In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Rocky Mountain Chocolate Factory franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Rocky Mountain Chocolate Factory franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Rocky Mountain Chocolate Factory outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Rocky Mountain Chocolate Factory franchise opportunity

Section V – Presentation and analysis of Rocky Mountain Chocolate Factory’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, lowest, and combined annual gross retail sales for the top 25%, middle 50%, lower 25%, and all 143 franchised Rocky Mountain Chocolate Factory Stores that had been open during Rocky Mountain’s most recent fiscal year ending February 29, 2024

Section VI – Key ratios, comparables, computations, and analyses for the Rocky Mountain Chocolate Factory franchise opportunity (exclusive content for Platinum subscribers)

Section I – Rocky Mountain Chocolate Factory Franchise Costs

• Initial Franchise Fee:  $35,000
• Real Estate and Improvements:  $95,200 to $456,000
• Furniture and Fixtures:  $42,500 to $55,000
• Equipment:  $42,500 to $120,000
• Point of Sale (POS) System, a Basic Personal Computer and Specified Software:  $6,500
• Signs:  $3,200 to $14,595
• Inventory and Cooking Supplies Purchased from Rocky Mountain:  $9,500 to $33,000
• Inventory and Cooking Supplies Purchased from Other Suppliers:  $543 to $6,510
• In-Store Promotional Graphics:  $3,500 to $12,500
• Security Deposits, Utility Deposits, Business Licenses, and Lease Review Fees:  $5,425 to $12,000
• Pre-Opening Training, Travel and Living Expenses:  $2,170 to $5,425
• Additional Funds – 3 Months:  $21,049 to $68,358
• Total Estimated Rocky Mountain Chocolate Factory Franchise Costs:  $267,087 to $824,888

Section II – Rocky Mountain Chocolate Factory’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $35,000 for a full-sized Store; $20,000 for a Kiosk Store

• Royalty:  initially 5% of Gross Retail Sales for the earlier of the first 12 months of operation or until February 28th or 29th of the year immediately following the opening of your Store, whichever comes first. Thereafter, (i) 6% of Gross Retail Sales each month, if less than 60% of your prior period Gross Retail Sales were from the sale of Durango Product on an annual basis; or (ii) 5% of Gross Retail Sales each month, if 60% to 64% of your prior period Gross Retail Sales are from the sale of Durango Product on an annual basis; or (iii) 4% of Gross Retail Sales each month, if 65% or more of your prior period Gross Retail Sales are from the sale of Durango Product on an annual basis.

• Marketing and Promotion Fee:  up to 3% of Gross Retail Sales; currently, Rocky Mountain Chocolate Factory charges 1% of Gross Retail Sales

Section III – Number of Franchised and Company-Owned Rocky Mountain Chocolate Factory Outlets

Franchised

2021

• Outlets at the Start of the Year:  159
• Outlets at the End of the Year:  155
• Net Change:  -4

2022

• Outlets at the Start of the Year:  155
• Outlets at the End of the Year:  154
• Net Change:  -1

2023

• Outlets at the Start of the Year:  154
• Outlets at the End of the Year:  150
• Net Change:  -4

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  2
• Net Change:  +1

Section IV – News Updates on the Rocky Mountain Chocolate Factory Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Rocky Mountain Chocolate Factory Franchise (Item 19, 2024 FDD)

• The information provided below is based on reports of Gross Retail Sales (as defined in the Franchise Agreement) provided by the 143 franchised Rocky Mountain Chocolate Factory Stores that had been open and operating for at least 12 months during Rocky Mountain’s most recent fiscal year ending February 29, 2024. The total number of all franchised Stores for the fiscal year ending February 29, 2024 is 150.

• The Gross Retail Sales for Stores that Rocky Mountain owns are not included in this information, but Rocky Mountain has included information on any satellite or temporary Stores operated by franchisees.

• Differences in Gross Retail Sales may be attributable to differences in the mix of Durango Product, Store Made Product, or other non-edible items offered for sale at each Store, which is subject, in part, to the franchisee’s discretion.

• The information below was prepared from royalty reports and sales data provided by each individual franchisee. A franchisee pays Rocky Mountain a royalty based on sales.

• Rocky Mountain knows of no instance, and has no reason to believe, that any franchisee would overstate its level of sales receipts in its royalty report; however, these results have not been audited and Rocky Mountain has not independently verified these results.

Fiscal Year 2023 Actual Gross Retail Sales for All Franchised Stores

Top 25%

• Number of Stores:  36
• Combined Annual Gross Retail Sales:  $38,528,697
• Average Annual Gross Retail Sales:  $1,070,242
• Number of Stores That Met or Exceeded the Average:  13 out of 36 (36%)
• Median Annual Gross Retail Sales:  $813,456
• Highest Annual Gross Retail Sales:  $2,516,593
• Lowest Annual Gross Retail Sales:  $698,029

Middle 50%

• Number of Stores:  72
• Combined Annual Gross Retail Sales:  $36,829,279
• Average Annual Gross Retail Sales:  $511,518
• Number of Stores That Met or Exceeded the Average:  39 out of 72 (54%)
• Median Annual Gross Retail Sales:  $527,039
• Highest Annual Gross Retail Sales:  $694,411
• Lowest Annual Gross Retail Sales:  $350,410

Lower 25%

• Number of Stores:  35
• Combined Annual Gross Retail Sales:  $8,851,704
• Average Annual Gross Retail Sales:  $252,906
• Number of Stores That Met or Exceeded the Average:  20 out of 35 (57%)
• Median Annual Gross Retail Sales:  $279,511
• Highest Annual Gross Retail Sales:  $345,102
• Lowest Annual Gross Retail Sales:  $58,206

All Stores

• Number of Stores:  143
• Combined Annual Gross Retail Sales:  $84,209,680
• Average Annual Gross Retail Sales:  $588,879
• Number of Stores That Met or Exceeded the Average:  51 out of 143 (36%)
• Median Annual Gross Retail Sales:  $527,772
• Highest Annual Gross Retail Sales:  $2,516,593
• Lowest Annual Gross Retail Sales:  $58,206

• The table above shows franchisee-reported gross sales of franchised Stores during Rocky Mountain’s most recent fiscal year ended February 29, 2024.

• The gross sales figures do not reflect the costs of sales, operating expenses, taxes, refunded sales, settlements, gift card revenues, non-inventory sales, or shipping expenses charged to a customer that must be deducted from the gross sales figures to obtain net income, profit, or loss.

• Rocky Mountain does not disclose information about expenses or costs. You should conduct an independent investigation of the costs and expenses you will incur in operating your Rocky Mountain Chocolate Factory Store.

• Rocky Mountain recommends that you consult with an accountant to assist you in your investigation of costs and expenses. Franchisees or former franchisees, listed in the disclosure document, may be one source of this information.

• Some Stores have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

• This financial information is prepared without an audit.

Section VI – Rocky Mountain Chocolate Factory Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️