How Much Does It Cost To Open a Melting Pot Franchise?

Want to franchise with Melting Pot? The 93-unit experiential dining fondue franchise is growing around the country and even sweetening the pot for potential franchise partners with a new growth incentive. Here’s what it will cost to secure your spot in this quickly growing system. 

Melting Pot’s New Franchise Growth Incentive

While it typically costs between $1.4 million and $2.1 million to open a Melting Pot, the brand  has launched a franchise growth incentive designed to help the brand meet growing customer demand revealed by OpenTable, the online restaurant reservation service. OpenTable’s data shows limited table availability at peak times in major markets.

Through Melting Pot’s limited-time franchise growth incentive (which expires on July 1, 2024), approved candidates or current Melting Pot franchise owners can sign a new restaurant franchise agreement by paying a discounted franchise fee of $5,000 per unit (reduced from $45,000) with a rebate issued upon lease signing. To qualify for the rebate, leases must be signed within a nine-month period. Franchisees who sign the lease within six months will also benefit from a reduced royalty rate of 3% for the first year.

“We want to continue to show our franchisees that we are sincerely invested in their success,” said Bob Johnston, CEO of Melting Pot. “Through this incentive, we are focused on a few things: growth and cash to deploy on marketing/driving customers to the restaurants.”

How Much Will It Cost Me?

The estimated initial investment for a Melting Pot restaurant is $1,364,389 to $2,069,638. Here’s a detailed breakdown of the costs: 

• Initial Franchise Fee: $45,000
• Real Estate Services: $2,500
• Rent (First 3 Months): $28,500 - $81,250
• Security Deposit: $0 - $22,916
• Leasehold Improvements: $602,110 - $963,445
• Computer & POS Hardware/Software: $25,000
• Computer Software Installation & Training (First Year Subscription): $8,900 - $15,000
• Gift Card Processing & Website Development/Enhancement Fee: $677 - $747
• Restaurant Equipment, Furniture, Fixtures & Signage: $438,826 - $572,482
• Utility Deposits: $2,000 - $5,000
• Opening Inventory & Supplies: $65,000 - $75,000
• Grand Opening Advertising: $15,000 - $20,000
• Training Expenses: $31,026 - $68,299
• Licenses – Alcoholic Beverages, Business and Health: $6,000 - $10,000
• Insurance: $3,000 - $6,000
• Legal: $2,000 - $6,000
• Accounting Firm: $2,100 - $2,500
• Reservation System: $1,750 - $3,500
• Additional Funds (3 Months): $85,000 - $145,000

The Melting Pot's business model requires minimal and nontraditional kitchen setups, with franchisees needing to lease or rent a space of 4,400 to 5,000 square feet. Annual rental costs range from $115,000 to $250,000, with potential increases based on location and economic conditions. Leasehold improvements, including flooring and decorations, vary based on building condition and demand. Franchisees must use Melting Pot's designated design firm, which typically costs between $40,000 and $45,000.

These estimates are based on past experiences of opening Melting Pot locations. The actual costs may be higher, depending on your restaurant’s location, construction costs and other factors. You should review these figures with a business advisor before making a decision to purchase a Melting Pot franchise.

Melting Pot doesn’t offer financing for new restaurants. 

How Much Can I Earn? 

The earnings potential for franchised restaurants is detailed in the 2023 Franchise Disclosure Document. The data reveals that the highest third of franchised restaurants averaged $3.7 million in total sales, with the middle third averaging $2.2 million and the lowest third averaging $1.6 million.

Melting Pot's new franchise growth incentive offers a chance for entrepreneurs to enter the market with lower initial costs. While the estimated investment ranges from $1.4 to $2.1 million, franchisees can take advantage of reduced franchise fees and royalty rates. And with careful planning and execution, franchisees can tap into the brand's proven success and unlock significant earning potential. 

For more information on opening a Melting Pot franchise, visit https://www.meltingpotfranchise.com/.