About Mainstream Boutique Franchise
Mainstream Boutique is a women's fashion retail franchise that has been franchising since 1998, backed by Mainstream Fashions, Inc.
The brand operates boutique style clothing stores offering curated collections of women's apparel, accessories, and gifts at accessible price points.
Each location provides a personalized shopping experience with attentive staff and a welcoming atmosphere.
Mainstream Boutique Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 for your first Mainstream Boutique Business and $18,000 for each additional Mainstream Boutique Business | One-time payment upon signing |
| Royalty Fee | 7.5% of Net Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | .5% of Net Revenues (Advertising Fund Contribution) + 3% of Net Revenues (Local Advertising) | National brand fund |
| Total Investment Range | $161,300 – $306,350 | Includes build-out, inventory, working capital |
The investment range of $161K–$306K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7.5% of Net Revenues) and marketing fee (.5% of Net Revenues (Advertising Fund Contribution) + 3% of Net Revenues (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee(2) | $18,000 | $40,000 |
| Initial Inventory(3) | $20,000 | $25,000 |
| Leasehold Improvements, Signage, and Store Design(4) | $55,000 | $100,000 |
| Construction Documents | $3,800 | $9,000 |
| Construction Coordinator Services | $1,000 | $5,250 |
| Signage | $5,600 | $14,000 |
| Real Estate Deposits(4) | $2,000 | $6,000 |
| Travel and Living Expenses During Training | $500 | $2,000 |
| POS System, Computer Hardware and Software(5) | $5,000 | $8,600 |
| Furniture, Fixtures, Equipment, and Retail Supplies | $18,000 | $38,000 |
| Professional Services & Legal Review | $1,400 | $6,000 |
| Grand Opening Advertising | $1,000 | $2,500 |
| Additional Funds — Three Months(6) | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $12,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Currently, we do not collect technology fees, but may charge an amount not to exceed $350 per month |
| Audit Fee | Dependent upon the costs incurred by Mainstream in conducting an audit (reimbursed if understatement >2% or underpayment >$500) |
| MSB Cooperative | $1,000 paid over 4 years offsetting rebates due to you by $250 per year |
| Annual Convention Expenses | $500-$2,000 (currently $179 registration fee per person, plus airfare, hotel, meals, and staff compensation) |
| Mainstream U | Currently, we do not collect Mainstream U fees, but may do so in the future (Monthly basis) |
| Additional Training | Currently, we do not charge for additional training programs, but may charge an amount not to exceed $300 per course per person (Prior to training) |
| Additional Supplier Approval | Cost to us to evaluate, review or test samples of unapproved products. proposed supplier (Upon invoice demand) |
| Service Charge | $50 if you fail to pay any Continuing Fees or to submit a report of Net Revenues or other reports of financial statements to Mainstream within 10 days after due date (On demand) |
| Interest Charges for Unpaid Amounts | 18% per annum simple interest or the maximum legal rate allowable in the state in which your Business is located, whichever is less (On demand) |
| Extension Fee | $2,500 for up to 6 months (Upon request for extension) |
| Annual Modernization Costs | $500-$1,500 (As incurred) |
| Development Schedule Extension Fee | $1,500 per Mainstream Boutique Business for an extension of up to 6 months (Payable when you request an extension) |
| Development Agreement Transfer Fee | $12,000 (Prior to transfer) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 19-20 hours classroom, 13-14 hours on-the-job |
| Classroom Training | 19-20 hours |
| On-the-Job Training | 13-14 hours |
| Training Location | Minneapolis, Minnesota or a Minnesota or Wisconsin location we designate |
| Additional Training | Mainstream may provide optional or mandatory training at any time. Currently no charge, but may charge up to $300 per course per person in the future. Topics include independent contractors, boosting sales, booth setup, inventory, event planning. Online training via intranet, theStream, and Mainstream U is available and updated periodically, currently no fee. Subsequent training is provided by the Store Operations Team weekly for the first 6 months, then periodically. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | approximately 100,000 people, but not greater than a 10-mile radius surrounding your Business |
| Description | Mainstream will designate a geographic area, identified on Exhibit A, surrounding the Retail Location. Mainstream will not establish or franchise other Mainstream Boutique® retail stores within the Designated Territory, but your Designated Territory may overlap with another franchisee's territory. Mainstream retains rights to operate/franchise outside the territory, sell products through various channels (including e-commerce), advertise online, and grant other franchisees rights to use the brand. Franchisees can host shows anywhere, including online, but not at another franchisee's or MFI's Protected Account. Protected Accounts (booked with corporations/entities) are exclusive if performance criteria are met. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 Years |
