About MAINSTREAM FASHIONS Franchise
Mainstream Boutique is a retail franchise offering fashionable women's clothing, jewelry, giftware, and accessories to the general public.
Franchisees operate a retail store (Retail Location) and conduct direct sales to customers at shows held at homes, businesses, events, or online.
Target customers are primarily women, with sales being somewhat seasonal, focusing on the two principal buying seasons of spring/summer and fall/winter beginning in March and September of each year.
MAINSTREAM FASHIONS Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 7.5% of Net Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of Net Revenues (may increase up to 2%) | National brand fund |
| Total Investment Range | $198,200 – $361,350 | Includes build-out, inventory, working capital |
The investment range of $198K–$361K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7.5% of Net Revenues) and marketing fee (0.5% of Net Revenues (may increase up to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $20,000 | $40,000 |
| Initial Inventory | $30,000 | $45,000 |
| Leasehold Improvements and Store Design | $55,000 | $100,000 |
| Construction Documents | $3,800 | $9,000 |
| Construction Coordinator Services | $1,000 | $5,250 |
| Signage | $10,000 | $25,000 |
| Real Estate Deposits | $3,000 | $6,000 |
| Travel and Living Expenses During Training | $1,000 | $2,500 |
| POS System, Computer Hardware and Software | $5,000 | $8,600 |
| Furniture, Fixtures, Equipment, and Retail Supplies | $25,000 | $38,000 |
| Professional Services & Legal Review | $1,400 | $6,000 |
| Grand Opening Advertising | $3,000 | $6,000 |
| Additional Funds - Working Capital | $40,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Currently $0, may charge up to $500 per month |
| Audit Fee | Dependent upon costs incurred by Mainstream if audit shows Net Revenues understated by more than 2% or Continuing Fees underpaid by more than $500 in any 12-month period |
| Local Advertising | 3% of Net Revenues per year minimum |
| MSB Cooperative | $1,000 paid over 4 years ($250/year offset from rebates) |
| Annual Convention Expenses | $500-$2,000 (currently $179 per person registration fee plus travel expenses) |
| Additional Training | Currently $0, may charge up to $300 per course per person |
| Service Charge | $50 for late payments (more than 10 days overdue) |
| Interest Charges | 18% per annum simple interest or maximum legal rate, whichever is less |
| Extension Fee | $2,500 for up to 6 months |
| Annual Modernization Costs | $500-$1,500 |
| Minimum Continuing Fees | $6,000 per 6-month period (first 2 periods after Year 1); $8,000 per 6-month period thereafter |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 days initial training plus online pre-training on SharePoint |
| Classroom Training | 22-23 hours |
| On-the-Job Training | 10 hours |
| Training Location | Mainstream's flagship store location in Apple Valley, Minnesota and Minneapolis, Minnesota |
| Additional Training | Online training via SharePoint intranet. Franchise Onboarding weekly calls for first 6 months. Monthly support from Franchise Coach after 6 months. Optional or mandatory additional training may be provided during franchise term at up to $300 per course per person. Annual convention required ($179 registration fee per person). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (with significant reservations) |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 population, not greater than 7-mile radius surrounding business |
| Description | Designated Territory surrounding Retail Location encompassing approximately 100,000 people but not greater than a 7-mile radius. Mainstream will not establish or franchise another full-service retail location within the territory. However, Mainstream and other franchisees may conduct Shows within the territory. Mainstream retains rights to sell through internet, dissimilar channels, direct sales, and other methods within the territory. Franchisee does not receive an exclusive territory. Under Scale with Style or Revive & Thrive programs, territory expands to 125,000 population with right of first refusal within 20 miles for 5 years. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (one additional term) |
| Renewal Fee | $5,000 |
| Renewal Conditions | Give 180 days notice; satisfy all material requirements of current Franchise Agreement; pay all amounts due to Mainstream; modernize business; pay $5,000 renewal fee; sign new Franchise Agreement (which may contain materially different terms); sign general release of claims |
| Transfer Fee | $20,000 |
| Transfer Conditions | Pay all money owed; comply with right of first refusal; transferee meets Mainstream's standards; transferee signs current Franchise Agreement; transferee completes training; pay $20,000 transfer fee; may remain liable for transferee obligations if transferee doesn't meet net worth requirements; sign general release of claims |
| Termination for Cause | 30 days to cure for material violations including failure to pay fees, failure to conform to Business System, failure to comply with Franchise Agreement. Immediate termination for insolvency, felony conviction, abandonment, material impairment of Marks (24 hours to correct), failure to comply with audit request, willful falsification of reports. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | For 2 years after termination, may not participate in any competing business within 25-mile radius of Retail Location, within 25-mile radius of any Mainstream Boutique franchisee, or over the internet. During term, may not participate in any competitive business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If individual, must participate in operation. If entity, must designate 51% owner who participates. Business must be under direct supervision of franchisee, principal owner, or approved designated manager at all times. Person responsible for day-to-day supervision must work full-time and may not engage in any other business requiring significant management responsibility or time commitments. All owners must sign Personal Guarantee. |
| Required Suppliers | Must purchase all products from Mainstream's Approved Vendor List. Must use approved suppliers for architecture, building designs, equipment, signage, fixtures and furnishings. Must purchase Mac & Me products. Must join MSB Cooperative. |
| Supply Restrictions | Cannot purchase unapproved products or from unapproved vendors. Mainstream may designate up to 30% of inventory style and type. New vendor requests require approval through Buying Office (1-2 week response time). Mainstream may terminate franchise for purchasing unapproved products. |
| Franchisor Revenue from Suppliers | Mac and Me received $23,335 from franchisee purchases in 2024. MB Management Company received $175,000 of rebates collected by MSB Cooperative in 2024 (50% management fee on rebate pool). Mainstream reserves right to receive 1%-10% or more in rebates in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Mainstream does not offer direct or indirect financing. Mainstream does not guarantee franchisee's note, lease or obligation. |
MAINSTREAM FASHIONS Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
MAINSTREAM FASHIONS 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 FASHIONS System Growth
MAINSTREAM FASHIONS currently operates 64 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 2 | 4 | 73 |
| 2023 | 2 | 6 | 69 |
| 2024 | 2 | 7 | 64 |
Transfers: 7 | Closures: 7
State Registrations
Registered in 10 states: CA, IL, IN, MI, MN, NY, ND, SD, VA, WI
Franchisor Financials (Item 21)
Audited by Independent auditor based in St. Louis Park, Minnesota for year ending December 31.
MAINSTREAM FASHIONS Franchise — FAQ
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