0 hours |
| Training Location | Our corporate offices at 610 South 850 East Lehi, Utah 84043, or another location we designate. Training may also be conducted online. |
| Additional Training | We may provide additional or refresher training programs, including periodic webinars, sales calls, and national business meetings/conventions (up to three days each year). We may charge reasonable fees for these courses, conventions, webinars, sales calls, and programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Description | Your Area Representative Agreement grants an exclusive Development Area, generally defined by county boundaries or fixed geographical boundaries such as rivers, streets or highways. The size is determined by factors including demographics, your capacity to recruit and provide services, and the potential number of Unit Franchises. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | one (1) renewal term of 10 years |
| Renewal Fee | The greater of: a) 10% of the Royalties we actually receive and pay to you during the 12 consecutive months immediately preceding the date of the notice of renewal; or b) 25% of the original Development Fee for your Development Area |
| Renewal Conditions | You must: have substantially complied with ARA; given notice of intent to renew; sign new ARA in our then current form which may include terms and conditions materially different from those in the original ARA, including (e.g., no further renewals, higher royalty fees, etc.); sign general release of claims against us and related parties (in a form satisfactory to us); pay the applicable renewal fee (see Item 6); cure any defaults; and pay all amounts owed to us. You may be asked to sign a new ARA with materially different terms and conditions than the original ARA. |
| Transfer Fee | $10,000 for the Development Area |
| Transfer Conditions | You must pay all amounts owed to us; new owner assumes your obligations; new owner, its affiliates, and its owners do not have any interest in or work for a competitive business; new owner completes or agrees to complete initial training; new owners signs our then-current ARA and ancillary agreements; new owner has strictly complied with obligations to us and is not in default of those obligations; you pay us a transfer fee (see Item 6); you sign a transfer release (in a form satisfactory to us); you do not identify yourself as current or former Franchisee of ours, or use any Mark. You may transfer the franchise and its assets to a newly formed legal entity principally controlled by you and your principals if the new entity operates the franchise and complies with the ARA, and you provide information about the transfer to us and the entities owners. |
| Termination for Cause | Termination by us with cause occurs upon delivery of written notice. Curable defaults (e.g., material breach of ARA) require 30 days to remedy, or 6 months for Minimum Development Obligation failure. Non-curable defaults (e.g., bankruptcy, judgments over $50,000, asset seizure, abandonment, repeated material breaches, in-term competition, felony conviction) result in immediate termination. |
| Non-Compete Period | 24 months |
| Non-Compete Details | Neither you, your principals, nor any immediate family members may perform services for or have any interest in any competitive business within the Development Area, any other Area Representative's Development Area, or within 25 miles of any Unit Franchise, for 24 months after termination or expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Each owner must personally participate in the direct operation of the Area Representative Business. If an owner does not participate full-time, a fully trained Manager must operate the franchise. Owners are required to be directly involved in day-to-day operations and utilize best efforts to promote and enhance business performance. |
| Required Suppliers | You must purchase specified products and services relating to or for the operation of your Area Representative Business solely from suppliers (including distributors, manufacturers, and other sources) who have been approved in writing by us. |
| Supply Restrictions | You are not allowed to purchase any of these products or services from an unapproved or alternate supplier. |
| Franchisor Revenue from Suppliers | In 2020, we received $0 in revenue from franchisee required purchases from required vendors/suppliers. We may receive revenue or other consideration from other suppliers for goods and services that we require or advise you to purchase, ranging from zero to ten percent (0-10%) of the amount of goods or services purchased from the supplier. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any financing for your initial investment. We are unable to estimate whether you will be able to obtain financing for any of your investment and, if you are able to obtain financing, we cannot predict the terms of the financing. We do not receive payment from any person for obtaining or placing financing. We do not guarantee your obligations to third parties. |
Melty Way Franchise Earnings — Item 19
Melty Way does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Melty Way does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Melty Way Litigation & Risk Flags
Clean Litigation RecordMelty Way has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Melty Way System Growth
Total Units
1
Franchised
1
Company-Owned
0
Melty Way currently operates 1 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 1 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$34K
Net Income
$4K
Total Assets
$186K
Audited by Metwally CPA PLLC for year ending December 31, 2021.
Melty Way Franchise — FAQ
The total investment to open a Melty Way franchise ranges from $191,644 to $619,344, per their Franchise Disclosure Document. This includes the initial franchise fee of $182,000 to $567,750. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Melty Way charges a royalty fee of 3% of the Gross Revenues of gross sales, plus a $299 per month (Social Media Advertising Fee) and not less than $500 per month or $6,000 per year per Development Area (Franchise Recruitment Advertising and Marketing Expenditures) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Melty Way Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Melty Way to ensure you have the most up-to-date version.
Melty Way does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Melty Way has been franchising since 2020. The FDD shows an investment range of $191,644-$619,344, a 3% of the Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $182,000 to $567,750 and the total investment ranges from $191,644 to $619,344 depending on location size and market. A minimum of $5,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Melty Way?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Melty Way and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Melty Way or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com