Menchie's
The total investment to open a Menchie's franchise ranges from $30,000 to $423,540. The initial franchise fee is $25,750. Ongoing royalties are 6% plus a 3% advertising fee.
What is the Menchie's franchise?
Menchie's Frozen Yogurt operates in the Limited Service Restaurants sector with a self serve frozen yogurt concept built around an interactive, family oriented experience. Danna and Adam Caldwell founded the company on May 15, 2007, and opened the first store in Valley Village, Los Angeles, California. The name Menchie came from Adam's nickname for Danna and is also used for the brand mascot. Menchie's began franchising in 2008. Amit Kleinberger joined that year and remains Chief Executive Officer. Danna Caldwell has served as President and a board director since 2008, while Adam Caldwell has been Co Founder and Chief Operations Officer since 2008. Elie Balas has served as Chairman of the Board and Director of Business Development since 2008. The company is headquartered in Encino, California, United States. Recent data reports more than 540 locations worldwide and 302 locations in the United States, including 296 franchised units and 1 company owned unit in 2024. Another source reports 297 active United States franchises. Menchie's has expanded into 11 countries internationally, with the listed markets including the United States, Puerto Rico, Canada, England, South Africa, Kuwait, Bahrain, the Bahamas, Bangladesh, Guatemala, the United Arab Emirates, Qatar, India, China, and Japan. A separate data set reports 48 total units, 198 franchised units, and 0 company owned units. The global Limited Service Restaurants market is projected at $871.02 billion in 2025 and approximately $1,436 billion by 2034, reflecting a compound annual growth rate of 5.7%. The United States market is estimated at $97.85 billion in 2025 and projected to reach $133.71 billion by 2030 at a compound annual growth rate of 6.45%.
Limited Service Restaurants represent 80% of consumer spending in the United States food service sector. The category was valued at $871.02 billion globally in 2025 and is forecast to reach approximately $1,436 billion by 2034 at a compound annual growth rate of 5.7%. In the United States, the market is projected at $97.85 billion in 2025 and $133.71 billion by 2030, based on a compound annual growth rate of 6.45%. Consumer interest in healthier and more sustainable food options supports Menchie's customizable, low calorie frozen yogurt with live and active cultures and the Live and Active Culture seal. Delivery and takeout services grew by over 20% in the limited service sector in the past year. Mobile ordering and artificial intelligence based customer service are additional areas of development. Menchie's Mix Weigh Pay format lets guests choose flavors and toppings, supporting customization and convenience. The category has steady demand for quick food and can support expansion through franchise systems. Menchie's also focuses on an entertaining, interactive, family oriented environment, while post pandemic interest in experiential dining, technology, value, and convenience continues to shape competition.
The initial franchise fee is reported as $40,000, while an earlier 2007 source listed $53,900 and another data set listed $25,750. The fee is generally paid when the Franchise Agreement is signed. Total initial investment is reported from $143,000 to $471,000, with other sources listing $165,000 to $425,000, $218,325 to $385,158, and $165,110 to $424,571. An average startup cost is often cited at $300,000 to $350,000. Another database reports $30,000 to $423,540. The FDD breakdown lists $40,000 for the Initial Franchise Fee, $625 to $2,600 for training travel and living costs, $1,593 for lease deposit and rent, and $56,230 to $205,570 for leasehold improvements. Other costs include $5,735 to $5,850 for the Computer POS System, $3,435 to $8,475 for signage, $5,300 to $7,300 for opening inventory, and $1,000 for uniforms, merchandise, equipment, and sales. Franchisees should also budget $3,000 for grand opening marketing, $200 to $3,700 for utility deposits, professional fees, and business licenses, $1,000 to $1,500 for three months of insurance, an inspection fee of up to $1,500, and $6,000 to $36,000 for three months of additional funds. The FDD total is $142,683 to $471,087. This is below dessert subsector averages of $296,855 to $591,723. Ongoing fees include a royalty of 6% of gross sales and a national advertising contribution of 2% of gross sales. The stated liquid capital requirement is $120,000, while other sources cite $80,000 to $90,000 for SBA commercial loan qualification. A separate data set lists $350.00 in liquid capital. Minimum net worth is $300,000, with other sources citing approximately $350,000 or $350,000 for SBA loan qualification.
Menchie's operations center on the Mix Weigh Pay self service format. Guests create frozen yogurt combinations from available flavors and toppings, while staff maintain product quality, service equipment, ingredients, and store cleanliness. Daily work can include cutting fresh fruit and cleaning the machines. The self serve structure may require fewer employees than a full service restaurant. Food service experience is preferred but not required. Menchie's provides training at no additional cost for the franchisee or the designated Operating Partner and one manager level employee. Training covers company culture, guest care, and product knowledge, with 51 hours of hands on job training and 76 hours of classroom instruction. Ongoing support includes operations assistance, social media, search engine optimization, email campaigns, site selection guidance, and proprietary software. Franchise agreements provide protected territories. Specific multi unit requirements are not detailed. The preferred owner profile is a hands on entrepreneur who participates in daily management and guest interactions.
Recent data reports more than 540 global locations and 302 United States locations, including 296 franchised units, while another data set reports 198 franchised units. Menchie's grew from approximately 40 units in 12 states in 2010, with a goal of 100 by year end. The brand's private label frozen yogurt and customer experience are intended to support repeat business.
Menchie's had approximately 40 units in 12 United States states in 2010 and aimed to reach about 100 locations by the end of that year. By July 2010, it had 42 stores in eleven states and 45 additional locations under development. International expansion plans announced in early 2011 included Canada, Japan, Mexico, Dubai, and Australia. By 2014, franchisees had opened 142 locations over two fiscal years.
Loan Activity Score
51/100
SBA Default Rate
12.8%
Active Lenders
83
According to its Franchise Disclosure Document or public business records, Menchie's has 198 locations, all owned by franchisees. Public SBA loan records show 83 lenders made 258 loans to franchisees of Menchie's. PeerSense calculates Menchie's's score as 51 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 2008 · 198 locations
$30,000 to $423,540
$25,750
198
198 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Menchie's
258
Total SBA loans
$279K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Menchie's
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
12.8%
vs 10.3% peer avg
SBA Loans
258
Total Volume
$72.0M
Active Lenders
83
17 selective
States
34
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Menchie's based on SBA lending data
SBA Default Rate
12.8%
2.5% above peer avg
SBA Loan Volume
258 loans
Across 83 lenders
Lender Diversity
83 lenders
Avg 3.1 loans per lender
Investment Tier
Mid range investment
$30,000 to $423,540 total
Menchie's: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2015
43 approvals. The best year on record for Menchie's.
Top SBA State
California
63 SBA financed Menchie's locations, the densest operator footprint.
Average Loan Size
$279K
Median $299K. Use as a sizing anchor when modeling your own Menchie's unit.
Lender Concentration
25.2%
Moderately Spread
Share of Menchie's approvals captured by the top 3 SBA lenders.
Menchie's's SBA lending pipeline peaked in 2015 (43 approvals). The last five fiscal years account for 12% of cumulative volume ($7.6M approved). Operator density is highest in California with 63 SBA financed locations. Average funded ticket sits at $279K, with the median at $299K. Lender mix is moderately spread: the top three SBA lenders account for 25.2% of approvals. Meaningful choice exists, but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$311
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Menchie's, unit breakdown
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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; it does not lend, fund, or approve loans, and 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
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