| Renewal Term | one (1) additional ten (10)-year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | Give 180 days’ notice; satisfy all material requirements of your current Franchise Agreement; pay all amounts due to Mainstream; modernize your Business; pay a $5,000 renewal fee; sign a new Franchise Agreement (which may contain materially different terms and conditions than your original Franchise Agreement); and sign a general release of claims |
| Transfer Fee | $12,000 |
| Transfer Conditions | Pay all money owed to Mainstream; comply with Mainstream’s right of first refusal; complete a written agreement satisfactory to Mainstream; transferee’s shareholders agree to be personally bound to the Franchise Agreement; transferee meets Mainstream’s standards; transferee signs a current Franchise Agreement; transferee pays for and satisfactorily completes training program; you pay the transfer fee; and you may be required to remain liable for obligations of the transferee franchisee for a period of time if the transferee franchisee does not meet Mainstream’s net worth requirements and sign a general release of claims |
| Termination for Cause | You are in breach of the Franchise Agreement. Curable defaults (30 days to cure): failure to start operating within 90 days of lease signing, violate material provision, fail to conform to Business System, fail to pay fees, fail to comply with agreement. Non-curable defaults (immediate termination): insolvency, conviction of law violation/felony, abandonment, conduct materially impairs Marks/Business System (24 hours to correct), failure to produce books for audit. |
| Non-Compete Period | During the term of the franchise and for a period of two years after the termination of your Franchise Agreement |
| Non-Compete Details | During term: May not participate in any business that competes with Mainstream Boutique Businesses. Post-term (2 years): May not participate in any business that competes with or provides consulting services to Mainstream Boutique businesses within a 25-mile radius of your Retail Location or any other Mainstream Boutique franchisee, or over the internet. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, you are required to participate. If an entity, the individual owning 51% of the franchisee entity must be designated and required to participate. The designated individual must attend and successfully complete initial training. The Business must always be under direct supervision of the franchisee or an approved operating manager who has completed training. This person must assume full-time responsibilities and not engage in other significant management activities that conflict with their obligations. |
| Required Suppliers | Franchisee must purchase products, merchandise, supplies, equipment (including computer hardware and certain software), architectural services, and other goods and services only from suppliers approved by Mainstream. Mainstream provides an Approved Vendor List. |
| Supply Restrictions | Franchisee cannot purchase unapproved products or from unapproved vendors. Mainstream may terminate the Franchise Agreement for non-compliance. Mainstream may designate up to 30% of the style and type of inventory you must purchase. Mainstream may require franchisees to purchase certain items exclusively from Mac & Me in the future. |
| Franchisor Revenue from Suppliers | Though neither Mainstream nor its affiliates received revenue, rebates, or any other material consideration as a result of required purchases or leases during the previous fiscal year, Mainstream and its affiliates reserve the right to do so in the future, and any rebates may range from 1% to 10% or more. MSB Cooperative received $576,000 in rebates in 2021, with 40% paid to MB Management Company or Mainstream as a management fee. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Mainstream does not offer direct or indirect financing. Mainstream does not guaranty your note, lease or obligation. |
Mainstream Boutique Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Mainstream Boutique 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.
Mainstream Boutique System Growth
Mainstream Boutique currently operates 75 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 8 | 9 | 73 |
| 2020 | 7 | 6 | 74 |
| 2021 | 4 | 3 | 75 |
Transfers: 4 | Closures: 3
State Registrations
Registered in 10 states: CA, IL, IN, MI, MN, NY, ND, SD, VA, WI
Franchisor Financials (Item 21)
Audited by Cummings, Keegan & Co., P.L.L.P. for year ending December 31.
Mainstream Boutique Franchise — FAQ
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