Scout & Molly's vs Style Encore
Scout & Molly's vs Style Encore: Scout & Molly's costs $288K to $388K to open; Style Encore costs $33K to $328K. Scout & Molly's has 17 units, Style Encore has 18. SBA loan history: Scout & Molly's = 17 loans (23.5% default); Style Encore = 24 loans (4.2% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Scout & Molly's vs Style Encore: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Style Encore requires the lower minimum capital commitment ($33K vs $288K for Scout & Molly's), a 773% spread. Initial franchise fees come in at $60K for Scout & Molly's versus $25K for Style Encore, Style Encore has the lower entry fee. Ongoing royalty load is 7% for Scout & Molly's and 5% for Style Encore, giving Style Encore the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Style Encore operates 18 units to Scout & Molly's's 17. Scout & Molly's has been operating 24 years (founded 2002) versus 13 for Style Encore (founded 2013), a 11-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Style Encore has the deeper SBA lending track record, with 24 7(a) approvals compared with 17 for Scout & Molly's.
Risk Signal
SBA default rates are 23.5% for Scout & Molly's and 4.2% for Style Encore, Style Encore has the cleaner SBA loss record by 19.3 points. PeerSense FPI scores come in at 28 (Fair) for Scout & Molly's and 51 (Moderate) for Style Encore, giving Style Encore the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 28/100 | 51/100 |
Health Tier | Limited | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 17 | 24 |
SBA Volume | – | – |
Default Rate | 23.5% | 4.2% |
Peer Tier | growing | growing |
Investment & Costs
Total Investment | $288K to $388K | $33K to $328K |
Franchise Fee | $60K | $25K |
Royalty Rate | 7% | 5% |
Ad Fund | 1% | 2% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 17 | 18 |
Franchised Units | 17 | 18 |
Company Owned | – | – |
Term Length | 20 yrs | 10 yrs |
Brand Information
Year Founded | 2002 | 2013 |
Franchising Since | 2014 | 2013 |
Years Franchising | 12 yrs | 13 yrs |
Headquarters | King of Prussia, PA | AUSTIN, TX |
Category | Clothing Accessories Stores | Clothing Accessories Stores |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Scout & Molly's or Style Encore?
Lower upfront capital required
Style Encore
Scout & Molly's: $288K starting · Style Encore: $33K starting
More SBA lender confidence
Style Encore
Scout & Molly's: 17 SBA loans · Style Encore: 24 SBA loans
Lower SBA default rate
Style Encore
Scout & Molly's: 23.5% · Style Encore: 4.2%
Larger system & brand presence
Style Encore
Scout & Molly's: 17 units · Style Encore: 18 units
Lower ongoing royalty load
Style Encore
Scout & Molly's: 7% · Style Encore: 5%
More lender financing options
Style Encore
Scout & Molly's: 6 unique lenders · Style Encore: 14 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Scout & Molly's vs Style Encore: Franchise Funding Comparison
Comparing Scout & Molly's and Style Encore is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $33K to $388K.
Scout & Molly's has 17 SBA loans on record and Style Encore has 24. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Scout & Molly's vs Style Encore, Frequently Asked Questions
Which is a better franchise investment, Scout & Molly's or Style Encore?
How much does a Scout & Molly's franchise cost compared to Style Encore?
Can I finance Scout & Molly's or Style Encore with an SBA loan?
Which has a lower SBA default rate, Scout & Molly's or Style Encore?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman