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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$1.3M - $1.6M
- Units as of 2021
97 17% over 3 years
Here’s what you need to know if you’re interested in opening a Melting Pot franchise.
Melting Pot is a restaurant franchise known for providing one of the United States’ most well-known fondue dining experiences since its founding in 1975. When the brand opened its first location in Florida, the business began to attract the interest of then-enterprising waiter and college student Mark Johnston. Believing in the concept’s potential for greatness, Johnston opened a second location in Tallahassee, Florida in 1979 with the help of his brothers, followed by a third in 1981 in Tampa.
By 1985, the Johnston brothers had purchased the rights to the Melting Pot and established an incorporated franchise company. Today, the franchise is over 80 units strong and continues to offer national and international opportunities.
Why You May Want To Start a Melting Pot Franchise
If you value hard work, excellent customer service, and making precious memories, you could be a good fit for Melting Pot’s franchise family. While having business experience could be a plus, it’s not a requirement. The company does prefer candidates who have a background in restaurant management, although, again, this is not a requirement.
Melting Pot has been ranked in Entrepreneur’s Franchise 500 based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make a Melting Pot Franchise a Good Choice
One unique feature of Melting Pot as a franchise restaurant is its nontraditional nature. For one, it does not require a chef or a whole army of skilled kitchen staff. Its menu may be small and straightforward, and even the kitchen could offer a very simple setup and require minimal equipment and upkeep. Nonetheless, you have a business formula that has been in existence for over 40 years.
To be part of the Melting Pot team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Melting Pot Franchise
As you decide if opening a Melting Pot franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Melting Pot franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Melting Pot franchising team questions.
The Melting Pot corporate team will be there to assist you every step of the way and set you up for success as the newest Melting Pot franchisee.
About Melting Pot
- Franchising Since
- 1984 (39 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees worldwide.
- # of Units
- 97 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Melting Pot franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $1,339,023 - $1,587,201
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 40 hours
- Classroom Training
- 232 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Melting Pot? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Melting Pot landed on this year’s Franchise 500 Ranking versus previous years.
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The spot is located in Downey, California.
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