About MELTwich Franchise
MELTwich is a fast casual restaurant franchise specializing in gourmet grilled cheese sandwiches, poutine, beverages, and related menu items.
Each location operates within a limited territory from a single site, bringing creative, indulgent comfort food to customers who crave elevated versions of the classic grilled cheese sandwich.
The franchise fee is $30,000, and MELTwich has been franchising since 2022 under its Canadian parent company, 1000286511 Ontario, Inc.
MELTwich Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000.00 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of weekly Gross Revenues | National brand fund |
| Total Investment Range | $227,000 – $400,400 | Includes build-out, inventory, working capital |
The investment range of $227K–$400K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Revenue) and marketing fee (2% of weekly Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Your Training Expenses | $0 | $4,000 |
| Lease & Utilities deposits | $4,000 | $12,000 |
| Leasehold Improvements, Construction and/or Remodeling | $75,000 | $197,500 |
| Furniture, Fixtures and Equipment | $90,000 | $120,000 |
| Signage | $3,500 | $3,500 |
| Business Licenses and Permits | $750 | $2,400 |
| POS/Computer System | $2,500 | $2,500 |
| Initial Inventory | $4,750 | $4,750 |
| Professional Fees | $1,500 | $3,750 |
| Grand Opening Advertising | $1,500 | $2,500 |
| Construction Supervision | $1,500 | $1,500 |
| Insurance | $1,000 | $1,000 |
| Operating Expenses / Additional Funds – 3 months | $11,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus our costs and expenses incurred in approving the transfer |
| Renewal Fee | Fifty percent (50%) of the then-current Initial Franchise Fee |
| Technology Fee | $50 per month |
| Audit Fee | Actual cost of examination plus related expenses |
| Required Minimum Expenditure for Local Marketing and Advertising | A minimum percentage of monthly Gross Revenues per calendar month. Currently none. |
| Advertising Cooperative | As determined by cooperative |
| Late Charge | $100 |
| Interest Charge | 1.5% per month from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $100 |
| Multi-Unit Development Agreement Transfer Fee | 50% of the then-current initial franchise fee for each remaining unit to be developed under the Multi-Unit Development Agreement. |
| Initial Training Fee (additional personnel) | $3,500 per person |
| Additional Training | Our then-current tuition, plus travel and other expenses. |
| Remedial Training Fee | $500 per person per day, plus travel and other expenses. |
| Interim Management Support Fee | Our then-current per diem rate for on-site management, plus expenses. Our current rate is 20% of Gross Revenues, plus travel and other expenses. |
| Evaluation Fee | Actual cost of inspection and testing of a proposed item or vendor. |
| Quality Review Services | Varies. |
| POS/Software/Applications Fees | $135/month |
| Liquidated Damages | Royalty Fees and Brand Development Fund Contributions for balance of Term. |
| Indemnification | Amount of loss or damages plus costs |
| Reimbursement of Cost and Expenses for Non-compliance | Actual costs and expenses, plus 10% |
| Reimbursement of legal fees and expenses | Our costs and expenses, including but not limited to attorneys’ fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Confidential Operating Manual Replacement Fee | $100, or our then-current fee |
| Insurance | Amount paid by us for your insurance obligations |
| Taxes | Amount of taxes |
| Third-Party Delivery Services | Varies. |
| Training Software | $50 per month |
| Non-Compliance Fee | $100 per incident per day. day of use of unauthorized products or services |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately seven (7) days |
| Classroom Training | 21 |
| On-the-Job Training | 48.5 |
| Training Location | Toronto, Ontario, Canada |
| Additional Training | Franchisor may offer mandatory or optional additional training programs. If required, franchisee must attend for up to five (5) days per year at a designated location and attend an annual business meeting or franchisee conference for up to five (5) days per year at a designated location. Fees may be imposed for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Under the Franchise Agreement, you have the right to establish and operate one (1) MELTwich outlet at a specific approved location. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, from other channels of distribution or competitive brands that we control. If you sign a Multi-Unit Development Agreement, you will not receive an exclusive development area. During the term of your Multi-Unit Development Agreement, provided you are not in default, we will not open another MELTwich outlet or grant the right to anyone else to open another MELTwich outlet within your development area until the expiration or sooner termination of your Multi-Unit Development Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | Fifty percent (50%) of the then-current Initial Franchise Fee |
