Rocky Mountain Chocolate Factory Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1982

Headquarters: Durango, Colorado

Estimated Number of Units: 140

Franchise Description: The franchisor is Rocky Mountain Chocolate Factory, Inc. The franchisor offers franchises for the establishment and operation of retail stores that sell premium chocolates and other premium confectionery products and feature “Rocky Mountain Chocolate Factory” brand candy and related products that franchisees purchase from the franchisor’s production facility in Durango, Colorado, confectionery items that franchisees make in their store prepared from recipes and specifications, through the process of molding, cooking and dipping various foods, such as caramel apples, crackers, pretzels, fresh and dried fruits, dog bones, plain chocolate and other items the franchisor approves in writing, in its sole discretion, and non-confectionery items, including gifts and small toys.
Training Overview: Franchisees (and, if applicable, their manager) must complete the initial training program to the franchisor’s satisfaction. The franchisor does not charge franchisees for this training for up to three individuals, although they must pay travel, living expenses and wages for them and all employees who attend the training session. The initial training program consists of a total of four days of instruction, and all training is currently conducted in Durango, Colorado, or via webinar or other remote transmission, or at an existing franchised location, at the franchisor’s discretion. The training material consists of written, video and audiotaped instruction. The initial training program includes hands-on training in a mock retail store in the franchisor’s training center in Durango, Colorado or via remote transmission, in the franchisor’s discretion. In addition to the initial training program, the franchisor will provide up to five days of opening assistance at the franchisee’s store near the time that the store opens. As often as annually, the franchisor may require franchisees and/or their general manager to attend in person, at the franchisee’s expense, a national, regional or local meeting, training seminar or conference that the franchisor presents for the purpose of discussing a topic such as advertising programs, new operations methods, training, management, sales, or sales promotion, to the extent that the franchisor offers any meetings, seminars or conferences.

Territory Granted: Franchisees will operate their Rocky Mountain Chocolate Factory store at a specific location that is referred to as the “franchised location” in the Franchise Agreement. The franchisor will grant franchisees a “protected territory.” This means that during the term of the Franchise Agreement the franchisor will not establish, nor permit anyone else to establish, another Rocky Mountain Chocolate Factory business within the protected territory. The protected territory is determined based on the geographic area and populations properties within that area and other relevant demographic characteristics and will typically be a two to three mile radius around the store. The franchisor may not grant franchisees this right if their Rocky Mountain Chocolate Factory business is located in a metropolitan area (areas in which the population during any 24-hour period exceeds 50,000 persons per square mile). In addition, the franchisor may not grant franchisees this right if their Rocky Mountain Chocolate Factory business will be located in a non-traditional location. Except for situations described in the FDD, as long as franchisees are in full compliance with the Franchise Agreement, then the franchisor and its affiliates will not operate or grant a franchise for the operation of a Rocky Mountain Chocolate Factory store at a location in the protected territory during the term of the Franchise Agreement.

Obligations and Restrictions: Franchisees (or their managing partner or principal shareholder) are not required to participate personally in the direct on-premises operation of their store although the franchisor strongly urges them to do so. If franchisees (or their managing partner or principal shareholder) do not participate in the day-to-day operation of the store, they must designate a general manager to be responsible for the direct on-premises supervision of the store at all times during its hours of operation. If franchisees are a business entity, the franchisor does not require that the general manager own an equity interest in the franchise. Franchisees must sell or offer for sale only those products and services authorized by the franchisor, and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods and techniques. Franchisees must obtain the franchisor’s consent in writing before they operate food carts, participate in food festivals or offer any other type of off-site services using the franchisor’s marks and licensed methods.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two extensions of five years each are available, if requirements are met.

Financial Assistance: The franchisor may choose to extend financing for up to 50% of the total investment for the purchase of a Rocky Mountain Chocolate Factory business.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$20,000	$35,000
Real Estate and Improvements	$27,000	$521,000
Furniture and Fixtures	$32,000	$101,000
Equipment	$41,000	$60,000
Point of Sale (POS) System, a basic personal computer and specified software	$7,500	$12,500
Signs/Graphics	$3,200	$15,000
Opening Inventory	$7,500	$35,000
Inventory and Cooking Supplies Purchased from Other Suppliers	$500	$10,000
In-Store Promotional Graphics	$4,000	$6,800
Security Deposits, Utility Deposits, Business Licenses, and Lease Review Fees	$5,200	$20,000
Pre-Opening Training, Travel and Living Expenses	$2,200	$5,400
Additional Funds – 3 months	$25,500	$50,000
ESTIMATED TOTAL*	$175,600	$871,700

*The estimated initial investment range covers from a kiosk up to a full-sized retail store.

Other Fees

Type of Fee	Amount
Cost of Factory Candy, Ingredients and Other Products	As stated in the franchisor’s published price lists.
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 the store, whichever comes first. Thereafter, royalty varies from 6% down to 4% of gross sales depending upon the amount of Durango Product sales on an annual basis.
Marketing Fund Contribution	1% of gross retail sales.
RMCF Internal Inspection and Audit Fee	Costs of audit or inspection.
Transfer Fee	$5,000
Successor Franchise Fee	$5,000
Expiration Fee	$1,000
Store Upgrades	Estimated range is $10,000 to $250,000.
Costs and Attorneys’ Fees	Varies under circumstances.
Interest	18% per annum.
Relocation Fee	$10,000 plus our costs (including attorney fees).
Design Fee for the Interior and Layout of Relocated or Remodeled Stores	$5,000
Indemnification Under Franchise Agreement	Varies under circumstances.
Insurance	If franchisees fail to obtain insurance, the franchisor may obtain insurance for them, and they must reimburse the franchisor for the cost of insurance obtained plus 20% of the premium for an administrative cost of obtaining the insurance.
Administrative Fee	Varies up to 15% of the amount collected by the franchisor.
Operations Manual Return Fee	Currently $150 per volume not returned to the franchisor or not transferred to buyer.

The above information has been compiled from the FDD of Rocky Mountain Chocolate Factory. Year of FDD: 2025.
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