About MidnighTreats Franchise
MidnighTreats is a late night dessert and treats franchise catering to customers who crave sweets after traditional business hours.
The brand carves out a unique niche by offering delivery and late night service windows, filling a gap in the market that most bakeries and dessert shops leave open.
MidnighTreats began franchising in 2024, targeting urban and college town markets with high demand for after hours food options.
MidnighTreats Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (Brand Development Fund, currently not charged); 2% of Gross Sales (Local Marketing) | National brand fund |
| Total Investment Range | $201,900 – $449,000 | Includes build-out, inventory, working capital |
The investment range of $202K–$449K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (Brand Development Fund, currently not charged); 2% of Gross Sales (Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Construction and Leasehold Improvements | $90,000 | $225,000 |
| Lease Deposits and Rent – Three Months | $14,500 | $25,000 |
| Furniture, Fixtures and Equipment | $30,000 | $82,000 |
| Signage | $5,000 | $12,000 |
| Computer, Software, and Point of Sale System | $800 | $2,000 |
| Grand Opening Marketing | $8,000 | $12,000 |
| Initial Inventory | $5,000 | $10,000 |
| Utility Deposits | $500 | $1,500 |
| Insurance Deposits – Three Months | $500 | $1,500 |
| Travel for Initial Training | $2,000 | $4,000 |
| Professional Fees | $5,000 | $17,000 |
| Licenses and Permits | $600 | $2,000 |
| Additional Funds – Three Months | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Up to $500 per month, currently not assessed |
| Audit Fee | Cost of audit |
| Local and Regional Advertising Cooperatives | As established by cooperative members, not to exceed the local marketing requirement |
| Annual Conference Attendance Fee | Not greater than $1,500 |
| Additional Employee Initial Training | $300 per person per day |
| Supplemental On-Site Training | $300 per day plus expenses |
| 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 |
| Quality Assurance Audit | Actual costs incurred by us |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance (general) | 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 | approximate four day period |
| Classroom Training | 16.0 |
| On-the-Job Training | 16.0 |
| Training Location | Vienna, Virginia and Alexandria, Virginia |
| Additional Training | Supplemental on-site training and initial training for replacement operating managers are offered. Supplemental training costs $300 per trainer per day plus expenses. Franchisees are responsible for all travel, lodging, and salary expenses for trainees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a distance of three miles from the Shop Location in all directions travelable by road, but may be smaller based on population density, demographics, and geographical boundaries. |
| Description | The Designated Territory may be identified by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations. While the franchisor will not establish or grant another franchisee the right to open a MidnighTreats Shop within your Designated Territory (excluding Closed Markets), it reserves the right to operate and grant franchises for other channels of distribution and captive markets within your territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 consecutive years |
| Renewal Term | one additional 10 year term |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, the franchisee must be in compliance with the Franchise Agreement, provide 180 days prior written notice, sign the then-current Franchise Agreement and related agreements, sign a general release, pay a renewal fee, remodel and upgrade the Shop to current standards, secure legal right to occupy the premises, and meet all other renewal requirements. Owners and their spouses must also guarantee the terms of the renewal agreement. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Approval requires 30 days prior written notice, franchisee and owners must not be in default, transferee must meet qualifications and agree to be bound by the agreement, transferee's owners and spouses must guarantee obligations, franchisee and owners must sign a general release, assets must be transferred, transferee and managers must complete training, and the transfer fee must be paid. The franchisor has a right of first refusal. |
| Termination for Cause | The franchisor can terminate the agreement if the franchisee defaults on its terms, including failure to pay fees, comply with operational standards, maintain insurance, or provide accurate reports. Certain defaults, such as intentional breaches or threats to public health, may result in immediate termination without a cure period. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise and for 24 months after termination or expiration, the franchisee, owners, and their spouses are prohibited from having any interest in or operating a competitive business within the Designated Territory, a 25-mile radius around it, or a 10-mile radius of any other MidnighTreats Shop. This includes complying with confidentiality and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee's Managing Owner is required to be personally responsible for the day-to-day management and overall supervision of the Shop, complete initial training, and be approved by the franchisor. While personal participation is recommended, an Operating Manager can be hired to supervise on-site operations, provided they meet franchisor standards, complete training, and sign a confidentiality agreement. Each Shop must be managed on-site by either a Managing Owner or an Operating Manager. |
| Required Suppliers | Franchisees are required to purchase or lease certain source-restricted goods and services, including System Supplies, branded furniture and fixtures, signage, Point of Sale System and computer equipment, credit card processing, online ordering, customer rewards, gift card systems, and branded marketing materials, from the franchisor, its affiliates, or designated/approved suppliers. The franchisor may designate itself or a third party as the sole and exclusive supplier for certain items. |
| Supply Restrictions | Franchisees must purchase or lease items from the franchisor or a limited group of designated suppliers, which may be more expensive than similar items available elsewhere. Specifications and lists of approved suppliers are provided in the Operations Manuals. Any proposed alternate suppliers must be submitted for written approval, which may incur a fee for review and evaluation by the franchisor. |
| Franchisor Revenue from Suppliers | Franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. The franchisor reserves the right to institute and expand rebate programs in the future. As of the FDD issuance date, the franchisor has not received revenue 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. |
MidnighTreats Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
MidnighTreats 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.
MidnighTreats System Growth
MidnighTreats currently operates 0 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 |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 2 | 0 | 2 |
| 2023 | 1 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
MidnighTreats Franchise — FAQ
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