| Renewal Conditions | Franchisee must be in full compliance, have no more than three (3) events of default during current term, provide written notice six months before term end, execute a new franchise agreement, pay a Successor Agreement fee of 50% of the then-current Initial Franchise Fee, have the right to occupy premises or approved relocation, remodel the business, execute a general release, and comply with current qualifications and training requirements, including additional training. New agreement terms may differ materially. |
| Transfer Fee | $10,000 plus our costs and expenses incurred in approving the transfer |
| Transfer Conditions | Franchisor's decision not to exercise right of first refusal; transferee meets current standards for qualifying franchisees; transferee signs current Franchise Agreement (which may have materially different terms); transferee and its general manager successfully complete Initial Management Training Program; all amounts owed to franchisor and third-party creditors are paid; franchisee and transferee sign a General Release; franchisee subordinates claims against transferee to franchisor; franchisee indemnifies franchisor for 1 year post-transfer; franchisor approves material terms and conditions of transfer; landlord's consent of lease assignment (if applicable); payment of transfer fee. |
| Termination for Cause | Franchisor may terminate if franchisee defaults. Defaults include insolvency, bankruptcy, falsifying reports, ceasing operations for 5+ days, losing possession of premises, failure to restore business within 120 days after casualty, failure to comply with laws, default under lease, understating Gross Revenue two or more times, failure to comply with insurance, unauthorized transfer, failure to transfer upon death/disability, misrepresentation in application, felony conviction, adverse judgment in fraud/racketeering, concealing revenues, creating public health/safety threat, refusing inspection/audit, unauthorized use of IP, non-compliance with non-compete, three or more defaults during term, two or more non-sufficient funds incidents, or default under other agreements. |
| Non-Compete Period | During the term of the franchise and for 24 months after termination or expiration |
| Non-Compete Details | During the term: Franchisee may not divert customers to competitors, participate as an owner/partner/director/officer/employee/consultant/agent in any similar restaurant or eatery business, or perform any act injurious to the goodwill of the System or interfere with franchisor's or other franchisees' business. Post-term (24 months): Franchisee may not divert customers to competitors, participate in any capacity in any competing business within 25 miles of their former MELTwich outlet or any other MELTwich outlet, induce franchisor's employees to leave, or perform any act injurious to the goodwill of the System or interfere with franchisor's or other franchisees' business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you personally supervise your MELTwich outlet. You may appoint a General Manager to oversee the day-to-day operations of your MELTwich outlet, but you must remain active in overseeing the Franchised Business. Your general manager can either be you or someone appointed by you who is acceptable to us. Your general manager must successfully complete our Initial Management Training Program and all other training courses we require. Your general manager must devote full time to the job and cannot have an interest or business relationship with any of our competitors. |
| Required Suppliers | Franchisee must purchase all equipment, fixtures, furnishings, ingredients, supplies and services, including computer systems and certain software, from designated suppliers and contractors or in accordance with franchisor's specifications. |
| Supply Restrictions | Franchisor maintains written lists of approved items of equipment, fixtures, furnishings, ingredients, supplies and services (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. These lists will be updated periodically. Franchisee may request approval for alternative items or suppliers, subject to franchisor's review and testing, for which a fee may be charged. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2021, the franchisor did not receive any revenue, rebates, discounts or other material consideration from suppliers based on required purchases; however, they may do so in the future and keep any such revenues at their sole discretion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
MELTwich Franchise Earnings — Item 19
MELTwich 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.
MELTwich 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.
MELTwich System Growth
MELTwich currently operates 0 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 | 0 | 0 | 0 |
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)
Audited by CliftonLarsonAllen LLP for year ending December 31st.
MELTwich Franchise — FAQ
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