FDD Analysis 2025 FDD

Scout & Molly's Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Scout & Molly's's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Scout & Molly's FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$319,000 - $388,000
Franchise Fee$60,000

Investment Breakdown

Initial Franchise Fee$60,000 - $60,000
Opening inventory; branded bags, promotional items$45,000 - $60,000
Lease$12,000 - $20,000
Upfit, furniture, signage, and fixtures$94,000 - $129,000
Equipment, POS applications, software, web based memberships and telephones$4,000 - $6,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee7% of gross sales
Marketing/Advertising Fee1% of gross sales

Other Ongoing Fees

Brand Development Fund1%
Transfer FeeVaries
Audit FeeVaries
Proprietary Software and POS User FeeVaries
Collection and Interest ChargesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$779,036/year
Disclosure Year2025
Reporting Units
Revenue VarianceModerate variance (typical spread)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

20

Total Units

-2

Net Growth (YoY)

-9.1%

Growth Rate

Franchised Units20
Company-Owned Units

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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