Melt Shop announced today that it will expand its footprint by opening 18 locations in Pennsylvania, New Jersey, and Delaware as a part of its first development deal. This new partnership supports Melt Shop's aggressive plans to grow to 100 locations worldwide over the next five years. The first location is slated to open in Delaware in 2018.
New franchise partner Drew Smith, a Pennsylvania native, will own and operate Melt Shop's newest restaurants. He is a seasoned multi-unit franchisee, owning and operating 23 Five Guys locations throughout the greater Philadelphia area. Prior to his career in franchising, Smith earned an MBA from Duke University and worked in private equity investing.
"Backed by fellow Five Guys franchisees, Melt Shop was the clear choice for me when I decided to diversify my portfolio," said Smith, Chief Executive Officer of Rockham Melt, LLC. "Its smooth and efficient operations coupled with its focus on food quality and customer satisfaction make it a winning combination. I'm eager to begin this journey with Melt Shop and stand behind an emerging concept I love."
Founded by Spencer Rubin in 2011, Melt Shop has eight corporate locations throughout New York, Philadelphia, and Minneapolis, and signed a multi-unit deal to open seven restaurants in the Middle East, four of which will open by the second quarter of 2018. Last month, Melt Shop signed its first domestic franchise agreement to open a location in Staten Island Mall in Staten Island, New York.
"It has been a stellar year for Melt Shop with the launch of our franchise program and we're looking to continue this momentum in 2018," Rubin said. "Finding an experienced, knowledgeable partner like Drew to sign our first development deal is key to catapulting our growth. We're excited to have him join our family and see how far he will take the Melt Shop brand."
Melt Shop's focus is simple: melted sandwiches made with high-quality ingredients. The product and processes have been meticulously refined for more than six years. But Melt Shop does more than create melted sandwich masterpieces — it creates a culinary experience unmatched in the fast-casual space. The food unlocks the feelings, memories and moments that bring people joy. It's a reminder of the good, simple, carefree things in life.
Melt Shop is seeking qualified franchisees to join the brand and currently has opportunities domestically in markets such as the Northeast, Midwest, and Florida, and in most international markets, including the Middle East, Southeast Asia, Japan, China, India, Mexico, South America, Canada, Western Europe, and Australia. Melt Shop is poised for excellent ROI with an estimated initial investment range of $368,240 – $698,800 for the first location, including a franchise fee of $35,000 and a sales range of $1,016,984 - $1,640,406 (sale range based on Melt Shops' six corporate restaurants open over 12 months as of the end of 2016, as referenced in Item 19 of the 2017 FDD). Melt Shop is seeking well-capitalized partners who are entrepreneurial and have a strong knowledge of their market. The ideal franchisee is a proven multi-unit operator in the restaurant industry.
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