Rocky Mountain Chocolate Factory is a mature franchise system with 140 total units selling premium chocolates and confectionery products. The system has been contracting, losing 11 net units in the most recent year with 13 terminations and only 2 openings. The franchise offers protected territories with 2-3 mile radius protection but faces significant operational restrictions. Investment ranges from $466K-$872K for full-sized stores and $176K-$461K for kiosks. The variable royalty structure (4-6% depending on Durango Product purchases) incentivizes buying from the franchisor. Financial performance data shows wide variation in sales per square foot across quartiles. The franchise agreement contains standard terms with 10-year initial term, two 5-year renewal options, and typical post-term restrictions including 2-year, 25-mile non-compete.
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AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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