About Mochiholic Franchise
Mochiholic is a specialty shop franchise offering premium Japanese mochi donuts, boba beverages, teas, and related menu items and merchandise.
Each location operates as a retail shop with options for dine in, carry out, catering, and delivery, bringing the popular mochi donut trend to communities through a fun, accessible format.
The franchise fee is $35,000, and Mochiholic has been franchising since 2022.
Mochiholic Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales, currently 1% of Gross Sales (Brand Development Fund); 2% of Gross Sales (Franchisee Directed Local Marketing) | National brand fund |
| Total Investment Range | $217,500 – $340,500 | Includes build-out, inventory, working capital |
The investment range of $218K–$341K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Sales) and marketing fee (Up to 2% of Gross Sales, currently 1% of Gross Sales (Brand Development Fund); 2% of Gross Sales (Franchisee Directed Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Construction and Leasehold Improvements | $80,000 | $120,000 |
| Lease Deposits and Rent – Three Months | $19,500 | $27,000 |
| Furniture, Fixtures and Equipment | $27,000 | $44,000 |
| Signage | $1,000 | $3,000 |
| Computer, Software and Point of Sales System | $1,500 | $3,000 |
| Grand Opening Marketing | $5,000 | $7,000 |
| Initial Inventory | $25,000 | $40,000 |
| Utility Deposits | $500 | $1,500 |
| Insurance Deposits – Three Months | $1,000 | $3,000 |
| Travel for Initial Training | $500 | $3,500 |
| Professional Fees | $1,000 | $2,000 |
| Licenses and Permits | $500 | $1,500 |
| Additional Funds – Three Months | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | 50% of our then current Initial Franchise Fee |
| Technology Fee | Up to $500 per month, currently not assessed |
| Audit Fee | Cost of audit |
| POS System | Currently $400 per month |
| Online Ordering, Customer Rewards, and Gift Cards | Currently not assessed |
| Local and Regional Advertising Cooperatives | Up to 2% of monthly Gross Sales, currently not assessed |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 |
| Additional Employee Initial Training | Our then current training fee, currently $300 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $600 per day for a minimum of five days. |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Legal Fees and Expenses | Costs and expenses |
| Quality Assurance Audit | Actual costs incurred by us or fees designated by us |
| Collections | Actual fees, costs, and expenses |
| Liquidated Damages | Varies under the circumstances |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance | Actual fees, costs, and expenses |
| Supplier Review | Actual fees, costs, and expenses |
| Management Service | Actual costs incurred by us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120 hours |
| Classroom Training | 20 hours |
| On-the-Job Training | 100 hours |
| Training Location | Pleasanton, California (for POS Training, Food Safety, Operation Manager Training, Operational Training and Customer Service) and Your Shop Location (for On-Site Monitored Training). Online for Orientation, Marketing and Financial, Work Station, Equipment and Menu Introduction, Procurement, Inventory and Controls. |
| Additional Training | The franchisor may require the franchisee and/or Operating Manager to participate in supplemental on-site training, which may be provided at the franchisee's Shop Location. The fee for supplemental training is currently $600 per trainer per day for a minimum of five days, plus travel, meals, and accommodation expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, Designated Territory |
| Exclusive Territory | No |
| Territory Size | Generally, a distance of two miles from the Shop Location in all directions travelable by road, but may be smaller based on population density, demographics, and geographical boundaries. |
| Description | Once an approved Shop Location is identified, the franchisor will designate an area around the site as the "Designated Territory." This territory is generally a two-mile radius from the Shop Location, but may be smaller based on population density, demographics, and geographical boundaries. For non-traditional or captive market facilities (e.g., shopping malls, airports), the territory may be limited to the physical boundaries of that location. The Designated Territory may be identified by zip code, boundary streets, highways, county lines, or designated market area. The franchisee will not receive an exclusive territory and may face competition from other franchisees or company-owned outlets. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | five consecutive years |
| Renewal Term | one additional five year term |
| Renewal Fee | 50% of our then current Initial Franchise Fee |
| Renewal Conditions | To renew, the franchisee must be in compliance with the Franchise Agreement, provide written notice 12-18 months prior to expiration, sign the then-current Franchise Agreement and related agreements, sign a general release, pay a renewal fee, remodel and upgrade the Shop, secure legal right to occupy the premises, and meet all other renewal requirements. Owners and their spouses must personally guarantee the renewal terms. |
| Transfer Fee | $20,000 |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions for approval include: 30 days prior written notice, no defaults by franchisee or owners, transferee agrees to be bound by all terms, transferee's owners and spouses personally guarantee obligations, franchisee and owners sign a general release, assignment of approved location and assets, transferee and managers complete training, franchisor approval of material terms and price, and transferee's employees sign confidentiality agreements. |
| Termination for Cause | The franchisor can terminate the agreement for various defaults, including failure to pay fees, failure to cure operational non-compliance within 30 days, abandonment of the business, intentional or negligent violation of laws threatening public health/safety, material misrepresentation, unauthorized transfer of interests, disclosure of confidential information, felony conviction, or failure to complete training. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, the franchisee and its owners/spouses cannot have any legal or equitable interest in, operate, manage, fund, or perform services for a competitive business. Post-termination/expiration, this restriction extends for 24 months to any competitive business within the Designated Territory, a 25-mile radius of the Designated Territory, and a 10-mile radius of any other Mochiholic Shop. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires the franchisee or its designated managing shareholder, member, or partner (Managing Owner) to be personally responsible for the management and overall supervision of the Shop. The Managing Owner must complete the initial training program and be approved by the franchisor. While personal day-to-day participation is recommended, an operating manager may be hired to supervise on-site operations, provided they meet franchisor standards, complete initial training, and sign confidentiality agreements. Each Shop must be managed and supervised on-site by either a Managing Owner or an Operating Manager. |
| Required Suppliers | Franchisee may only offer and sell the Approved Services and Products. Franchisee may only use those products, supplies, equipment, technology systems, and services that the franchisor authorizes and designates in writing. |
| Supply Restrictions | The franchisor may designate itself or its affiliates as exclusive suppliers of source restricted goods and services, or designate a third party as the sole and exclusive supplier irrespective of competing suppliers. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of the Issuance Date, the franchisor has not received revenue from suppliers from franchisee purchases of source restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
Mochiholic Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Mochiholic Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mochiholic System Growth
Mochiholic currently operates 0 franchised locations and 1 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: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
Mochiholic Franchise — FAQ
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